Running a home service business is hard work. Not only do residential service providers have to worry about their day-to-day operations, but they also have to find ways to increase their revenue and keep the business afloat. And, at times, it could be quite a challenge!
While most businesses struggled to outlast the pandemic, 2022 proved to be a transitional year for the home services industry. According to a recent Angi report on the home services industry, the total addressable market hit a new milestone of $657 billion. This is not surprising as most people spend more time at home due to the new normal and remote work.
Since then, increasing sales and revenue has been the highest priority for most home service businesses. Being customer-obsessed and analyzing how they respond to marketing efforts can help a growing residential services business decide the right way to attract new customers while focusing on customer retention.
In this article, we’ll explore five ways home services businesses can use to increase their revenue and profitability rapidly.
Tried-and-Tested Tips to Increase Your Home Services Business Revenue
1. Establish your online presence
From figuring out a movie to watch to purchasing a new product, and the internet is the first place people look. Gone are the days when people would directly call a home services provider to book an appointment. Now they just look online to find the best possible deal for their needs.
Online presence is no longer an option for success, and it's now mandatory for survival. It is vital for your services business to establish an online presence, as it not only helps promote your brand but also enables you to build strong customer relationships and foster engagement.
Establishing an online presence gives you the opportunity to reach potential customers at a relatively low cost.
An online presence goes beyond setting up a website with information about you. It's a virtual point where people can find you, interact with you, learn more about your offerings, gauge your expertise, and ultimately gain trust.
Here are a few ways of establishing your online presence
- Build a strong and professional website
- Optimize your search ranking
- Create effective social media marketing
- Create content to build brand awareness
2. Win back your lost customer
Every customer counts. Acquiring a new customer can be 25 times more expensive than retaining an existing one. Businesses with higher churn rates have smaller profit margins as the reviews left by dissatisfied customers can tarnish their reputation, having a negative impact on the brand.
The ability to stay in regular contact with your lost customers is vital. It is easier, cheaper, and safer to focus on keeping the existing ones rather than continuously investing in attracting new ones. You just need to extend the customer journey to bring back your old customers. Sending attractive incentives to your inactive customers can help you lure them back.
Many businesses lose customers because of the inability to meet customers' expectations. Therefore delivering exceptional customer service is a great place to start if you are to retain or win back customers.
3. Adapting to rapid changes
Adaptability has become the catchphrase of the modern era. Businesses have to rapidly adapt and change if they are to stay ahead of their peers in a competitive market.
Microsoft is a perfect example of embracing new changes. For instance, the launch of ChatGPT turned the world upside down with its capabilities. While businesses were banning the use of that product for fear of the unknown, Microsoft was one of the first companies to respond positively to this new invention.
Understanding the true potential of ChatGPT, the tech giant saw it as an opportunity to overtake its competitor, Google, head-on. It integrated ChatGPT’s latest version with its search engine powering up the capability and tempting users to switch from their preferred search engine.
Similarly, businesses need to adopt and incorporate new technological advancements into their daily operations to remain competitive and bolster revenue. Introducing a mobile application helps you gain an advantage and enables you to improve customer engagement.
A personalized customer portal offers a handful of features that enhance transparency, break down communication gaps, and increase overall satisfaction. Failing to keep up with the change may threaten the success of your business.
4. Deliver a consistent quality service
Consistency is fundamental to delivering superior customer service. Offering great customer service will not only help you retain your existing customers but can also help you attract new customers.
An exceptional customer experience is an outcome of superior service delivery by the field workforce. The key to delivering a high-quality experience consistently is focusing on customer-centricity and offering your team the proper training they need.
A skilled field service technician not only carries outs his regular tasks but goes above and beyond, committing himself to achieve organizational goals. By improving the quality of your service delivery, maximize your customer satisfaction and repeat sales, ultimately leading to higher revenue.
5. Service level agreement
If you’re a service business and you don’t have a service level agreement (SLA) with your customers, you’re missing out on an important opportunity to improve customer satisfaction and revenue.
A service level agreement (SLA) is a contract between a service provider and its customers that documents what services the provider will deliver and defines the service standards the provider is obligated to meet.
In the residential services industry, SLAs serve as a blueprint of the services that a provider guarantees to provide. By creating a service level agreement, you can work with your customers, establish clear guidelines and accountability for your technicians, and ensure that your customers get what they pay for.
Your prospective customers often look for a new service provider because they are either dissatisfied with your service or they need better offers. Businesses that listen and respond to their needs will stay at the top of their go-to list.
Every residential services business has the potential to grow. Focusing on delivering an exceptional customer experience can help maximize sales and boost revenue. Residential service businesses with efficient tools and better online visibility can pull in more revenue, stay competitive and meet customer demands effectively.
A field service management solution like Zuper can help you build an efficient workflow and automate dispatching with a scheduling tool, improving overall operational efficiency.
Learn how Zuper can help you deliver an exceptional customer experience and boost your overall revenue. Schedule a demo now.