7 New Strategies To Find Customers And Grow A Small Electrical Business
The first and last thing on an electrical business owner’s mind is always going to be: how do I find more customers? At the end of the day, they’re the lifeline of your business and making sure you have the right mindset in place is key to attracting them and making a consistent profit. Learning how to grow a small electrical business is no easy feat, but it makes the reward that much greater!
Skip to what matters most to you:
- Identify your customers and their journeys.
- Figure out your unique selling point.
- Build a brand that appeals to THAT ideal customer.
- Partner up with other field service businesses but also decorators, interior designers.
- Consider starting out with lead generation websites.
- Deciding between Facebook Ads and Google Ads.
- Get ready to actively chase repeat business.
There are plenty of guides and suggestions out there for how to make the most out of your customer-generation strategies. But with all the advice that’s available out there, it’s easy to lose sight of those you’ve outgrown and the ones that are still ripe for the taking.
Some tried and tested methods to bring in new customers and grow your small electrical business can be the right thing if you’re just starting out:
- A user-friendly electrical business website
- Search engine optimized content
- A blog with regular posts
- Social media profiles on all the major platforms
- Online job boards and social media groups
However, if you’ve already done all this and want to take it to the next level, we’ve got some bright ideas to share with some more advanced techniques you can put to use. Whether you’re still at the beginning and you’re not yet able to leverage an existing customer base, or if you’ve been in the game for some time and want to jazz it up a little, you should consider these 7 tips to find customers and grow your small electrical business:
Regularly taking stock of your ideal customer should be a priority. This will inform everything you do, from the variety of services you offer, to the kind of technicians you hire, your prices, as well as all your marketing activities moving forward. You probably already have a customer persona laid out (if not, Buffer has a good guide to get your started), but it’s important to go into as much detail as possible about the ideal individuals you want to hire your services.
There’s definitely more variety in customer types than simply choosing between residential and commercial (although we always recommend that you service a mixture of the two).
Think whether you’re targeting the average homeowner or high-income individuals, older customers, or fresh-on-the-property-ladder Millennials. You’ll find that the more you put yourself in their shoes, the more your expectations will change of what a great electrical service is.
For example, a high-income individual will value convenience most because time is their most valued commodity, while a Millennial will want an Uber-like service, with automatic booking, instant confirmations, technician tracking, and more.
In the end, you’ll have a mix of all, but there’ll likely be one type that will make up the most of your business. Also, if you aim to make everyone happy, you’ll end up satisfying no one (unless you’re pizza). So find your niche, the audience who feels like you’re the best electrical service in town because you speak to their specific problems, and the rest will follow. How do you find your niche? Well…
Sure, you do commercial & domestic wiring, install electrical appliances, and diagnose faults in existing electrical systems. That’s great, but so does every other electrician in town (unless you are the only electrician in town, in which case, you hold a monopoly but that might not last forever, so keep reading to make sure you’re prepared!). The next step after identifying your ideal customer is to find the type of service they’re most likely to need and specialize in it.
Think whether your business is located in a thriving city center, with lots of restaurants. Your ideal customer could be a restaurant chain owner, so you can then specialize in installing, maintaining, and diagnosing faults in restaurant-specific appliances, like refrigerators, deep-fryers, air hoods, etc.
It doesn’t mean it’s the only thing you’ll do, but it will help you direct your efforts towards a specific target when it comes to advertising your services (local restaurant guides, but also online advertising which we’ll get to in a bit), as well as make it easier to rank for the search terms you want.
For example, being on the first page for a Google search like “electrician in Chicago” is a lot more difficult than for “deep fryer repair electrician in Chicago”. Listing services like these on your website is key towards attracting the new customers and growing your small electrical business.
Do you ever feel like every electrical business you see looks pretty much the same? A blue logo, a spark or a lightbulb, some smiling non-descript man in overalls?
There’s nothing wrong with a classic; it’s definitely easy for people to figure out what you do when your company name is “Electrical Joe”, but if you’ve gone through the trouble of creating your ideal customer persona, it’s worth imagining what the perfect electrician business would look like for them.
A premium service provider is the easiest example. If you went with “high-income individuals” as your ideal customer during our first point, then the branding you use could be geared towards them. That means establishing things like a 24/7 service, automatic booking portals so that they don’t waste time on the phone, premium materials, and a classier look to your business for that extra level of polish. Think navy and silver instead of bright blue and yellow for or logo, and technicians in polo shirts instead of overalls.
Your niche branding doesn’t have to be so specific that it alienates customers outside of your ideal persona, but, at the same time, it can be the thing that sets you apart in a sea of similar small electrical businesses who are looking to grow, too.
Also, never forget that with premium service comes a premium price.
It’s very common for plumbing businesses to partner up, for example, with electrical contractors in order to deliver a more rounded-up service. After all, it’s very likely that if a home-owner or business owner hires a plumbing company for a larger project, they’ll be needing someone to do the wiring, too.
It’s also a matter of trust: if you don’t know any electricians, it’s natural to ask the plumber who’s working on your bathroom right now rather than sit down and do your own research.
Electrical contractors can then pay it forward by recommending other businesses, too, sometimes even taking a commission fee to do so, if their business relationship is sufficiently established. This being said, you don’t need to limit yourself to other trades businesses when it comes to partnering up.
Think outside of the box by going back to put yourself in the ideal customer’s shoes, get comfy in them, and ask yourself “Who else could I ask to recommend an electrician for me?”. You’ll find some surprising answers like appliance retailers, interior decorators, or (why not, we’re way out of the box at this point) art dealers who work with light fixtures.
This is why networking and being a part of groups can be incredible for your selling strategy. After all, there’s no recommendation like one from an expert!
When you’re looking to grow a small electrical business, using a lead generation website can be the boost you need to start playing the big leagues.
Generally, the way these services work is that their website has a very high domain authority, so when a potential customer searches “broken socket repair man”, it’s very likely that an Angie’s List link with “These are the best electricians in Chicago” will show up first on Google. By paying Angie’s List, you can guarantee that when someone clicks that link, your name will be on the list.
Other lead generation services can also guarantee you a set of contact details (especially for potential commercial clients) that you then have to contact yourself. The downside of these services is that they can be pricey for smaller businesses if you don’t pay attention to their return on investment or if you don’t make the most out of the leads they generate.
You can mitigate the first downside by starting small and measuring the ROI regularly. So, if you paid $2000 for $100, that’s $20/lead. If 20% of the leads actually converted and became paying customers that hired your technicians at an average rate of $300/job, that means the lead generation website brought you 20 customers who spent $6000 on your business which makes the initial $2000 spent a worthy investment.
Calculating the final profit in cold hard dollars is the best way to see if the lead generation strategy paid off. After all, you could always get 100 leads and have only 1 convert, which means the investment wasn’t worth it; as a result, it’s time to find a lead generation alternative. At the same time, you could end up with lots of leads converting, but if they don’t spend enough money with you to exceed the $2000 you spent on their contact details, it’s still not worth it.
A decision you’ll have to make by weighing the pros and cons is whether Facebook advertising (and other social outlets) is worth choosing over Google Ads.
The general view is that social media marketing is more preventive, targeting customers that can take their time making a decision, without being rushed by an emergency. On the other hand, paying for Google Ads is what ensures that you’re at the top of the results page when someone’s in a hurry (maybe their electrical panel is smoking) and have little time to dilly-dally with comparisons.
This decision is going to fall down to the type of business you’re running. If you’re able to handle emergencies and unplanned appointments (possible because you’re making full use of your intelligent scheduling system), this can be quite a lucrative business, as people won’t be thinking about money when their house is getting flooded. Not to mention the good-will gained from being the one to get them out of a mess.
At the same time, Google Ads are getting more and more expensive these days, as is the competition for the same keywords (e.g. Chicago electrical company, emergency electrician, etc.). As always, you can test out both strategies using the method highlighted above and see which one does better, then either choose one, or even split your budget between the two.
Re-booking customers isn’t just about waiting for people to hire you again. If you want to grow your small electrical business into a powerhouse (pun very much intended), you’ll find that having a proactive attitude is essential to earning more repeat business.
This means you need to strive to remain relevant to them even after the work is done.
The easiest – not to mention cheapest – way to do this is to go the digital marketing route. Train your electricians to be good salesmen and to sign customers up to company news. This way, you can send customers regular newsletters, company updates, offers, and more to keep their attention and attract them back to your services.
But what’s the best way to re-book customers?
That’s always going to be with a service reminder.
Maintenance work is the easiest way to engage repeat custom. Send reminders on a schedule that works for you (since not all services are annual) and use different email and letter templates for landlords and agents and you’ll start to reap the rewards. Reminders can be simple, but don’t forget to customize the communications so the customer still feels valued as well: a personal touch goes a long way!
The takeaway on how to grow your small electrical business
In the meantime, perhaps you’re wondering where to start with a service reminder and we wouldn’t blame you; there’s a lot of information around, which can make things more confusing than they need to be.
That’s why we’ve cut through the noise to bring you the simplest template for a reminder that will get customers coming back again and again.
Click below to download the editable template and start improving your customers’ experience!