Not only does it feel great to provide excellent service and get praise from your customers, it’s also highly profitable. Every customer that you procure through your marketing efforts has a cost associated with it. It’s called your marketing acquisition cost.
That marketing acquisition cost is eating into your profits. So how do you lower your overall marketing acquisition cost for your company? You create raving fans!
Raving fans will turn into repeat and referral customers. Meaning they will use you again next time they move and also refer you to other people who will move with you. Repeat and referral customers have a marketing acquisition cost of $0.00!
The more repeat and referral customers you have the lower your overall marketing acquisition cost for your company will be. In other words, the percentage of your revenue you spend on marketing will decrease and your profits will go up.
The fastest way to go out of business is to pay for marketing and then go and provide bad service on the move. Not only will you not get a repeat customer or a referral, you will probably get a negative review online for all new prospective customers to see. This is very damaging!
When you sell the move, your job has just begun. You need to deliver a 5-star experience to your customer. That will multiply into more business than you can imagine.
Your goal should be to use every move as an opportunity to create a raving fan that will use your company again, refer you to their friends and post 5-star reviews online!
Complete a survey with your customers after the move…did they have an amazing experience? Would they refer you to friends and family?
Yes? Great, ask them to post a review online! Don’t be afraid to ask.
And if they had a bad experience, then find out what happened and work quickly to make things right. Do not ignore the issue, instead work with them to turn them into a raving fan.
Have a meeting with your staff today. Ask them “What do we need to do to make sure our customers are having a 5-star experience?” Get the feedback, create a plan and go out and earn your referral customers and 5-star reviews.
Watch the video above for the full episode.
Like this episode? Please share it! My blog and videos are ad-free ONLY because you share my work!
How can I help? What challenges are you facing in your business? What areas could you use some tips in?
Leave me a comment below and I will be more than happy to get back to you or post a video on the topic.
[The following is the full transcript of this episode.]
Hey, my friend. It’s Louis Massaro, author of 10 Rules of a Profitable Moving Company and founder of Moving Mastery. Today, I wanna talk to you about rule number four of 10 Rules of a Profitable Moving Company, which is, the goal of every move is to create a raving fan. So first, let’s talk about what a raving fan is. A raving fan is not just a satisfied customer. If right now, your goal is to have satisfied customers, you need to raise the bar a little bit. You need to create raving fans. A raving fan is someone who when you’re done with their move, they’re gonna tell everybody they know about you. They’re gonna be so excited about the service that they had, that they’re gonna voluntarily say to people, “Hey, if you need a mover, I know somebody that’s great.” They’re gonna go online, they’re gonna post a Yelp review. They’ll also post a Google review or anything else that you ask them to do. If you need a video testimonial, they’ll be more than happy to do it for you. They’ll be on social media telling everybody how great you are. That’s a raving fan.
A raving fan, the next time they need to move is not getting quotes, they’re calling you back directly. A raving fan, anytime they have a family member or a friend that’s talking about moving, they’re quick to offer up the service, because you helped them in such an important time. I don’t think that we think about it enough, as movers, how we impact people’s lives and how we could really make their day. I mean, moving is one of the most stressful things that people do in their life, period, statistically. There’s so much going on and they’re moving for whatever reason and essentially, their whole world is up in the air. So when you come in as the moving company and there is just no hassle with you and everything goes as planned and everything just goes smooth and you go a little above and beyond, you create a raving fan, and that needs to be the goal. That needs to be the goal, not only ’cause it’s the right thing to do and to provide good service, but because it’s profitable.
So how is it profitable? Well, when you spend money on marketing, you spend money and you get a move. Well, if you are spending money constantly and doing a move and then that move never turns into more moves, you’re not gonna be so profitable. But if you’re marketing, you’re getting a move, and you look at each move you get from your marketing as an opportunity to create raving fans, which are then gonna turn into what I call the move multiplier, where essentially they’re referring you, they’re using you again, they’re going online, they’re leaving reviews, the value on these reviews are tens of thousands of dollars per good review. There’s also some negative dollar amounts associated with the bad reviews, but for the good reviews, tens of thousands of dollars. Why? Again, you’re spending money on marketing. As that marketing comes in and you’re talking to people and you’re quoting them and they’re speaking to you and another company and you have really great reviews and the other company doesn’t, well, you’re gonna book more moves, which means that you’re booking percentage is gonna go up, which means you’re gonna make more off the same amount of money that you and the other company are making or spending on marketing.
So when your marketing cost goes down, your profit goes up. I call it the R and R compound effect, which is basically repeat and referral customers compounding. As you move people and as that turns into more repeat and referral business, your profits go through the roof. So, it’s so important and it’s great that you wanna have a satisfied customer. I know everybody watching wants to do the right thing, they want their customer to have a good service. But how could you go a little bit further, how could you take them from being a satisfied or a happy customer to being a raving fan? You don’t have to do anything extravagant, you don’t have to bake them a pie, you don’t have to spend a ton of extra money, but there’s little things that you might be able to put in place that could make them a raving fan. So make that the goal.
You know what that is, have a meeting with your staff, bring everybody in: Movers, office staff, sales people, dispatch, accounting, everybody. And just say, “What could we do to raise our level of service so that we provide every customer with five-star service and make them a raving fan?” Have a brainstorming session, talk to everybody, see what ideas are out there. You’re gonna be able to find things that aren’t gonna cost you anything. It’s just maybe a little something you need to add to your process or something that you need to make sure happens that maybe is not happening right now. And if you’re not doing follow-up surveys and sending out emails to get reviews, find out what the customers are saying. What could we have done better to… Where you could have a better experience? I know you were happy. So even if they say, “Yes, everything was great,” what could we have done to make it even better? What could we have done to make you a raving fan? Find out. You know you need to do a little research and start implementing that stuff in your business. Because long term, that’s what’s gonna make you profitable. Repeat and referral customers all day long.
And when you have great reviews online, your booking percentage on that advertising and the marketing that you’re spending money on is gonna go up. You’re gonna book more of the jobs and more of the leads that you have because they’re gonna go online and they’re gonna see social proof. They’re gonna see other people said, “These guys are fantastic, use them. I had such an amazing experience.” It’s called social proof. When they see that, they want that experience. If they are moving, they wanna have the same experience as the person they saw the review that was raving about you. Not like, “They were great.” You want somebody that’s writing a really good review. So create raving fans, that should be the goal of every move. You should make that the mantra in your company. Raving fans is the goal of every move. So go out there, continue to profit in business, thrive in life. I’ll see you next time.