I never know where or when a security marketing blog-post might occur, but let me tell you where this one started.
I took may girls (Bridget + Kiera) out for a nice long Sunday walk along the North Dike which is part of Wachusett Reservoir (Rte 110 Clinton, MA), this reservoir is the main water supply for Boston.
After the walk, my girls wanted some “scream” (ice cream) so, as any caring Dad would do, he took his girls over to Rotta Springs Farm Ice Cream stand and on the way back from Rotta Springs Farm my oldest daughter Bridget was rummaging under my seat and found an absolute classic CD Bob Marley “Legend”, and the song she wanted to hear was “Three Little Birds.”
Three Little Birds
“Don’t worry about a thing,
‘Cause every little thing gonna be all right.
Singin’: “Don’t worry about a thing,
‘Cause every little thing gonna be all right!”
Rise up this mornin’,
Smiled with the risin’ sun,
Three little birds
Pitch by my doorstep
Singin’ sweet songs
Of melodies pure and true,
Sayin’, (“This is my message to you-ou-ou:”)
Singin’: “Don’t worry ’bout a thing,
‘Cause every little thing gonna be all right.”
Singin’: “Don’t worry (don’t worry) ’bout a thing,
‘Cause every little thing gonna be all right!”
Now, what the heck does Bob Marley and the “Three Little Birds” tune have to do with growing your security biz…
If you understand the three little concepts that I’m about to share with you and implement these three little ideas, then you’ll be singing Reggae music man’ “Don’t worry ’bout a thing, ‘Cause every little thing gonna be all right…”
3 Step Formula For Success
This security business building formula will work for any and all of the following security disciplines – alarm dealers-burglar alarms-CCTV installers- gate installers -home automation – locksmiths – satellite installers – private guard services.
1- Retain And Find New Clients.
2- Get Them To Spend More On Each Transaction.
3- Increase The Frequency of Transactions.
Common Mistakes Security Dealers Make In Growing Their Business
Most dealers and low voltage installers get really hung up on “I NEED MORE NEW CLIENTS/CUSTOMERS”, but they are not conscious of the the other two ways to grow a security business.
One of my secrets for incredible profit increases is based on leveraging the amount customers spend and the number of times they buy for easy and quick sales.
The power of this security business model is boiling the issues down to three very easy and understandable concepts.
- Increase the number of customers.
- Increase the average transaction value.
- Increase the number of transactions per year.
Ways To Grow Your Security Business #1 – Increasing The Number Of Customers
When most security dealers and low voltage installers think about growing their business they automatically start thinking about winning more clients.
Let’s break it down…
The number of clients is a function of:
1 – the number of customers you have at the moment
2 – the number of leads from prospective customers you attract
3 – the rate you convert leads into customers
4 – the number of clients you lose.
Improving Client Retention
Working back up the list, if you are currently losing 20% of your customers per year and you can implement policies to stop half of them from disappearing through better service and improved client relationship management and constant communications (via newsletter, seasonal postcards, gifting, client appreciation days), it is the equivalent of getting an extra 10% of new customers each year (20% loss * 50% improvement = 10% lost and now 90% retained.)
Growing by improving your retention rates does not require expensive and risky advertising and can be relatively easily improved when you start focusing on why customers are leaving.
Improving Closing Rates
The next easiest way of growing your security business is by increasing the number of customers and by improving lead closing rates.
You have two areas to improve closing rates – immediate and follow up.
If you improve the sales skills of yourself and your sales reps who sell so that they focus on what the client needs and wants, you should increase the number of customers you create early in the sales process.
It has also been shown that most sales reps give up way, way, way too early. Sales staff should try to close if the customer appears ready to buy, but if the client isn’t ready, you need a security marketing system in place that will educate the client and build a relationship with the client until they are ready to buy.
Research shows that the majority of sales reps give up after the first or second “No,” but the majority of purchases are made after four or more contacts/communications.
Attracting More Security Leads
The final way of growing your security business is by increasing the number of clients and also to attract more leads from prospective clients.
That means either or both
1 – More effective advertising. I tell my clients and coaching members that they need to continually optimize and continually test for better, and more effective ways because improving your marketing can create great leverage.
If your advertising creates 10 leads per week, a better headline and more persuasive offer may generate 20 leads without any more cost. How do you like them apples!
2 – More advertising and promotion. You should have multiple sources for leads so you are not reliant on just one.
Ways To Increase Your Business #2 – Increasing The Average Purchase Transaction Value
You may be thinking “I can’t increase the purchase transaction value because my customers don’t want to spend more” but you could well be wrong if you don’t challenge your thinking and test out different price options.
Increasing Your Prices
First there is the basic option of increasing prices.
It is easy to think that your clients decisions are dominated by price – and they may be giving you that impression – but repeated tests have been done to show that it’s not true.
How often do you buy more expensive things out of personal preference, convenience, availability and confidence in the seller.
Tests show your clients are willing to pay more – and even if you lose some business, it still may be much more profitable as price is the number 1 driver of profit.
Up-selling and Cross-selling
This is a biggie! Your customers may be delighted to be offered the chance to buy something better (an up-sell) or something related (a cross-sell).
Think of McDonalds and the classic questions “Do you want fries with that?” and “Do you want to supersize it?” And McDonalds isn’t the only one! Think of Outback Steak House…”would you like a side of grilled shrimp with your steak?” and the movie theaters with their supersized drink for an extra 25 cents?
Approximately 30% of people agree to these offers and that is extra profit on the transaction. How many times have you agreed to these up-sell/cross-selling strategies. I know I certainly have many a time!
Look around you for other examples of where an extra offer is made at the time of buying and see what you can learn and apply to your business.
Ways To Grow Your Business #3 – Increasing The Number Of Times A Client Buys from you.
The third of the three ways to grow a business is to increase the number of times a client buys from you.
This does require that you do a good job and deliver on your marketing promises and then keep in contact with your client regularly.
Your competitors are probably talking to them so if you stand back and think you have their business, you could be sadly mistaken.
Or you may think that your customer will remember who gave them such a great service last time and that they will come back to you when they need more work done.
But is that really what happens?
Do you go and buy from your good-ol’ Joe security dealer, who has been ignoring you, or do you try out the new company with the eager-beaver sales rep who wants your business and is making every effort to gain your trust and confidence?
If you don’t have a regular client contact program, you need to implement one to make sure that the customer is as satisfied as you thought and to keep your security business in their minds.
I have been going to the same dentist for more than ten years but I only think about having a check up when I receive the six month check-up reminder postcard.
I used to have my home’s HVAC system serviced every year from the same company. They used to send me a reminder letter, but one year it came about a week before I was going on vacation and I didn’t have time to have then come and do the “once over” so the company stopped sending me their yearly service reminder letter. When I did need a little work done on my HVAC system, I ended up calling a new company that my friend referred.
The cycle was broken. The old HVAC company thought I wasn’t interested in them anymore and removed me from their mailing. Dumb,dumb, dumb move!
So there you have it!