Marketing costs are one of those dreaded but necessary expenses of running a business. What if you could completely offset your marketing costs without taking on more work?
Sound too good to be true?
It’s not. This is something that every successful company does to maximize their profits.
Think about companies like McDonald’s (Do you want fries with that?) and Gas Stations (Would you like to add a car wash to your purchase?), and even your phone company (Want to add an extra line for your teenager for only $20 / month?!).
Cross-selling for your service business is the same: Since you’ve already paid for the lead, you want to get as much as you can for every marketing dollar.
Make sense? Here’s how to get started:
Use our Customer Value Calculator…
Our calculator can act as a marketing budget advisor of sorts. ServicersWeb’s Cross-Sell Calculator will walk you through how to price your Add-on Services to fully offset the cost of your monthly marketing budget.
Step 1: Download the Calculator
Download the Customer Value Calculator to get started. You won’t be asked for your email address. It’s completely free.
Step 2: Determine Your Cost Per Technician
Before you get started, calculate how much you currently spend on marketing per month. In the field titled, “Monthly Marketing Costs,” enter your total costs. Don’t forget to include your management fees, AdWords / Bing spend, Angie’s List Ads, Yellow Page Ads, Yelp Ads, etc.
Enter your data into the yellow fields. The calculator will automatically calculate how much you spend per technician each month for marketing.
Step 3: Create Add-on Services
Now you need to create your upsells.
Think it through for a while. How will you Super Size your service?
Some Add-on services to consider include dryer vent cleaning, refrigerator coil cleaning, second appliance repair, an in-house extended service agreement, refrigerator water filter replacement, washer or dishwasher tub cleaning, dryer cleaning (unit only), etc.
Once you’ve defined your Add-on Services, adjust the Service Fee and Conversion Goal columns until the Monthly Upsell Earnings field is equal to or greater than the Marketing Cost / Lead field.
Be sure to set goals that are realistic. For example, don’t expect that 50% of your customers will want to buy a dryer vent cleaning service. Your technicians will struggle to meet such an ambitious goal and become discouraged. Shoot for a 15% or less conversion percentage to start.
Adjust your numbers monthly until you find a winning combination of price point and conversion percentage.
Step 4: Review Your Technician Goals
The calculator will automatically enter the number of times the technician needs to upsell each service to meet the conversion goals you set in step 3. If the monthly sales goals seem too difficult, adjust your pricing and conversion percentage in step 3 until you set realistic expectations.
Step 5: Print Your Monthly Sales Goals
Open the second tab in the Excel sheet titled, “Technician Upsell Goals.” The calculator will automatically enter your sales goals (without the dollar value you’ve assigned). Print this sheet and review the sales goals with each technician.
Now that you know exactly how many add-on services the technician needs to sell to cover his own marketing costs, you can easily create incentive plans for technicians who sell more than you require because you know exactly how much it costs you to keep his schedule full.