[ Focus: Marketing ]
Marketing initiatives for the medium-to-large contractor
survive, they need to adopt a marketing approach – which means building relationships, more self-promotion and innovative offerings to customers.
Conduct a review of your existing customers and divide them into four categories: ■ Maintain and develop customers who you have a good relationship with and that are in a growth sector with potential for future work. ■ Invest in relationships with customers in growth sectors with potential but for whom you currently do not work. Understand their business and look for ways to help them. ■ Maintain relationships with customers who are not in growth sectors but with whom you have a good relationship. But invest minimal effort on them. ■ Minimum effort should be invested in customers who are not in growth sectors where you have no relationship. Decline to quote, or charge high prices. Understand your principal competitors, what sectors
your customers, allowing you to build a strong relationship and
encouraging them to come back to you in the future. Don’t assume that customers know what you do, tell them about the range of services available from
your business and leave details – or at least a business card – with them.
A changing world In the ECA’s recently published report 2021 Vision: the Future of the Electrical Contracting Industry we identifi ed that there will be many new opportunities for electrical contractors. Over the next 20 years, the Green Deal will see most buildings being upgraded to become more energy effi cient, starting with houses. The demand for energy effi ciency will see integrated control of various systems including heating and lighting, as well as electrical controls increasingly incorporated into systems like plumbing. All of this will require electrical contractors. There are also plans to install ‘smart meters’ in every home, and the need to fi t charging points for electric cars. Both of these new technologies will see high demand for suitable qualifi ed electricians. But there will also be a need to bring down costs by
reducing the number of tradesman involved in installations, so others such as plumbers (for showers) and roofers (for solar panels) could take on some of these roles. Expect a splitting of skills. At the lower level, there will be the development of ‘plug and play’ components that need relatively low skills to install. At the higher end, there will be the need for people to integrate old and new systems, as well as fault-fi nd where integrated systems have failed. You can expect a high level of competition at the lower end, with prices inevitably driven down, while good people who can operate at the higher end will probably be able to charge premium rates. Think about how you wish to target work in the future – and make sure your business has the skills required to achieve this. It is a changing world, and for electrical contractors to
62 ECA Today November 2011
When talking to clients, ask them about other work opportunities and introduce yourself as a skilled provider
they work in and who their customers are, what size contracts they undertake, and whether they are they more successful than you – and, if so, why?
Focus on winning work from key customers in the ‘Maintain and develop’ and ‘Invest in relationship’ categories. ■ Understand their business and fi nd ways you can work with them, helping them to perform better. ■ Build relationships at different levels of the organisation and focus on how you can help save them money and win work. ■ Review your performance on each job, getting feedback on what you did well and where improvements can be made. Take action to implement improvements. ■ Issue a regular briefi ng on industry issues, presenting your organisation’s core expertise.
About the author
Chris Ashworth Chris Ashworth co-authored the ECA report 2021 Vision: the Future of the Electrical Contracting Industry. He has worked in the construction industry for more than 30 years and is founder of Competitive Advantage Consultancy, which provides strategic marketing services to the construction industry. He is a fellow of the Chartered Institute of Marketing, a member of the organising committee for the Chartered Institute of Marketing Construction Industry Group (CIMCIG) and a regular contributor to industry journals.
When quoting for work: ■ Focus attention and effort on key customers. ■ Ensure both that you understand the customer’s needs and that you deliver tailored proposals. If lowest cost is the key issue, make sure you offer a slimmed down proposal – but don’t offer at below cost. If best value is important, make sure all of the areas where you can add value are clear. ■ Having quoted, follow-up. If you have invested time in preparing a quote, it is reasonable to expect feedback from the customer. If you do not win the work, ask why.
What new areas of business can you develop: ■ Think about the new services required by opportunities like the Green Deal; what training does your team need to be accredited to undertake this work. ■ Look for partners operating Green Deal schemes (other contractors, retailers, energy companies); can you work with them as a partner or sub-contractor? ■ Can you take a lead role in the supply of new opportunities; what partners do you need to succeed?
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