Most CMOs explore outside their scope in search of sales when their greatest revenue source is waiting right at their doorstep. Customer retention rates that are increased by a mere 5% raise profits by between 25% and 95%. This applies to all industries, but HVAC customer retention generates profits per customer that soar high above other sectors.
Customer-Centric Retention Marketing
Retention marketing has become remarkably customer-centric with the evolution of personalization. Reward, filter and nurture programs can now be fed through automation technology that boosts marketing department brainpower. Gartner calls automation a “must-have” technology for excellent reason: it provides measurable results while profiling consumer behavior so that campaign outcomes can be predicted more accurately in the future.
The HVAC business model leans more heavily on buyer loyalty than most, so retention marketing must earn allegiance through services that improve customer relationships.
Buyer priorities have shifted from price to value. 66% prefer to spend more on superior service. Data-driven technology keeps customers engaged, raising their lifetime value by tailoring an experience unique to them. For the first time, HVAC businesses can achieve one-on-one experiences with their database of clients.
The Snowball Effect of HVAC Retention Marketing
The 80/20 rule has been better quantified in recent years: today, revenue increases by 10% for every 1% of return shoppers. HVAC retention marketing turns a snowball of returns into an avalanche.
The HVAC industry has become fiercely competitive, with the top brands fighting tooth and nail to keep their advantage, and it’s retention marketing that has the fortitude to help you gain position alongside competitors. You can literally double your revenue by retaining only 10% more of your existing clients.