Information contributed by David Merriman, owner of ArborScape Services, and Two Rivers Marketing
Like the growth of a tree, each stage of your tree care business has different needs. One constant in marketing your tree care business is change. The season, the size of your company and the services you offer are all considerations when trying to figure out how to get new customers. The size, shape and stage of your business should directly influence your approach.
Understanding the three stages of your business from startup to year five can help guide you to a more profitable growth strategy.
First Stage
This is what David Merriman, owner of ArborScape Services, refers to as the “pickup and chainsaw stage.” You’re likely still working a full-time job and using tree care work to make a little extra money on the side on the weekends. Most new startups rely on referrals and side work to get their business going, and are not actively trying to get new customers.
“In this first stage, you basically own a job, not a business” says Merriman. “When business consultants talk about the idea of ‘owning your job,’ this is the stage they talk about. If you don’t approach your business in that manner, operations cease and no money comes in.”
Second Stage
Once you enter the second stage, you must fight the urge to continue doing things the same way you did in the past. According to Merriman, this is the stage where you can go out of business — not because of money problems, but because you’re too tired and overwhelmed to go on.
“Most tree service businesses go through a hard sophomore slump in their second year,” explains Merriman. “This is when you learn the hard way that you’re not going to have enough word-of-mouth business to keep your crews busy.”
In the tree care business, you need a steady stream of new customers to maintain your cash flow because repeat customers may only need your services every two or three years.
In order to be successful, you need to generate new sales leads and track where leads are coming from. This will help you discover your close ratio, your service area and which services you should add to help your business grow.
Not sure where to start?
Here are some suggestions:
- Optimize your website — Is it easy for customers to navigate? Are your services listed online? Is your contact information on the home page?
- Leverage social media — There are so many social media channels available today. One of the most common mistakes businesses make is trying to post a little bit on every platform. The key is to pick one channel — whether it be Facebook, Twitter, Instagram or Pinterest — and use it well. Many businesses start with Facebook because of its functionality and broad appeal. Start by posting jobsite photos (remember to wear your PPE) a few times a week.
- Start advertising — If there’s room in your tree care company’s marketing budget for paid advertising, digital ads can be a cost-effective, measureable way to raise awareness about your business and service offerings. While you can reach a large audience on Facebook without being an advertiser, companies who pay for ads can reach an even larger — and more targeted — audience for a relatively small investment. Your local newspaper or TV news stations’ websites are also good options. Contact the companies’ sales representatives to learn more.
Once the leads start coming in, ask the customer how they heard about your business. This will help you determine which channel is working.
According to Merriman, as you switch from a pure referral model to a lead-generating model, your closing percentage, which is the percentage of jobs accepted divided by total leads, may go down. You are attracting more people who don’t know about your company, so that is natural. At this stage, your closing ratio should be roughly 20 percent.
Third Stage
According to Merriman, only 15 percent of tree care businesses are still operational after three years. Once you enter the third stage, your business is well-positioned for growth because you know how to estimate quotes more accurately, you’ve discovered your closing ratio and you have established repeat customers.
By now, you have determined what helps you get new customers and what doesn’t. Stop wasting time and money on the things that don’t work, and focus on more advanced tactics that do.
Here are two examples:
- Google AdWords and Bing Ads
According to Search Engine Journal, 93 percent of internet users rely on a search engine, like Google or Bing, to find information. You can invest in Google AdWords or Bing Ads to help drive search engine traffic to your website.
- Video Marketing
Videos are popping up all over the internet, and they are a great way to capture the attention of potential new customers. You can use Facebook or YouTube to host tree care videos that showcase your services, your crew’s personality and how customers can benefit from tree pruning or removals. Don’t be afraid to take a proactive approach to acquiring new customers. Promoting your business — instead of waiting around for the phone to ring — will help give your tree care business a competitive edge.
Advice or suggestions provided by Mr. Merriman and Two Rivers Marketing are statements of general applicability that may or may not apply to individuals or businesses, whose circumstances and operations may vary. Their opinions do not necessarily reflect the opinions of Vermeer Corporation, its dealers or its affiliates.