By getting involved in the community he has built a reputation as someone who can be trusted. “One of the first things we ask [new prospects] is how they heard about us,” he says. “I find that the places where I’ve had the longest relationships bring the most leads.” He uses the example of his involvement with the school board. “If you get in front of the community four times a year, doing good things, they come to see you in a positive light, as a competent professional.”
BE YOUR WORD Once a job starts, relationship-builders put a premium on keeping the customer happy. That means they continue to listen more than they talk. Cathcart says, “If [customers] think you care, at least half your sins will be forgiven. If they don’t think you care, they will be all over you like a quality inspector.”
Ken Klein, owner of Kleinco Residential, a design/build business based in Tulsa, Okla., says that the most effective way to maintain good relationships is to “be your word.” This can be as simple as promptly returning phone calls. Not calling back when you’ve said you would can sour any relationship.
Being your word also means completing the job on the terms to which you agreed. For instance, Klein recalls a half-million dollar job where setbacks ate up every penny of profit. But he never told the customer about the difficulties and finished the work for the contracted price.
“I authorized my people to spend whatever was needed to get the job done.” It turns out that the homeowner was aware of the problems, and thanked Klein for completing the job on schedule. That customer is now a strong source of referrals. “Essentially what we did was put $100,000 — [the lost job profit] — into marketing,” Klein says.
Klein also believes in never saying “no” to a good customer. “Last year we hauled Christmas decorations out of the attic for some of our customers,” he says. And though Kleinco Residential doesn’t normally take on small jobs, it will do so for a good customer. “You want them to feel that they can call you whenever they need something,” Klein says.
Of course, the test of whether they’re doing enough is how much of their business comes from past customers. “If that falls below 70%,” Klein notes, “we realize there are people we need to reestablish contact with.”
WHO TO AVOID Because a relationship involves at least two parties, there are some relationships that are best avoided. Like most smart remodelers, Wilder turns down jobs for people who he senses will cause him problems.
He has learned to spot people who are likely to “dog and demoralize” him and his employees. Two signs of potential problems, according to Wilder: a house that’s a mess (because “chances are they’re chaotic people”) and someone who scrutinizes the price on the initial meeting.
But while everyone tries to avoid problem customers, sometimes you end up with them anyway. “We’ve gotten halfway through a job and decided that we never want to work with that person again,” Klein says. But he adds that once a job is started, maintaining a good relationship should remain a priority: “You never want to sour anyone and ruin your chances of a referral.” He says that this approach has paid off. “The customer from hell is often a good source of referrals because you recognized their dissatisfaction and took care of them. That is something they remember.”