Why Aren't You Cross Marketing?

Great Steak Houses ad from an airline magazine

In the late 1980s, Vicki La Plant started encouraging contractors to cross market with local, non-competitive businesses. In essence, contractors cross mail to each other's mail lists. They pass out coupons for other companies on service calls, refer each other, and find other ways to help each other, reducing marketing costs. Think of cross marketing as business networking taken to the next level.

Cross marketing can be expanded beyond in-home service businesses. The late Tom McCart once persuaded a pizza delivery company to tape coupons for one of his clients on their pizza boxes. In exchange Tom's client passed out pizza coupons and menus on service calls.

Virginia contractor, Dean Thomasson, used a similar approach when he worked an arrangement with a local fast food restaurant. The restaurant inserted coupons for Dean's company on drive through orders and Dean passed out coupons for free sandwiches on service calls.

Anyone who flies and browses through the airline magazines has undoubtedly encountered ads for the "Great Steak Houses of North America," sponsored by the Independent Retail Cattleman's Association, which appears to be little more than a restaurant marketing alliance run by a Nashville marketing guy. Yet, its endurance is a testament to its effectiveness through the years.

Increasing marketing effectiveness is the reason for cross marketing. Your effectiveness will be best when a high degree of trust exists between the customers of the different companies. When Houston's Hallmark Air Conditioning and Jarrell Plumbing cross mailed to each other's customer lists recommending a service agreement from the other company, it was the single best direct mail initiative the companies experienced.

This makes sense. Depending upon the survey you reference, the number of homeowners who locate service companies by referral runs around 70%, making referrals the number one source of lead generation. Additionally, people tend to assume contractors know who the good contractors are in related trades. Combine the tendency to rely on referrals with the belief that contractors have inside knowledge, add a trust relationship with the referring contractor, and the response rate should be the best experienced.

At the Service Roundtable we've encouraged contractors to form marketing relationships with complementary companies. To make it easy, we've created marketing pieces like flyers and magnets promoting the "Distinctive Service Companies" of your town. We've creatred mail pieces like the one below.



If the Service Roundtable doesn't serve your industry or, for some reason, you don't want to join the Service Roundtable, create an alliance on your own. This is what Jim Ritter of Transworld Electric did in Charleston, SC. He assembled a home remodeling company, kitchen remodeling company, heating and air conditioning company, plumbing company, and pest control company to join his electrical contracting company as the Elite Home Connection.

So far, the Charleston group shares a one-page website linking their companies and a phone number for consumers. Presumably, the call center is an answering service with call forwarding to the appropriate company. More joint marketing may follow, with the cost for each company equal to one sixth of the burden of the cost of marketing independently.

Cross marketing is a proven winner. It increases marketing effectiveness. It reduces expenses. Why aren't you cross marketing?

The Impoverished Craftsman

This is an audio version of a Comanche Marketing article called, "The Impoverished Craftsman." It was written for the craftsman who cares about his work and customers, but who can never seem to get ahead.

The file was prepared as a Windows Media Audio (wma) file. Download it from the Service Roundtable's Free Stuff section.

Free Marketing Ideas – Part VII

This is the final post of the free marketing ideas series. Next week, I’ll start a new series. In the interim, keep checking the Comanche Marketing blog. Also, you can follow my updates through the Service Roundtable, Twitter, Linked In, and Facebook.


21. Speak At HOA Meetings

Homeowners Association (HOA) meeting vary from rigidly formal to loose. Some are well attended. Others are not. However, all are attended.

Some HOAs feature regular speakers at their meetings. Those without speakers probably would include them if it was easy to find someone with something relevant for the audience. That someone could be you.

In the Internet age, almost any functioning HOA has a website. Simply search for homeowners associations by neighborhood name or by town. Some municipalities even list the HOAs with full officer contact information on their websites.

Offer the speak at each HOA meeting. Send a letter or email to the officers indicating your willingness to speak and propose topics. Here are a few…

HVAC: The upcoming refrigerant phase out
Plumbing: Water conservation
Electrical: Advances in lighting technology
Pool: Salt water pool systems
Pest Control: Natural pest control solutions

Propose a length. Generally, these organizations want to give speakers no more than 15 to 20 minutes.

In your letter, promise to follow up with a phone call (assuming you’ve got the phone number) and give the recipient your number if he or she wants to call sooner.

The same approach can be used with garden clubs and with other service and civic clubs. Don’t worry about rejections. Focus only those who welcome you. Give everyone who attends a gift certificate with your company (remember, a gift certificate is little more than a coupon people keep).

A template for HVAC and plumbing contractors will be released soon on the Service Roundtable.


22. Teach Home Improvement Seminars

Years ago, I attended a two hour home improvement class offered through the city’s parks & rec department. I don’t remember the subject of the class, but I do remember who taught it. The class was taught by a Home Depot employee.

It turned out that a number of classes offered by the city were taught by Home Depot employees. I wondered if Home Depot was encouraging employees to teach these classes. It wouldn’t surprise me.

So why would a big box retailer encourage, and maybe even pay its employees to teach home improvement seminars? It’s simple. Teach a home improvement seminar and you’re positioned as the expert by default. Home Depot benefits by driving people to the store to ask for more information and to buy stuff.

Obviously, contractors have different objectives. You don’t sell over the counter to homeowners, so you’re trying to stimulate future service calls, replacement leads, and project quotes.

You can be successful, but only if you avoid even the hint of solicitation when teaching. People attend these classes to learn, so teach. Offer reasonable DIY advice that any homeowner can manage.

For example, an air conditioning or electrical contractor might advise homeowners to install outlet insulators for the energy savings. Or the contractor might instruct homeowners to check the breaker box before calling for service. Don’t try to turn the homeowner into a technician or plumber, but don’t be afraid of offering helpful advice.

Here are a few topics that might be appropriate for a home improvement seminar…

• How to build a pool
• How to select an air conditioning contractor
• Strategies for cutting home energy
• Water conservation strategies in the home
• Your home’s electrical system
• All about ants and other pest protection
• Conduct you own home energy audit

To find opportunities, start with your own community parks and recreation departments. Next, see what opportunities are available at area home and garden shows. Many host free seminars to help attract homeowners. Some colleges and community colleges offer non-credit continuing education classes.


23. Write Home Improvement Articles

With the Internet, anyone can publish today. Add a blog to your website or create a free one using Blogger or Word Press.

Write about the homeowner problems you uncover in the course of your daily service work. Tell people how you solved the problems. If the problems are preventable, tell readers how.

If you are overly promotional in the body of your article, it will backfire. People won’t read it. However, it is okay to include a promotional paragraph at the very end.

Post your articles on the article sharing sites. When posting on another site, link back to your blog or website in your promotional paragraph.


24. Promote Your Writings

When you post new articles, let people know by email and by social media, such as Twitter, Linked In, Facebook, and so on.

© 2009 Matt Michel