What is home improvement "returning customers"?
It is understood that the current cost of a new customer for a decoration company is to retain an old customer or ten or even dozens of times of customers who come from “old and bring newâ€. The rate of new customers introduced by old customers is very high. The transaction rate of unfamiliar customers is very low, and the prices are not good to talk about, so many decoration companies are biased towards doing "return customers."
“What we mean by returning customers is mainly referring to old customers bringing in new customers, that is to say, serving a good customer and allowing him or her to communicate with relatives, friends or neighbors and bring indirect customers to the company.†According to Master Xie, the brand company’s project manager for decades, their returning customers rely mainly on site marketing. As long as the site under construction is completed, the owner will naturally introduce neighbors, relatives and friends. In particular, after some well-made construction sites have been seen by everyone, many of them have taken the initiative.
It is understood that home improvement companies will generally have been renovated in the company, once again home buyers choose the company's decoration of the same consumer is defined as a direct return customer, and by the owners of the company's decoration introduced relatives, friends or brought by the scene of marketing activities The customers are called indirect repeat customers.
So why are some home improvement companies doing well, and some companies are not ideal? It is understood that due to the company's construction quality, design level, comprehensive services and preferential efforts are different, resulting in a big gap between repeat customers.
Some well-established brand decoration companies, the proportion of direct repeat customers can reach 30%, plus the proportion of indirect repeat customers can reach about 50%, such as the industry's peak decoration, Dong Yi Risheng decoration and Longfa decoration, new space decoration, etc. And this proportion is gradually increasing. Compared with small decoration companies or decoration "guerrillas", the brand home improvement company's price is not dominant, but why do consumers love to "turn back"?
Mr. Dong, the owner, still remembers his first renovation experience. He told Chengdu Daily News that due to the lack of decoration knowledge for himself and his family, it is difficult to distinguish the merits of building materials, and the prices and quality of auxiliary materials and materials provided by home improvement companies. It is more transparent and there are contractual restrictions, so people feel more comfortable. Mr. Dong said that the brand management standards for the construction site of the branded home improvement company and the construction technology of the workers are also in place. Until now there are no major problems in the quality of the decoration. Even if there are some minor problems, the home improvement company will have a more timely return visit and the results will be satisfactory. Similar to Mr. Dong’s selection of the old company’s decoration, there are actually not a few. They all think that the good service quality is the main reason for their choice to “turn backâ€, but the price is the second highest.
Private orders are not advisable, and it is only necessary to find regular companies. At present, most of the decoration companies in the market are advocating marketing measures for “returning customersâ€. For companies that have brands and reputations, repeat customers are not a problem. And some home improvement companies that are not sincere, return customers are almost zero.
Why do some home improvement companies not return customers? "The fundamental reason is that home improvement companies do not create their own value and reasons for existence." Mr. Gao, marketing director of a well-known home improvement company in Chengdu, said that the owners did not understand the situation, and other construction began, the owners will Gradually it will be found that the actual decoration for them is actually the contractor. The home improvement company is just an "intermediary" and a nominal manager of the contractor. Whether there is a home improvement company and its own decoration does not have much to do with it.
Three or four months after the completion of the renovation, home improvement owners invariably found that in the future do not need to find a home improvement company decoration, and directly to the contractor can also save some of the cost. Mr. Gao said that some people believe that if the decoration is not done well, all responsibility will be attributed to the home improvement company because the contractor belongs to the home improvement company and the home improvement company certainly has to assume management responsibility. If the decoration is done well, the owners will think that they have met with good luck and encountered a good contract foreman. Afterwards, relatives and friends will decorate and look for the foreman directly. So a large number of repeat customers became private contractors.
Speaking of private singles, in fact, many consumers have chosen to direct and cheap. However, according to a project manager who has been engaged in home improvement construction for nearly 20 years, many neighbors, relatives and friends of the customers think that it is not as good as finding a home improvement company to directly find a project manager. The cost is also a lot cheaper. As a result, some home improvement companies' returning customer policy “created†a large number of private orders.
It is understood that if the consumer calculates a site from the cost, he usually bypasses the decoration company to directly talk to the project manager. The result of the negotiation may be a lot cheaper, but they have not considered the issue of protection, such as after-sales, Construction materials and so on. Once a quality problem occurs, not only does it have no maintenance, but it also causes secondary repairs and costs more.
“Although it is cheap, it is still advisable that everyone go to a regular home improvement company with a brand name. It is not the consumer’s own responsibility to have a problem, and it is futile to work as a contractor for a private order.†Renovated two houses. The owner, Mr. Zhang, revealed the bitterness of the decoration. He said that his two houses are bypassing the company directly to find the construction team installed, seemingly cheaper tens of thousands of dollars, but the cost of post-maintenance is not only so much, and once better than once, but also make the family not harmonious.
The reporter learned that there are many cases similar to Mr. Zhang’s. However, due to the consideration of funds, consumers are often left undecided. In the end, it is a matter of directly doing private orders or looking for companies. Here, the insiders suggested that one point is a penny and one point. Goods, consumer decoration or through the formal home improvement company as well, buy a rest assured, buy a peace of mind.
Maintaining “returning customers†requires even more benefits for services. It is understood that at present, some repeaters of home improvement companies are acquired by project managers and designers as well as marketing staff through quality services. However, there is no real benefit for owners who provide “returning customersâ€. Rely on the owner to take the initiative to say good things for the decoration party to get the trust of relatives, friends and neighbors. “For returning customers, the home improvement company will not basically make concessions on the decoration price, but through a more detailed service such as return visits and communication, consumers can feel the thoughtful service of the decoration company.†Ms. Chen, Customer Service Director of a brand home improvement company, introduced the home improvement service. As a repeat customer, the company should further classify and take the initiative to attack. In the consulting staff, design level and construction management, the person responsible for improving the quality of service and providing the owner with an intimate all-round service is the biggest reward for the returning customer. .
The reporter learned that many home improvement companies on the market will not attract repeat customers by lowering prices. The new space decoration will generally take the owners to freely select the foreman and designer, increase the number of visits, use building materials to accompany the purchase, extend the warranty period, give home appliances and other ways to give back. Some home improvement companies have also set up a credit system for repeat customers. When the points are partially rebuilt by the owner, they can be provided free of charge by the home improvement company, or they can enjoy free replacement and even free decoration.
It is understood that, compared with the decoration of the "upstream industry" property, some developers have also introduced a repeat customers (old belt new) policy. For example, the old customers will be exempted from the cost of property management for a certain period of time, or be given some daily necessities, but the rate of return will be about 10%. Ms. Wang, a senior marketing manager of a brand company, told Chengdu Business Daily that in addition to guaranteeing the quality of decoration and improving services, the brand home improvement company paid great attention to repeat customers, and some companies even maintained repeat customers as a special customer group. For example, Longfa Decoration currently offers special discounts of 10% for its old customers and provides more value-added services for this group of consumers in order to win more repeat customers.
It is not difficult to see that the measures taken by the decoration company for repeat customers are still in the preliminary stage. To improve the return rate, incentive measures need to be improved. If the cost incentive measures can make old customers tempted, there may be more repeat customers.
Decoration company maintenance customers still need measures
At present, many families in the renovation of the house after almost all with the decoration side "a knife cut off," and its fundamental reason is that the decoration is not in place, so that consumers feel deceived. Therefore, some decoration companies want to return customers almost to zero. It seems that the home improvement industry must maintain "return customers" and still need to improve incentive measures. Service must be even more affordable.