The construction marketing magic of instant gratification

In the other Construction Marketing Ideas blog, you can read a story about the virtues of delayed gratification -- in particular, the "marshmallow test" which proved that the 30 per cent of four-year-olds who could wait a while (and receive a second marshmallow for their patience) ultimately did much better in life when they grew to be adults.

Fair enough.  However, as marketers we have the ability to turn rules on their heads and here, "instant gratification" is the way to win hearts, minds and money.

Now, obviously we aren't in the business like the used car dealers who say "no credit, bad credit, we'll fix things so you can drive away today" (leaving the poor suckers seeking instant gratification even deeper in debt.)

As well, in practical terms, most construction projects cannot nor should be instant gratification exercises.  You really don't expect anyone to pick up the phone, order a $20 million building (or even a $10,000 small renovation job) on a single call, do you?

But you can still provide instant gratification, by answering the phone on the second ring, sending a thank-you card after a great meeting or, perhaps, meeting a spontaneous request because you know the person will really appreciate it.  Small gifts are good (blatant bribes are not)  .

I certainly didn't hurt my case when the tax auditor showed up at our offices and he found waiting a few paper cups and a "10 pack" of Tim Hortons coffee.  "Thanks," he said.  "You know, there are people who are afraid to offer me a coffee because they think it would be in conflict, or there are people so mad that they won't offer me a coffee in spite.  I'm really allowed to accept this gesture."  When the auditor left our office three hours later, he gave us the greatest gift possible:  Nothing.  As in:  No additional tax owing.

So, yeah, if you visit job sites in Canada and want to win the hearts and minds, bring the coffee -- or maybe a $10 coffee gift card.

Simply put, anytime you can find a little way to provide some instant gratification to your employees, contractors, or clients, do it.  And give your employees the power to do the same thing -- it won't break your budget.

Instant gratification is great for construction marketing -- when you give it.

Free or not so free?

When should your generosity end in construction marketing, and business begin? You hardly will have a viable business if you give all your intelligence, services, and estimates away for free, right.

Then you turn your head and say: "What about this blog and my offer for free insights into construction marketing, and which specialty trade contractor do you know does not actually offer free estimates?"

I wish I could offer you a black and white and simple answer to the contradictions here. Instead, I'll suggest guidelines based on my experience and observations.

Free is good if it leads to further relationships; it is bad if it is a gift to your competitor.

You know the story of the contractor fighting the competitor who says: "Send the competing estimate once it is completed and I will undercut the price." How can you be sure the person who calls you isn't going to turn your estimate into a price-shopping tool?

The best solution here appears to be to use the ballpark estimate approach on initial contact: Then you can size up the potential client: If the estimate requires much time and effort, expect a design fee (see The Process by the late Sonny Lykos). Of course you can elect to waive this fee if you believe the client is sufficiently respectful of your time and cost and is serious about doing business with you.

Alternatively, if the cost of providing a final estimate is relatively low, go ahead, but build enough value-added (free stuff) within the estimate. You might go all the way of the roofing contractor who provides video documentation with the estimate; or make sure you see the prospective client in person to build rapport before measuring, inspecting and estimating.

Consider whether you are one of few, or one of many?

Obviously if you know you are going to win the job because your relationships are strong (and you have received explicit or implicit guarantees), you need not fear pulling your stops out in developing a full-scale proposal or estimate. But you don't want to waste your energies on "free" proposals from public competitions where you are one of many, unless you have a real edge. In any case, this consideration also applies to your marketing thinking: If you can offer something free that is unique (but doesn't cost you very much) you have a real marketing edge; but if "everyone" is offering the same free service, ("free estimates") where is your edge? Without differentiation, you are just playing a mass game without much imagination. Consider something different.

"Free" makes sense within your community contribution program, and with your previous and current clients.

On Friday, I offered thousands of dollars of free advertising to the local community college, which is seeking industry support to complete construction of a multi-million dollar trades training centre. The chair of the fund-raising committee happens to be the chair of the local mixed construction association, who made a personal contribution of $100,000 for the project.

Clearly this generosity makes business sense: It helps build relationships, provides a useful community contribution, and doesn't cost us much in hard cash but has great value to the receiving organization. Consider your generosity within these frameworks: If you can offer goods or service in kind which enhance your brand and support your community, why not?

"Free" is good if it leverages existing resources without draining your cash.

We donate advertising, you may donate in-kind services; but unless you have the resources and reserves, (you might) be careful with your cash. Equally, of course, consider your time cost. It is one thing to produce a quick ballpark estimate; but quite another to produce a detailed proposal with comprehensive plans and objectives which can be shopped to your competitors. The more time and cash the "free" requires, the more you should be sure that you really want to go that way (but alas, I don't have an easy or simple cut-off point here because the right answer is "it depends.")

"Free" can be an effective part of your marketing strategy if you know where and how to convert free to paid services.

We, for example, offer free editorial profiles to qualifying businesses and organizations in exchange for the right to invite their suppliers to advertise support for the project. Naturally, we have set up some qualifying guidelines and rules -- this offer would bankrupt us if we provided it freely to every small business. In our proposals we make clear that we need to earn at least enough revenue to justify continuing the project (though no who qualifies has to pay us for trying), so we can drop wasteful efforts quickly.

"Free" is the best way to thank people who have given you business and support.

Again, in our own business, once you actually give us some money, you will not be pushed to spend more money -- instead, we'll go out of our way to give you added (unexpected) value, ranging from thank you notes, to free consulting advice, to gifts and rebates.

Yesterday, my wife asked me: "When are you going to start charging for your consulting services." I told her: "In time -- right now, the focus is on providing support and value to existing clients, and building our business reputation and brand." So the construction marketing advice here is free, and if you are a current or previous client, you'll receive even more support.

And if you are a general reader of this blog, and wish some free construction marketing advice, feel free to email me at buckshon@cnrgp.com. Will I draw the line and expect you to pay, ever? Sure: If your request is for your individual gain, requires a significant amount of time and effort, and is unlikely to relate to larger business objectives. Then I'll provide you a free estimate of the cost.

Serving (and giving) works much better than selling

Mel Lester, in his E-Quip Blog posting "Why that dog don't hunt" makes an important point:

The secret is to stop selling and start serving. Sounds simple, but it's not. It involves a heart transplant, where you begin to care more about the client's needs than your own. It's not easy, but it sure is satisfying. Now your want to has caught up with the need to.

How can you promote such a change in your firm? Keep in mind that most A/E firms are probably not equipped to make such a nuanced transition. So if yours can pull it off, you'll be in rare company. Isn't that what differentiation is all about?

Lester's point is fundamental to effective marketing but many people trapped in the sales mentality get it only half right. They give -- but expect something in return. When they don't receive a payoff or a positive response to their sales pitch, they disappear into the wilderness, looking for another 'prospect' to 'sell'.

Generosity and service requires an entirely different mind set. You put your commercial self interest totally out of mind, and focus instead on sharing and helping people around you.

Of course, you select your environment where you express your generosity but you don't want to box this in too narrowly. My business (since it sells marketing and advertising services) focuses on generosity within the community of relevant trade associations and groups. Your universe will be different, depending on your market. Your current and former clients, of course, should always receive top priority -- after they have done business with you once, no effort should be spared to make them feel respected, connected, and able to call on you for guidance, advice, and follow-up support.

Will some (perhaps most) of the people you help and serve just take the free stuff and provide nothing in return? Sure, and that is okay. You'll find some give you far more in return than you can imagine -- they'll call you, make large orders, refer friends, and spread the good word about your business. Note you do not need to spend large amounts of money for your generosity: You can provide your time, your ideas and observations, and in some cases, can contribute in-kind support which has high value to your market but costs you little if anything in cash dollars.

In addition to the rather exciting business results you achieve through your generosity and service, you'll discover something else -- your marketing process becomes enjoyable, rather than something to fear. If your whole attitude is "How can I really be of service?" than "How much do they need to purchase so I can meet my profit quota?" you can wake up each day and enjoy success, even before the phone rings or E-mail pings with the (seemingly) unsolicited business from clients who really want to do business with you, and are ready to pay for your services.

Sharing power

You need to throw some of the conventional concepts about selling in the trash can when you want to be truly effective at construction industry marketing. Eighties-style 'closing techniques' still taught by some marketing gurus can work in some situations, and hard-rock personal soliciting and marketing techniques may bring in clients, but at what cost?

Last night, at 8:30 p.m. two events occurred showing the truly different ways of doing things.

Someone called on my cellular phone to offer service with a competing cellular service provider. Rarely, do I blow my stack -- but this call is way out of hours (unless there is a dire emergency, employees and others will never receive a phone call from me after hours), but worse, the telemarketer expected me to pay toll charges for her soliciting call.

Then, a few minutes later, someone else from the same organization called. "We're not selling anything," he said. "We're offering you a free cellular phone."

Sure, and elephants live in Antarctica, and you can meet SpongeBob on the moon. At 9 p.m.
Contrast this note from Chase, attending an evening Barrie Construction Association meeting. (Sure, the meeting is in the evening but everyone attending is there voluntarily!) After the meeting, he emailed our editor:

Not sure if you have started working on the Gilda’s Club news story for October, but the timing could not be better to do it. This evening at the Greater Barrie Home Builders Meeting the GBHBA and BCA presented Gilda’s with a cheque for $300,000. The two associations got together and built a home in 55 hours and just sold it this week with the proceeds going to Gilda’s House which will provide a place for cancer patients and families. http://www.gildasclubbarrie.org/

This company's employees are empowered to give publicity and advertising to relevant associations and non-profit initiatives. There's no catch, nothing expected in return, no "free phone" in exchange for thousands of dollars in lock-in service fees. The only, but important, guideline, is this generosity should be visible within the community of potential advertisers.

You'll see this blog takes things to a higher level. Originally intended (and still part of) the Thank You package for existing clients, its reach extends far beyond the this business's current service areas in eastern Canada and North Carolina. Readers who ask questions or seek guidance, no matter where they are, will receive respect and recognition and our support of the Society for Marketing Professional Services (SMPS) transcends any chapter or geographical boundaries.

Why? Because real generosity and community service really works; not plastic stuff, not disrespectful intrusions with irritating free offers, intended to win business sales. Your brand shifts, your reputation evolves, people feel comfortable doing business with you, and when the time is right, you find amazing business results.

Marketing generosity -- some further thoughts

Many contractors and suppliers participate in Habitat for Humanity initiatives (The image here is from the National Capital Region (Ottawa area) Habitat for Humanity site, but you will probably find a Habitat for Humanity branch in your region.) Note that the most meaningful contribution you can provide here will be if you put your marketing/promotional visions aside and focus on the real needs of the local Habitat chapter. Strategic generosity, with marketing underlying the initiative, is far more effective when you create or initiate a sponsorship or support an organization within your market area that isn't expecting your contribution. But genuine generosity without worrying about marketing pay-back (the best approach for larger organizations like Habitat) can serve your business well if you just do what is right for your community.

Here is my Publisher's Viewpoint for the September issue of Ontario Construction Report.

By Mark Buckshon
Publisher, Ontario Construction Report

Perhaps the most important lesson in business I’ve learned in the past few years is that, when it comes to marketing, it is not what you take, but what you give, that counts the most.

Generosity – or if you want to be more direct about it – focused or strategic generosity – is perhaps the most effective and under-appreciated marketing resource; excluding the hopefully obvious principal that you must always complete your actual work to the highest quality.

By generosity, I don’t mean the overworked (and potentially damaging) cliches about ‘free estimates’ or making a big deal about a small contribution for some community charity. I’m referring to a form of generosity more subtle yet at times more ‘in your face’ than the conventional model. The highest and most successful application of this principal is pro-actively creating a positive image for yourself within your target market/community.
As an example, I know of an insurance broker who offered to sponsor the General Contractors Association of Ottawa Ethics Award. Out of respect for insurance broker’s competitors, I won’t name the business here – but I’m sure that the GCAO members – the market the broker is targeting – know who the broker is!

Last night, I saw another example: A U.S. company that sells marketing materials teamed up with a well-known marketing guru, to offer a free Webinar on construction marketing. Undoubtedly, the presenter offered solid and useful advice. Of course, viewers also knew who offered the advice, and which website/phone number to visit after the program.

So how can you implement your generosity program? Think about your ideal clients; which organizations, events, and hobbies reflect their passion, and then find ways to visibly support, contribute and be a part of these passions. You’ll of course want the generosity to be consistent yet creative. This takes some work and effort, but will contribute to your success in business.

* * *

Progress is continuing in the chartering of Canada’s first chapter of the Society for Professional Marketing Services (SMPS). I recently attended the U.S. national SMPS conference in Denver, Colorado. The organization – dedicated to marketing issues for the architectural, engineering and construction industries – has more than 7,000 members, with chapters in most major U.S. cities. If your responsibilities relate to marketing and you are reading this article, you should consider joining the Ontario chapter when it is established. You can visit the SMPS website at http://www.smps.org/ and if you would like to be ‘connected’ to the Ontario chapter organizers, please feel free to email me at Buckshon@cnrgp.com

Mark Buckshon is president of the Construction News and Report Group of Companies. He publishes a daily blog at http://www.constructionmarketingideas.blogspot.com, and can be reached at 888-432-3555 ext 224.

Advertising, generosity and branding

One way to build a reputation for generosity is to support community projects financially and with trade services -- such a s The Ottawa Hospital Foundation. But your business brand is even more effective when you take a leadership role in the process -- your network of contacts, and good-will, will translate into much additional business. But you have to do it without worrying about immediate reward or return.

How do businesses which sell advertising for a living succeed. If you understand the answer to this question, you might learn something about your own marketing -- and how and when to use advertising or other resources to achieve the results you are seeking.

Fact is, most advertising-supported businesses need to deliver something of great value to enough of the right people for a truly low (or free) price that the audience is large enough to encourage people to want to pay to access that audience! In other words, a television station attracts millions of viewers, a local newspaper goes to virtually everyone in the community with some money, or Google develops such an effective search engine that virtually everyone on the Internet uses it (often at the moment they are considering a purchasing decision).

In our case, of course, we reach a highly specific -- but important -- audience of construction industry readers, who need many products and services to do their business.

The cornerstone of the media business is successfully giving away enough real value that people want to do business with us -- then delivering the advertisers enough value that they want to keep doing business. Like any business, we have competition, both from peers and interlopers. The competition challenges us to improve our practices and effectiveness.

And, like any business, there are a few players who go over the line, over promising and under-delivering (or not delivering at all). Most of these outfits fail sooner or later, or find some scammy way to find a continuous number of new suckers (or sit close enough to the edge that a few people think they are getting enough value, that they can continue despite high turnover from the majority.)

You can see from our survey results that advertising is a valid -- but minority -- source of new business for most construction enterprises.

But at root of our business -- and perhaps the biggest clue about how you can succeed at yours in marketing -- is we take something really useful, do it well, and virtually give it away! Google provides a wonderfully effective search engine and we provide editorial content -- information and news about the industry that just is not available elsewhere. For free.

Now, I am not suggesting if you are a drywall contractor that you will be in business long if you give away your services without charging for them. But if you share your expertise, your ideas, and your insights into effectively reducing drywall installation costs -- or making the product more effective -- with your community or clients, you may find some surprisingly positive results. Or if you strategically give away your services as a community service initiative; or take a voluntary leadership role in a relevant industry group or association, you may find results far beyond your expectations.

You can provide this benefit informally and quietly (creating an aura of exclusivity with your clients) or publicly, perhaps using media such ours, or by email, or speaking, or association participation.

Your generosity needs to be sincere, and if you expect a quid-pro-quo response, you will not get very far. (Of course I am not suggesting giving and giving indefinitely to leeches -- there are some out there!) But over time, you will find amazing things -- potential clients will come to you, you will be able to charge more than others for the same service, and you will build a successful business. Essentially, you will create a brand for your enterprise. And that is the essense of marketing success.