A better approach to construction marketing

Statcounter.com provides incredibly comprehensive traffic data -- and it is free.

Last night, in reviewing some of the inbound links to this construction marketing blog (you can gather amazing data about your visitors with most blogging software) I visited a site promoting some Internet marketing scheme where you could, purportedly, be among the one per cent richest people in the world, quickly and easily, by purchasing the "no risk" program.

The video impressed me with its slickness and its various attention-retaining devices to draw the viewer into the story, and to make it seem so believable that of course only a fool would fail to see the value of the offer and part with money to make the dream come true.

Of course, I'm a sceptic about these sorts of things, so even before the  video ended, I had left the site, avoiding the "squeeze offer" when I initially tried to leave the marketer's video page. I used Google to search the offer proponent's name and, within a few minutes, discovered reports from some early clients, knowledgeable Internet marketers, who said there indeed could be some value in the program, but it certainly won't solve every one's problems and is not a magical fix-all solution.

Internet marketers like the video producer say that if you purchase their products, you'll achieve incredible traffic and with that traffic and your slick marketing, you can sell others' works through affiliate deals and make a small (or, more accurately, large) fortune by selling other peoples' work.

Sure . . . anyone can build an Internet marketing site and theoretically reach a sizable percentage of the world's population, virtually instantaneously, but we know that is far from the reality for most of us.  Google, especially, is wary of tricks and gimmicks to build traffic -- if you cross a line, you could be banned to search-engine purgatory.

Of course, architectural, engineering and construction marketers are not really looking for massive amounts of traffic from visitors anywhere in the world.  We are seeking qualified potential clients, and to maintain healthy relationships with current and previous customers.  Unless we are operating a national franchise serving millions of consumers, our markets are largely constrained by geography (the more local the better) or scope (if we are building multi-million dollar theme parks, we don't really want nor need to reach typical consumers in middle-income neighbourhoods.)

A successful blog or site within this industry would probably measure daily traffic in the hundreds, much less likely than the thousands or tens of thousands.

I track traffic and source/nature of visitors through a free (for small numbers) service, Statcounter.com, which allows me to see who is arriving at our sites, and when.

As for dreams of instant wealth, I've discovered that sometimes incredibly wonderful things can happen, but this success is rarely achieved by blindly following an Internet guru's videos showing fancy cars and houses.  It's fine to dream, but it never hurts to keep the real world in perspective in planning our construction marketing.

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.

Reader's Question: High-end residential construction: How to even out the troughs and increase potential deal flow

Although David Markham, president of C.A. Peletz Co. in San Fransisco, said his company focuses on high-end residential work, the contractor also handles commercial projects such as the conversion of an old automotive garage into the Sierra Club headquarters. This information led me to one of my suggestions below.

Readers questions are invited. You can email me at buckshon@cnrgp.com.

Hi Mark, I am enjoying the blog as a new reader. I own a construction company that focuses on the very high end residential market in the San Francisco Bay Area of California. We are an older company founded in the 50’s when the principal built schools and bridges. Over the decades we have built commercial, medical office and always luxury multi-family and single family.

Since I took over in 2002, most of our success has come from the boom in extremely high-end single family ($800 - $1,200 per square foot) due to the dot.com and housing booms. Things have obviously slowed, but not stopped. We have quite a few repeat clients that are constantly upgrading, maintaining and adding to what they have.

I would like to even out the troughs and increase potential deal flow. We generally market to high-end architecture firms and maintain good contact with existing and past clients. Do you have any further suggestions?

Best - David A. Markham, President C.M. Peletz Co.

David:

First, obviously you should take the thoughts of someone at a distance who does not know your specific business or market conditions with a good degree of caution. But here are my initial thoughts.

1. The main frame of business of course is repeat and referral. You probably already encourage this but you may wish to extend your outreach and programs to thank existing clients and encourage referrals. Consider the story of Peter Danis in Toronto as an example.
2. Media publicity can be very helpful, especially in the publications and websites read by your clients. If you don't (yet) know what publications/broadcast outlets and websites your current clients read/use, you can ask a few of them. With permission stories of successful building projects are always helpful. Specialist PR services and agencies may be helpful. Community service may be helpful.
   
3. If most of your current referrals are coming from architects, you have two choices. You can build relationships with them by (a) referring clients to them and (b) offering cost savings/technical/practical seminars and lunch and learn-type programs/ The former is obviously the most effective but the latter is probably the most controllable
4. You may wish to explore an enhanced web presence through the new tools like twitter, online networking, blogging and the like. This stuff can be time consuming and results are often mixed but your market area may be a leading force in the area.
5. Affinity arrangements can be powerful. I noticed you did work for the Sierra Club. Can you connect with relevant community associations, clubs, and associations -- the ones which your current clients are most connected with?

Thank you very much Mark. This is extremely helpful in addressing my blank spots. Let me know if I can be of any help to you in the future. Best - Dave

The competitive challenge

Las Vegas architect Craig Galati in his The Heart of Business Blog reports how intense competition has become recently in the U.S.

My firm recently responded to a request for qualifications to provide architectural design services for a library addition and renovation project in a small rural town. The project is approximately 10,000 s.f., a small project by most standards. The library district received thirty-five submittals for the project. Thirty-five submittals for this small project!

In my subsequent discussion with District staff, I was told that the District had hoped to receive 5-10 submittals. As if I needed more evidence, this is clear proof of current economic conditions — the competition is heating up.

How do you battle and win in this enviornment: You need to build relationships, he says, and you need to play by the rules. And you need to be creative, different, and be prepared to take some risks.

I have found that during slower economic times, there are always great innovative breakthroughs. Perhaps by looking critically at what your firm is doing, you can find an innovative strategy. Many firms get complacent during good times. Perhaps increased competition will get them to start thinking creatively again and take some risks. A friend of mine told me about a recent interview in which Tom Peters states that most people waste their money coming to see him: that in an audience of 500, “there are (only) four who are on the verge of doing something really interesting, whether inside or outside the company.” What are you doing that would be of interest to your potential clients?

This is solid advice. Still, I'm thankful that my U.S. relationships (and market) are in the Washington, D.C. metro area rather than Las Vegas, these days. If I'm going to go overboard in puns, if I wish to place a bet, it would be on the Government -- at least until the economic cycle rebounds.

How should a builder market to designers and architects (3)

Consultant Clare Ross of the Clare Ross Organization has added his opinions to this topic:

First you need to market yourself to potential clients who have ongoing building programs that you can do. When you have a relationship with the client, then you can go to the architect with a good solid project lead in hand. If you also have a good relationship with the client and can make an architectural recommendation to the client, all the better.

Contractors who come to the table with a solid project lead get the architect's attention. Learn to develop a relationship of sharing leads with the architect's business development staff and they will share their leads with you. In this case you are building your relationship with their BD team. They will then open the door to their technical staff on their current projects.

The second situation is where you are selling yourself to their technical staff on projects already underway and coming ready for bid. That's a tougher sell unless you have worked with them before and they will usually stick with their proven relationships with other contractors. Successful contractors work on developing your own client relationships with clients who have ongoing building programs. When you have that kind of client relationship base, architects will seek you out

Clare's points enhance the observation that the solution to marketing to architects is unfortunately not a simple direct mail piece and a "lunch and learn" presentation. Your best way to win business, it seems, is by connecting the dots and providing useful leads and business to the architects from which you wish to receive business.

How should a builder market to designers and architects (2)

Yesterday, Jeremy Hartje of James Hartje Construction Inc. in Santa Cruz, CA, received several answers to his question about how he could effectively market his general contracting services to local designers. Here are some additional thoughtful observations on this topic from Society for Marketing Professional Services members and a well-regarded Canadian architect.

Daniel J. Caldwell, Principal at Stout & Caldwell Consulting Engineers & Surveyors (www.stoutcaldwell.com) in Cinaminson, NJ, wrote:

• With six field workers and three office employees, I think that you/they have already established a reputation. What you need to find out is if that reputation is a good one or not a good one (and be 100 per cent honest with yourself)
• Once you have that established, it's easy
• If the reputation is not a good one, you need to fix that first by addressing whatever issues may be causing it, i.e. problem employees, poorly maintained equipment, cost overruns etc.
• If the reputation is a good one, invite some of your best clients to the program and have them showcase the project you did for them. Let them sing your praises, you really shouldn't have to. You just be there to answer questions that may come up
• People, by nature, love referrals and love to hire people who are referred to them.

Rose Walsh, Business Development at Nolte Associates, Inc. (www.nolte.com) in Sacramento, wrote:

To misquote the real estate business: Benefits, benefits, benefits!

We have had a variety of subconsultants provide similar presentations over lunch/breakfast. It's a great initial networking tool (everyone likes free food) and much easier to learn about a new firm/service. However, if you don't have work/leads for us, why should we send work your way instead of someone else (prior relationship)? Have you thought about your follow up plan?

Pamela Rigling Caffrey, Director of Marketing, John Poe Architects, Inc., in Dayton, OH, adds:

If a general contractor ever gave me a lead that I didn't know about or opened the door for my firm into a project, I would FOREVER inform said contractor about any project opportunities I could offer them. Forever. And ever. The same would be true for engineering consultants.

Please consider that an open offer...

Finally, Canadian architect John Davies, in Ottawa, offers these thoughts (which will have special relevance to Canadian contractors):

With regard to your residential contractor inquiry:

1. there are two major construction sectors at this level - residential and Industrial, Commercial and Institutional (ICI)
2. the ICI sector predominantly secures contracts through the formal bidding process.
3. the residential sector predominantly secures contracts by way of negotiation or less formal bidding procedures
4. the best way to get the attention of architects is to convince them that the contractor:

1. Is skilled
2. Exhibits impeccable craftsmanship
3. Is financially secure (even bonded) and pays his trades promptly
4. Has a catalog of good references relating to successfully completed work (both Owners and Trade Contractors).
5. Can illustrate that all his projects have been completed on time and on budget - again with references.
6. Is properly insured with appropriate levels of coverage ... Worker's Comp.; General Liability; Property and Boiler; Owned and Non-Owned Vehicles; Equipment; Errors and Omissions (if a design component is included in the product - also possesses a MMA license number)
7. Is registered with the Ontario New Homes Warranty Plan
8. Has worked with architects on previous occasions and can give references.
9. Has no outstanding claims or lawsuits pending ... and
10. Takes his shoes off when entering peoples homes and in all areas of the work that are not under construction.

"Mark ... if he follows the above he won't go far wrong - with me anyway!", Davies wrote

What can you learn from these observations: No direct marketing piece will substitute for personal contact and relationships; and nothing works better in relationship development than the expression of your reputation/referrals, and your spirit of generosity and sharing. And I wouldn't under-rate John Davies' light hearted final remark about taking your shoes off! Courtesy, respect and sensitivity to the ultimate clients are undoubtedly important in this business. These are basic principals and underlie most successful marketing within the industry.

How should a builder market to designers and architects?

Jeremy Hartje of James Hartje Construction Inc. in Santa Cruz, CA, asked this important question:

My dad and I have a small residential construction company, six field and three office employees. I'm currently conducting a small networking and outreach campaign with a focus on architects and designers. Our goal is to establish a good reputation with designers so they send more bids our way. I'm just about to send out a letter asking them to share a brief lunch meeting, which I will provide the food, so I can give a quick presentation on our company. My question is, what do you think these designers and architects want to hear? What should I make sure to include in a brief presentation to this audience? Any thoughts or ideas on this question or networking in general would be appreciated.

To answer his question, I posted it on the The Society for Marketing Professional Services (SMPS) Listserve and asked some architects and designers I know for their own opinions. Here are some of the early responses.

Tara Krovich at The Whiting-Turner Contracting Company wrote:

We have found that the best way to better network with the architects in our area and build a relationship to where they feel comfortable feeding us information and inviting us on their teams is by...building that relationship. I don't think a presentation is the best approach. I think taking one or two individuals from the architecture firm out to lunch (making it less formal) and simply sharing with them the information on your company and the type of experience you have, then gaining information on them, what they are looking for, the markets they are in, etc. Don't drop it after this meeting. If you hear of a project of interest, send it to them - and that will open the door for them to reciprocate the favor. It is all about relationships when it comes to architects/cm's, so it just is a matter of having patience and taking the time to build it.

Juliette Brown, Marketing Program Specialist, Western Region, at Honeywell Energy Services said:

First big thing I see: tell him to NOT send out a (junk mail) invitation letter to firms.

At minimum, he should personally call a/the principal at each contractor/architect firm and directly propose a lunch meeting; if he really wants their business, he needs to prove it - and sending out a form letter doesn't put him on the right foot from the get-go.

Conversely, Tim Richards, Chief Financial Officer at WESTAR Architectural Group/NV Inc. In Las Vegas, replied:

I believe you will receive a warm response from architects. We are always looking for opportunities to collaborate with other firms. We hook up with consultants all the time and would love to partner with a construction group. I am actively marketing to construction and engineering groups all the time. . . ."

You will see more responses over the next few days and I will post further follow-ups, hopefully distilling a consensus or, at least, a toolkit of response which will allow you to discover an informed conclusion. Here are my thoughts:

Will a direct marketing/lunch and learn approach work? Possibly, if seen holistically, and not as a one shot magic bullet. A natural way to go about this process would be to connect directly and first with architects/designers with which you have a great relationship already, and ask them the same question, They may help you in networking within your own community and suggest relevant groups, associations and activities. You might also obtain some testimonials which would lend credibility to your marketing materials/messages.

Finally, if you serious about this approach, you should plan a campaign (testing each phase as you proceed) perhaps using a variety of media including permission-based e-letters, phone communications, informal meetings and association events over time, all in harmony and truly correlated to what your business really is, and how it truly relates with architects and designers.

If all of this seems like a lot of work, you are right, but you may find surprisingly immediate results by consulting with the architects and designers you know now in planning and co-ordinating your marketing campaign.

P.S. You may find some additional insights in this contractortalk.com thread on the same topic.

Cold calling architects?

The original poster on this contractortalk.com thread posts a useful question. The response from another contractor surprised me.

Folks, I've been struggling to get things going for 2-3 years now. My past experience has shown the contractors I've worked for had work coming in from architects and designers. I have hung on to S.M. (Service Magic) lead service for the 1 or 2 real jobs I land and the dozen or so tire-kickers and bad leads I process monthly.

While I approach all of them honestly, I can smell the bad leads for the 1st sentence of the e-mail. My feeling is simple: There has to be a better way!

I have mailed flyers and cards to 150 architects listed within 20 miles of my area. Now if you allow for 15 per cent bad addresses, 25 per cent for commercial and maybe 15 per cent for firms that aren't looking for additional contractors to work with, that still leaves 45 per cent that I should have some chance to look at their work.

Anyone with thoughts or suggestions on methods to get these firms attention? I'm
looking for jobs that are in the $25k to $250k arena. Yeah, its a crowded field but until we get a little more foundation (ehm), I don't feel too comfortable (yet) with the liabilities involved in $ 1mil+. work.

Here is the response that surprised me:

Lumpy, the answer to your question is cold call.

I am a road warrior for a commercial builder and my job is to cold call on architects, door to door. It seems to be the only way I've been successful with getting an appointment with architects, and I'll tell you, it works.

It's all in the approach. I walk in the door and ask the receptionist or whoever is there if I could drop off some info about my company for so and so architect. They always say yes. Then I ask if so and so architect is in the office. If they say no, I tell them thanks, drop off the info and tell them I'll follow up by email or phone sometime soon. If the architect is there, I extend my hand out to give a shake and introduce myself and just be honest about why I'm there. I'm trying to build our business and add new architects to our network, could we schedule a short meeting to discuss our services.

I've been able to book several meeting this way. Persistence is key. Some may be hesitant to invite a stranger to do business with since they are probably happy with who they currently have. I have never been thrown out of a firm, or been yelled at EVER, for stopping by and dropping of a brochure about my company. You never know when you may come across that one architect who had a run in with his contractor and is out there looking for new ones.

Mailings virtually never work in the architectural market. Even if you have one hell of a crazy creative high quality piece you're mailing, you can expect to get little if any response. I've tried.

I wish you luck and if you want business, you HAVE to get out there face to face. It's scary, but keep telling yourself, it's going to happen and just be yourself. People remember a face and will also remember that you were the guy that was out there during the worst economy trying to shake up your business while everyone else was sitting on there ass complaining, or milking public bids just to stay alive (not that that's a bad thing, I'm sure we've all been there.)

Remember, you're not selling a widget or something, you're selling yourself and your services which can help them. Don't forget that. Hope this helps.

OK, maybe cold calling and canvassing at architects' offices is effective but I think most of us would have real problems stomaching that type of approach. I prefer this response from another poster.

Most of my contacts have come from trade show networking, not mailing, if you have local builders organization, join it, we have a few in Long Island, New York.

But, then again, if few are doing it, and you can handle the discomfort, the canvassing approach may make sense -- at least until you build a file sufficiently solid based on healthy relationships and networking through enhanced word-of-mouth approaches.

Vision and Uniqueness

Today, I visited Toronto to interview people at two very different companies, who will be profiled in the next issue of Ontario Construction Report.
Because these interviews were conducted as advertising features -- in which the profiled business an review and approve the interview contents before publication -- I am bound not to report on the interviews, even positively, until I have their permission.
But I can address something important; the fact that both of the businesses I interviewed have successfully developed unique niches, and connected the dots in surprisingly creative ways.
One is a developer -- but its source of funds are largely pension funds of unionized businesses. So it conducts its affairs with an exceptional degree of respect for workers, 'ordinary people' and the labour movement. Yet don't think these guys are push-overs. They still require their projects to meet the highest competitive standards and they must ultimately operate within the open, free market for products, services, and clients.
I walked a few blocks to an entirely different business -- an architect that combines two very distinctive, but unrelated specialties. The result is an intriguingly eclectic international practice -- one that competes on the highest levels, and in fact sets the standards for its industry segment.
Both of these businesses, of course, practice the 'standards' of business discipline -- they get the basics right (something I failed to appreciate as we expanded carelessly a few years ago). But they combine the normal processes with the exceptional creativity of building their businesses within well defined niches, creatively diversified, but always within their core values.
Once I have their permission, I'll disclose more. Of course the stories I was writing are part of our own niche, which allows us to be truly viable as print publishers in the Internet era.