15 Tips to Grow Your Service Business [With Examples]

General Tips on How to Grow a Service Business

We’re starting with tips for residential and commercial service businesses. Here’s a brief rundown of the different growth strategies:

Now, let’s take a closer look at each.

Tip #1: Establish an optimal business system

Your company’s growth depends on a well-defined operating system that includes an organizational chart, operating manuals, and checks and balances for each department to maintain accountability.

“There are three reasons why we make mistakes,” says Al Levi, The 7-Power Contractor author and contracting business expert. “No. 1 is we don’t have a system. No. 2, we have the wrong system.

And No. 3—this is often the case—the system is not followed correctly.”

If you plan to expand your business in a new location or acquire other companies, proper procedures ensure every location operates under the same business model.

This was key for Shane Jaeger, president of operations at the Texas-based Lawton Group, whose four companies include Benjamin Franklin Plumbing, Lawton Mechanical, Lawton Commercial Services, and Buckaroo Pest Protection.

“We did not want HVAC doing something one way and plumbing doing it another—or San Antonio operating differently than Dallas,” he says. “We had to streamline our standard operating procedures, so we were all moving in the same direction.”

Tip #2: Streamline service business operations

Streamlining your commercial service business operations with automated technology enables your employees to work more efficiently and reduces chances for manual error.

Commercial service software improves your scheduling, dispatching, team and customer communications, estimates, purchase orders, inventory management, invoicing, payments, and more.

It also works to centralize operations, which is important for a multi-location service business.

For Edelman Inc., ServiceTitan streamlines its in-house operations, maintaining one around-the-clock call center for each location. This allows the company to keep its overhead down and offer a better price to customers.

“We can answer the phones from anywhere and have that all streamlined through ServiceTitan,” says Tyler Edelman, chief financial officer (CFO) of the company based in Champaign, Illinois.

Another benefit of streamlined operations? More profit.

“What the technology brings is at least an extra service call a day,” says Mike Fortin, owner of Putnam Mechanical in Mooresville, North Carolina, and Sarasota, Florida. “With everything being instantaneous, we actually get at least one more service call per day out of that service tech compared to before, and that’s huge.

With an average ticket of about $700 or $800, times nine guys, it’s a lot more money every day.”

Tip #3: Utilize digital tools in the field

Software tools connect your office and the field, giving commercial service techs access to important information when needed.

With the ServiceTitan Field Service App, techs can view important job details like customer contact information, pinned notes, system and equipment information, and related photos, so they arrive at the job site fully prepared.

To ensure that techs follow procedures, you can trigger technician forms for a job type or during a certain point in the job cycle, such as completing an inspection checklist or obtaining the signature of a facility manager.

A mobile app enables your tech to present tiered options to customers, showing the value of a higher-priced option and increasing ticket sizes.

A tech can present multiple estimates side-by-side in a clean format, showing customers, “‘Hey, this is an option,’” Edelman, CFO at Edelman Inc., explains. “‘This is the bare minimum I can do today.”

“But while I'm here, I noticed you could also use this repair to prevent a larger replacement down the road or at least prolong the life of your system.’”

After your tech completes the job, ServiceTitan Payments enables them to securely capture checks and credit cards in the field or send customers a link to a personalized online payment portal.

Tip #4: Provide exceptional customer experiences

Commercial service providers know that delivering high-quality service is key to customer retention and gaining new business.

How important is it? In the U.S., 75% of people say they’ll spend more at a company if they have a great experience, according to Zendesk.

So, it’s essential to prioritize excellent customer experiences, starting with the customer's first interaction with your business.

You should also communicate with clients at every step of the job cycle.

You can use ServiceTitan customer experience software to enhance customer communication by sending property owners or facility managers appointment reminders and notifications so they know when technicians are scheduled to arrive.

One Texas plumbing company that provides residential, commercial, and new construction services discovered how much their customers appreciated job arrival notifications.

Before using ServiceTitan, Intown Plumbing notified builders and general contractors about a week before showing up at a construction job, says Brittany Grose, Intown’s director of business operations.

Now, the company notifies them when they’re on the way, allowing for better work coordination at job sites.

"Two guys that I know for sure have said, ‘We love this, don't stop doing this,'" Grose says.

ServiceTitan’s customer management tools make it easier for your customers to do business with you.

They can book appointments online through their customer portal, view invoices, or pay statement balances.

When you build trust with your existing customers by consistently offering excellent service, you gain more online reviews and word-of-mouth referrals.

Tip #5: Invest in effective digital marketing strategies

Online marketing tools work to reach prospective customers and increase your customer base.

Depending on their message and the demographic of their ideal customer, commercial service companies will find that having a variety of marketing channels generates the best results.

Some effective marketing strategies include:

• Boost your online presence: Maximize search marketing with your Google Business Profile (formerly Google My Business) and pay-per-click ads to give your local business greater visibility when potential customers perform a Google search.

• Enhance your website: Use content marketing, including search engine optimization (SEO), on your website’s blog posts and landing pages. Consider podcasts and webinars to establish your expertise.

• Email marketing: Don’t blast your entire email list. Instead, email a target audience to maximize results, such as follow-ups on potential commercial contracts. ServiceTitan Marketing Pro streamlines your marketing, so you can quickly design emails with templates, automate your marketing campaigns, and track return on investment in real time.

• Social media marketing: Social media posts work to increase brand awareness, drive traffic to your website, and attract new customers. Make sure to use the same social media platforms your target market uses.

• PPC: Pay-per-click is a type of digital advertising where you only pay when someone clicks on your ad. This is a great way to target a specific audience and generate leads quickly. The most popular PPC advertising is Google Ads, a platform allowing businesses to create ads on Google's search engine and other Google properties. 

With tools like Home Services Marketing Software and features like Local Services Ads, ServiceTitan users can maximize their digital advertising efforts by:

• Automatically integrating Local Services Ads bookings in ServiceTitan

• Measuring ROI on every advertising campaign

• Keeping advertising ROI accurate and healthy

• Only paying for leads, not for clicks

Find opportunities in your marketing efforts to make a personal connection. John Akhoian, Founder and CEO of Los Angeles-based Rooter Hero, used creative methods to build customer relationships, including sending birthday cards to local property managers.

Crystal Williams, founder and marketing strategist at Lemon Seed Marketing, who also helps her family’s HVAC and plumbing business, McWilliams & Son, highlights the importance of making a personal connection.

“At the end of the day, people buy and want to do business with who they feel they know,” she says.

Tip #6: Track key business metrics to boost profit

To optimize your commercial service business performance, tracking and measuring key business metrics is crucial.

Key performance indicators (KPIs), like closing percentage, leads generated, and return on investment (ROI), show whether your company meets, exceeds, or falls short of goals.

ServiceTitan’s data reporting capabilities make it easy for commercial service contractors to assess and analyze company data.

Lawton Group uses ServiceTitan’s automation to track project gross margin, overall profitability by division, and overall company profitability.

On the commercial side, the business tracks billable efficiency and overall efficiency.

“Everyone on the team has a goal, all the way down to apprentices, and they have to get those reports,” Shane Jaeger says. “If they don’t know where they’re at, they don’t know where they’re going to go.

I have weekly scorecards sent all the way down to my techs and all the way up to ownership and board members.”

Data-driven insight shows what areas generate the most profit so you can grow your company successfully.

Tip #7: Leverage partnerships with other professionals

Developing solid internal processes and investing in marketing and digital tools to streamline operations are proven growth strategies for service-based businesses.

However, leveraging external support networks and building partnerships with other service providers can also be beneficial.

That could mean attending local industry events. Or searching on social media for relevant groups to join and engage with. For home services providers, partnering with marketing professionals or real estate agents can be particularly useful for growing their business.

By following the tips outlined above, service-based businesses or service contractors are on the right path toward business growth. 

Tip #8: Encourage reviews

How does a customer know the right service business to patronize? And how can you know the way customers feel about your business?

The answer is reviews.

Why?

Well, 76% of customers regularly check online reviews before picking a local business to patronize.

That's why many successful service businesses grow on the shoulders of customer reviews. A perfect example of such a service business is Bradbury Brothers Cooling, Plumbing & Electrical. 

According to Brittany Brewer, its Marketing and Customer Service Manager, “Review management is a huge part of our marketing here because it’s more than just a pat on the back from your customers.

It’s giving potential customers feedback from the people who they associate themselves with [and are more likely to trust] when they’re looking for a company to use,” she adds.

However, you can only get positive customer reviews if you deliver excellent customer service.

So, urge employees to empathize with customers and go the extra mile to find a solution to their problems.

Once that's done, you can consider the following:

• Place links to your profiles on different review platforms, your websites, and social media accounts.

• Request reviews upon job completion. You can send a follow-up email or SMS.

• Motivate technicians to collect reviews with rewards. For example, Dick Hill and Son in Richmond, Indiana, awards points to technicians for every positive 5-star review. They later redeem the points for prizes.

• Give customers a little postcard with a step-by-step explanation of how to leave feedback.

Pro Tip!

Never leave negative reviews unanswered because they also impact customer choices.

In fact, 88% of customers say they're likely to use a business that responds to positive and negative reviews.

So, how can you respond to negative reviews?

• Thank the customer first.

• Recognize and sincerely apologize for their frustrating experience.

• Let them know you intend to make it right.

• Give the customer a way to reach you directly to discuss the situation further.

Here's an example:

Hello, [customer name],

Thank you very much for leaving us a review. We value our customers and strive to provide an exceptional customer experience. We apologize for failing to do so in your case. I would love to have the opportunity to make it up to you. Could you [email or call me] at [phone number or email address]?

Sincerely,

[Your name and company name]

This shows you genuinely empathize with the customer and are willing to resolve the situation. Who knows, you might turn the negative review into a loyal customer.

We know that encouraging customers to leave reviews and replying to all feedback on different platforms can get complex quickly.

Fortunately, that’s not the case with ServiceTitan’s Reputation Management software.

For example, Brewer has used the platform to gain and manage 1,459 reviews on Google and 202 reviews on Facebook.

Once an on-field tech finishes a job and clicks complete on their mobile tablet, ServiceTitan’s system automatically sends a review request to the customer.

This way, the customer writes the review while the experience is still fresh in their mind.

Additionally, you can set up the system to send you notifications once a customer drops a review on any platform. You can then reply to each one from one central dashboard.

This way, no feedback falls through the cracks. And you can reach out to customers with unsatisfactory experiences before they become worse.

So, consider taking your review management process to the next level with ServiceTitan.

Tip #9: Focus on closing more service agreements

Service agreements help generate guaranteed, recurring revenue for service businesses. They serve as an essential revenue stream, especially during slow seasons.

Other companies may be struggling to find money to invest in growth initiatives. However, a service company with a large number of service agreements will always have cash on hand to keep investing in its growth.

Also, service agreements promote constant interaction between you and customers—a great way to build a loyal customer base and drive referrals.

For example, Cool Today grew into a $23 million business with the help of 17,000 memberships! According to president Jaime DiDomenico, memberships account for 20 to 40 % of their total revenue.

When creating a service agreement, you should:

• Set an optimal price: Any price you set should be fair and profitable so your business doesn't go bust.

• Lay out a contract: Be aware of your customers' needs when creating the contract. You can always use ServiceTitan’s fully customizable service agreement template.

• Research before you promote it: Do your research before you start promoting a service agreement to any client. Get detailed information about their property and previous job history (if it's not a new client).

How can you persuade customers to purchase service-level agreements?

Jaime DiDomenico gives the following tips in a recent webinar:

• Sell the value of a service agreement. According to DiDomenico, the key value points are peace of mind, price, and time. Include them on your websites.

• Train techs to sell service agreements. And empower them with the right tools.

• Reward techs and other employees for selling agreements. You can hand out bonuses, commissions, and public recognition.

• Give extra perks to customers on service agreements. This could be tickets to exclusive events, gift packages, or thank-you notes.

Also, like DiDomenico, you can consider using ServiceTitan's Service Agreement software.

With it, you can create maintenance memberships easily. You can offer discounts and schedule appointments far into the future.

Back-office employees can also create periodic reports you can use to sell the client on a renewal.

The report covers the contract cost, the number of times your techs visited the customer's location, and so on.

Also, you can tailor each maintenance contract or agreement to each customer's specific needs. You can add extra charges for additional maintenance tasks, service upgrades, etc.

As you tailor the service contract, ServiceTitan automatically computes labor and material costs to ensure your invoices are accurate and remain profitable.

Tips on How to Grow a Residential Service Business

Residential and commercial service businesses have different characteristics. What works for a residential service business might not work for a commercial service business, and vice versa.

That said, here are some tips for growing your residential business:

Tip #1: Serve specific industries

Homeowners typically hire local service businesses close to their residences.

That's because they're more accessible and more likely to respond quickly to complaints.

It also helps that the employees are sometimes their friends, neighbors, or relatives.

So, aim your marketing efforts at specific neighborhoods. Distribute flyers to local small businesses that potential customers frequent, hand out postcards, etc.

It doesn't stop there.

Mention your local service area on your website, social media, Google Business Profile, and digital marketing campaigns. For example, O'Neill Plumbing Co. calls out their local service area in their Facebook ad campaign.

This immediately catches the attention of customers in Seattle.

Tip #2: Offer discounts for specific occasions

Offer occasional discounts for holidays and anniversaries.

This encourages customers to book your services and it builds trust.

Aside from special occasions, you can also offer discounts to vulnerable community members who might not be able to afford your normal rates. They include:

• Students

• Seniors and veterans

• Low-income families

You can also offer discounts to service professionals like military personnel, police officers, and firefighters.

For example, Rooftop Chimney Sweeps offers a 10% discount to first responders, military, seniors, and teachers.

Tip #3: Encourage referrals

Encouraging referrals is a great way to get customers. 

That's because potential customers are more likely to believe the words of a fellow homeowner than any marketing material. Plus, customers prefer to buy based on the recommendations of people close to them.

So, create a referral program that rewards existing customers for every customer they bring in. You can offer them discounts, gift cards to their favorite restaurant, or redeemable points for every referral they send your way.

Blue Planet Plumbing uses this tip to generate leads. They offer $50 credit to customers for every referral that goes on to book an appointment.

Tips on How to Grow a Commercial Service Business

Below are some business growth strategies you can use if you run a commercial service business:

Tip #1: Target specific industries

Each service business belongs to a separate industry with different needs.

For example, the plumbing system of a manufacturing plant isspecialized to handle industrial waste and hazardous materials. While a restaurant's plumbing system is built to prevent grease build-up.

And each plumbing system demands a plumber with specific skills.

Therefore, only target specific industries whose needs you're sure you can meet.

Tip #2: Offer customized solutions

The major reason you're in business is to meet the customers' needs, including special ones. Meeting their special needs differentiates your business from competitors.

So, try to accommodate the special needs of each commercial client.

For example, you could offer extended hours of operation for businesses that need to operate outside traditional working hours. Or provide priority service to clients that have been with you for a long time.

Tip #3: Consider subcontractors

You may not always have the specialized skills in-house to handle specific jobs. Instead of turning the client away and losing out on some potential revenue, you can hire subcontractors with the expertise needed for the job.

Hiring subcontractors can also help you scale up quickly during peak seasons and scale down during shoulder seasons. This is better than hiring several employees who later become redundant.

Now Over to You

Every service-based business owner knows that achieving business growth can be challenging. But with the right insights, tools, and inspiration from other professionals like you, you're well on your way to success.

ServiceTitan can be a trusted partner in your growth journey. 

ServiceTitan provides comprehensive software solutions to streamline every aspect of your everyday operations. Thousands of service providers trust our home services solutions to help them reach their customers, improve their services, and scale their businesses.