Understanding ROI

Understanding ROI

So what is ROI? ROI means Return on Investment and what does ROI mean when it comes to your marketing and business? Everything!

Having a complete understanding of ROI when it comes to your marketing is crucial to running a successful business. Simply put, you need to know where your marketing dollars are working and where they are not. This is done by measuring and testing. Your marketing can be tracked by various means depending on the type of advert youíre running. You should be able to keep track of this in your CRM as well.

Once you have this data, you can invest in the areas that are giving you a return and dump the ones that are a loss. Remember, you need data to back this up. You just canít say ďthis doesnít work.Ē Do you have the numbers to back it up?

Why do I bring this up? Because some business owners will say that certain marketing does not work and they give up on it too quickly. Donít get me wrong, sometimes that is the case but many times, they donít have a full grasp on ROI. Let me give you an example.

Letís say you invested $2000 in advertising this month and it only produced $1000 in revenue. Not so good right? You lost money, right? Well it depends on how you look at ROI.

In terms of money lost right now, yes you would be correct. But we need to ask what is the ROI when it comes to the long-term customer?

For this example letís say we are in the HVAC business and let us say that our average client brings in $1000 in revenue a year. For averages sake, we will say this customer stays with you for five years. That said, your customer over five years has brought in $5000.

So out of that $5000, how much money could you spend to acquire one new customer and still make a great profit? You could spend up to a couple thousand dollars to acquire just one customer and still do great. So always look and ask yourself what is the value of the long-term customer?

Many contractors are only looking at what they can do today. What sales can they get today? Once they get the customer, do the job, they move on to the next. They completely forget about them. Turn that customer into a client. Create a lifetime relationship with the client and your profits will soar.

In the relation of marketing, they view it the same way. What can I get today? Instead of looking at it as, what can I get tomorrow, the next day and so on. Think long-term and maximize your investment. I can tell you most of your competition is not thinking this way. Itís one way you can be one step ahead of your competition. To win the race, you only have to win by one step.

More on this later.

To your success ~ James Brush

Return to Blog

Earn more money and increase your bottom line.

As you know there are many key components in running a successful business. One component that has helped us become the leader of the pack in our area is that we are consistent. Consistency is key in everything you do. From how you answer the phones, your uniforms, your customer service, and the way you price jobs. You have to know how to price jobs quickly, consistently and with maximum profit. You need to be able to price the job right then and there. This will help you close the sale and give you a competitive advantage.

You need to give your team the tools to be successful. If you’re electricians succeed, then your company will succeed. ES2 is that tool. Whether you go out in the field and price jobs or any one of your technicians go out and price jobs, the price will always be the right price.

ES2’s Up Front Pricing is the way to go. So what is up front pricing? Upfront pricing is giving an exact quote to the penny for any type of electrical repair or installation that your customer may need. It’s the straightforward approach. Giving your customer the ability to say yes or no to your quote before any work has started.

Most consumers today prefer to know the exact price of what they are purchasing. Consumers do not want an open-ended ticket from contractors that use time and material. That is just one reason why we use upfront pricing.

Our technique is simple:

    1. You go to your client’s house.
    2. You give a quote right then and there in front of your customer.
    3. You ask the customer what they would like to do.
    4. You do the work or schedule the work.
    5. Get paid when you’re done.
    6. Repeat.

That is how we earn more money, increase our bottom line and dominate our area. Would you like the same?

Free Demo

What your fellow electricians say about ES2.

New member here. I went into business in 89 and have been flat rating for about 15 years. I was trying to find one program to get rid of 6 that I was using.I found it! There is so much great information in the forum, and the contributions by everyone is nothing like I've ever seen. Tight group in here. The forums are worth the monthly fee alone.

Steve
Electrical Solutions

We have been using “Electrical Success Systems” software for a number of years now. It allowed us to get rid of the paper, lost notes, and confusion that plagues most all of us. We have been able to streamline the quoting process, keep track of invoicing, and make changes to the business to bring better service to our customers. The staff is excellent at helping you out and answering your questions and concerns, and that is not just about the software but the business side of things too. Ultimately it has helped our shop to become extremely competitive at a higher level, all the while maintaining a healthy profit margin. I highly recommend utilizing the software and all the company has to offer!

Seth Sillbaugh
Switched Electric
San Francisco, California

I am part owner of an electrical service company in the San Francisco bay area and we have been serving our clients since 1999. We started using the ES2 system in 2011 and have been very happy with the program and with the support staff. In the past we used paper and pen to give the customer a number that we thought would be profitable for us. And sometimes we would get the job and sometimes we would not. Ever since we signed up with ES2 we have closed more business, gained more clients, clients love to see that we give them an ``up front honest price”, they love the professional look (using a portable device iPad or Samsung pad) and most important we make a good ethical profit.

You owe it to yourself and to your family to at least try the system for 6 months. You have nothing to lose except the profit that is rightfully yours if you don’t sign up.

Edward
Edward's Electrical

I have been using the system for nearly four years now. To call this anything less than essential would be doing a disservice to what it has done for me. The amount of time it saves me from office paperwork is priceless. I no longer need to come home after a long day and type up handwritten notes into spreadsheet and mail out an invoice or quote. Everything is done onsite. My customers receive quotes nearly instantaneously, and I'm no longer trying to estimate on the fly. The team at ES2 is very attentive and constantly striving to help advance my business as a whole. I'm glad I can count of them being in my corner when I need them.

Mike Showalter
Parkside Electric
Elburn, Illinois

Since my start with Electrical Success Systems, job closure has tripled. The highly professional service this software system has, is why my confidence in this system is so great. Not only the program, but also the vast amount of practical on the job experience, that shines through every part of it. It is easy to forget the amount of work that goes into a task and running a business, but with ES2, all of that is built in. The thought that went into each task extends into the back office. With direct input into quickbooks online, it more than pays for itself in the time saved from double entry. Great job James and crew!

John
Expediter Electric
Portland, Connecticut

After many years of pricing the old fashioned way and not making any real money to speak of, I started searching for a better and more modern way to do business without paper invoices and having to spend family time to work up the estimates and not sending them by snail mail. Now when I arrive I already have my customers data in the customer list , I just pull up the work to be done by touching it on the iPad click on their name and have them sign the estimate on the iPad screen with the set pricing already there and your done !! The its emailed on the spot. My income jumped into the black very quickly and I've never looked back with regret for joining ES2.

Aubrey Teele
John's Electric Service
Hoover, Alabama