The HVAC industry is a key economic driver all across the globe. Estimates predict that between 2024 and 2028, the HVAC market size will grow by $7.1 billion (USD). That’s great news if you run an HVAC business, because it means you’re in a solid position to get in on that growth.
Before you get ahead of yourself, however, it’s important to note that sustained success requires structured growth strategies. By taking a holistic approach to how to grow your HVAC business, you’ll put yourself ahead of the competition. Here, we’ll go over challenges HVAC businesses face, and the tried and true strategies to help build and maintain success.
Why do HVAC businesses face growth challenges?
When it comes to any business, there is no shortage of ways in which challenges and failures can (and will) creep in. For HVAC businesses, there are some common obstacles that many face. These include limited customer bases, poor preparation for seasonal demand, lack of sufficiently trained staff, supply chain disruptions, and more.
It can be easy to spiral into all of the roadblocks that one might face when running a business, but the truth is the key areas that often hinder business growth and profitability are actually quite simple (on paper, of course) —a lack of customers and a lack of business skills. The good news? Upping your business skills should up your customer count, and business skills are something anyone can learn.
If you have an HVAC company, you undoubtedly have the technical skills and know-how to get the job done. That means that with the right business strategies, you should be able to rise above the competition.
Define your target market for effective growth
The first step in effectively growing your HVAC business is to have a defined target market you want to pursue. Without a plan on who it is exactly you’re trying to reach, you’ll waste valuable time, energy, and money taking shots in the dark.
How to identify your ideal HVAC customers
First and foremost, you want to narrow down who exactly you want to serve, or more specifically, who is going to be the most profitable customer segment for your specific HVAC business. The best approach for this is to decide which services you want to devote the majority of your time to and clearly express these services to potential customers in all of your marketing channels.
That means defining your primary services, such as:
- Residential, commercial, or mixed services
- New home construction services
- Home or apartment services
- AC repair or replacement services
- Furnace repair or replacement services
It’s important to do this and include everything on your website for two reasons. First, it gives both you and potential customers a clear sense of what exactly you do, and second, it helps Google funnel the right clients to your business.
Local SEO and marketing for targeted reach
Whenever someone needs something these days, they go to the internet. What that means for business owners is the higher up they appear in search results on Google, the more likely potential customers are going to find them. Achieving this isn’t pure luck, it’s search engine optimization (SEO). There are all kinds of SEO (more on that a little later), but your first priority is going to be local SEO.
Local SEO is all about optimizing your online visibility for people in your geographic area to help get more HVAC leads. Setting yourself up for better local SEO usually takes a combination of three major elements:
- Integrating location-based keywords into your website: When people need HVAC services, they are more than likely going to search for something like “HVAC [city]” or “air condition repair near me.” That means you’ll want your website to not only list your services but also the city or area in which you perform those services.
- Setting up your Google Business Profile: In addition to implementing keywords that your target audience is going to be searching for, you’ll want to set up your free Google Business Profile. By doing this, Google will have an exact sense of what business category you fall under (HVAC) and also know key details such as your business name, address, phone number, website, and hours.
- Setting up your business on Nextdoor: While some people turn to Google to find local businesses that serve their needs, a lot of people also use Nextdoor when looking for professional services. By having both a Google Business Profile and a Nextdoor Business page, you’ll open plenty of opportunities for satisfied customers to help you build confidence and trust with potential customers.
Another key element that ties in with the three above is garnering positive reviews from satisfied customers. Not only will those reviews go a long way in winning over new clients, but they will also help you show up in more search results, expanding your business’s reach.
Build and strengthen core business systems
Building a strong foundation for your business is often what separates success and failure. By establishing the correct core elements, you’ll be more likely to skip common pitfalls and be better prepared to battle any trials that come your way.
Establishing consistent operational processes
Successful HVAC businesses are the ones that establish clear business systems and workflows. The key to a business isn’t just how it’s operated, however, but also who it’s operated by. That includes every employee, meaning it’s vital that your team has the tools and training to perform their roles competently. By creating in-depth organizational charts and clear hierarchies, employees will have clear resources to turn to so that your business always provides consistent service delivery.
A modern tool effective in helping achieve consistent operational processes for individual employees and your business as a whole is automation. Automation tools not only help with simple document management like digitization, but also ensure that things like order forms and authorizations make it in front of the right decision-makers in a timely matter. This is important because missed orders and payments can spell serious headaches for you and your customers.
Implementing a field service management platform
Establishing operational processes is one piece of the puzzle, but having some form of field management platform is just as important. Modern HVAC businesses are using technology to help streamline scheduling, invoicing, and customer interactions.
When searching for a platform, some things you’ll want to consider include:
- Tools to facilitate easy communications between office staff and field techs.
- Consistent processes, systems, and templates so your team is always on the same page.
- Ease of customer interaction, allowing customers to share expectations and feedback so you can promptly respond to any concerns, questions, or unexpected occurrences.
Focus on customer retention and repeat business
The true core of every business is its customers. New customers are always needed, but customer retention and repeat business can be key factors in keeping businesses afloat. With existing customers, you likely have an idea of their needs, meaning you’ll have an easier time approaching them with a service relevant to them.
How can you retain HVAC customers for long-term success?
If you’ve provided a service to a customer, you have a great jumping-off point for follow-up contact. Schedule routine (roughly once a quarter) follow-ups checking in to ensure customers are satisfied with the work you’ve already done, and inquiring about any additional work they may need. That could include reminders to have their HVAC systems inspected, re-up any existing maintenance contracts, or even offer special deals on tune-up services.
Another strong way to build up brand loyalty with your customers is to provide valuable education about HVAC maintenance. By giving customers the resources to at least understand what you’re doing and why you’re doing it, you’ll be able to establish yourself as a trusted authority.
Enhancing customer service for positive referrals
Referrals are one of the most valuable things you can receive as a business. Studies show that 90% of people say they trust referrals more than any form of advertising. By enhancing your customer service and leaving a positive impact on existing customers, you’re much more likely to pick up referral-based business. Not only that, but referred customers bring in up to 57% more new customers through referrals, meaning one satisfied customer can snowball into many more.
The best way to provide your customers with positive experiences is to obviously do a great job with the service work. But, little things like timely responses and services that feel personalized can go a long way in enhancing the customer’s experience.
Direct word-of-mouth is the classic way of gaining referred business, but technology has allowed people’s feedback to reach further than their own personal bubbles. Leverage online review platforms — such as Google and Yelp — to gain customer feedback that can help make an impact on people looking for HVAC services. You can also try direct surveys so that customers have a chance to provide feedback for improvement.
Develop an effective sales and marketing strategy
Growing your business involves investing in marketing. With a wide array of options, the best approach is a holistic one, allowing you to reach your target audience across a number of platforms.
Which marketing channels work best for HVAC businesses?
If you’re wondering what the best marketing for an HVAC business is, the answer is “all of them.” Not every person is on every app or website, so you’ll want to cast a wide net when going after new customers.
Currently, digital marketing tactics are proven to be an effective approach, including major areas like:
- SEO: SEO is all about taking what people are searching for, and implementing those keywords onto your website. By doing this, Google will prioritize your website when people search for certain words or phrases, giving you a better chance at gaining clicks that can convert to business.
- Google local service ads: These ads are created specifically to show up when someone in your area is searching for your services. By paying for local service ads, your business will pop up at the top of the page when people are looking for HVAC services in your area.
- Social media: Regardless of industry, it’s almost mandatory that any business has some form of social media presence. There are all kinds of ways to market on social media, but at the very least you want to run an account that helps prospective customers get to know you. Whether posts showing community involvement, educational how-tos, or special announcements, social media is a strong (and free) resource to build up.
- Email/direct mail campaigns: As we’ve mentioned before, following up with existing customers is a great way to create repeat business. Email/direct mail campaigns can serve as a way to keep your business at the top of customers’ minds, as well as help you establish credibility with things like educational content. Or, go simple and offer special deals to anyone receiving your emails/direct mail.
- Pay-per-click (PPC) ads: PPC ads are a proven way to reach your target audience and convert leads into customers. Once you’ve tailored your ad strategy, PPC ads can expand your reach and result in meaningful clicks.
Leveraging seasonal promotions and discounts
Not everyone cares for ads, but everyone loves a deal. Leveraging seasonal promotions can be a strong way to address fluctuating demand. By crafting compelling offers, you can appeal to both new and returning customers. You can even expand past seasonal offers and consider adding things like first-time customer deals or loyalty discounts.
How to differentiate your HVAC business from competitors?
Providing a worthwhile service is one thing, but standing out from the competition is a whole different challenge. You’ll want to do things your competitors aren’t in order to differentiate yourself in the eyes of the customer.
Investing in unique offerings and value-added services
One way to set yourself apart is by offering specialized HVAC services. If you know there is a void in certain services (i.e., eco-friendly systems, high-efficiency units, etc.) in your area, focusing on that could make you a one-business-show in your city.
Another thing you can do is be as easy to work with as possible. Create exceptional customer service experiences both in person and online with things like easy online booking or financing options.
Building a recognizable brand with clear values
The best way to get a customer to recognize and resonate with your business is by knowing exactly who you are as a brand. What does that mean? It simply means having clear core values that make you recognizable. Decide what it is you stand for exactly, and express that in a mission statement that resonates with customers. Doing so will also go a long way in creating a cohesive marketing strategy, all under one, recognizable voice.
Train and Develop a Skilled, Customer-Centric Workforce
There’s no path to success if your team can’t get the job done correctly and on time. Proper hiring and training are absolute musts when it comes to your HVAC techs.
Why invest in continuous training for HVAC technicians?
Investing in your techs is investing directly into your business. Ongoing training should be a must for any HVAC business, extending beyond technical skills and focusing on things like customer service and sales.
A tech that can interact well with customers and also act as a salesperson is good for business, and it’s good for your employees. By providing additional training and engaging with your employees, you’ll keep them motivated and foster a culture conducive to growth both for your business and for them as individuals.
Implementing a performance-based reward system
Part of investing in employee development is by incentivizing your workforce. Incentives are proven to motivate, and offering the right ones can promote the type of excellent customer service that drives repeat business.
Some ways in which you can incentivize employees is by offering rewards or bonuses for things like:
- Referral bonuses
- Performance bonuses (such as most jobs completed)
- The most positive reviews received
- Co-worker recognition awards
You can get creative with your rewards, as long as your employees have an incentive to go above and beyond.
Grow your HVAC business with Nextdoor
Between local SEO, efficient operational tools, and a focus on a highly skilled customer-centric workforce, your HVAC business will be set up to succeed against the competition. While all of those things are important for creating a wide net for customer growth, it’s vital you don’t overlook the people right in your neighborhood.
Nextdoor is a hotspot for gaining direct access to your target audience, right in your local area. With the Nextdoor Business Page and Nextdoor Ad Manager, you can easily and effectively increase local visibility and customer connections by tailoring ads to your exact target demographics. With ready-to-go HVAC resources and instant analytics on ad campaigns, reaching customers in your community doesn’t get easier than with Nextdoor.
