Surveys Track Service Habits
Customer service surveys are automatically sent as follow-ups to service and installation work conducted by the Jerry Kelly technicians.

"Our guys do a great job and are always rated in the high 90s on their customer satisfaction surveys" Miles reports. "We survey one hundred percent of the customers we serve daily, and we receive around a 27% response rate."

At Jerry Kelly Heating and Air Conditioning, customer feedback gets noticed.

"If I see a survey that has any negative comments, I follow up with the customer," says Jill Kelly. "We never make a battle out of it. We follow whatever the customer perceives to be the right thing to do to make something right."

Mistakes, however, are rare.

"We've had 17,000 surveys conducted over a period of 3 years, and we've averaged a 97% satisfaction rating." recalls Jerry, who insists that his technicians look the part of service professionals. Company uniforms are clean when the day begins, no hair is allowed to grow below shirt collars, and earrings or exposed tattoos are not allowed.

Training Keeps them Sharp
Jerry Kelly Heating and Air Conditioning is committed to training all personnel to be on the leading edge of industry knowledge. Miles says all of the company's technicians will be NATE-certified in two years, and in March 2004, 100% of Kelly's field personnel acquired combustion and carbon monoxide certification by the National Comfort Institute.

Jerry Kelly technicians have a knowledge base that's the envy of the region; and the competition knows it.

"You know you're doing something right when your competitors tell people to call Jerry Kelly when they can't figure it out," says Jill, alluding to something that's happened more than once.

A competitor's service technician once asked Jerry Kelly Heating and Air Conditioning to install the furnace in his new home, and confessed to being very impressed by the Kelly company's methods.

As an incentive for top performers, seven trips are awarded each year to outstanding employees, based on their contributions to the critical success factors that are measured within the company.

"Give someone money, and they spend it on the bills," says Miles. "If you give them a trip, they'll have the memories, and the pictures, forever."

The Jerry Kelly Heating and Air Conditioning Company has made significant investments in training. It brings outside experts in-house, for training in soft skills, selling, and technical skills.

Guest trainers include Charlie Greer of HVAC Profit Boosters; Mark Matteson of The Pinnacle Group; Joe Crisara of Big Time; Jim Davis of The National Comfort Institute; and Ellis Pracht of Heat Exchanger Experts, the author of Heat Exchanger Experts Residential-Heat Exchanger Manual.

Pracht travels around the country with a 30-ft. trailer to teach techniques for finding cracks in heat exchangers (see www.heatexchangerexperts.com).

"For our own in-house training, we also invested in Charlie Greer's Tec Daddy Series and the Air Conditioning Contractors of America's (ACCA's) People Builders," says Miles.

Company participation in industry events such as the ACCA convention and HVAC Comfortech has resulted in tremendous growth, as the company has maneuvered through its maze of change.

As ACCA members, Kelly and Miles participate in an ACCA MIX Group (Management Information Exchange), which consists of small groups of contractors from the U.S. and Canada who offer advice to each other on everything from daily operations to long-term strategic planning.

"The MIX Group has had a lot to do with our success," says Miles. "It helps point out your warts, and shows you where you need to change."

The MIX Group helped Miles realize that even seemingly inconsequential items — such as the color of uniforms — can make a difference in whether or not the company gets noticed by potential customers.

"Our company color is green and the MIX Group helped us realize that by sticking with the basic blue uniform, we weren't differentiating ourselves, so we switched to green."

Miles also holds membership in the Service Roundtable, which he describes as "an awesome networking tool, one that enables you to talk to other companies, share problems, and see if they have a solution. It gives you a place to vent to people who understand your problems and can give you good, legitimate responses.

"Out of all the organizations we belong to, it's the networking with other contractors that brings the most value. After 10 years of conventions, we see how we used to be the neophytes, and now, we're able to give back to the other contractors."

Service Agreements as Survival Tools
Everyone talks about service agreements, but Jerry Kelly Heating and Air Conditioning is proof that selling service agreements is possible, and that by having them, a company can survive the dry spells. Twelve years ago, the company had about 400 service agreements in place. Today, that figure approaches 4,000.

"The quantity of our service agreements drives the business," says Miles "We try to include everything in the SAs: air cleaner, humidifier, UV light, everything, so there are no 'gotchas' during the maintenance call.

"By including service agreements with most of our equipment sales, we're conditioning our customers to get their equipment maintained twice each year, and it has worked out well for us. When things are slow, we have maintenance visits to perform.

"And in peak seasons of hot or cold, we have an advantage, because many of our current customers' systems aren't going to break down, because we've already been there. That way we can concentrate on taking new business, as other companies become backlogged during the weather spikes."

Philosophy of Private Label
Installation proposals include a private label system, called the Jerry Kelly Signature Series, and Trane. About 36% of 2005 sales were private label systems.

"We're very happy with both Trane and our private label manufacturer," says Miles, "but if we would ever have a problem with the manufacturer or distributor, and want to change manufacturers, private labeling allows us to keep it the same brand no matter who manufactures it."

"Some of our older customers tell us they want the equipment that 'Jerry puts his name on,' thinking that if he's willing to put his name on it, they're willing to buy it.

"We found equipment that we thought was sturdy and dependable, and deserved our name on it. Many companies will private label lower end products. We decided we would do the opposite and private label higher end equipment 'made to our specifications.'"

Consumer Guidance
Jerry Kelly Heating and Air Conditioning sees more educated consumers coming together at the intersection of Comfort & Service.

"Without naming competitors, we try to open customers' eyes about lowballers, or influence them to investigate further the contractor they're considering doing business with," explains Miles, who encourages his customers to shop around based on key service parameters.

"How do they treat their employees? How much turnover do they have? How long have the men who are working on your system been in the industry? Are they fresh out of high school or have they been at it for 10 to 15 years?

"The more consumers know, the better we can do for them," says Miles. "I hope we can raise the bar for everyone, because that's what we want and what the industry needs. There are too many garage mechanics working out of their pickup trucks. And the media's not going to help us, because they're looking for the blood 'n guts stories about unscrupulous companies.

"And while NATE certification is a step in the right direction for the industry, until customers start requesting it, not everyone will commit to becoming NATE certified, as we have."

Two hundred years after Lewis and Clark, this team's vision and determination continue to make service history in St. Charles, MO.

Congratulations to Jerry Kelly Heating and Air Conditioning Company, Contracting Business' 2006 Contractor of the Year!

Give us your feedback on this article at letters@contractingbusiness.com

The Trophy Case is Full The awards just keep pouring in for Jerry Kelly Heating and Air Conditioning, lending credence to its big, bold, #1 logo that appears on company vehicles. The Suburban Journal newspaper has named Jerry Kelly Heating and Air Conditioning "St. Charles's #1 HVAC Contractor" for nine straight years, from 1996-2005. It was the Excellence Alliance's "Contractor of the Year" in the North Central Region in 1999, and the "Member of the Year" in 2000. The company was a Trane Distinguished Dealer for eight straight years, from 1998 to 2005, and placed in the Top 10 from 2001 to 2003.

Tools of the Trade Local Trade Associations • "We invest every year in attendance at the Comfortech trade show in the fall and ACCA's annual conference and Indoor Air Expo each spring," says Miles. "It's the best thing we ever did, which led to the second best thing we ever did, which was to join ACCA, and become a member of a MIX Group." Training • Charlie Greer's Tec Daddy Technician Survival Training DVD series. Distributor • Johnstone Supply for parts & equipment Equipment • Jerry Kelly Signature Series private label, the equipment Jerry puts his name on. • Trane • Emerson's two stage "un-loader scroll" compressor. • WhiteRodgers thermostats Test Instruments • Visible Defects Heat Exchanger Inspection System ("I did invent this system," says Steve, "but I can also attribute over $500,000 in sales to it this year. It should be in every technician's toolbox.") • TSI combustion analyzers. Zoning & IAQ • Arzel zoning • Aprilaire Media Air Filters; Aprilaire 5000 electronic air filters; Aprilaire humidifiers • ThermaStor dehumidifiers

5 KEY Success Factors Jerry Kelly Heating and Air Conditioning, Inc. tracks its performance along five key critical success factors: Dollar per hour revenue Customer satisfaction Callbacks Equipment sales Service agreements