It’s no secret that one of the big trends in HVAC is the consolidation of contractor businesses, as large chains and private equity groups buy out smaller firms. This has been a positive outcome for many small business owners who are either nearing retirement or want to scale their growth by merging with a larger company.
But customer retention after the merger occurs can be an issue. In addition, smaller businesses that continue to operate independently are now facing a new threat: competing with bigger companies.
Whether you’re the “small fish” being acquired, the “big fish” taking over, or one that remains independent, it’s important to take stock of how your company brand is perceived and whether it’s still relevant in your marketplace.
When you think of your brand, what comes to mind? Your logo? Your tagline? The colors on your trucks? Or is your values and reputation in the community or something unique that competitors don’t offer? Frankly, your brand is made up of all these things because your brand is how people perceive your company.
Big fish or small, take stock of how your company brand is perceived and whether it's still relevant in your marketplace.
HVAC businesses need to decide how they want to be perceived (brand positioning) and take steps to achieve that objective. Brand development is a way to look at where you are now and what you want to become. Brand messaging is the strategy on how to communicate this positioning.
In an ideal world, your branding reflects who you are today and establishes your uniqueness compared to competitors.
To succeed in this new environment of greater competition, owners are encouraged to take a close look at their brand and determine if it’s still relevant. It’s critical that the company brand communicates your values and your strengths and does so in a transparent, consistent manner.
Branding After an Acquisition
Mergers and acquisitions are often a trigger for a brand “refresh” which can be as simple as a new tagline or color scheme to reflect the growth that is occurring and to signal that this collaboration and new direction is a positive, exciting development. You’ll want to find ways to demonstrate that this expanded HVAC service network is a strength that will impact offerings such as service, lead times, products, or cost.
A solid brand positioning and messaging strategy is key any time an acquisition occurs.
You may have purchased a company to gain access to their territory or to acquire customers. If they were successful before you bought them, you should find a way to retain the positive perceptions their current customers have about the firm, with the new value this merger offers.
A solid brand positioning and messaging strategy is key any time an acquisition occurs and is an important element to support the new or refreshed branding.
On the “big fish” side, obviously you want to retain the clients of the business you just bought, so you’ll need to state clearly and succinctly why they should transfer their loyalty to you. This may need to be done with a degree of restraint, communicating that you’re not taking anything for granted, that you know you must earn their business.
The strategy should also include key messages to share with existing customers, explaining how this expansion will benefit them.
If you have been acquired, explain the reasoning behind the acquisition and what benefits it will bring to customers.
If you’re the “small fish” being acquired, the last thing you want is for customers to feel confused, or worse -- left behind -- wondering what happened to their go-to HVAC contractor. The strategy should include direct mail and email marketing campaigns, as well as social media posts, explaining the acquisition and what that means to customers in terms of warranties, service contracts, and existing appointments. Taking these steps will help solidify trust and help people feel they’re in good hands.
Also, don’t forget to communicate your refreshed brand positioning strategy and messaging to your employees. They need to be clear on the benefits and brand story going forward, since they are the face of your company, representing your brand day in and day out.
Branding to Address New Competition
HVAC businesses that have not been snatched up by larger organizations are facing some new realities. You’re now competing against national companies that have considerable marketing budgets and may be running extensive advertising campaigns.
This new entry into your marketplace threatens not only your customer base but also your ability to recruit and retain employees.
To compete successfully in this new environment, consider your communication platforms. Does your online presence like your website and Facebook page address everything that matters to your customers, like on-time appointments or transparent pricing? In this time of a shrinking talent pool and supply chain delays, are you promising anything that you can no longer deliver such as 24-hour service or new equipment installed within a week?
Reviewing your brand positioning requires looking at all these issues and figuring out if your brand represents who you are now and communicates why you should be the HVAC provider of choice. What is truly compelling about your brand that will motivate consumers to engage with your company?
Successful Brands are Dynamic
Different scenarios are described in this article, but one thing remains true for all: Brands can lose their luster during times of change, whether it’s new management/ownership, expansion into a new geographic market, or the threat of more competition.
Remember that successful brands are dynamic, allowing room for tweaks and refreshes that help them remain relevant in the eyes of customers. So, keep your eyes open to the changes happening in your market and ask: What am I doing to keep my brand relevant?
Tim Leon is the president of Geile/Leon Marketing Communications. He regularly speaks on “Dynamic Branding” an approach to keep brands relevant in the face of change. For more information, visit Geileon.com.
