Customer Relationship Management for Small Businesses: Keep Customers Coming Back
Getting a new customer costs 5x more than keeping an existing one. Yet most tradies focus all their energy on finding new customers and ignore the gold mine sitting in their past customer list.
The reality:
- 80% of your future revenue will come from 20% of your customers (repeat business + referrals)
- A customer who's used you once is 10x more likely to use you again than a brand new lead
- Referred customers close 30% faster and spend 20% more
In this guide, we'll show you simple CRM (Customer Relationship Management) strategies that keep customers coming back - no expensive software needed.
What is CRM (And Why Tradies Need It)
CRM = Customer Relationship Management
Translation: A system to track, nurture, and grow relationships with customers.
What it's NOT:
- ❌ Complicated enterprise software
- ❌ Stalking customers
- ❌ Spammy email marketing
- ✅ Remembering customer details (so they feel valued)
- ✅ Following up at the right time
- ✅ Staying top-of-mind for future work
- ✅ Getting referrals
The Simple CRM System for Tradies
You don't need expensive software. Start with these basics:
1. Customer Database (Simple Spreadsheet)
At minimum, track:
- Customer name
- Phone number
- Address
- Job completed
- Date completed
- Amount paid
- Notes (e.g., "Has 2 rental properties," "Prefers morning appointments")
- When Sarah calls 6 months later, you know she has 3 rentals (potential for more work)
- You know Mike prefers text (better communication = better experience)
2. Post-Job Follow-Up (The Most Important Step)
When: 3-7 days after job completion
Why:
- Shows you care
- Catches any issues early
- Perfect time to ask for referrals/reviews
Option 1 - Quick Text
"Hi Sarah, just checking in on the hot water cylinder we installed last week. Everything working well? Let me know if you have any issues. Cheers, Mike"
Option 2 - Email (More Formal)
Subject: How's your new hot water cylinder?Hi Sarah,
Just wanted to check in and make sure everything is working well with the new hot water cylinder we installed last week.
If you have any questions or concerns, please don't hesitate to reach out.
If you're happy with the work, I'd really appreciate a review on Google or a referral to friends/family. Here's the link: [Google Review Link]
Thanks again for choosing Thompson Plumbing!
Cheers,
Mike Thompson
021 234 5678
Result:
- Customer feels valued (you didn't just take the money and disappear)
- You catch problems early (before they become complaints)
- You get reviews and referrals (while you're top-of-mind)
3. The 6-Month Check-In
The opportunity: Many home maintenance tasks are cyclical (6-12 months).
Examples:
- Hot water cylinder servicing (annual)
- Gutter cleaning (6-12 months)
- HVAC servicing (annual)
- Deck re-oiling (annual)
- Electrical safety checks (rental properties - annual)
Set calendar reminder for 6 months after job
Send this message:
"Hi Sarah,It's been 6 months since we installed your hot water cylinder. Just a friendly reminder that annual servicing is due around now to keep your warranty valid.
Would you like me to book you in for a service? Takes about 30 mins. $150.
Let me know!
Cheers,
Mike
021 234 5678
Why this works:
- Most customers forget about maintenance
- You remind them (easy upsell)
- Keeps you top-of-mind for other work
4. Seasonal Reminders
Strategy: Send helpful reminders based on season.
Examples:
Autumn (March-April):
"🍂 Autumn reminder: Time to clean your gutters before winter!Blocked gutters = leaks and water damage. I can clean and check your gutters for $180.
Book now: 021 234 5678"
Winter (June-July):
"❄️ Cold snap this weekend! Make sure your hot water cylinder and pipes are insulated to prevent freezing.Need help? Give me a call: 021 234 5678"
Spring (September-October):
"🌸 Spring cleaning time! Time to service your heat pump before summer.Book a service this month: $120 (normally $150)"
Who to send to: All past customers (filtered by relevant service)
Result: Top-of-mind when they need work. Helpful (not spammy).
How to Get Referrals (Without Being Pushy)
The best customers: Referrals from happy customers.
Why: They already trust you (friend recommended you) and close faster.
Strategy 1: Just Ask
When: Right after completing a job (customer is happy)
What to say:
"If you're happy with the work, I'd really appreciate if you could refer me to friends or family who might need [your service]. Word-of-mouth is how I grow my business!"
Most customers will say: "Sure, no problem!"
Strategy 2: Incentivize Referrals
The offer:
"Refer a friend who books work with me, and you both get $100 off your next job!"
Why it works:
- Win-win (both get discount)
- Customer actively thinks "Who needs a plumber?"
If they say "Sarah referred me," note it in your database.
Strategy 3: Make It Easy (Referral Cards)
Physical card you leave after every job:
╔══════════════════════════════════╗
║ KNOW SOMEONE WHO NEEDS A ║
║ PLUMBER? ║
║ ║
║ Refer a friend, you both get ║
║ $50 off next job ║
║ ║
║ Thompson Plumbing ║
║ 021 234 5678 ║
║ mike@thompsonplumbing.co.nz ║
╚══════════════════════════════════╝
Result: Customer keeps card on fridge. When friend mentions needing plumber, they have your details handy.
How to Handle Problem Customers (Before They Become Problems)
The red flags:
Flag 1: Late Payer
After first late payment:
"Hi Sarah, I noticed invoice #1234 is 5 days overdue. Is everything okay? Please let me know if there's an issue."
After second late payment:
"Hi Sarah, I've noticed the last 2 invoices were paid late. Moving forward, I'll need payment upfront or COD to continue working together. Thanks for understanding."
Why: Set boundaries early. Train customers to pay on time.
Flag 2: Scope Creep
Customer: "While you're here, can you also fix this tap?"Bad response: "Sure" (free work, sets bad precedent)
Good response:
"Happy to! That'll be an extra $80. I can add it to the invoice or I can come back another day if you'd prefer to get a quote first."
Why: Protects your time and sets expectations.
Flag 3: Unrealistic Expectations
Customer: "Can you start tomorrow and finish by Friday?" (Job needs 2 weeks)Bad response: "I'll try" (sets yourself up for failure)
Good response:
"This job typically takes 2 weeks to do properly. I can start Monday and have it done by the 20th. If you need it sooner, I can recommend [another tradie], but rushing usually means lower quality."
Why: Manage expectations upfront = no disputes later.
Using Customer Data to Grow Your Business
What to track:
- Which customers spend the most
- Which customers refer others
- Which jobs are most profitable
- Which marketing sources bring best customers
Insight 1: "80% of my revenue comes from property managers and landlords"
Action: Focus marketing on property managers, not homeowners.
Insight 2: "Facebook leads close 50% of the time. Google Ads leads close 10%."
Action: Stop Google Ads, double down on Facebook.
Insight 3: "Bathroom renos average $9,000 and take 1 week. Tap replacements average $120 and take 1 hour."
Action: Prioritize bathroom renos (higher value per hour).
Simple CRM Tools for Tradies
Option 1: Spreadsheet (Free)
- Google Sheets or Excel
- Tracks customer details
- Pros: Free, simple
- Cons: Manual, no automation
- Stores customer details automatically
- Tracks quotes, invoices, payments
- Shows customer history at a glance
- Pros: Automatic, built into quoting/invoicing
- Cons: NZ-focused (but that's a pro if you're in NZ!)
- HubSpot, Zoho, Salesforce
- Advanced features (email automation, etc.)
- Pros: Powerful
- Cons: Expensive ($50-200/month), overkill for most tradies
The "Stay Top-of-Mind" Strategy
Goal: Be the first tradie customers think of when they (or their friends) need work.
How:
1. Monthly Touchpoint
Send one helpful message per month to past customers:- Seasonal reminder
- Maintenance tip
- Special offer
"💡 Quick tip: Test your smoke alarms this weekend (daylight savings reminder). Replace batteries if needed. Need an electrician? I'm here to help: 021 234 5678"
2. Birthday/Anniversary Messages
Track customer birthdays or job anniversaries:
"Happy birthday Sarah! 🎉 To celebrate, here's $50 off your next job (valid this month). Cheers, Mike"
Why it works: Personal touch = memorable.
3. Thank-You Notes
After big jobs, send handwritten thank-you card:
"Thanks for trusting me with your bathroom renovation, Sarah. It was a pleasure working with you. Looking forward to helping with future projects! - Mike"
Cost: $2 (card + stamp)
Return: Customers remember you forever.
Summary: Your CRM Action Plan
After every job:
- ✅ Add customer to database (name, phone, email, job, notes)
- ✅ Send follow-up message 3-7 days later
- ✅ Ask for review/referral
- ✅ Set 6-month reminder for follow-up
- ✅ Send helpful message to past customers
- ✅ Review customer data (who's spending most? Who's referring?)
- ✅ Reach out to top customers (offer discount, say thanks)
- ✅ Send year-end thank you to all customers
- ✅ Use spreadsheet or Paymate to track customers
- ✅ Use Google Calendar for follow-up reminders
Ready to Build Better Customer Relationships?
Paymate helps you:
- Store customer details automatically (no manual entry)
- See customer history at a glance
- Track quotes, invoices, and payments per customer
- Never lose a customer's contact info
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