Your first step in creating a stronger marketing plan is to “Create a Marketing Plan.”  This may sound a little funny, but  HVACR businesses  do have a plan. There is an old saying; “What Gets Measured Gets Done.”  Nothing is truer for contractors in our industry. Sometimes, half the battle is creating the plan.

Our agency is starting to plan for 2025, and I can’t believe I am saying that. … Where has the year gone … By creating a marketing plan for the entire calendar year (or a fiscal year, depending on your company’s business calendar?), you are putting real thought and effort into improving your HVACR company. We create annual plans for our clients, knowing that changes will be made throughout the year. Dave Bowen, Managing Partner at Effective Media Solutions, says, “Plans are written in pencil, not pen, so adjustments or changes can be made throughout the year.”

Current Year Review

How is your business doing  in 2024? Did you have a strong summer? Are you growing your maintenance base? Are you on pace to meet your annual financial goals? Do you have the right people in place to do the work? All of these factors will help shape and determine your plan for next year. 

Measure Results Regularly

We want to measure our results regularly. Sure, we are creating an annual marketing plan for 2025, but will we wait until the end of the year to review and measure the results? The answer is NO. 

Our recommendation would be to start with monthly goals at a minimum. So, are your sales aligning with your marketing? By watching and measuring, you can adjust your budget as you go. 

Set Your Goals

What are you trying to accomplish for your business? Are you in growth mode? Or are you trying to maintain your current size? This will determine where the dollars will go. But first, let’s…

Define Your Target Audience

Defining your target audience has a huge impact on your marketing plan. How do you formulate the proper strategy if you have not defined your ideal customer? We will use an example -to define a typical HVAC add-on replacement contractor target audience or demographic.

Target Demographics:

•    Adults 35-64 - Depending upon your marketing, you may want to look at 25-64.
•    Female skew – We often lean toward females (they are highly involved in the HVAC purchase decision).
•    Homeowners – You want to target people who make the buying decision.
•    Household income – This can vary widely; all homeowners require service and system replacements (we typically recommend 70k and above).

The above demographics are through many forms of marketing or advertising. You can get the media to run a ranker to show you what best fits your marketing plan.

The proper Target Geography is as important as demographics because it is the only market where you want new customers. With today’s technology, it is very easy to geofence the geographic areas where you want to market. You can use digital products from Google  to target specific geographic areas. If you are using streaming products such as Over-the-top radio and billboards (OTT) , they are deliverable  to specific ZIP codes and households. You need to ensure your marketing hits your specific target areas when possible.

The How To: What Marketing Platforms?

Let’s face the endless list of marketing platforms in 2024 and 2025. From TV and Radio to Google Ads, Social Media and Streaming, just to name a few. … So which ones are the best for your company? They all have their place if used correctly. Let’s break them down into two forms of advertising for our industry: lead generation and brand building. They each serve key functions in the marketing plan.

Lead Generation generally lies in the digital realm. Consumers today will use their smartphones, tablets, and computers to find the right contractor. They will search for “AC Repair” or “Furnace Service” to find you, so you must be found when they are searching. Below is a list of platforms that are proven lead generators for HVACR companies:

Lead Generation:

•    Local Service Ads or Google Guaranteed – Your ad is potential customers see at the top of the search results. (It’s a pay-per-lead service, so you only pay for the quality leads. Google allows you to listen to phone calls and dispute the bad ones. Example: If a consumer calls for a service you do not provide, contacts you from out of your designated service area, is a solicitor, is someone looking for employment, or calls the wrong company, these are disputable for a refund).
•    Search Ads – These are the text ads just below the Local Service Ads on the search results page.
•    Performance Max – This newer platform from Google shows text ads, sponsored ads on the local maps pack, short videos, and even ads in Gmail. Google determines which ad to show the searcher depending on the search query.
•    Display Ads – These are visual ads that appear on partnering websites at the top, bottom, or side of a website. (Example: websites such as local news sites, national news sites, or sports).
•    SEO – Search Engine Optimization is crucial to keeping your website ranking organically.  

Traditional branding platforms, such as TV, Over-the-top, radio, and billboards, do that. They brand your business. These mediums offer the message you want to convey to your target customer. Caution. Consumers will not pick up the phone and call you after seeing a television commercial or hearing a radio ad. These are designed to bring awareness to your HVAC business so when they need your services, they will remember you when they search for a provider.

Brand Building:

•    TV/OTT – This is still one of the best platforms to get your message out to the public by creating a visual representation of you. (OTT or over the top is essentially streaming TV).
•    Radio – It is a great medium for frequency. Consumers typically have three stations they listen to regularly. When advertising on radio, you should consider multiple genres. Examples: Country, Adult Contemporary, Urban, News Talk, Sports.
•    Billboards – Thousands of would-be customers can see a well-placed billboard each week.
•    Social Media – This can fit into the digital or brand-building category, but we tend to place it in branding. It’s the lowest-cost branding platform we see in today’s market.
•    Grassroots – Contractors often overlook this. Your company should be visible in the local community. Example: sponsor little league teams, and high school sports.

Let’s use the example of an HVAC company primarily focusing on service and replacement. But let’s back up for a minute. Every heating and air company wants to do tons of changeouts, right? But this is the last thing the vast majority of consumers want ... They want to repair the system if possible. 

So, What is The Marketing Message?

If consumers want to repair versus replace, then that’s what our marketing message should be, correct? Too often, we see the contractor or manufacturer promoting money off equipment; this is great to have as a secondary or ancillary offer. Service offers provide the biggest bang for the buck, see below:

Service and Maintenance Offers:

•    Money off a service call (Example: $25 off furnace repair).
•    Free Service Call or Free Diagnostic – The public has become aware that it is not free of charge for the contractor to come out to your home or business to assess the problem (Offer FREE DIAGNOSTIC WITH SAME DAY REPAIR).
•    Tune-Up Offers – Here is another instance where the consumer is aware of this term. We listen to client calls all the time when the homeowner calls in to schedule a tune-up on their system, but the AC or furnace needs repair. They are trying to outlay the least amount of cash. I’m sure many of you reading this will agree.
•    Financing – Financing offers have their place in the service world these days. Many repairs, such as compressor or coil replacements, can cost well above $1,000. (You should offer financing on every service call.).

Equipment rebates and special financing offers toward a new system do have their place. When the repair is not the best option for the consumer, these can help close the sale. However, we have found that the best practice is not to lead with these offers. They tend to attract the price shoppers and bottom feeders. We’ve all had the potential customer say, “Well, you’re one of five estimates I’m getting.”  No thanks.

Financing and Rebate Offers

•    0% Interest - for 24, 36, and 48 months catches the consumer’s eye (Caution: the buydown amount can be upwards of 15% for you, the contractor).
•    12/18 Months No Interest – Another consumer favorite (as long as the total bill is paid off in full, the consumer incurs no finance charges. Of course, you, the contractor, pay a percentage).
•    Manufacturer Rebates - Money discounted off a new system driven by the manufacturer is a great secondary offer, as stated earlier.
•    In-House Rebates – We’ve seen many heating and air companies offer their rebates internally (Who says you can’t create your promotion.) Just make sure the selling price covers it. 

How Do We Allocate The Budget?

The marketing budget for your company should be one that you are comfortable with financially. We’ve seen too many companies over-invest in marketing in this industry. A marketing budget of 3 to 8% of gross revenue is where we typically see contractors land. Throwing money at marketing will not make your business successful, so only invest in what is sustainable over a given time. Allocating the dollars between lead generation and branding is critical.  

Lead Generation

Lead generation marketing can be the most critical portion of the marketing plan. The budget will fluctuate throughout the year depending on the number of leads needed. Google does not like you to stop or pause their ads, because it interrupts their learning algorithms. You can increase the budget if needed to drive more phone calls. The portion of your total marketing budget dedicated to lead generation can vary widely from 35% to 70% depending on the company and its needs.

Branding

Branding is the long-term approach to marketing for your contracting business. You will not typically see immediate results from brand marketing, but  it will pay dividends. Whatever platforms you decide to use to grow your brand, you must commit to them long-term. If you choose radio, then dominate on radio. Commit to multiple stations, frequency on each, and keep your message consistent. Remember, you are building “brand” messages about who you are in the marketplace.   Your HVACR company is the trusted choice that provides high-quality work at a fair price. These messages resonate with consumers, so they will remember your company and your message when they have a need.

Stick to Your Marketing Plan

Be consistent and stick to your marketing plan. Consistency is so important in this industry. So many companies dabble in marketing, but they do not stay the course. It takes time to build your brand. Create a budget that your business can afford and stick to it. As sales grow, you can always increase your investment. We have an old saying, “You cannot market yourself out of business.”  Throwing money at marketing will not fix everything, but it can help. So, be consistent and stay the course.

Will Merritt is the Managing Partner at Effective Media Solutions, a full-service marketing agency. With 27 years of experience in the HVAC field, 10 of them in marketing for contractors, our agency has keen insight into our industry that others do not. Contact Will at will@myeffectivemedia.com or (704) 507-7858. “We Speak HVAC.”