Dominate Your Local Market: Membership Strategies for Residential Plumbers & Electricians

It's no secret that a lot of tradies and their businesses are suffering at the moment; it's a tough time out there. Instead of dwelling on the causes, let's be proactive and talk about what you can do to help improve your business, increase your revenue, build a loyal customer base and, most importantly, make your life easier. 

For many tradie businesses, the reality is a relentless cycle. The husband is on the tools, and the wife manages everything else, from invoices to client communication, often late into the night. This unsustainable workload strains both their professional and personal lives. 

 

 

Now, I am no expert on tradies; however, before writing this, I sat down with someone who is: Sammy Shepherd, Member Jungle's Membership Development Manager. With 20 years in the residential construction industry and years of business coaching for electricians and plumbers, she brings invaluable, firsthand insight into the unique pressures these businesses face.

So, having soaked up as much information from Sammy as I could, here's how Member Jungle can help your residential plumbing or electrician business.

Residential Electrician Or Plumbing Businesses & Subscription Models 

Switching to a subscription model for customers can be a smart move for residential plumbers and electricians. This idea can work for other trades, too, but it's especially effective for those who get repeat business in people's homes. For instance, tilers and painters usually go into homes as well, but they don't often get called back to the same place. How often are people really going to get their kitchen splashback redone? Sparkies and plumbers, on the other hand, tend to get more repeat business from customers, as there’s always a new dishwasher to install, a ceiling fan that needs to be fixed, or a new socket to be installed. So, considering a membership model for your customers could be a great idea to capitalise on this. 

How A Membership Model Can Work For Residential Plumbers & Electricians 

Right now, if someone called you because their toilet's broken or their electricity's playing up (I know nothing about being an electrician, can you tell?), you'd probably charge a call-out fee, a service fee, and then bill for the actual job. But what if you offered a membership program instead? By having customers sign up and pay a monthly fee, they could receive lower or even waived call-out and service fees.

This creates a win-win situation. Your customers benefit from reduced rates and priority service, which keeps them happy. In return, you gain more loyal customers who are likely to provide repeat business. Additionally, you create a more predictable revenue stream and gather valuable information about your customers, making targeted marketing more effective.

Obviously, you don’t replace your customers altogether and demand that everyone become a member; you just offer your loyalty or membership program to customers who have already used your services multiple times. Present your loyalty program to them, explaining that for a subscription fee of, say, $16.89 a month, they will enjoy free call-outs and priority service. You might also consider providing a 5% discount on parts or any other incentives that make sense for your business. 

Not every customer will take advantage of this offer, but if even 20 customers sign up for your membership at $16.89 each month, you would generate $4,053.60 a year solely from memberships. This figure doesn't even account for the additional revenue from those members who are more likely to call you for service, both for more minor jobs they may have previously attempted themselves and over your competitors. Since they are already paying for membership and receive a lower price, they are more inclined to reach out for assistance more frequently.

What Benefits Can You Offer To Members Of Your Plumbing Or Electrician’s Business 

When it comes to what benefits of membership you offer to your customers, the choice is completely yours, and dependent on what makes the most sense for your business. However, I thought I’d give you some suggestions on the things you might offer as perks of membership. 

• Discounted or waived call-out fees
• Discounted or waived travel fees, emergency fees
• Priority service 
• Extended warranty on labour/parts
• Scheduled maintenance reminders
• Online portal/app access
• Discounted products
• Referral bonuses
• Partnerships with related businesses
• Loyalty points/rewards
• Online forum/group
• Educational materials 

 

Again, you could offer as many or as few of these as you want, plus others that I haven’t listed here. Offer what makes sense to your business and your customer base. 

4 Benefits Of Turning Your Residential Trades’ Customers Into Members  

There are several major benefits to turning your customer base into members; it increases loyalty, increases return on investment, reduces customer churn, and makes marketing more effective. So, let's have a look at these benefits in more detail.

1. Supercharged Customer Loyalty

Running a residential trade business is about building trust and relationships. People are trusting you to come into their homes and be around their family and their things; they need to know they can trust you, and building relationships is a great way to do that. Offering memberships is a great way to build this trust and loyalty.

These people aren't just customers; they're members, they are a part of your little group, and that will mean something to them. They're part of your 'inner circle,' getting exclusive perks and feeling valued. This translates to them thinking of you first when they need anything done. They're less likely to shop around because they're already part of your team.

2. Increased Return on Investment (ROI)

Members are more likely to spend more over time. Because they're paying membership fees, they're more likely to call you out more often for jobs they might not have otherwise. Think about it, someone's downstairs toilet bricks it on a Tuesday morning. They might say, "We'll just use the upstairs toilet until the weekend, when we can get my dad to come over and we can go to Bunnings and get the part we need."

However, if they're a member, know and trust you, and are already paying to get good, cheap service they can rely on, they're much more likely to call you and ask you to come fix it that day. This gives you an extra job you wouldn't have gotten before.

They're not just calling you for emergencies; they're looking at your ongoing maintenance plans and special offers, and maybe even referring their friends. You're building a steady, predictable revenue stream instead of chasing one-off jobs. 

3. Reduced Customer Churn

Losing customers is never a good thing. Losing customers means losing potential revenue, potential referrals and more. However, members are less likely to disappear on you than the average customer. They've got a vested interest in staying connected with you. You're not just a service provider; you're a trusted partner. This means less time and energy spent trying to replace lost customers.

4. More Effective Marketing

One of the key parts of marketing is knowing who you're marketing to. The age and gender of the majority of your clients play a big role in how you market to them. Suppose your primary demographic is retirement-aged men who need a hand with whatever their latest tinkering broke. In that case, you'll market differently than if you are marketing to 30-year-old stay-at-home mums who need someone to fix the dishwasher while she's busy wrangling her three crotch goblins.

When your customers are members, you are going to know much more about them and their demographics; you'll be able to see who you're marketing to in cold, hard data on your membership site. Then, you can really laser-focus your marketing to them and what is going to appeal to them. This means you're not throwing money at generic ads; you're sending personalised offers and content that actually resonate. 

How To Find Out If A Membership Model Is Right For Your Residential Electricians Or Plumbers Business

Moving to a membership model and offering memberships to your customers has a lot of benefits, and a lot of companies are starting to move that way. Whether or not it will be the right fit for your particular business is something that only you can decide. 

However, if you want to talk to Sammy Shepherd, whom I talked to in research for this piece, you can reach her here: Sammy Shepherd. She will be more than happy to have a yarn and explain to you how all this could work. 

If you want to find out more about Member Jungle in general, check out 

How Does Member Jungle’s Membership Management System Work?