An overwhelming number of homeowners — 73% — now select their HVAC contractor by contacting the same HVAC company/contractor they’ve used in the past. That’s a 44% increase compared to when the same question was asked last year, when that response was just 29%, according to a recent survey conducted by the research unit of BNP Media, Clear Seas Research, in conjunction with The ACHR NEWS.
Additionally, the survey showed that 67% of homeowners reported finding their HVAC contractor via word of mouth/recommendation, including social media — slightly less than in 2023, when that number was 71%.
SURVEY’S IN: More contractors are advertising via word of mouth, and homeowners are finding them that way, or by using the same company they have used before.
This data aligns well with how HVAC contractors are getting their name out, as 78% of contractors reported advertising mostly via word of mouth (a 35% jump from last year’s data), and 53% reported advertising via social media.
“Word of mouth,” however, means something very different today than it used to. Recommendations that were once passed along by phone or face-to-face conversations are now spread by social media, texting, community outreach, and more. It’s no longer just word of mouth — it’s really word of … everything. It’s about forming a relationship and personal connection with potential clients before an HVAC professional ever walks through the door. And if contractors aren’t investing in today’s word-of-mouth strategies, word of mouth can work against them.
To see real success in these types of efforts, contractors have to understand why word of mouth now plays such a huge role in bringing customers in, how it’s changed from its traditional definition, and how to make it work for them.
consultant and marketing lead
Powerhouse Consulting Group
Today’s Word of Mouth
Before diving into what word of mouth means today, it’s important to preface that it’s not meant to replace all the other advertising/marketing efforts contractors engage themselves in. It’s just one piece of the puzzle.
“People may be used to getting that postcard twice a year to get their things tuned up,” said Mike Zeppetello, consultant and marketing lead at Powerhouse Consulting Group. “So don't throw the baby out with the bathwater. … Depending on the company, even those traditional branding efforts are still cultivating that brand awareness.”
What contractors might have to do is reallocate some of the money spent on other advertising efforts like print media, television, radio, Google ads, etc., to word-of-mouth advertising.
“It’s all about having those pieces and putting your money in the right spots,” said Zeppetello.
Or the way Crystal Williams, founder and strategist at Lemon Seed Marketing put it: It’s only one ingredient to the fully-baked cake that is marketing.
“The traditional [word of mouth] definition has not gone away; it’s now been supercharged. … It’s even better than traditional word of mouth, which had a lot to do with building that one-on-one trust,” said Zeppetello. “Modern word of mouth using social media means I can now get a lot more feedback from the whole community and filter and vet my decision from there.”
Williams said word of mouth means getting a customer testimonial in some form or fashion.
“Sharing it on Facebook, recommending them in these groups, leaving good reviews, even putting up yard signs — that is all getting customers to put their name behind your brand,” Williams said.
Ben LeDonni from BNP Engage joined ACHR NEWS editorial director Kyle Gargaro for a robust discussion [listen below] on how HVAC contractors should be using social media in their marketing efforts. There should be different strategies when marketing to current customers and prospective customers. LeDonni provides a great summary of social media best practices while also offering up his company’s services if HVAC contractors need some help.
Homeowners now have more options than just talking to someone. They can text, communicate on social media, and then some.
“The new word of mouth is any way a homeowner can tell someone what [HVAC contractor] they should use,” Williams said.
In a way, word of mouth has become digital. It’s expanded.
“We still have neighbors and friends referring new clients to us, but we are also blessed to be recommended in community groups/pages on social media, as well as reviews online,” said Kate Mahoney, vice president of Royal Air Systems in North Reading, Massachusetts.
Mahoney said that social media has become the new “neighborhood.”
“Rather than talk over the fence with our neighbors for help and recommendations, we now turn to community pages on Facebook,” Mahoney said.
There are contractors who still rely upon websites like Angi, Home Advisor, Google, Yelp, in order to get leads. Yet they can prove unreliable, according to Mahoney. And contractors have found a reliable way to get referrals through the new word of mouth.
“Most people belong to groups via the internet, and rely on these connections,” Mahoney said. “They post in these groups looking for the recommendations.”
Why the Jump?
A 43% increase in the amount of homeowners contacting the same HVAC contractor they’ve used in the past is nothing to sneeze at. Nor is the 35% increase in contractors advertising via word of mouth.
“I think that the level of trust, like people building those circles of influence around them, has really shot up since we've gotten skeptical about what we see online,” Williams said.
Obviously, the goal of any HVAC contractor is to turn a customer into a repeat customer. Through word-of-mouth efforts, there are a number of ways contractors can do that, and contractors are catching on.
“The ability to communicate with the customers has strengthened, not just in social media but within the available software and technologies that contractors use to continuously communicate with their clients,” Zeppetello said.
Zeppetello said that software has quickly become a way to provide high-level service for customers, and those technologies can be utilized to have a more robust communication and follow-up system, keeping an HVAC company top-of-mind with homeowners.
Williams said the increase in contractors advertising via word of mouth could be due to the fact that they’ve gotten really smart at tracking point of acquisition. Contractors are ensuring that whether it’s the technician or the CSR, when a new customer comes in, they are asked, “How did you hear about us?”
“I think they started noticing that people were connecting with their brand on a different level — an engagement level. … We just started seeing a trend where they were gaining new customers as a point of acquisition through referral, social, and just straight old-school ‘my neighbor told me’ word of mouth,” Williams said. “And the homeowner has become more cautious of online advertising. … But they know they can trust their neighbor, their friend. So they're now utilizing things like reviews or referral programs to help with the overall recommendation.”
When it comes to deciding whether to implement a word-of-mouth campaign, there isn’t actually much choice at all.
“It's already been decided,” Zeppetello said. “If you're not trying to find and cultivate that word of mouth and trying to cultivate those brand ambassadors and that brand community, you're going to get outcompeted, especially in this current marketplace.”
Successful Word of Mouth
The survey also showed that the amount of homeowners who find their HVAC contractor via word of mouth/recommendation (including social media) actually decreased by 4% since last year. This begs the question of how much of a contractor’s approach to word-of-mouth advertising is passively reliant upon word spreading, and how much of it involves them actively seeking ways to get their name out there and get people talking.
“What I think contractors really need to put their focus on is, the full customer journey with people is going to be indicative of how often they refer you to friends, family, and neighbors,” Williams said.
Word-of-mouth efforts are still very much something that requires contractors to invest time, money, and resources into. Mahoney estimates that 60% of their marketing efforts are focused on what can be considered word of mouth.
“Our social media, website, and printables link to our reviews and online presence,” Mahoney said. “The balance is focused on top-of-mind awareness.”
Being able to track leads is essential to measure the success of any marketing plan, especially one like word of mouth that includes so many different potential acquisition points.
“We also keep a close watch on review sites and community social pages,” Mahoney said.
One way to strengthen a word-of-mouth campaign is through community involvement. HVAC contractors can utilize festivals, fairs, trade shows, or any type of community event to get their name (and mascot) out there.
“A strong community involvement and engagement strategy will drive that buzz in that referral because people have seen you and they've heard of you,” Williams said. “People can't talk about people that they don't know. If they’ve never experienced your brand more than a truck driving down the road … you're like any other contractor to them. Being out and about in your community can really generate word of mouth.”
Zeppetello said a successful word-of-mouth campaign starts with the culture created at an HVAC company.
GIVING BACK: People can’t talk about something they don’t know about, so contractors have to give homeowners something to talk about. (Courtesy of Royal Air Systems)
“You want everybody that [interfaces with] a customer, especially in that first time you interact with them, to provide that high level of service, but also communicate that you are trying to always provide this same high level of service, you do want them to talk about your company, and you do want them to refer your services to their friends and family because you’re there to serve the whole community,” Zeppetello said.
Of course, since social media is now included in word of mouth, contractors have to utilize it to get the conversation started.
“There is even more you can do with community involvement, charitable giving, and even face-to-face events,” Zeppetello said. “And you utilize the word-of-mouth marketing to get people to those events, so you can shake hands directly. It's about translating from the strategy, all the way to the actual contact with your potential clients.”
Williams wants to see the return of referral programs.
“We need to invest in and create an onboarding strategy that is encouraging people to talk about us in social media groups, to tag us, to leave us a review … It’s about how you encourage them to spread the word naturally, on their own,” Williams said. “That is gold … because it carries so much more weight than anything you could generate using actual dollars. So, create those raving fans that are proud to represent your company, and then reward them for supporting you so much.”
