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Plumbing & Mechanical ContractorBusiness ManagementMatt Michel: Service Plumbing Pros

Service Plumbing Pros | Matt Michel

Best practices for moving up the hierarchy and improving relationships

The customer hierarchy

By Matt Michel
Colorful wooden figures placed on top of square wooden cube columns stacked from one to six.

Image Source: tomertu / iStock / Getty Images Plus

December 9, 2024

When consumers select a plumbing company, they follow a hierarchy of relationships. A plumbing company at any point in the hierarchy beats everyone below and generally wins the call, no matter how much marketing lower hierarchy plumbers utilize.

The customer hierarchy is based on relationships. Business is built on relationships and strong relationships are superior to weak ones. There are actions any plumbing company can take to move up in the hierarchy and become immune to the efforts of deep-pocket private equity-backed plumbing companies.

The base: no relationships or familiarity

At the base of the hierarchy is the consumer without any relationships or knowledge of area plumbers whatsoever. This is the consumer who just moved to town. He has no experience and has formed no impressions of local plumbing companies. This is the person who opens a phone or computer and searches for nearby plumbing companies when he needs service.

Because he doesn’t know one from the other, he might call several to see who can show up first. Or, he might leap to reading reviews, hoping for some insight. He is susceptible to any marketing or special offers that show up during the period when he is searching. All plumbers are equal to him, so just about any offer can tip him towards one over the rest.


Reviews are the next level. These are really anonymous recommendations. The consumer doesn’t know the reviewer, but in absence of any other information, a good review or two or 200 will push him over the edge.

Level 1: familiarity

The next level is familiarity with a brand. It could be that he’s seen their trucks. He may have seen yard signs, billboards or other advertising. It could be a franchise that operated in another city where he used to live. Regardless, there is some familiarity and all else being equal, familiarity wins. It is not, however, a relationship. Since he is merely familiar with the brand and may not even know why, he is still prone to leap to reading reviews, which will reinforce the familiar choice if good or dissuade him, if bad.

Level 2: anonymous recommendation

Reviews are the next level. These are really anonymous recommendations. The consumer doesn’t know the reviewer, but in absence of any other information, a good review or two or 200 will push him over the edge.

Level 3: trusted group recommendation

Some consumers do not bother with reviews. Some do not trust them. Some will seek recommendations from a trusted group, such as Nextdoor or a neighborhood or community social media page. While it may seem like there is little difference between these recommendations and anonymous reviews, the recommendations or trusted groups come from solicitation. The consumer is asking a group for a recommendation. These are more powerful than reviews.

Level 4: indirect personal recommendation

Stronger than a social media recommendation is one from an individual personally known to the consumer. This can come through the trusted group when, for example, the neighbor across the street jumps in and makes a suggestion. In most cases, these recommendations come from consumers asking around. They ask people at work. They ask friends and family.

At this level, the recommendation is indirect. People say that Company A has a great reputation and lots of people use this company. While some consumers may still do further investigation, personal recommendations are usually sufficient.

Level 5: direct personal recommendation

The most powerful recommendation comes from direct personal experience. When a consumer asks an individual for a recommendation and the individual shares his personal experience, there is the credibility of the individual making the recommendation plus an inherent sense of obligation to follow up. You asked Joe, and Joe gave his input based on personal experience. It seems rude not to give Joe’s recommendation a try.

Level 6: personal experience

At the top level of the hierarchy is a consumer’s own experience. If it is good and the consumer can remember who he called, he will call the same company back. People do forget. This is one of the reasons it’s so important to put stickers on water heaters and disposals, and to leave refrigerator magnets, notepads and other leave-behinds.

Most of the marketing efforts are directed toward consumers operating on levels one and two. Most of the word-of-mouth that plumbers cite as the source for most of their business comes from consumers operating on levels three to five.

Plumbing contractors can expand their level three and four presence through community involvement. Join service clubs. Get involved in the local chamber. Join a leads club. It is possible for any plumbing contractor to build a strong business through intentional networking over time.

KEYWORDS: business administration business coaching contractors customer service plumbers and pipefitters relationships

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Matt michel

Matt Michel is the founder of Service Nation, and author of “Contractor Stories.” Looking to grow your plumbing business? Read PM magazine — subscribe for free — and join the Service Roundtable. Learn more about the Service Roundtable at www.ServiceRoundtable.com.

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