Common Operational Mistakes Local Service Businesses Make and How to Fix Them

As a local service business, here’s something obvious that your marketing agency won’t tell you: increased call volume doesn’t always mean increased profit.

For example, if you take a new plumber with a single truck and send them 100 qualified leads in a week, they can’t possibly fulfill them all by themselves. Similarly, if you’re unprepared for accepting new jobs, this limits your ability to scale.

We’ve helped hundreds of local service businesses grow by managing their paid ads and SEO. The ones that grow the quickest are also the ones who have the best SOPs and operations in place.

In this article, we’ll break down the most common ops mistakes we’ve seen local service businesses make and how to fix them quickly so we can help you grow.

Poor Scheduling and Time Management:

A common issue we’ve seen local service businesses make is poor scheduling, leading to missed appointments, double bookings, and inefficient use of time.

For example, a plumbing company in a busy metropolitan area frequently misses appointments or shows up late due to poor route planning and overbooking. One plumber might be dispatched across town for a small leak repair, while another plumber nearby is scheduled for a job an hour away.

This not only frustrates customers but also results in lost revenue and wasted resources. It also makes it harder for you to scale, since you simply don’t have the time to fulfill jobs.

The solution is to invest in scheduling software like Jobber or Service Titan (Service Titan is usually recommended for businesses over $10 M revenue/year) that allows for easy booking, real-time updates, and automated reminders.

In the case of the plumbing company, they implemented scheduling software that optimizes routes and avoids overbooking by considering job location and estimated time requirements. Now, the plumber closest to the leak is automatically assigned, reducing travel time and increasing the number of jobs completed each day. Training your staff to use this software effectively is equally important to ensure smooth operations.

Not Picking Up The Phone:

One of the most detrimental operational mistakes a local service business can make is not picking up the phone. Whether it’s due to being understaffed, overwhelmed by the volume of calls, or simply not having a system in place to handle incoming calls, missing phone calls can have serious consequences.

For example, an HVAC company may be running ads through Google Local Services Ads (LSA) and other platforms. If they don’t answer incoming calls promptly, they’re not only missing potential business but also risking their standing in Google’s LSA program, which heavily favors businesses with high responsiveness.

Google LSA is designed to connect potential customers with service providers directly. The more responsive a business is to incoming calls, the better it performs in Google’s ranking system. Missing calls can lead to lower visibility, fewer leads, and ultimately, wasted ad spend. Not answering calls can negatively affect your business’s performance across other ad platforms, where every missed call is a lost opportunity to convert a lead.

In the service industry, customers often need immediate assistance.

If their calls go unanswered, they’re likely to move on to the next available service provider. This not only results in lost business but also damages your reputation. Customers value responsiveness and are more likely to leave positive reviews and return for future services when they feel their needs are promptly addressed.

To avoid this issue, businesses should ensure that all incoming calls are answered quickly and professionally. Implementing a dedicated phone answering service, or using call management software like CallRail to help manage call volumes effectively. 

For example, a landscaping company might use CallRail to track and manage incoming calls, ensuring that no potential lead goes unanswered, even during peak seasons. This not only helps in maintaining a strong presence in Google LSA but also significantly improves customer satisfaction by ensuring that every inquiry is promptly addressed.

To that end, training your staff to prioritize phone calls and equipping them with the tools to handle multiple calls simultaneously can further enhance your business’s responsiveness. You should make it a priority that missed calls are followed up on as soon as possible to maintain strong customer relationships and to maximize the return on your advertising investment.

Inadequate Staff Training:

The workers inside of your business are what will make it succeed or fail.

Even with a steady flow of leads, untrained or under trained staff can lead to poor service quality, unhappy customers, and ultimately, a damaged reputation. For example, an HVAC business might hire new technicians during the peak summer season to keep up with demand. However, these technicians may not be fully trained, leading to incorrect installations and customer complaints.

One such incident could involve a technician installing an air conditioning unit incorrectly, causing it to fail within a week.

The solution to this is to implement a comprehensive training program that includes both initial onboarding and ongoing education. The HVAC business in this scenario invested in a robust training program that included hands-on sessions and regular updates on the latest technologies. New hires were required to complete this program before handling jobs independently.

As a result, the business saw a significant decrease in errors and an increase in positive customer feedback. Encourage staff to take ownership of their personal development, and reward those who demonstrate a commitment to continuous improvement.

This also applies to whoever is picking up the phone – since we want to make sure that the potential customer can get the best service possible and increase the likelihood of them choosing us to help them solve their service problem.

Lack of Process Automation:

Manual processes are time-consuming and prone to error. From invoicing to follow-up emails, relying on manual tasks can bog down your team and leave room for mistakes, leading to inefficiencies that stunt growth.

Not to mention – many local service businesses will have someone show up to deliver an initial estimate for the work required. There must be SOPs in place to make this as seamless and quick as possible to provide the best customer service in your area.

For example, a plumbing business might rely on manual invoicing, which leads to delays and occasional errors. After completing a job, a plumber might write up an invoice by hand and leave it with the customer.

The invoice isn’t entered into the system until days later, resulting in delayed payments and potential loss of revenue.

The solution is to automate repetitive tasks where possible. The plumbing business in this example adopted invoicing software that automatically generated and emailed invoices to customers immediately after a job was completed.

Payments were now tracked in real-time, leading to an improvement in cash flow and a reduction in missed payments. Use software for other repetitive tasks like follow-ups and customer feedback collection. Not only will this free up time for your team to focus on higher-value tasks, but it will also reduce the likelihood of human error and ensure consistency in your operations.

Bouncing Too Quickly From One Idea To The Other:

As the owner of a local service business you have a mountain of responsibilities. To make sure the cash-on-hand is enough to pay contractors, to financing new trucks or equipment for the team.

One of the most common traps we see local service businesses fall into is moving too quickly from one idea to another. For example, you might hire a marketing agency and after 30 days with not enough results, fire them and move on to the next.

It might also be as simple as changing your SOPs based on a single customer experience, instead of sticking to what’s been proven to work for other service providers.

The end result is that you don’t give enough time for your marketing agency, contractors, or business to optimize. Instead, you should have a period of a few weeks at a bare minimum.

You should also follow industry standards for what’s already working for other local service businesses in your same niche. For example, using our geo-grid we often connect local service businesses in similar industries who’re separated only by geography.

The successful businesses we work with almost always have similar SOPs and strategies because they leverage what’s already working.

Take Anthony Hilb at Anthony’s Lawn Care for example. His team and business has seen growth by investing in their workers and using proven SOPs to get the job done right.

Every part of your operations should prioritize customer satisfaction.

In the rush to grow more, local service business owners often forget that the best way to do that is by prioritizing customer service. This is done by having solid SOPs and by building relationships in your community.

Digital marketing for leads is like turning on the tap to fill a bathtub. If the bathtub has holes in it, it makes everyone’s job 10x harder than it has to be. That’s why the best way to do digital marketing is by using what’s already working.If you’re a local service business and want an audit for your website, get your Are You Google audit here for $200.