Why Is Customer Service Important? A Guide for Contractors 

Ever had a client tell you, “The last contractor we hired was a nightmare”? 

Maybe they were impossible to reach. Perhaps they left a mess behind. Whatever the issue, bad customer service sticks with people—and it costs businesses a fortune. 

For contractors, good service shapes how clients see you. It determines whether they hire you again and directly impacts your bottom line. 

Globally, companies are putting $3.7 trillion in revenue at risk each year because of bad customer experiences. 

But the good news is, it’s something you can control. 

In this guide, you’ll learn exactly why customer service matters. We’ll explain what it is and how it works for contractors. 

Then, we’ll list eight advantages of excellent customer service. To finish up, we have some actions you can take today to make your service level the best it can be. 

Why is customer service important? Let’s find out. 

What’s Customer Service? 

Customer service is a lot of things. It’s how you treat your customers. It’s how they feel about the interactions they have with your business. 

It’s also communication and reliability. When you keep clients informed about project timelines, they feel reassured. When you show up on time and follow through on promises, they trust you. 

For example: 

• If a contractor quickly responds to a homeowner’s questions about their renovation, the client feels valued. 
• If a roofing company provides clear estimates with no surprise costs, customers feel confident in their choice. 

How can you gauge the quality of your customer service? It can be tricky to measure, but some good indicators are: 

• Repeat business and referrals 
• Positive online reviews and testimonials 
• Fewer disputes or misunderstandings 
• Customers who are happy to recommend you 

RELATED ARTICLE: The Business Owner’s Guide to Getting More Google Reviews​ 

How Customer Service Works in the Home Services Industry 

Home services professionals have a lot in common. One important thing is that they work on something that means a lot to their clients: their properties. 

Houses are expensive. More than that, they are where families are raised and memories created. 

They might be places of business too. Commercial properties are related to clients’ livelihoods, which must be protected. 

For this reason, customer service is a huge responsibility in the industry. So, how exactly does it work? 

• Clear communication: Clients want to know what’s happening, when, and why. Keeping them in the loop prevents frustration. 
• Reliability: Showing up on time and sticking to agreed schedules builds trust fast. 
• Respect for property: This means making sure work areas stay clean and minimizing disruption. 
• Problem-solving: Issues pop up—quick thinking and proactive solutions stop small problems from escalating. 

RELATED ARTICLE: How to Offer Financing as a Home Services Contractor​ 

What Do Customers Expect? 

Whether your customer service is good or bad isn’t up to you—your clients decide. It’s your job to meet those expectations. 

The challenge? Knowing what those expectations are. Hint: they depend on who you are serving. 

• Homeowners expect clear timelines, transparency on costs, and minimal disruption to daily life. 
• Business owners need efficiency—delays cost them money, so sticking to deadlines is essential. 
• Property managers value reliability; they want contractors they can count on for ongoing work. 
• Luxury clients expect premium service and attention to detail. 
• First-time clients need reassurance—they’ll have questions and appreciate patience. 

Common Customer Service Challenges for Contractors 

It’s not always obvious what clients want, but that’s just one challenge. 

Other common pitfalls that can sabotage your customer service efforts include: 

• Managing expectations: Clients might have unrealistic timelines or budgets. Setting the right expectations from the start avoids awkward conversations and let-downs later on. 
• Handling delays: Weather, supply chain issues, and other unexpected problems can slow things down. How you communicate these setbacks matters. 
• Dealing with difficult clients: Some customers will be demanding or indecisive. Keeping your cool and staying professional is part of the job. 

Great Customer Service in Action 

What does great customer service look like? Here are some examples: 

• A plumbing company schedules follow-up calls after a job. They make sure no issues have come up post-service. This small gesture builds long-term customer loyalty. 
• A general contractor gives homeowners access to a digital project tracker. The client can check updates in real time instead of chasing answers. They feel in control and informed. 

FROM ONE OF OUR PARTNERS: 4 Proven Strategies to Improve Digital Customer Experience​ 

8 Advantages of Offering Excellent Customer Service 

Why is customer service important? Because it has real, tangible benefits for your business. Here are eight you should know about: 

1. Retains More Customers 

To retain a customer means to keep them coming back instead of losing them to a competitor. 

Why does this matter? Because finding new customers is expensive. It takes time and marketing dollars. 

According to McKinsey, “compensating for the value of one lost customer can require the acquisition of three new customers.” 

If a client has a great experience with you, they won’t feel the need to shop around next time. They’ll call you directly instead. 

2. Contributes to Customer Loyalty 

A loyal customer sticks with your business and wouldn’t dream of going anywhere else. 

About 83% of US consumers say good customer service is an important—or even crucial—factor in brand loyalty. 

And here’s a compelling fact for you: loyal customers spend more. 

They trust your work, so they’re willing to invest in larger projects or premium services. They’re also more forgiving if small issues arise because they know you’ll make it right. 

3. Helps Generate Referrals 

Word of mouth is powerful, and happy customers are all too ready to sing your praises from the rooftops. 

They’ll tell their friends, family, and coworkers to use your services. This means more business without spending a cent on advertising—it’s a huge win. 

4. Builds a Strong Brand Reputation 

Your brand reputation is how people perceive your business. 

A great reputation means: 

• More positive Google and Facebook reviews 
• More trust from potential clients 
• More business without you having to follow up on leads 

On the flip side, a bad reputation—whether from missed deadlines or sloppy work—can seriously hurt your business. 

RELATED ARTICLE: How Should Business Owners Respond to a Google Review?​ 

5. Boosts Sales 

Let’s say there’s a homeowner looking for a contractor. They reach out to two companies: 

• Contractor A takes days to respond. They give vague answers and seem disinterested, like they couldn’t care less. 
• Contractor B answers quickly. The information is clear, and their attitude is friendly and professional. 

Who do you think they’ll hire? 

Contractor B. No questions asked. 

One of the advantages of customer service is better conversion rates. Why? Because people want to do business with professionals who treat them well. 

The proof is in the numbers. Forrester found that organizations that prioritize customer needs saw 41% faster revenue growth than those that don’t. 

6. Offers a Competitive Advantage 

A competitive advantage is something that makes you stand out from others in your industry. 

In home services, competition is fierce. For example, there are 820,000 remodeling businesses in the US. The market is growing, too, and will reach $120.9 billion by 2025. 

As the industry gets bigger, competition gets tighter. Pricing, skills, and services might be similar across the board—but customer service? That’s where you can really step up and stand out. 

When clients know the service will be great, they’ll pick you over someone else—even if your prices are slightly higher. 

FROM ONE OF OUR PARTNERS: How to Make Customer Service a Competitive Advantage​ 

7. Increases Lifetime Customer Value 

Lifetime customer value (LCV) is the total amount of money a single customer brings to your business over time. 

For example, a homeowner hires you for a small repair. Because you provided outstanding service, they later call you for a full renovation. 

Over the years, they continue hiring you—and referring you to others. 

Keeping customers happy increases their total spending with you. 

8. Makes You Fall In Love with Your Job 

What is the purpose of customer service? Part of it is making people happy, and there’s something rewarding about doing just that. 

Seeing a satisfied customer, hearing a genuine “thank you,” and knowing you’ve made someone’s life easier or more comfortable—all great feelings. 

If you have employees, great customer service boosts their morale too. A positive work environment, full of happy clients and good reviews, makes everyone feel proud of what they do. 

5 Tips for Providing High-Quality Customer Service 

Take your customer service in the home services industry to new heights. Give these five tips a try: 

• Spot problems before they happen. If you see a material delay coming, tell the client before they ask. If the weather might push back an exterior job, give them a heads-up. 
• Make it easy for customers to reach you. Clients shouldn’t have to track you down for updates. A simple system—like a project tracker or automated texts—keeps them informed without any hassle. 
• Take reviews seriously. Customers talk. Whether it’s online or in person, what they say about you matters. Tools like Joist Reviews help you gather and manage feedback. You can spot trends and turn happy clients into your best marketing. 
• Set a standard for how you handle client interactions. It might be responding to inquiries within 24 hours. Or it might be updating clients at key project milestones. Set standards for your business and see firsthand how consistent experiences build trust. 
• Keep sharpening your skills. The best contractors know how to set expectations and handle tough conversations. Learn from experience, from mentors, from online resources, and even from clients. They’ll tell you what works (and what doesn’t). 

Ready to showcase your best work and boost your business reputation? See how Joist Reviews can help.