ToolsOfTheTrade-Ed1-Final

Plans For Growth and Profitability

CONTENTS

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Reunion Promo and New Franchisee Referral

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Plans for Growth and Profitability

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Challenge to Identify One Key Convention Takeaway ProTradeNet® Update: Making Dollars and Sense

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10 12 13 14 18 20 22 24 26 28

Plans for Growth & Profitability By: Shelley Blaszak

FAC in Focus

It’s a Great Time to be Part of Dwyer Group®

National Marketing Strategy

New Umbrella Brand Welcomes Customers to the Neighborhood

Leading With Values Life’s Defining Moments

Workshop Recaps and Resources 2017 Convention Highlights 2017 Convention Award Winners

CONTRIBUTIONS:

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DWYER GROUP, INC. Mike Bidwell, President, CEO Dina-Dwyer Owens, Co-Chair Mary Kennedy Thompson, Chief Operating Officer Lisa Zoellner, Chief Strategic Marketing Officer MR. HANDYMAN, LLC.

National Marketing Strategy By: Shelley Blaszak

J.B. Sassano, President Joel Welsh, Vice President Rob Carpenter, FAC, Co-Chair

PROTRADENET LLC Kathleen Seaman, Communications Specialist PRODUCTION Michael McCullough , Creative Manager Joshua Tynes, Graphic Designer Shelley Blaszak , Senior Communications Manager

LinkedIn.com/Company/MrHandyman YouTube.com/User/MrHandyman Facebook.com/MrHandyman

Twitter.com/MrHandymanTips MrHandyman.com/blog MrHandyman.com/blog/feed/rss/

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New Umbrella Brand Welcomes Customers to the Neighborhood By: Lisa Zoellner

Send Tools of the Trade ideas to Shelley.Blaszak@DwyerGroup.com

Referral Initiative

At Convention, the Franchise Development team announced a Mr. Handyman® referral program for 2017. Find out how you can help grow the system and earn an exciting incentive. We’re going to do something different this year and incentivize Mr. Handyman franchisees to submit Mr. Handyman referrals with a percentage of the new owner’s revenue for three years! Contact Renee DuBois , Tom Raymond or your franchise consultant to submit a referral. The referral program terms and eligibility information has been saved to Team Site . Mr. Handyman franchisees are also eligible for the Dwyer Group® People Like You program, which rewards owners with $2,000 for a referral to any of the other Dwyer Group brands. The bonus is paid as soon as the new owner pays their franchise fees and signs their franchise agreement. Visit the People LikeYou website for more information on referral rewards. Have You Registered Yet?

The 2017 Dwyer Group Reunion website has new information, including the keynote speaker, hotel deadline and details about lifestyle enhancement series educational sessions. Register to attend the 2017 Dwyer Group Reunion in Orlando, Fla. Sept. 23 - Sept. 27, 2017

today! Reunion is a great opportunity to attend an in-person meeting if you missed Convention and to also experience exciting presentations and opportunities to learn alongside fellow Dwyer Group franchise owners!

Save the Dates!

2017 Dwyer Group Reunion Let’s Get Neighborly™ Saturday, 9/23 – Wednesday, 9/27 Rosen Shingle Creek Hotel Orlando, Florida For additional information on transportation, local attractions and child care services, visit DwyerGroup.com/Reunion

2018 Mr. Handyman Convention Sept. 14 – 17, 2018 Gaylord Texan Resort Grapevine, Texas 2018 Dwyer Group Reunion Sept. 16 – 19, 2018 Gaylord Texan Resort Grapevine, Texas

TOOLS OF THE TRADE® | EDITION 1 2017 3

By: Shelley Blaszak

B efore launching the Mr. Handyman® 2017 Convention General Session, President J.B. Sassano honored the memory of Kris Talley and his 10 years of contributions to the Mr. Handyman system. “Kris was a joy to be around and is fondly remembered by many throughout our system. He served on our Recruiting and Retention committee, helped other owners as a mentor, operated as a field training center and helped their business reach the Million Dollar Club,” Sassano said. “Our hearts and support continue to go out for Cindy Parks-Talley and their daughter Kristie.” Sassano also announced that the awards would feature the newly-named “Kris Talley Heart of Mr. Handyman ” Award to continue his legacy in the future. A Year of Transitions Last year was full of transitions and continued integration into Dwyer Group® and the rebuilding of the Operations team. Sassano thanked everyone involved for the positive progress made with our new leadership, Home Office, Franchise Advisory Council (FAC) and the system. “We also welcomed new team members at the Mr. Handyman Home Office as well, and Joel Welsh, Sarah Brunette, Rita Ross, David Powers, and Brian Muessner have already made their marks in their respective areas,” Sassano said. The rollout of ServiceTitan was paused as the Technology Committee, Mr. Handyman and ServiceTitan teams worked to improve the integration of ServiceTitan from Toolbox last March. To successfully move forward, ServiceTitan needed several adaptations to meet the needs of Mr. Handyman’s time and materials’ operating model. With the help and dedication

of Jo McCabe, Mike McCalley, David Sipp and Skip Wyatt partnering with the Home Office and Dwyer Group IT team, the system made the necessary adaptation and migrations re-started last fall. Sassano announced the year’s record sales of $72.1 million were achieved along with several other impressive milestones as

our franchisees continued to build their businesses: • 70% of Mr. Handyman businesses exceeded 2015 sales • 62 businesses experienced a record year • 16 businesses surpassed $1 million in revenue • David Scott achieved $2 million in sales

Five new owners were inducted into the Million Dollar Club: • Glenn and Mindy Mappus • Stephen Johnson • Dan Hastings • Michael Campbell • Mike and Libby Mccalley “The Mr. Handyman magic sales number for businesses open three years or longer is $500,000 in annual revenue, and I’m proud to say that 67% of our businesses are above that level,” Sassano said. “We started measuring against this benchmark in 2012, and have expanded the new target to $750,000.” Commercial sales have been a big driver of Mr. Handyman’s

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growth and Sassano said commercial is outpacing our residential growth. “As a system, 17.6% of our 2016 revenue came from commercial business,” he said. “Our goal is for commercial business to reach a 25% mix as this revenue stream will become more and more significant for our continued growth in the coming years.” Anthony Garbacik leads the commercial development initiative for the system and some 2016 successes included 600 Jarden Pet washing project installations

Using Monopoly to Define 2017 Goals The 2017 Convention theme of Planning for Growth & Profitability was demonstrated throughout the event was inspired by Sassano’s favorite game, Monopoly. “The definition of Monopoly is: The exclusive possession or control of the supply or trade in a commodity or service. As Mr. Handyman owners, ask yourselves – do you want to own your market?”

completed by 93 owners, as well as preferred installer status for GateKeepers, EasyClosets and TidySquares. Visit the Commercial workshop materials to learn more. “If this is an

J.B. Sassano announced 2016 ’ s record sales of $ 72.1 million.

Sassano said. According to the Joint Center for Housing Studies of Harvard University, the estimated annual spending on home improvement and repair is $298 Billion. Mr. Handyman’s growth proves the demand for professional repair, maintenance and improvement services continues to grow. That trend is similar across Dwyer Group and the goal with Neighborly/Neighbourly is to own the neighborhood by being there to take care of all the needs homeowners will have.

area where you want to grow your business, follow the top commercial leaders announced each quarter and reach out to ask them how they grew or contact Anthony,” Sassano said. Sales will always be a focus, and smart growth through achieving Operations initiatives is key to continued success. The Operations team continues to focus on helping franchisees provide great service and recruit and retain technicians to fulfill the increase in service requests. “We continue to invest in our jobs.mrhandyman.com website, recruiting materials and tools,” Sassano said. “As a top priority across Dwyer Group , we will continue to look for ways to add tools to the RAREtoolbox. It is critical that we adopt the mentality to actively hunt for the best technicians and become an employer of choice to keep them with Mr. Handyman .” Jeff Paley led a recruiting and retention workshop full of best practices and the RAREtoolbox materials are also available on Team Site. Having enough technicians is one element and another quality control tactic is using the Listen360 surveys, which provide franchisees with invaluable customer feedback and a Net Promoter Score (NPS). “The NPS serves as a great tool to help franchisees coach their teams, while collecting and promoting high ratings to owners’ local websites. This also serves as a great indicator to new Dwyer Group customers when they are introduced to us through the Neighborly™/Neighbourly™ websites and touch points,” he said. Mr. Handyman’s goal is to reach an average NPS score of 75% or higher across the system. Last year, the system reached 74%, which Sassano said is great, but there is still room for improvement to provide outstanding customer service. “Region 1 is leading with an average NPS score of 79%, and I know we can all get there. An important way to reach our NPS goals is to promote the importance with your techs,incentivize your techs and train your techs using the feedback. NPS is an indicator of the overall customer experience and key to capturing repeat business,” Sassano said.

Mr. Handyman can provide solutions to customers in three core buckets, as defined in Kevin Busch’s home improvement workshop sessions: • Core handyman/time and work: $150 - $2,000 and 2 to 6 hour projects • Home improvement: $2,000 - $20,000 and 16 to 40 hours projects • Remodel: $20,000 and up representing 80 to 120 hour projects

TOOLS OF THE TRADE® | EDITION 1 2017 5

to where it is today, he said. “That group met weekly, and some conversations were tough and necessary to move forward. Sassano shared video testimonials from ServiceTitan users: Glenn Mappus , Mike McCalley and Greg Kemp to help demonstrate how far the system has come leading up to the standard to have 100% of the Mr. Handyman system migrated by June 30, 2017. If you missed the three ServiceTitan sessions featured during Convention, you can access the presentations and handouts for ServiceTitan Migration, Using ServiceTitan Properly and ServiceTitan Reports on Team Site. 2017 Numbers & Initiatives The Mr. Handyman systemwide sales goal for 2017 is $81.7 million with businesses open for three of more years averaging $750,000. Sassano said Mr. Handyman also aims to increase commercial revenue to $14 million by year end. The Marketing and Operations teams have strategies to drive achievement in their areas of expertise and their articles are featured in this edition of Tools of the Trade. New franchise growth is another key contributor and 20 net new businesses is the Franchise Development team’s target. If you missed Vice President of Franchise Development Tom Raymond’s news on a pilot to incentivize existing Mr. Handyman franchisees to refer new Mr. Handyman owners, you can access the information on Team Site. “We have aggressive goals for the next three years as the industry is expected to continue to grow by 5%. By 2020, I believe we will eclipse $100 million in revenue with 200 mature businesses exceeding $750,000 in sales,” Sassano said. To wrap up his presentation, Sassano shared his favorite quote by Calvin Coolidge, “All growth depends upon activity. There is no development physically or intellectually without effort, and effort means work.” “The franchisees in the room have proven you work hard! I encourage each of you to continue to build and develop your core business and spend the time on what you need to do to drive your business without getting distracted by shiny objects,” he said.

“Franchisees have to take time, go around the Monopoly board correctly by focusing on the basics of time and material projects, first,” he said. “89.5% of Mr. Handyman’s projects are in this core business space. While I want all businesses to get to the home improvement projects space, it currently only represents 0.7% of our system’s revenue and those really large remodel projects equate to only 0.15% overall.” Sassano said more than a few former Mr. Handyman franchisees are no longer with the system as they tried to move around the board too quickly. He shared a quote by Michael Porter, “the essence of strategy is choosing what not to do.” Sassano’s point is for Mr. Handyman franchisees to stay focused and be disciplined to build your businesses with core time and materials projects first off. To help you grow your business, Sassano recommended owners work with their franchise consultant to complete the Operations Team Business Planning Tool to ensure your best growth strategies. Moving Forward With ServiceTitan “There is no doubt that ServiceTitan is different than ToolBox,” he said. “There is a learning curve, and in full

transparency, not all early migrations went as expected.” The Technology Committee was critically important to get ServiceTitan

THANK YOU The Technology Committee committed to completing the neccessary work for the greater good of the Mr. Handyman system.

• Jo McCabe • David Sipp

• Robert Almanza

• Skip Wyatt

• Justin Lu

• Kevin Busch

• Joel Welsh

• Mike McCalley

• Eric Petty

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Through our continued partnership with Mr. Handyman Inc. we are able to provide many benefits to you as their franchise owners. This means that we can assist you with some of the more daunting tasks such as acquisition, financing, day to day management, and the eventual dispose of your vehicles. Benefits

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Separate Line of Credit for vehicles Volume Discounted Pricing Competitive Interest Rates Flexible terms & payment options Fleet Telematics Solution

Delivered ready-for-the-road Fuel Program Maintenance Programs Vehicle Disposal Assistance Risk Management Programs

Your Enterprise Fleet Management Contact Kelly has over 20 years of vehicle management experience Kelly Harned Account Manager 877-393-0332 office 866-393-4691 fax Kelly.a.Harned@efleets.com

JOEL WELSH ' s Challenge: identify one key convention takeaway

By: Shelley Blaszak

Congratulations to the top five 2016 sales increases over 2015: 1. Allen and Penny Ellison: $428,391 2. Glenn and Mindy Mappus: $392,527 3. David Scott: $367,447 4. Stephen Johnson and Kyle Johnson: $323,543 5. Bob Langreder and Darla Grubbs: $278,276

V ice President of Operations Joel Welsh’s Operations Update at Convention celebrated franchisees’ successes, the Operations team, and 2017 initiatives. “We had a lot of change last year on the Mr. Handyman® team and I’m proud of the exceedingly strong group we have assembled to provide a mix of talent and skill sets to our owners,” said Welsh. “I’ve been part of other franchise systems, but never another group of owners with as much passion, energy, and drive for the business, as Mr. Handyman !” Franchisees’ Successes Quarterly milestones are one metric to report on success achieved by franchisees when they exceed a previous sales milestone by a minimum of $1,000 per week, for the entire quarter. Welsh said 62 owners achieved at least one quarterly milestone in 2016! Other outstanding year-over-year (YOY) performances included:

Operations Team & Support “Last year, David Powers, Rita Ross and I joined the Home Office team,” he said. I’m supremely confident our current Operations team is poised to help owners grow their revenue and profits.” Mr. Handyman is planning on significant growth this year and hired a new franchise consultant (FC), Brian Meussner, to continue the team’s overall commitment to a culture of service and support. Welsh also said he and each of the FCs have been cross-trained on ServiceTitan to serve as additional resources and as the first line of assistance to owners who have successfully migrated from Toolbox. “I want the Operations team to grow professionally and personally so they can be the best people in their lives and with their families,” he said. “We care about our owners in the same way. If owners meet their financial goals, we know that drives your ability to meet the goals you’ve set for your personal lives.”

• 41 business with a YOY increase greater than $100,000 • 19 businesses with a YOY increase greater than $200,000 • 17 Incentive Trip winners • 62 businesses with sales over $500,000

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2017 Initiatives

Visit 100% of franchisees’ offices and host phone consultations in 2017

Thompson. “In the Dwyer Group® franchisee employee survey, our employees (technicians and office staff) said they would recommend Mr. Handyman as a great place to work an 8.2 (on a sale of 1 – 10 with 10 being the highest). They also rated Mr. Handyman a 40 NPS, showing a lot of room for improvement. Our goal is to move that average to at least 60,” said Welsh. The Mr. Handyman results were in complete alignment with the Dwyer Group aggregate across brands. “I’d like to challenge Mr. Handyman to stand out – we don’t want to be average!” he said. Re-Engage Support for Aging in Place Aging in Place continues to be a large niche in the home improvement industry and Mr. Handyman is re-committing energy toward this effort. Mike McCalley volunteered to work with the Home Office team to identify best practices, create opportunities to share with the franchisees and build operations and marketing resources to help franchisees fully prepare to secure jobs in this category. Update the Operations Manual By the end of third quarter, the Mr. Handyman Operations Manual will be updated and hosted on a new, electronic platform. Kim Owczarzak is working with the Home Office team on this project, which allows for on-going updates Enhanced Franchisee Communication The Home Office team has transitioned to FranConnect, an internal facing customer relationship management tool to replace an aging and outdated software. By the end of 2017, franchisees are expected to be rolled over to an improved Team Site (intranet). The selection process for a new platform has already begun and more information will be shared as it’s available. New Business Planning Tool A Mr. Handyman custom business planning tool was introduced during Welsh’s Convention workshop. He thanked Mike McCalley for helping to develop and test this resource, which includes financial assumptions and the ability to make adjustments and see how changes affect your profitability and cash flow. FCs will enter owners’ 2016 profit and loss (P&L) statements into this tool and then reach out to owners to show results and provide training on using it.

The team is working with Steve Soper from the Franchise Advisory Council (FAC) and Allen Ellison to create post-visit surveys and improve the format and takeaways of annual office visits. To complement the office visits, FCs will host phone- based meetings to help you focus on business planning for growth and profitability, ServiceTitan best practices, operations efficiency, close rate improvement and technician recruiting, hiring and retention. Help 100% of owners to migrate to ServiceTitan We also want to continue transitioning owners to the Qvinci platform to use QuickBooks Online and offer more training and best practices to the entire system. Rob Carpenter is partnering with the Home Office to create documentation and a training manual for ServiceTitan. If you need ServiceTitan assistance, contact your FC to get started. Improve Close Rates Your marketing dollars are valuable and the Operations Team has been setting benchmarks since Convention and will share coaching points in the third quarter to help coach franchisees improve their return on investment. “Close rate improvements can happen, and must begin with owners and your whole team believing in the value of the Mr. Handyman model,” he said. Achieve System Average Net Promoter Score (NPS) of 75% or Higher The current NPS score of Mr. Handyman is 74% and Region 1 is leading the way with a 79% average. “NPS scores are a great indicator of repeat business as it reflects on your customers’ overall experience,” said Welsh. Re-focus the Recruiting and Retention Council Welsh and the Ops team will work with the FAC to recruit owners and will also request volunteers to join this team. The Council will continue working with the existing vendors Jeff Paley established as well as adopt best practices from RAREtoolbox, as discussed by Chief Operating Officer Mary

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What’s the ONE thing? As Welsh completed his presentation, he challenged owners to identify the top three Convention takeaways that will positively improve your business. Then, prioritize which ONE thing has the potential to make the greatest impact on your business and focus on that before moving on to the next item. Key considerations to identify the most important takeaway and get started: 1. Make a list including your top takeaway from each discussion with a fellow owner or presentation you attended. 2. Consider why a new activity is important as this is key to staying motivated. 3. Take a deeper dive and identify what resources and information are needed to make adoption of a new practice a success. 4. Make your plan actionable – what steps are required to incorporate to implement this change into your business? 5. What is your strategy behind the ONE thing? 6. Determine your first step to begin. “When you’ve completed this process for all the great ideas you brought back from Convention, share your priorities with your FC and get started!” he said.

“ I ’ ve been part of other franchise systems, but never another group of owners with as much passion, energy, and drive for the business, as Mr. Handyman! ” - Joel Welsh Vice President of Operations

PROTRADENE T ® UPDATE MAKING DOLLARS & SENSE By: Kathleen Seaman

Mike Albert Fleet Solutions, and TBC Corp (which is the parent company for Merchant’s, NTB, Tire Kingdom, and Big O Tires) to name a few — and there will definitely be more to come. For the most up to date list of PTN vendors, visit ProTradeNet. com. On the website, see our “New Vendors” post under the PTN Announcements section, which highlights the most recent additions to the vendor program. You might ask, what does all this mean for me? Based on 2016’s program participation — if you just keep doing what you’re doing — cumulatively PTN members will get back an additional $250,000 in rebates! But the potential for more is significant and exciting! For example, when you look at the top 10 vendors that pay Mr. Handyman® members the most rebates, on average only 38% of franchisees are using those vendors! Don’t leave money on the table. The PTN team is working hard to bring you more, but we need your help. The more franchisees that participate with PTN vendors, the more buying power we can leverage, which means better pricing, better rebates, and more value. Contact a franchisee relations coordinator today! They can run a Rebate Double Check to make sure all of your purchases are being tracked, and they can also discuss opportunities to increase your savings and rebates.

The ProTradeNet® Dollars & Sense initiative is all about providing more opportunities for our members to increase their bottom line. T he first way we’re striving to do that is by increasing rebates with vendors you’re already using in the program. So far this year, we’ve already negotiated higher rebates with several vendors (and there will be more to come!). For example, Ignite Payments doubled its rebate, and Sunbelt Rentals increased its rebate by more than 700%. Another goal of Dollars & Sense is to add more opportunities for Rebate Stacking. We have rebate programs with several great distributors, but we’re also looking to create additional partnerships with key manufacturers. So when you buy a product from one of our manufacturing partners through one of our distribution partners, that is an opportunity for Rebate Stacking — receiving a rebate from both the distributor and manufacturer! Finally, we’re also working on expanding your preferred vendor network. ProTradeNet strives to offer a vendor category for every business need you might have, and we’ve already brought on several new vendor partners this year —Worldpay,

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Increase customer satisfaction and grow sales with an app built for your technicians Mobile 2.0 Coming Soon to Mr. Handyman ®

Increase Customer Satisfaction & Repeat Business

Drive Sales & Technician Performance

Reduce Costs & Save Time

Sign up for Mobile 2.0 and check out our training materials to learn more Visit us at info.servicetitan.com/dwyer-mobile-2 to register for a live webinar

By: Rob Carpenter

W hat a Convention! This was my 14th consecutive one and it was awesome seeing old friends, meeting new friends, and seeing friends I hadn’t seen in a while. It was great building on those relationships. That is what I always felt was the best part of Convention. Cultivating relationships. It is what makes being in a franchise worth it. I made sure I took advantage of every bit of it as well. So much so I even lost my voice from talking way too much (just ask the people that sat at the bar table with me each night). It was worth it. Convention always re-energizes me. I come back to my office all pumped up and ready to take on the world. I hope those of you that went to Convention came back with that same energy. Most importantly, do not let that energy die. Do not put

Agreement trying to make sure it is a document that protects not only the Home Office, but you as owners as well. I feel we were able to achieve that. We have also spent a good bit of time discussing ServiceTitan. I am hopeful we will get to the point that the program is doing everything it needs to do for all types of businesses. As FAC CO-Chair, I promise it will be my No. 1 focus for 2017. As I wrote this, Neighborly just rolled out and I am excited for what it may bring. While it may feel like some competition between the Dwyer brands, if it can generate new leads, then I see a win/win for everyone. I want to thank our outgoing FAC members John Van Orden and David Ambinder. They worked tirelessly on your behalf and I appreciate everything they did this year. I

things off that you know you need to do to grow your business. Things like hiring that next tech, even if you are not sure you need him yet. At least get him in the

" Cultivating relationships. It is what makes being in a franchise worth it. "

welcome David Sipp and Kim Owczarzak back to the FAC as the winners of the last election. I look forward to working with them for another year. Finally, as you continue to push that momentum

pipeline so you are ready. Evaluate your rates! Can you implement an increase using the “fours and eights logic I have described on Team Web many times? Review your phone processes with your CSRs. Make sure they are following your scripts and processes and are booking every job they should. Review your Commercial business. Are you getting the business you feel you should? If not, reach out to Anthony Garbacik and ask for help. Do not let the Convention momentum die. So what has your FAC been doing the last year? We spent a good amount of time focusing on the FDD and Franchise

from Convention, do not hesitate to reach out to other owners. As a franchisee, you are a part of the greatest business model there is, franchising! You have 118 business partners you can tap for advice and guidance. Utilize the network to your advantage. Feel free to reach out to your FAC members as well as they are there to help. You can also reach out to me personally any time 7 a.m. to 11 p.m. ET Monday – Sunday on my cell (301) 471-8383 (unless

Survivor, the Wizards or the Capitals are on). Here is to a great and very profitable 2017!

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OUR MISSION

OUR VISION

To be a world class company admired for the excellence that customers, franchisees and associates experience with Dwyer Group .

To teach our principles and systems of personal and business success so that all people we touch live happier and more successful lives.

It’s a Great Time to be a Part of Dwyer Group ®

By: Mike Bidwell

W e are at the dawn of a new day at Dwyer Group®. With great anticipation, we have launched our new overarching brand, Neighborly™ (known as Neighbourly™ in Canada), that we conceived prior to Reunion last year. This is a bold step forward to realizing our long-standing vision that we all benefit from being members of a common family of franchised brands. We have experimented over the years to find ways to expose customers from one brand to other Dwyer Group brands. However, each proved to be too burdensome, too inefficient and too expense. In retrospect, we had to wait for technology and how people use technology to catch up – including the Dwyer Group ecosystem – to be able to execute on this vision in an effective and sustainable way. As the marketplace has evolved, the full breadth of Dwyer Group’s service brands’ offerings has become more meaningful to homeowners. The dream was initially to leverage our individual customer silos that each of you have in your perspective local markets and expose those customers to other Dwyer Group brands. Since they are buying services from you, they are likely using many of our other service offerings as well to meet their needs. Unfortunately, our data says that less than 3 percent of the time they are using more than one of our brands. I suppose this makes sense when you consider market share in each market, and the fact that we do nothing to make it better. What nowmakes this possible is: • Our Dwyer Group Culture • Single Point of Sale (POS) system used in each brand, with API connectivity • Centralized data warehouse at Dwyer Group to consume all POS data • Universal customer surveying system (reviews and rankings)

• Dwyer Group Customer Relationship Management (CRM) system and strategy • Our consumer content library • Robust brand consumer websites • Find a Neighbor (FaN) mapping system • Talent (internal and external) to orchestrate • Capacity – 2400 North American franchisees in 11 service verticals

• Evolving consumer shopping preferences • Financial capacity to make the investment • Vision and leadership to make it happen

It is a great time to be a part of Dwyer Group , now our Neighborly network. Our research and pilot test indicate the market is ready for Neighborly , and we are now ready to execute and deliver. Its purpose is to lower your customer acquisition cost, increase your customer count, shorten your customers’ purchase cycles, and reduce customer defection or attrition. All of this helps enhance your profitability. There is another reason as well. While this reason did not exist when we envisioned this dream, as market dynamics have evolved, it does today. If we don’t do this, someone else will – and they are attempting to do so now. Now, our motives are also protectionist. The good news is nobody has what we have. Nobody is better suited to execute and deliver the customer experience than us, so let’s get on with it! Neighborly,

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NATIONALMARKETING STRATEGY Sarah Brunette Shares

By: Shelley Blaszak

M r. Handyman® Brand Director Sarah Brunette presented the National Marketing update to Convention attendees. Taking her cue from the 2017 Convention theme, Brunette showed how the goals of the MAP fund align with owners’ focus on achieving better results, more efficiently. She started her session by showcasing the 2016 MAP Fund Results video. Last year, the MAP fund was used to continue driving leads, improve speed to market and build brand recognition. To support franchise owners’ mission of increasing revenue, the Marketing team and National Marketing Committee’s top 2017 priorities are to boost brand awareness, drive leads, enhance the user experience and improve website health. Here’s an overview of the tactics Brunette shared, along with recommended calls to action or links to more information, where applicable:

Yelp continues to generate leads for Mr. Handyman service so the national partnership has been extended. Owners receive enhanced profiles on the Yelp website and are entitled to discounts on advertising. Additionally, Yelp is a ProTradeNet® vendor, so Mr. Handyman owners receive rebates and have access to dedicated brand support as needed. ReachLocal continues to manage the national pay-per-click (PPC) campaign, which supplements local advertising efforts of the Mr. Handyman franchisees. This online space is highly competitive and last year, ReachLocal successfully lowered the national cost per click average. • Five owners are currently participating in a local PPC test with Scorpion. The test is expected to conclude later this year and results and recommendations will be shared with the system. Public relations by Fishman PR are nationally focused to complement the brand’s editorial calendar and extend the reach to potential Mr. Handyman customers, technicians and future franchisees. • Owners who secure a local media opportunity or experience a crisis can contact Shelley Blaszak for media coaching and counsel. • Watch for the information about the 2017 National Day of Service and Remembrance coming this summer! Social media posts on Facebook, Twitter, Mr. Handyman’s blog, YouTube, Pinterest, Instagram and LinkedIn are comprised of engaging text, images and video. This space is ideal to promote events, contests and gift guides in fun ways that demonstrate Mr. Handyman’s repair, maintenance and improvement expertise. 2 3 4 5

Eight Brand Building and Lead Driving Initiatives

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Details is Mr. Handyman’s current marketing campaign.

The Dwyer Group® Creative team will make the materials even more relevant with additional northern and southern enhancements. You can access all available brochures, display ads, door hangers, web banners and more on the Marketing Materials website!

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• Video is literally the king of content marketing and studies show those who view videos are 1.81 times more likely to buy than posts without video. Good thing Mr. Handyman developed its video library in 2016 and will work with the Dwyer Group® Video Team to create additional assets. The videos are used nationally on social media and are available for Mr. Handyman owners to share from the national Facebook and YouTube accounts. • If your technicians aren’t already participating in “Photo-opoly,”make sure you share the flyer to help them Snap. Post. Win. There’s still time to get started with great project photos. The contest runs through September 1 and four technicians will each receive a $500 gift card! • National Pet Month was May and Mr. Handyman hosted our first-ever My “Pet”Peeves Photo Contest to fetch the attention of approximately 79 million homeowners with pets. • The Discovery Channel has a Richard Rawlings’Fast & Loud spinoff show, which will debut in late summer, called Garage Rehab. Mr. Handyman was called upon by producers for assistance and Mark and Carol Bush, Mike and Susan Riley and Teddy Tenenbaum and Mark Harrison participated in three episodes. Watch for more details on air dates, coming soon! • Pumpkin Carving with Power Tools has been featured on Fox & Friends Weekend for five consecutive years. The team is hopeful for a 2017 return and is already planning to make this year bigger and better than ever! • As industry experts, Mr. Handyman is updating our essential tools list this year and will launch the Ultimate Guys’Gift Guide – Tool Edition just in time for the December holidays. Dig into the Digital Directory to learn about 13 of the most common lead aggregators (Angie’s List, Houzz, Porch, etc.). Bryce Bernard researched and compiled a living library of websites used by fellow Dwyer Group® brands. The directory outlines the mission of each lead aggregator, what they do, how much participation costs, etc. – we know you get bombarded by these options and it can seem overwhelming. This is posted on Team Site and will be periodically updated. Neighborly™/Neighbourly™ was launched on March 27 to effectively cross-market the Dwyer Group family of service brands in the U.S. and Canada. The new websites GetNeighborly.com and GetNeighbourly.ca are working in concert with the on-going CRM email campaign to generate exposure and new business for Dwyer Group franchisees. • To learn more about Neighborly , you can access the interactive Brand Guidelines document. • To connect with your Dwyer Group neighbors, gain customers and grow your business locally, visit the Marketing Playbook. 6 7

Click the button to view the marketing playbook online.

8

Updated market research will be begin this summer/ fall and will extend across all 13 Neighborly brands. By packaging the Mr. Handyman research into a larger Neighborly project, we are accessing world-class brand intelligence for a fraction of the price. This information will be key to helping Mr. Handyman continue to grow in 2017 and beyond. Optimize the Online Experience An increase of website traffic is essential to growth, and continuous improvement of the online experience is key to drive customer conversions. With mobile users representing 40% of the Mr. Handyman website traffic, the need to optimize the online experience for smaller screens continues to be a focus. Currently, website tests are being conducted and will continue throughout the year until the best conversion results on the national home page, local pages and service pages are achieved. In addition to edits of the site’s text, colors and placement of the call to action links, phone routing and speech zip are top priorities. “ Mr. Handyman worked alongside the Molly Maid® marketing team to launch a speech-to-text feature for our national phone line,” Brunette said. “We saw 37% of our calls hang up at the zip entry in 2016 and that volume equates to 31,701 dropped calls! Even a 10% improvement in hang-up reduction would deliver more than 3,000 calls to Mr. Handyman businesses.” The technology went live on May 9th and we’re looking forward to the results.

TOOLS OF THE TRADE® | EDITION 1 2017 15

Behind-the-Scenes Digital Marketing So far, Brunette has focused on sharing the highly-visible marketing strategies owners can interact with. However, another essential element of the Mr. Handyman on-going success relies on the behind-the-scenes Digital Marketing team strategies: 1. Managing the on-going development of “the single source of truth” which pulls multiple internal databases together to align addresses, phone numbers, etc.

" We signed a new contract with scorpion starting on april 1 and saved $ 70,000! "

2. Optimize Google Analytics and conversion tracking. 3. Implement page speed optimization using Google Pagespeed insights. 4. Advanced schema mark-up to enhance national search engine optimization.

Facebook, Twitter and Instagram, the negotiating power and value of our partnership is significant. “We signed a new contract with Scorpion starting on April 1 and realized a $70,000 savings! These saving can now be placed back into the national MAP fund to be reallocated toward new initiatives,” Brunette said.

Brunette reassured owners that the Digital team loves these complex challenges and is working to keep the Mr. Handyman websites looking great to Google and the other search engines. Speaking of websites, the Digital Team also oversees the relationship with Scorpion. As other Dwyer Group brands also use the platform for their websites and to post nationally on

Meet the National Marketing Council (NMC) The 2017 NMC currently consists of the following owners: • Teddy Tenenbaum • Dean Hazelwood • Mike McCalley • Kevin Crysler • Kim Owczarzak • Wendy McGee

If you have any questions, ideas or concerns about Marketing, please reach out to Sarah Brunette or any NMC member. Sarah Brunette 734-822-6660 | sarah.brunette@dwyergroup.com

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76% FACEBOOK USERS VISIT THE SITE PER DAY 1 X OF

patrick.crawford@reachlocal.com

Melissa Lindley | 214.294.0429 | mlindley@reachlocal.com Patrick Crawford | 318.683.1250 | patrick.crawford@reachlocal.com

©2017 ReachLocal, Inc. All Rights Reserved. REACHLOCAL® is a registered trademark.

TOOLS OF THE TRADE® | EDITION 1 2017 17

NEW UMBRELLA BRAND WELCOMES CUSTOMERS TO THE NEIGHBORHOOD

By: Lisa Zoellner

A fter six, short months between the 2016 Reunion presentation about the new Dwyer Group® umbrella brand, Neighborly™/Neighbourly™ launched on March 27. The U.S. and Canadian websites are now live and this long-time vision of Dwyer Group has finally been brought to fruition. This is the result of a lot of hard work by your Marketing team, many Dwyer Group functions, especially our IT department, and of our agency partners, Bullish and Scorpion. Why We Created Neighborly/Neighbourly Today, only 3% of our customers have ever used more than one Dwyer Group brand. In the past two years, that number shrinks to 1.9%! There is tremendous opportunity for growth by increasing usage of all of our brands across our customer base and Neighborly/Neighbourly is this first step toward welcoming new and existing customers to our neighborhood. A Multi-Faceted Outreach Plan • Neighborly/Neighbourly was introduced to customers

to many Dwyer Group brands. Those customer reviews are integrated into the Neighborly and Neighbourly websites. • Neighborly/Neighbourly has been incorporated, as a secondary message, on all of the Dwyer Group national brand websites. • A Neighborly/Neighbourly marketing campaign has been added globally to campaign options in ServiceTitan • The Neighborly/Neighbourly tagline has been integrated into each brand’s most-used marketing materials, which are available on your Marketing Materials website. • Traffic from the Dwyer Group’s former My Home Life (MHL) websites and social sites have been be redirected to our newly-created Neighborly/Neighbourly properties. • Our public relations media outreach began in early April with Fishman Public Relations. • Media testing using digital channels began in April in select markets.

through an email campaign, which began in April. Email will be a critical communications tool, as we move forward. • The new Neighborly and Neighbourly websites will serve as an additional channel to provide leads to you. • The Listen360 customer survey tool has been rolled out

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60,000+ Visits to

1,700 Web Forms Have Been Submitted Early Results

GetNeighborly.com

4,438 13.2% Increase in New Customers

Increase in Cross-Brand Customers

7.5%

Accounts Have Been Created

Here’s How You Can Help To complement the national efforts, owners can get involved locally. Here are four easy ways: • Collect valid email addresses from every lead and customer to ensure they receive CRM communications and Listen360 customer surveys. • Update your vans by adding the Neighborly/Neighbourly decal Incorporate updated creative with the Neighborly/Neighbourly logo and tagline in your local marketing which are now available on the Marketing Materials website . • Start to use the new Neighborly/Neighbourly cross-branded advertising pieces, which have been created for owners to use for co-op and shared advertising events such as trade shows. Additional marketing materials such as video to be used for television and online advertising will be available soon. • To work with fellow Dwyer Group franchisees in your area, I recommend referencing the Neighborly Brand Guidelines, local Marketing Playbook and contacting your brand’s marketing team to get started. The launch has been an amazing journey and we have really just begun. Now, the work begins to make Neighborly/Neighbourly all it can be to fuel our growth!

Mr. Handyman ® Data Insights: 52,728 Active customers (24 months) 38,070 Valid emails - represents 72.2% of active customers +8% Average value of customer with email address +2% Average job revenue for customer with email address $1,050 Average customer lifetime value

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LEADING WITH VALUES

By: Dina Dwyer-Owens

I n September 2015, Dwyer Group® Chief Operating Officer, Mary Kennedy Thompson and I had the pleasure of meeting U.S. Representative, Cathy McMorris Rodgers, at the International Franchise Association’s Action Network meeting to talk about the most pressing issues facing franchisors across the country. We were excited to meet the highest ranking woman in the Republican Party and - wouldn’t you know it - our discussion turned to living and leading with values. How Dwyer Group Leveraged Values to Build a Billion-Dollar Company It’s been a little over two decades since Dwyer Group implemented its operationalized Code of Values and a series of principles that support our organization. Live R.I.C.H (Respect, Integrity, Customer focus and Having fun in the process) guide our business decisions. We strive daily to keep these values front-and-center ensuring that everyone in the company, from the leadership team to our franchisees on the front lines, know and embrace them. After a record year of historic growth in 2016, our organization now includes 16 consumer brands, more than 2,800 franchises and over $1.4 billion in annual system-wide sales that stretch across 11 countries around the globe. People routinely ask, “How can we create that kind of successful growth for our own organization?” The common thread behind our growing, collaborative and collective success is the Dwyer Group Code of Values. It’s a topic that speaks to my heart and one of the reasons I wrote my last book “Values, Inc.” I wanted to provide insight for organizations interested in what we are known for at Dwyer Group - helping businesses stay the course as they grow. In addition, I wanted a road map to help small business owners, including franchisees and their teams, navigate their business through the use of their own Code of Values. Helping others define a Code of Values that can live and breathe in their organizations is a passion of mine and it has been a privilege to share the journey of Dwyer Group with other franchisors, businesses, the public and yes, even government.

A Code of Values Can Energize Any Workplace - Even Our Government At that first meeting with Cathy, our Code of Values message really resonated with her, so she invited me to return to Washington, DC, later that year to give a “Values in Business” seminar to her entire congressional staff. The end result of the workshop was that her office wrote out their own Code of Values…something they have begun following over the last year. Taking a page from our Live R.I.C.H message, Cathy’s office now has a message to S.E.R.V.E. Cathy wrote a guest column for TIME Magazine, in which she shared a little about her team’s Code of Values: “On Capitol Hill, which is often the epicenter of partisanship and egos, my team and I established a system of values, a motto called, “Have Fun While We SERVE” — Seek Excellence, Everybody Matters, Responsibly Own It, Vigilant Integrity, and Embrace Change — and at staff meetings we talk about how we are living these values, and where we fall short.” In the last year, since having their own values, Cathy’s office has found several ways to put them into practice. In doing so, it has helped the team reflect on how their actions impact those around them and how they can strive to be better public servants, teammates and citizens. Other leaders on the Hill have asked for copies of her Code of Values to begin implementing in their own offices. Additionally, because of the reputation and culture created by their values, her office has attracted resumes of people seeking to work in their environment. Value Truly Knows No Boundaries All of this is music to my ears. Living and leading with values knows no boundaries. It can serve a small business, it can serve a large organization, and it can even serve our country’s highest offices. For any organization, a strong code of values, put into action, provides a roadmap to the future. The bottom line (and a profitable one, too) is that a company that lives and leads with values will always outperform, outshine, outdo and outlive competitors who put ethics on the back burner.

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LIFE’S DEFINING MOMENTS By: Mary Kennedy Thompson

H ow we offer services to our customers can be one of those daily actions that over time becomes the defining moment that makes us great. At the start of my career, each time I met a successful person, I would ask what they did to get there. I always expected to hear them say it was some significant occasion that created the change and growth toward excellence. It took my asking about 10 really successful people before I saw the real pattern. It was not a big decision nor a clear moment where a special event occurred that created the defining moment for achievement. I learned, instead, it is consistently practiced daily habits that help us grow into successful businessmen and women - and in doing so, we grow successful businesses. For our service brands, the defining moments happen each day on the phone and in our customer’s home. It includes all parts of our frontline service, a quick and friendly greeting when our customer first calls, and even doing the small things on each service call. It’s the basics – that’s why they’re called the basics - that grow a company. Ask yourself, “Are we using the basics in building everyday actions to create success?” Vince Lombardi once said, “Winning is a habit. Watch your thoughts, they become your beliefs. Watch your beliefs, they become your words. Watch your words, they become your actions. Watch your actions, they become your character.” I believe great companies are built by great people who think “How can I improve my interactions with my customers?”

That thought becomes the belief that outstanding customer experiences will drive the business. And cheerleader customers become the character of the organization that help us recruit the right people. Exceptional customer interactions define the relationship, which builds the company. Below is a good place to start. • Cheerfully and efficiently answer the phone using a script to stay on point and build a great service call. • Offer convenience to our customer (such as a clear appointment time). • Conduct ride-alongs and randomly check up on our service providers when they are on service calls. You are the quality control manager for your business. • Coach invoices to help your service providers to see opportunity and follow up on customer needs. • Closely read the customer surveys to see how you’re really performing. Let’s win!

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