Building a Customer Loyalty Plan

In the HVAC and plumbing industries, reaching new customers is just the first part of the process. Cementing that relationship is a crucial next step. Everyone wants repeat business, right? It’s done through stellar service, competitive pricing and, for many companies, customer loyalty plans.

That’s why most, if not all, of the major players in HVAC and plumbing have customer loyalty plans of one kind or another. But what about the small-to-mid-sized companies out there? Smaller businesses stand to benefit just as much from loyalty programs than the bigger names in the industry, if not more. It’s a strategic part of your business that creates repeat business, referrals, trust and ultimately more revenue.

Offering a loyalty program has benefits for you and for your customers.

Benefits for businesses

  • Increased lifetime value of customers instead of a series of one-off calls
  • Increased customer retention (loyalty programs cause people to stay rather than look for other providers)
  • Predictable income from recurring services and maintenance plans
  • Word of mouth referrals

Benefits for customers

  • Cost savings
  • Peace of mind knowing they’ll get priority service and the comfort of knowing the people who are coming into their homes
  • Enhanced value of feeling appreciated and rewarded for their business
  • Convenience of easier scheduling

Elements of a successful loyalty plan

Beyond discounts for repeat business, what should you include in your plan? Here are some ideas.

Discounts on services. Short, sweet, simple and to the point. This is discounts based on repeat business. Offer returning customers discounts on everything from routine maintenance, repairs and new equipment installations.

Tiered rewards. We all know this type of reward system from airline or hotel miles, but how does it work in plumbing or HVAC? Much the same way. Your customers can climb your tier structure — say, bronze, silver, gold, platinum — based on a variety of factors. You can keep it simple and base it on dollars spent on your services. Or, you can add things like types of services they choose. The idea is to reach tiers that provide better benefits. For instance, a "Bronze" member might get a 10% discount, while a "Platinum" member receives significant discounts and exclusive priority service. And about that…

Priority service. This is especially appealing during peak seasons or in emergencies. Loyalty members get bumped to the top of the service queue for appointments.

Offers and promotions. At Goodin Company, we love our special offers and promotions, and so do our great customers. You can do the same with yours. Think about things like pre-season specials on maintenance, discounts on new smart home integrations, or even free service calls for specific issues during a certain month of the year.

Rewards for referrals. A tried-and-true benefit used by businesses of all kinds, offer a free service call or discount on services to customers who refer new business to you.  

Annual maintenance plan. Do you have one? If so, integrate your loyalty program with it. Customers who sign up for these plans could automatically achieve a higher loyalty tier, which brings them additional.

Birthday or anniversary awards. Taking a page from restaurant loyalty programs, offer a special discount on a customer's birthday or the anniversary of their first service with your company.

Your loyalty program doesn’t have to be big, flashy or fancy. It just needs to convey your appreciation for your customers. And that’s what great service is all about, right?

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