Your field staff can’t help everyone, everywhere, all at once. You need to know exactly where your target customers are and how to fill in gaps when it comes to competition. To do this, you need a defined service area for your business.
What are service areas? We’re glad you asked.
What is a service area in business?
A “service area” is a geographic area where a service business operates. It’s also referred to as a service territory. This geographic region encompasses where a business is located, where its clients are, and where they provide services.
For example, a general contractor might provide services to an entire city. A snow removal company may serve only specific neighborhoods for residential services.
Why is it important to define your service area?
It’s important to have a defined coverage area for the following reasons:
- Provides focus. You can focus resources, marketing efforts, and general operations within a defined area so you don’t spread out too thin.
- Legal working area. Depending on the services you provide, you may need specific work permits or business insurance. These can often limit where you can work and restrict your specific area.
- Manage client expectations. Managing client expectations is easier when you can provide more accurate quotes and timelines. Plus, you’ll be able to guarantee work in their neighborhood–helping to secure future referrals.
- Targeted marketing. Set up your website and list your service area, which boosts local search engine optimization (SEO) and lets clients know whether or not you can help them. Get your business listed on Google so people in the area find it easier. You can also try door to door hanger advertising in regions where you haven’t worked yet.
- Build a strong reputation. Over time, people will recognize your business. As you build up clients and marketing efforts, word of mouth will spread throughout the area. Good work and positive reviews will keep the business rolling.
How do you determine your service area?
Not sure how to figure out what your service area is? It’s more than just drawing a circle on a map and saying, “We work here.” To determine your coverage area, start with these steps:
1. Conduct in-depth research throughout the region
You’ll need to know where your services are in demand and how easy it is to access those areas. Uncover untapped markets like new neighborhoods or areas with population growth. If there’s no demand, you’ll need to adjust the distance you’re willing to work in. Once you understand the region, you can target your marketing effectively.
2. Know who your competitors are in the immediate and surrounding areas
Who else offers the same services as you? This is important to know so you can remain competitive. Look them up, compare your specific services and prices, and grow where they aren’t. Direct competition is tough, but understanding the gaps allows your business to expand.
3. Define who your ideal customer is
Do you know exactly who needs to hire you, and how can you reach them? Research is important here, too. If you only serve homeowners, don’t include student neighborhoods in your service area. Understanding demographics is key. If you don’t know who to sell to or how to reach them, your sales will suffer.
4. Calculate business efficiency for your needs
How far can your staff travel for a job? Can you order parts or supplies in a timely manner? How easily do you meet customer demands without stretching resources? You need to figure out how far you can stretch the business while staying net-positive.
How to set up a service area for online booking
Once you’ve determined the specific region you’ll serve, it’s time to let customers know they can book with you. Online booking is quick and easy, and we’ll walk you through some different options.
Free visibility with Google Business Profile
If you don’t already have a free Business Profile on Google, start by creating one. This is one of the best ways to build an online presence for your business.
Once you’ve claimed your Business Profile, you can easily manage your service areas. There are options to select a radius, or you can list cities or zip codes where you operate. You can also specify if you offer services at the client’s location instead of a storefront.
Clients can navigate to your website through your Business Profile on Google. This lets them contact you directly or book services online. It’s a fast and easy way to secure leads.
Read more about using a service area on Google online. Clients often Google services in their area, so get this set up.
Use an online booking software
With an online booking system like Jobber, you can set up service areas and limit where bookings come from. When booking online through your website or Google Business Profile, clients enter their zip code, which filters requests from your defined service area. This step saves time and resources when determining if they’re a good fit.
You’ll see a service area map and can adjust it as needed in the future.
