BrightView (Formerly Brickman Group): What Landscape Contractors Can Learn From Their Success
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The Content Team,
HALSTEAD.
Originally published on December 3, 2014. Updated on July 20, 2022.
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Undoubtedly, anyone in the landscape industry could learn something from a landscape contractor that has been in business for over 80 years, especially when it’s a company that is ranked number one on Lawn & Landscape’s 2021 Top 100 list based on revenue. Such an impressive accomplishment requires considerable business expertise, the finest quality work and team, and a keen eye on the future of the industry to guide decisions.
In 2014, The Brickman Group merged with ValleyCrest to form BrightView, effectively creating a company with comprehensive commercial landscape services that employs over 20,000 people. As a company driven by relationships and results and with 140 years of combined experience, this merger helped BrightView earn the title of its official slogan, “the nation’s leading commercial landscape company”—and it has the stats to prove it.
BrightView reported an 8.8% jump in revenue in 2021, having earned a total of $2.3 billion that year, and is on track higher figures in 2022, after reporting second quarter results of $711.9 million in revenue—an increase of $60 million, or 9.2%, over the prior year. With the demand for landscaping services expected to grow by 5.6% annually by 2025, we’d say that’s an impressive stat. So how exactly is BrightView getting these outstanding results? We’ve identified four key strategies that have led to their massive success.
Choosing a Niche and Sticking to It
Rather than targeting a vast amount of potential customers, both residential and commercial, BrightView has narrowed their focus to a specific niche. While some may assume that the seemingly narrow scope of the commercial landscape would limit business, there is no shortage of work in this area.
BrightView offers its services in housing communities, corporate campuses, healthcare facilities, universities, retail establishments, resorts, and more. They’ve garnered commercial landscape projects ranging from the Austin Central Library to Legoland and from homeowner’s associations to being Major League Baseball’s official field consultant. There’s no lack of diversification within the commercial niche, but they’ve also mastered providing customer-centric service focused on building the relationship.
Serving Market Needs Better
One of BrightView’s strengths is identifying a market need. They’ve created a business with locations throughout the United States that serve the entire lifecycle of a commercial property's landscape, from design to development, maintenance, water management, tree care, snow and ice management services, and enhancements. In addition, they also offer their services for golf course and sports turf maintenance.
BrightView does it all for commercial properties, and they do it exceptionally well to their customers’ satisfaction. They’ve even earned the National Business Research Institute (NBRI) Circle of Excellence Award for employee and customer engagement. To earn this award, a business must rank in the 75th percentile when measured against their industry or improve customer loyalty or employee engagement by five or more percentiles—which is no small feat.
From the moment BrightView takes on a project, they’re setting themselves up for an incredible customer lifetime value. They’ve essentially become the “one-stop shop” for all things commercial landscapes. In the busy world that we live in today, this is attractive to customers because they no longer need to search out different companies to take care of each phase of their landscape project. Convenience cannot be overlooked because it holds a lot of value. By identifying this market need, BrightView has developed a way to better serve their market, and build trust and loyalty, while also experiencing tremendous growth.
Recurring Revenue
One of the biggest reasons this strategy is so effective is because it creates recurring revenue streams. BrightView is involved with every phase of the landscaping journey, and maintenance contracts are never-ending. They reported land maintenance revenue growth of 8.1% from 2021 and an almost $30 million increase in snow maintenance revenue.
There is substantial value in acquiring contracts for ongoing service, whether it be for fertilization, lawn mowing, or general landscape maintenance. Beyond the warm-weather season services, offering snow and ice management services increase revenue even more. Customers who utilize a landscaping company’s services year after year are the most valuable, especially because you can count on having that predictable income. Not only is BrightView establishing recurring revenue with existing clients, but they have continued to increase their place in the market nationwide.
Strategy of Acquisitions
BrightView has been steadily acquiring companies in the landscaping industry, including NatureScape, TDE Group, Intermountain Plantings, and Performance Landscapes, just to name a few. This strategy has helped them increase their profits and establish their place as leaders in all services in the industry.
While not all companies are this large, there are some important lessons that businesses of all sizes can glean from BrightView. Top companies aren’t afraid to diversify. In fact, they embrace diversification. They consider their market and how they can best serve their ideal customer. This may take the form of adding snow and ice removal to their services offered or creating a plan that allows commercial businesses to count on them for literally all of their landscaping needs.
Acquiring other landscape companies has allowed BrightView to expand into new regions without having to start from scratch. In addition to regional growth, the acquisition of landscape companies that offer a specific and specialized service can help a business diversify. These two aspects have helped BrightView scale with every acquisition.
However, there has to be a level of trust built that allows BrightView to acquire a company and experience growth in a new market area. There’s a reason BrightView is so successful, and much of that comes down to their focus on relationships—both with customers and with their employees.
In fact, trust begins with employee relationships. BrightView recognizes that they’re a large company but makes it a point to specify that, while they may have 20,000+ employees, each employee is “one in a million.” They’re committed to helping employees advance their careers and taking care of their employees the best they can.
This commitment is then transferred from employee to customer, and that’s where the real magic happens. A company can acquire all of the companies in the world, but if their customer service, trustworthiness, and attitude aren’t up to par—they won’t be successful. This is what sets BrightView apart from the rest; they’ve mastered both the business aspect and the relationship aspect—and it shows.
Image source: New York Stock Exchange