Last updated on 09/03/2021
Why buy home improvement leads as part of your contractor business marketing activities? The short answer is that they are an excellent return on investment (ROI) to generate new residential contractor projects. Basically, it’s really that simple.
Depending upon your time as a residential contractor, you likely have had a wide range of marketing activities to promote your business. Some have worked well for you and some have probably been a dud. Conversely there are still other marketing activities where its probably unclear how to judge your return on investment. After all, that’s normal in business.
Whatever marketing activities you currently use to promote your contracting business, home improvement lead generation is a key element in gaining new customers and sales revenue. Consequently you can think of exclusive home improvement leads as the coins of the realm that your contracting business needs to accumulate in order to grow your contracting business.
WHY BUY HOME IMPROVEMENT LEADS – BENEFITS
All of your contractor business marketing activities should have as their primary goal that of generating home improvement leads. Repeat, all of your marketing activities should have this goal. Conversely branding your contacting business, while it has value, is really secondary. Because it is and is a long-term investment that is difficult to measure its ROI.
While your marketing activities focus on generating contractor leads, the option to buy home improvement leads can complement your marketing investment plan. Also, this is particularly a viable option when your internal activities are not meeting your contractor business needs of lead volume, quality or cost.
When you buy home improvement leads you are essentially outsourcing a portion of your marketing activities to an expert third-party service provider. Indeed, this is just like the maintenance of your website, company vehicles, media advertisement, etc. Basically, it is the same idea.
Generating home improvement leads can be a difficult, slow and tedious process. Comparatively it is not a matter of the quantity of leads that your company marketing activities will produce, but rather their quality.
Each contractor lead produced, by whatever marketing source, requires an investment of your company time and personnel to process. Obviously, for a contractor business, these are precious and limited resources. Equally, poor quality results in poor return on investment.
When you buy home improvement leads you simplify and are able to focus your sales resources. For example, if your service provider provides exclusive, quality contractor leads your sales personnel have a greater likelihood of contacting and converting into new customers. Conversely, if not, change your lead service provider.
The success of a service provider of home improvement leads is based on the perceived value of their product by a residential contractor. In this case value is defined as:
- The price of the contractor lead;
- The ease of contact and interest level of the homeowner;
- The number of competing local contractors for the same lead project;
- The likelihood of converting the homeowner lead prospect into a sale.
The lead service provider determines the data integrity of lead information based on how it is generated, filtered and checked. Accordingly a lead replacement guarantee is normally offered for it’s data integrity with the contractor being able to contact the homeowner using standard best efforts.
The number of competing local contractors is determined by the lead service provider business policy. Specifically it controls the number of times the lead is sold: one sale (full exclusivity), two-four sales (limited) or unlimited contractor competition.
The home improvement lead service provider offers a product whose return on investment can be readily measured versus other contractor marketing activities such as a website or general advertisement. Also, since your investment is per lead, it is easy to measure and control.
A home improvement lead, if properly vetted by the lead service provider, is a homeowner with high interest in a remodeling project. Basically, your contractor sales personnel do not need to sell the “why invest in home remodeling” but rather “why your contracting company is the right choice” for the remodeling project. As a result, sales conversions are much higher than alternative contractor marketing activities.
As mentioned, the level of lead exclusivity will likely reduce your level of local contractor competition during the sales process. However homeowners increasingly have a variety of additional information sources available for searching out potential local residential contractors. Consequently, your sales personnel need to operate under the assumption that there will also be competitive contractor offers to consider.
Whatever contractor marketing investment used to generate a home improvement sales lead, there are associated direct and indirect costs. In this case, purchasing a home improvement lead from a third-party service provider is just a complementary marketing investment. Since this investment is no different than being more tangibly visible and directly measurable.
Additionally a residential contractor needs to determine the internal costs associated with processing a home improvement sales leads from multiple marketing sources and their wide range of quality.
CONTRACTOR MARKETING ACTIVITIES – LEAD GENERATION
|Website||Initial Investment | Indirect Costs | Uncertainty | Long-Term Leads | Quality Mixed|
|Search Engines SEO||Indirect Costs | Uncertainty | Long-Term Leads | Quality Mixed|
|Pay-Per-Click Advertisement||Direct Costs | Measurable | Immediate Leads | Quality Mixed|
|Social Media Advertisement||Direct Costs | Measurable | Immediate Leads | Quality Mixed|
|Business Directories Placement||Indirect Costs | Uncertainty | Long-Term Leads | Quality Mixed|
|Print Advertisement||Direct Costs | Measurable | Immediate Leads | Quality Mixed|
|Customer Referral Program||Indirect Costs | Measurable | Long-Term Leads | Quality High|
|Display Advertisement||Indirect Costs | Uncertainty | Long-Term Leads | Quality Mixed|
|Neighborhood Canvasing||Indirect Costs | Measurable | Immediate Leads | Quality High|
|Third-Party Exclusive Leads||Direct Costs | Measurable | Immediate Leads | Quality High|
|Third-Party Non-Exclusive Leads||Direct Costs | Measurable | Immediate Leads | Quality Mixed|
Whether you choose to buy home improvement leads from a third-party service provider or not, your contracting business is spending money in a variety of ways to generate contractor leads. As a result, in all instances you will have to invest both time and money to generate them.
If you buy home improvement leads, you will find that it is an inexpensive investment that will help you generate future sales. Also, it will ensure that your contracting business always has its project pipeline filled.
CONCLUSION – WHY BUY HOME IMPROVEMENT LEADS
When you buy home improvement leads from a third-party service provider, it should complement your contracting company’s overall marketing strategy. Accordingly, no single lead generation method is “all-inclusive”, nor provides the same quality or exclusivity. Consequently, whether it is a direct purchase of contractor leads or your indirectly paying for them via your other marketing activities, make sure that you meet your financial budget and return on investment goals.
For additional information on telephone-verified, exclusive home improvement leads for residential contractors and how they can help you grow your business, please Contact Us for a free, no obligation conversation.