This summer, we released our annual Homeowner Sentiment Report findings, resulting from a recent survey of more than 23,000 homeowners. It includes a special set of questions regarding homeowner stressors, such as surging prices, a potential recession, supply chain backlogs, and political unrest. We strive to understand how homeowners and their home improvement decisions are being impacted by recent events. Download the ebook for the data.
A glance at the news headlines makes it easy to see why so many people are slowing their spending: economic uncertainty and rising costs have many homeowners worried about their budgets. Inflation is increasing, and discussions about a recession are picking up.
You might find that homeowners are more hesitant to move forward with a home improvement project right now. But just because the economic conditions are uncertain does not mean there is no opportunity. You need to revamp your marketing campaign so your sales team can find the leads that are ready to buy.
Remember these three things to ensure your business continues to thrive:
The Lead Is Never Dead
The sales cycle in the home improvement industry is long. As a result, homeowners need time to consider their options, prepare their budget, and find the right time on the calendar to start construction.
Many home improvement contractors stop following up with their leads after 90 days. But you could leave money on the table if you let these leads go. You already paid for the leads, so you might as well maximize the value of investing in your home improvement marketing.
It is worth following up with leads even after 6 months. For example, a homeowner might have contacted your company when they first got the idea to renovate their kitchen. At the time, they were just looking for information – but were not ready to move forward with the project. Now that you are a few months down the road, it is possible that they have had time to set money aside, and are now ready to begin construction.
Handle the Common Objections
Homeowners will inevitably have objections come up in the conversation. Make sure your sales team is ready to address those objections with specific talking points that can help close the deal.
For example, if the homeowner is not ready to start the project immediately, then let them know you are still happy to provide a free estimate and that the proposal is good for six months. This strategy can get you a face-to-face meeting, which increases the likelihood that the person will hire your team when they are ready to move forward.
Another common objection is that a homeowner already has a contractor. In this situation, let the homeowner know you are happy to offer a second estimate so they can compare their options.
Referrals, Referrals, Referrals!
You can invest money into many different types of home improvement marketing campaigns, but do not underestimate the power of referrals. Marketing costs are increasing, making it harder to stay current with your marketing campaigns.
Referral leads are always affordable. Plus, these leads come from personal recommendations, making it easier to close the deal. Their friend or family recommended your company and had good things to say about your services, which improves the likelihood that the new lead will also move forward with the home improvement project.
Getting referrals can be as simple as reaching out to current and past customers to ask for referrals. Provide sharable information and easy links online where customers can leave reviews or send information to their friends and family.
Make sure your team consistently exceeds customer expectations, and people will naturally want to refer your business. You also might consider offering a customer loyalty program. For example, add on an extra service or upgrade when a homeowner refers someone to your business.
A Thriving Business No Matter What
Construction will never stop, even when the economy is slowing down. As a home improvement contractor, use these strategies to continue bringing in leads so your business can thrive at all times.
If we are heading into a recession, right now is the time to improve your sales funnel and home improvement marketing systems so you can maximize every lead that comes through the door. The key is to have a sound follow-up system in place, know the best strategies for handling common objections, and ask your current customers for referrals.
