Written by Jacqueline Leppla, Senior Director of Reputation Management at Modernize
Finding homeowners who are actively seeking to start a project can be challenging for home service professionals. Many home service professionals work with third-party marketing services like Modernize Home Services to streamline efforts and boost sales success rates. For those new to purchasing Modernize leads, embracing the right mindset, developing a consistent approach, understanding the process, and setting realistic expectations are pivotal in maximizing the impact of your marketing spend.
Understanding Home Improvement Leads and Third-Party Marketing
Third-party marketing, or lead generation services, is all about fueling the growth of contractors’ businesses, both in terms of revenue and expanding their reach across trades and geographical locations.
At Modernize, we take this partnership a step further by closely working with our contractors to help them achieve their specific goals and Key Performance Indicators (KPIs). We offer a personalized experience, leveraging analytics and fostering strong relationships, to align with their unique business objectives. This includes in-depth discussions about their desired annual revenue and crafting a tailored strategy to meet those targets.
Partnering with a lead generation company like Modernize brings distinct advantages, crucial for expanding your business reach and enhancing campaign efficiency:
- Media Buying Expertise: Our proficiency in media buying allows us to aggregate the collective budgets of all our clients, granting each contractor the benefits of a high volume of leads. This approach not only optimizes your ad spend but also improves ad positioning, ensuring that your campaigns achieve maximum visibility and impact at a more favorable cost.
- Homeowner Acquisition Leadership: Gain direct access to a continuous flow of ready-to-engage homeowners. Our deep understanding of homeowner sophistication, including insights into emerging demographics like millennials, positions us to meet homeowners where they are most active online. By tapping into preferred mediums such as video and interactive content, we align your message with homeowner preferences, enhancing engagement and conversion rates.
- Media Mastery: As seasoned players in the market, we navigate the complexities of media pricing and audience reach with precision. Our established relationships with a wide array of media vendors empower us to secure the best possible placements for your campaigns, ensuring you receive prime exposure without overextending your budget.
- Industry Insight: Our external perspective on your marketing strategy introduces fresh, unbiased viewpoints. This objective stance allows us to offer tailored advice that aligns strictly with your marketing goals. With Modernize handling the intricacies of lead generation and media strategies, businesses can concentrate on closing deals and executing projects, knowing their marketing efforts are in expert hands.
The Successful Third-Party Marketing Mindset
Chris Pallatroni, Modernize co-founder, has been working closely with contractors since launching Modernize.com nearly twenty years ago. “I’ve noticed that contractors who have the most success converting third-party marketing into closed leads are highly committed to making the process work,” observes Pallatroni. “Essentially, it is a belief that whether it’s easy or hard, you will find a way to persevere.”
Pallatroni recommends that home service professionals keep an eye on the big picture and set expectations that when an issue crops up with third-party marketing, it can be worked through and resolved. “Third-party leads are a bit like being set up on a blind date,” Pallatroni explains. “You have to learn how to navigate that date and recognize that your approach might be different than if they had reached out to you directly.”
A Consistent Approach to Handling Third-Party Leads
While a perfectly consistent approach to following up on third-party marketing leads might not always be attainable, Pallatroni believes that contractors should strive to adopt a consistent approach to follow up. “When the follow-up sales process isn’t standardized,” cautions Pallatroni, “the data shared for analysis is compromised.” For example, it can be challenging to draw appropriate conclusions about what works well when some leads are contacted within 30 seconds of receipt, some are called within a day, some make use of a phone script and others are extemporaneous. Ideally, contractors will standardize as much of their follow-up process as possible.
What to Expect During the First 90 Days
Home service professionals new to third-party marketing typically traverse a learning curve. Sonny Perea, an account manager at Modernize, underscores the importance of patience and perseverance during this initial phase. “It often takes about 90 days for companies to fine-tune their sales processes and take full advantage of purchased leads,” says Perea. During this time, contractors may encounter challenges such as reaching homeowners, refining their marketing territory, defining their trade focus(es), and ensuring the technology is properly set up to communicate prospect details.
“While ‘one call closes’ happen, they are the exception,” notes Perea. “Most leads need to be nurtured before they close.” During a contractor’s first 30 days, they will likely schedule appointments with homeowners, work with them to understand their needs, prepare proposals, and potentially negotiate terms before securing signed contracts.
“During the second 30 days, contractors may begin to see an uptick in appointment setting and sales conversions, as they refine their approach and gain momentum in their marketing efforts,” explains Perea. “At the start of the third month, it’s possible to take a close look at the data from the initial 30 days to understand what is working well and what can be adjusted for optimal success.” Items for review include follow-up time span, the number of calls and emails sent to prospects, what ZIP codes yield the best success, and more.
Overcoming a “Slow Start” with Third-Party Marketing
To overcome the challenges of a perceived slow start, contractors should ensure they have set expectations appropriately and focus on implementing best practices for prospect management and follow-up. Perea emphasizes the importance of “speed to lead,” which involves contacting prospects promptly and consistently following up with calls and email reminders. Additionally, contractors should use tools and technology to streamline the prospect management process and track data effectively. Working with an experienced account manager to carefully review metrics in Modernize’s Client Service Portal or a contractor’s own CRM system (such as call attempts and lead disposition) areas for improvement and optimization can be identified and strategies adjusted accordingly.
“Third-party marketing is a process, not an event,” explains Perea.
Long-Term Success with Third-Party Marketing
While achieving immediate results is desirable, contractors should recognize that third-party marketing is a journey rather than a destination. Building long-term success requires dedication, collaboration, and a proactive approach. Working closely with their Modernize account manager contractors can unlock the full potential of third-party marketing and achieve sustainable growth. Perea advises contractors to trust the process and avoid becoming discouraged by any initial setbacks.
“It’s important to measure success from multiple perspectives, including those beyond the economics of a third-party marketing campaign,” recommends Pallatroni. “Consider some of the intangible things you need to see from a good marketing partner and think beyond the numbers.” Each home service professional may value slightly different qualities, but often good communication, honesty and transparency factor in strongly to establishing a positive working rapport with a third-party marketing partner.
Third-party marketing services offer valuable opportunities for home improvement contractors to expand their customer base and increase sales. By staying committed to the process and embracing a proactive approach to lead generation, contractors can focus on pursuing high-intent homeowners and delivering top-quality services that meet their needs.
