Budgeting and financing are two critical topics homeowners want to discuss when hiring a home improvement contractor.
Homeowner financing trends are an essential step to shaping your marketing and sales pitches to match current industry demands. Our team at Modernize is helping with this process by sharing data about homeowner trends each year.
2021 Summer Modernize Survey Results
In June, we surveyed homeowners about their plans to finance home improvement projects. Additionally, we asked questions to get a feel for homeowner spending and budgeting trends. Our survey results show that:
- 31 percent of homeowners plan to finance 50 percent of their project
- 26 percent of homeowners plan to finance their entire project
- 83 percent of homeowners plan to spend $10,000 or less on their project
Our summer survey’s most surprising homeowner data shows that 77 percent of homeowners had not created a budget for their project in advance.
As a home improvement professional, you know how imperative it is that both homeowners and contractors understand the spending cap for each project. This pre-determined spending plan makes it easier to work on a project without having to wonder if homeowners can afford it or not. In addition, discussing spending and budgeting helps with expectation management on both sides.
November Modernize Survey Results
In November, we asked the same questions about spending and budgeting trends. The newest homeowner insights speak for themselves:
- 11 percent of homeowners plan to finance 50 percent of their project
- 34 percent of homeowners plan to finance their entire project.
- 15 percent plan to spend $10,000 or less on their project
We see that more homeowners are planning to finance their entire project. Additionally, a higher percentage of homeowners are planning to spend over $10,000 on their projects.
For a detailed look at these homeowner trends, check out our latest webinar about the Fall 2021 Homeowner Survey Results.
Preparing Your Contracting Business for the Fall Season
Based on the data above, it is apparent that homeowners are winding down their home improvement projects. People want to wrap things up to the holiday season without construction in or around their homes.
Now is the time to build connections with homeowners before the slow season arrives. The work you do in building connections will keep your sales pipeline full in January. Here are a few valuable insights so you can prepare your business for the fall:
- Homeowners are Motivated to Save Money: When you know that most homeowners are motivated to save money, you are ready to bring up the topic of financing and/or promotions into the conversation. Addressing these points in the sales pitch will strengthen homeowner satisfaction – and become an influencing factor in closing the deal.
- Shape Your Marketing Campaigns: Additionally, bring in more leads by speaking to homeowner priorities. Strengthen your ad copy and marketing campaigns by addressing the financing and promotions you are offering this fall. These headlines will grab the homeowner’s attention and bring more traction to your business.
- Prepare for 2022: Start preparing for 2022. During the off-season, begin strategizing for how you will up-level your business in the new year. What can you do next year that will attract homeowners to your business? What promotions or campaigns can you run that will help save a homeowner’s money. Finally, analyze your 2021 marketing strategies and the results, including business performance and KPI benchmarks.
Our partner managers are just a phone call away if you need professional insights, lead generation, and personal recommendations. They are industry experts and are always available to help your business grow by implementing proven optimization techniques.