COVID-19 has challenged and changed countless aspects of our lives over the past year. Homeowners’ preferences, spending habits, and routines have shifted dramatically to better understand how homeowner preferences have changed during the pandemic,
Modernize recently completed another robust annual homeowner survey and compared these results, year over year. In this article, we will highlight the noteworthy spending and budgeting changes homeowners have undergone.
Last year, we collected information from homeowners in our annual Modernize homeowner survey – between November 2019 and April 2020. Since these survey results came before the loss and disruption of the COVID-19 pandemic, it is interesting to see how responses are changing in 2021. The home improvement industry has been adapting to keep up with the shifting dynamics and homeowner preferences.
How are you staying relevant when connecting with homeowners who need your services? Pay attention to these trends to help you cater your sales process to the latest industry changes. Here are a few things to keep in mind as you improve your sales strategies to accommodate current trends.
Industry Trend: Project Cancellation and Budget Setting
One growing trend is the increase in project cancellation due to financing concerns. It is becoming more common for homeowners not to set budgets before exploring home improvement services. As a result, they pause or cancel services when the costs are higher than expected.
Since we know that financing is a hot topic, prepare your sales team to accommodate these conversation points with homeowners. There is an increasing interest in financing. Offer effective financing solutions, and you will help interested homeowners overcome these roadblocks. A high percentage of surveyed homeowners are interested in financing part or all of their project:
- 16 percent of homeowners plan to finance up to 25 percent of the project
- 31 percent of homeowners are planning to finance up to 50 percent of the project
- 26 percent of homeowners plan to finance the entire project
At the same time, 39 percent of homeowners are pursuing projects to save money on their utility and electric bills. Show how your services improve energy efficiency, and it increases the likelihood of closing the deal.
How to Adjust Your Sales Strategy
The key to a successful sales strategy is to help homeowners overcome common concerns, such as financing and budgeting. Here are a few financial strategies you should use to make your offer more appealing to budget-conscious homeowners:
- Provide Financing Options: Help homeowners find financing solutions to pay for their projects. Even if they do not have the upfront cash to pay for these services, many people can afford ongoing payments through a financing program.
- Share Available Tax Incentives: Often, homeowners have the option to offset their out-of-pocket costs through available tax incentives. Share these relevant opportunities with interested homeowners.
- Offer Energy Efficiency Solutions: Homeowners are motivated to invest in home improvement projects when they can reduce utility expenses. Provide energy-efficient materials and cost-savings designs to make the services more appealing to homeowners.
Help homeowners save money on their investment, and it will increase your close rates. By educating each potential customer about their options, you help them find solutions to their everyday issues. As a result, it shows that you have their best interests in mind and increases your opportunities to close the deal.