What are homeowners’ top priorities when choosing contractors for their home improvement projects? Whether they want to upgrade a small room or need full renovation services for the entire house, homeowners will take time to research before hiring a contractor.
Here at Modernize, we are working to connect contractors like you with homeowners who need these services. Our recent Homeowner Insights 2021 eBook includes valuable information that you can use to gain traction in the current industry. These survey responses show the most critical factors for homeowner decision-making.
Here are a few of the most important highlights that every home improvement contractor needs to consider.
Project Cost Influences Buying Decisions
A review of the latest homeowner trends shows that 37 percent of homeowners rate cost as the number one factor influencing homeowners hiring a contractor. So why is price such an important factor for homeowners this year? According to our analysis, homeowners are cost-motivated for two reasons:
- Saving Money: 39 percent of homeowners want to invest in home improvement projects to save money in the future. The trend to look out for are energy-efficient solutions that can help reduce utility expenses in the future.
- Increasing Home Value: 20 percent of homeowners are investing in renovations to the property value. Home improvement projects help owners maximize available equity when they decide to sell in the future.
Homeowners are Checking Your Online Review
As a contractor, you can gain an edge in the industry by understanding the psychology behind homeowner motivations for renovations. These homeowner trends allow you to close more deals by offering reasonable pricing or finding energy-efficient solutions.
Online ratings and reviews are the following essential factors influencing a homeowner’s decisions when choosing a contractor. According to our survey findings, 37 percent of homeowners look at online ratings and reviews to determine if they will hire a contractor.
Before homeowners invest in renovations, they are looking for the reassurance that they are hiring a reputable professional.
These online reviews deliver social proof that assures the quality of your work. Homeowners can see that you are a legitimate contractor who excels at what you do. The more ratings and reviews you have, the more likely it is that you will receive more requests from new and existing customers.
Referrals are a Great Source of Leads
Finally, do not underestimate the power of referrals in your contracting business. This factor is nearly as impactful as price when homeowners are choosing a contractor to hire.
Our insight report shows that 53 percent of homeowners look to friends and family for contractor referrals. These homeowner trends show why potential customers look to family and friends first: they trust their network’s opinion.
What are the most effective strategies for earning referrals? Focus on two things:
- Digital Marketing: Your online presence increases your chances of homeowners seeing your business online, helping to build more social proof to go with the referral recommendation.
- Following Up: Good communication is critical in all phases of the project. Even when the project is complete, be proactive about staying in touch with each homeowner. Staying connected with past customers keeps your business at the top of their minds, so they know whom to call when a loved one needs a referral.
Our team at Modernize is here to help. We have streamlined solutions to help you grow your business through lead generation. Contact us to learn more about available services. Want to receive insightful articles weekly? Subscribe to our newsletter.