Are You Following Up on Your Leads?

home improvement lead generationIs it really important to follow-up on all your leads? 

I’m sure a lot of contractors, remodelers, and home service pros would likely reply “Yes!” to that question. But how many actually do follow up on their leads? Not many, it seems… 

  • 48% of sellers never follow up with a prospect
  • 25% of sales people make a 2nd contact and then stop
  • Only 10% make more than 3 contacts
Sure, you only want to deal with the “hot” leads that pick up the phone on the first ring and are ready to buy. Who doesn’t? 
But here are some statistics that might open your eyes: 
  • Only 2% of sales are made on the first contact
  • Just 5% are made on the third contact
  • And 80% are made from the 5th to the12th contact
So many home improvement professionals try once or twice and give up. The lead was “bogus”, or the  prospect found someone else, or they weren’t ready to buy, or they were price shopping… Whatever the excuse, so many leads out that are being ignored. 
Why is this important? 
You spend a lot of money on leads. Why throw it away just because they’re not ready to buy or they bought from someone else? Each and every lead is important to you – they have proven several things: they are homeowners in your area, they have a need, they cannot do the work themselves, and they have made some type of effort to reach out about their need. 
It’s tempting to move on to the next hot or even warm lead  because you have a better chance of landing a job. But it doesn’t mean you have to ignore the cold ones. This is the trick that the top remodeling and home repair companies use to keep their sales pipelines full. This is how they end the seasonality roller coaster. And it’s how they earn a lot without working themselves to death. 

A recent study by Reed Business Information was done on how sales leads were being handled. They looked at 40,000 inquiries from customers who saw ads and reached out to the businesses. After 6 months, they discovered that 23% had made a purchase from the business that had advertised their services or they had bought from a competitor. But 67% said they were still in the market to buy. 

Two-thirds of the people that had reached out to an ad they saw still wanted to make a purchase and had not done so… yet. 

When Did The New Leads Buy?
When Reed went back over a year later, they discovered that only 11% had bought in the first 3 months after responding to the ad. 17% purchased within 4 to 6 months. 25% waited 7 to 12 months. And 47% did buy – but it took them more than a year! 

Try not to think of your process as “selling to a lead”. A better approach would be that you’re developing a relationship. 

Imagine there is a homeowner in your neighborhood. And he needs new windows. He reaches out to find someone to install them. He calls your replacement window company and you set an appointment. 

After the appointment, he loved the products you demonstrated to him. But… he just wasn’t in a good place financially. Maybe the holidays were coming up and he didn’t want to spend the money. 

But after a long, cold winter… he hated that his kids had to sleep in a chilly and drafty house. He needed those new windows… 

Following up on Leads to Increase SalesNow, what was the name of that window company he talked to?  It’s been 6 months and he doesn’t remember… 

You see where this is going. 

Imagine if your window company had made a follow-up call after 2 months to see if the homeowner had ever found someone to install windows. And you had sent out a newsletter with tips showing how to “winterize” their home to save on the heating bill. And what if you had mailed the homeowner a coupon 5 months after the sales appointment? 

Don’t think of every lead as a potential transaction but as someone you want to be in a long-term relationship with. 

Put a system in place to help you track and manage every lead. Keep your company’s name on the lips of every potential customer. Make follow-up call, send out e-mails, mail discount flyers, send holiday greeting cards.

You’re not being pushy or overly aggressive by doing these things. They are simple reminders that you are here to help when they have a need. And they’ll eventually have a need. 

Is There an Easier Way to Follow-up on Leads?
Many home pros don’t want to follow-up with leads because it can be difficult, time-consuming, and expensive. 

But you can make it easier by creating a nurture system and following it. It could mean using an Excel spreadsheet and checking off the names of past leads and calling each one. You could also create reminders and utilize the calendering in your e-mail system. Whatever process you use, make sure you give yourself reasonable goals and the time to do it. Don’t try to call 80 leads in one day. Spread it out so you’re not overwhelmed. Maybe you call 5 to 10 leads a week and send out as many e-mails. Get into a rhythm so you’re not doing it all at the last minute. 

apps for remodeling businessIf you’re ready to save even more time by simplifying your entire business, you can contact improveit! 360.

Our complete management system allows you to track and manage every lead until they buy. You only have to enter lead details into the system once and you’ll be able to follow up with reminders and professionally-formatted emails. You’ll know who to call and when as well as where the lead came from. Their contact information and the products of interest will be right in front of you. You’ll know what stage of the sales process their in. 

The improveit! 360 system helps you manage sales and marketing, appointments, jobs,  finances, and government compliance – all in one powerful tool designed exclusively for  home improvement businesses.  You can call us (866.421.3360) to schedule an appointment to see a live and free demo or register on the site to see it in action

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