Lead generation is a big topic in the home improvement industry these days. After the last recession, companies want to be better prepared by making sure their sales pipelines are full. But simply throwing money at marketing activities is not the answer.
Many home improvement companies rely on multiple sources to bring in new prospects so that their calendars are full for sometimes months ahead. But do you know how well your lead sources are performing and how they’re affecting your bottom line?
A big priority for home pros is usually measurement. However, your efforts should go far past simply tracking where leads are coming from and how many you’ve received. To truly be effective at profitable lead generation, it’s vital that home improvement marketers prove the value and demonstrate the performance of their advertising efforts.
When you take the time, and make the effort, to track lead sources, you are only part of the way to where you need to be. It’s very important to follow the results of what happened with each lead. Did your sales rep make contact? Did the homeowner sit for an appointment? Did they buy? When you know the results of all your sales activities, you’ll know which source is most effective and which is not. You’ll be able to spend more on the sources that generate the most qualified leads.
I know of a replacement window business that was running local television ads. They were ready to cancel commercials shown in the evenings because the daytime ads generated more leads. When I asked how many daytime leads converted into sales, they ran their sales reports. It turns out the evening leads converted more often and at a higher average sale price. The daytime leads were more plentiful but had low contact rates, sit rates, and sales. The company canceled their daytime ad buy.
Optimally, you’ll want to create a process where you monitor your lead sources, the cost of each source, appointments issued and demoed, and sales. With this data, you’ll know what your cost per lead as well as your cost per sale for each lead source. This type of breakdown will give insight into all the investments you are making when it comes to marketing your business so you can spend money wisely.
As they say, knowledge is power. Track and manage every incoming lead whether in a notebook, spreadsheet, or automatically with the right software and you’ll always know the effectiveness of your marketing efforts and be able to make more profitable decisions.
Learn how improveit 360 can help you automate your lead management requirements.