The global home services market size is projected to grow from $400.3 billion in 2020 to $590.8 billion by 2028, according to Statista. Now that the COVID-19 pandemic has driven more homeowners to work from home (and face that long-forgotten home improvement project), that might be underestimating the potential growth in the market.
But as the industry grows, so do advertising costs.
Today’s home services business can expect to pay an average of:
- $53.18 per lead through online search ads.
- $85.47 per lead through display ads.
- $80.12 per lead through social media ads.
Rising ad costs have led many home services providers to rely on lead generation services such as Amazon Home Services, Thumbtack, Angi (previously Angie’s List), Google’s Local Service Ads, and more with moderate success. In this article, we cover the top FAQs, strategies, and mistakes to avoid for home services pros looking to generate more leads for their business.
Home services lead gen FAQs
How can I make sure my lead generation efforts are successful for my home services business?
Wasting money on ads that don’t bring in leads is detrimental to your home services business. Fortunately, with the right lead tracking software, you can easily see which of your home services lead generation strategies are working effectively, and which ones need to be adjusted or scrapped.
Home improvement dealer Firenza Stone saw this first hand, when they began using CallRail to get insights on where their leads were coming from. This allowed the company to get deeper insights on where their leads were coming from – well beyond what they could see from Google Analytics. As a result, they an increase in the total average of monthly leads just a few months after starting CallRail.
How can Call Tracking help me generate more home service leads?
Call Tracking software doesn’t just help you improve return on investment (ROI) on your marketing activities — it also makes it easier to generate more leads for your business.
This happens once you get deeper insights on the effectiveness of your channels. With that information, you can adjust your home services lead generation strategies, moving spend away from the less effective channels and redirecting dollars to efforts that bring you more customers.
Does Call Tracking integrate with other lead generation tools or channels, like Google Ads?
Call Tracking uses a set of unique phone numbers to help businesses track their lead sources — but the best Call Tracking software goes beyond that.
With CallRail, you can not only track leads that come in via phone, but also any leads that come through forms on your website. This makes it easy to use Call Tracking with any digital lead generation tactic you’re already using.
This is something Brett Torrey of ClimatePro found useful when using CallRail to analyze leads for his business.
“With so much of our marketing efforts focused on digital, CallRail gives us the ability to track how our customers find us,” Torrey said. “That includes everything from digital ads on Google Search and Yelp, even our trucks have different Call Tracking numbers thanks to CallRail.”
How can I use Call Tracking to convert more leads into customers?
When a lead calls into your business or fills out an online form, what happens next? If you have a generic “one size fits all” approach, then it’s likely you’re losing a number of your leads who need a unique, tailored experience before they move forward.
CallRail can help you improve your lead lifecycle by giving you deep insights on how different customers respond to and engage with your business early on in the lead process. The software automatically generates transcripts of calls between your sales team and leads, and then helps you analyze the language used to convert more leads into better customers.
Beyond that, you can tailor your messaging for different leads depending on their location or how they contacted your business. You’ll be able to adjust the language they get in response to text messages, or even update the hold music messaging customers hear when they are waiting to speak with a customer service rep.
These small changes in language and messaging give your leads a customized experience, significantly increasing the odds that they’ll convert into paying customers. Here’s how ClimatePro used these kinds of insights to improve sales for their business:
What kind of lead generation metrics should I be tracking for my home services business?
When you have Call Tracking software set up, you’ll have access to new metrics that can tell you a lot about your business.
For starters, you should be tracking:
Total leads per channel: This will help you determine which channels are most effective and deliver the best ROI.
Average conversions per channel: Bringing in leads is only half the equation; you also want to assess which channels are more effective at converting leads, so you can adjust those that are underperforming.
Time to convert: How long does it take leads to convert? Some channels will naturally take longer than others, but learning the average length of time from first contact to first purchase can help you analyze bottlenecks in your home services lead generation strategies.
Revenue per conversion: The amount of money earned from each customer transaction or conversion, calculated by dividing total revenue by the total number of conversions during a specific period of time.
Effective lead generation strategies for home services businesses
While pay-per-click (PPC) advertising and lead generation services can drive valuable leads to your business, you don’t have to solely rely on them to generate leads. These five marketing solutions will help you find new leads without breaking the bank.
1. Make the most of your business cards
Your home services business card is still one of the most valuable tools for lead generation, even in the ever-growing digital marketing landscape.
One way you can take your business cards to the next level is to tie them directly to your online marketing strategy. To do so, create an exclusive offer for people who receive a business card. For example, HVAC businesses could offer a 10% discount on installation for those who call the number on the card, or roofers could offer an exclusive guide on roof maintenance via a unique URL.
Business cards also provide a range of other benefits:
- Business cards offer the quickest way for your team to exchange business contact information while out in the field.
- Well-made, high-quality business cards signal professionalism and care for your business and image.
- Business cards can be used in a variety of ways, such as leaving them in high-traffic areas, including them with invoices and receipts, and giving them to friends, family, and co-workers to hand out to your target audience.
- You can print hundreds of business cards for a minimal cost.
When your business cards offer real value to your leads and prospects (and don’t just take up space in their wallets), they function as a powerful lead-generating tool that can help keep your business at the forefront of your customers’ minds.
Pro-tip: Use a Call Tracking number on your business cards to measure how well they drive phone calls to your business.
2. Ask your customers for online reviews
According to BrightLocal, “87% of consumers read online reviews for local businesses” before they make contact or buy from them. Additionally, 79% of consumers trust online reviews and testimonials from strangers as much as they do recommendations from their own friends and family. A key component to getting more home service leads is to actively collect and display online reviews and testimonials across third-party sites and on your website.
Make it a habit to ask for reviews from customers after they make a purchase or when you complete a project. This can be as simple as asking in person, placing a reminder on your invoice, or providing them with a link in a follow-up text message, email, or phone call.
The best places for home services businesses to collect reviews include:
Google is the most used search engine on the market. Your Google My Business (GMB) page displays your business contact information, such as your name, address, and phone number, as well as your customer reviews. Getting reviews on Google also helps your search rankings, so make it your No. 1 destination for collecting reviews.
These lead-generating and review platforms are the most used online home directory sites. The more positive reviews you capture on these platforms, the higher your business will rank.
The Better Business Bureau is one of the most trusted online review sites and ensures review accuracy by verifying all customer reviews. The organization also offers a BBB accreditation that can help your home services business build credibility.
We’ll touch on using social media below, but Facebook offers a valuable review platform that can accelerate your home service leads. And with a majority of Americans over age 12 using Facebook, it’s easy to collect reviews from your customers.
Ninety percent of people who use Yelp to review a business or service make a purchase within a week. It’s free to get started with a local business listing.
Once you’ve collected a number of reviews from your customers, take the best ones and place them on high-traffic areas of your website. It will go a long way toward helping your business establish credibility and generate more home service leads.
Pro-tip: Easily see which customers you’ve asked for reviews from with CallRail’s Lead Center — an all-in-one business communications platform that keeps each of your lead communications in one organized inbox.
3. Engage with your target audience on social media
With 82% of the U.S. population spending time on social media channels, your business needs to have a social media presence if it wants to organically attract new customers. When you engage with your target audience on the social media channels they already use, you build brand awareness and credibility that can ultimately influence a buyer’s decision.
The largest social media channels in the United States are:
- Facebook (302.28 million active users)
- YouTube (205.9 million active users)
- Instagram (118.9 million active users)
Studies show that service businesses that use social media to organically promote themselves and develop a community around their brands.
While having a presence on multiple social media channels can be beneficial, home services businesses should prioritize Facebook for their social media marketing. According to the Pew Research Center, Facebook is the most popular social media channel among 30- to 64-year-olds — which is also the demographic of those most likely to own a home.
To start, create a Facebook Business Page complete with your business name, contact details, a profile picture, and a call to action informing viewers how to contact you. Then, focus on creating high-quality, helpful, and shareable content. You’ll want to post content that showcases your personality, tells customer success stories, and occasionally advertises any promotions or sales your business offers.
Reliable Plumbing & Heating Services in Monterey, California, uses their Facebook page to showcase positive customer reviews, advertise their services, and book new leads directly through the Facebook platform.
4. Set up a referral system
Satisfied customers make the best brand advocates for any home services business and are the most likely to lead to repeat business. Setting up a referral system to incentivize vocal customers is a surefire marketing strategy for generating new, high-quality leads. Plus, referrals have a 16% higher lifetime value and are 18% more likely to stay with your business for the long haul — making them even more valuable for business owners.
The best referral systems are easy to implement for both business owners and satisfied customers. Referral platforms like Extole keep everything organized in one place, giving businesses complete control over the look and feel of their referral programs, the rewards and incentives offered to advocates and referrals, and the real-time analytics necessary to measure results.
Vivint, a provider of home security products and installation, used an early referral campaign to give brand advocates the opportunity to earn up to $600 by referring new customers to their business. Not only did the advocates get $50 per referral, but new customers also received $50 toward their first purchase, making it a win-win-win for their business, their customers, and referrals.
Source: Extole
A study by Texas Tech found that while “83% of satisfied customers are willing to refer products or services” to friends, family, and strangers, unfortunately, only 29% of customers actually do. Implementing a referral marketing program can help you close that gap and make the most of your satisfied customers’ enthusiasm for your service.
5. Update your Google Business Profile (formerly Google My Business)
Google My Business (GMB) listings are the secret to quickly showing up in Google’s local search engine results and generating organic home service leads. Your GMB listing literally places your home services business on the map, boosts your local search engine optimization (SEO), and makes it easy for potential leads to quickly contact you via your phone number or website.
On average, GMB profiles for local businesses receive 1,009 impressions (how many times it shows up in the search results) per month, with 84% of those impressions coming from customers who are looking for help but don’t have a specific business in mind. If you’re looking to get more home service leads in your local service area, then showing up on Google is critical to your success.
You’ll first need to create (or claim) your GMB profile by logging into the Google My Business website and following the directions. As you set up your profile, make sure your name, address, and phone number (NAP) are consistent across each of your online channels (social media, website, third-party review sites, etc.) to help Google keep track of your business’s online presence. Then, start boosting your GMB profile by sending out a special link to your previous customers asking them to leave a review.
In a local “roofers near me” search, Premo Roofing Company in Marina, California, uses its GMB listing to collect and display customer reviews right alongside its contact information. With a 4.7-star rating spanning 44 reviews, you can bet they receive more clicks from potential home service leads than businesses that haven’t optimized their GMB profile.
Source: Local Google search for “roofers near me” in Marina, California
Google considers a number of factors in how your GMB profile ranks, but you can optimize your profile by collecting reviews, including relevant photos, posting occasional updates and promotions, and working on your website SEO. Additionally, consider using a unique Call Tracking number to measure how effectively your profile is driving phone calls.
Common mistakes to avoid when trying to generate leads for a home services business
There are a number of challenges businesses will face when improving their lead generation strategy:
Failure to analyze channel effectiveness. If you’re using multiple lead generation strategies for your business, but aren’t digging into the details to discover which channels are bringing in the most new customers, then you may be wasting a significant portion of your marketing budget.
Treating all leads like a monolith. Different leads require different nurture sequences to help them convert. A customer who calls in because they received a business card while attending a convention will require different communication strategies than someone who inquired after seeing a Google Ad.
Not equipping your sales team with the right data. One of the biggest benefits of Call Tracking is its ability to help your sales team improve their conversion techniques. If you don’t give your team insights on what is and isn’t working in terms of lead nurturing and converting, they won’t be able to improve over time (meaning fewer sales for your business).
Don’t underestimate the power of repeat business Generating new home service leads is essential if you want to stay in business, but don’t overlook the power of repeat customers and business. It costs five times more to attract a new customer than to retain one. While every home services business should hone their marketing strategy to constantly attract qualified home improvement leads, focus on maintaining good communication and relationships with your existing customers so they’ll come back to you for help again and again.
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