Last month in this space, I reviewed a series of market projections for 2014 from Harvard University as well as the industry’s leading associations.
Mike Miller offers advice to his fellow remodelers on how to track leads effciently.
|Repeat Customer||5/3||7/4||8/5||"Repeat and referral leads are easier to convert into jobs. Work on a referral program to speed up the process."|
|Showroom||4/0||3/1||7/3||"Showroom leads are high conversion. We use signage in the showroom to draw attention to it. We're also located on the main intersection of our town, so there's high traffic flow."|
|Yellow Pages||4/0||4/0||6/0||"Yellow Pages are a necessary evil, because you need your phone number in there. Yellow Pages generate a tremendous amount of leads, but the jobs aren't there. We eliminated our display ad and just have our phone number listed."|
Lead generation keeps jobs lined up, but quality leads ensure that the jobs are profitable and cost-efficient. When remodelers track leads, they capture valuable information and data that will enable them to evaluate job viability, marketing effectiveness and profitability. Mike Miller, CGR, of Apex Construction Remodeling in Highland, Ind., tracks leads for all those reasons.
"You want to find out how people are hearing about your company," he says.
Miller began tracking leads when he noticed that even though the company received many inquiries from print advertising, they weren’t turning into jobs.
"I was shooting arrows all over the place, not at the target," Miller says. "Through our lead and job tracking, we identified our target market. Our core business
was our existing client base and referrals."
Since then, Apex has tracked lead sources to determine where advertising has succeeded. If a source drops off, Miller can then evaluate whether or not to adjust marketing efforts toward that source.
After a couple of years of tracking which sources turn into jobs, Miller says a remodeler can identify the most promising sources. For example, if a lot of business is coming from repeat customers and referrals, the company may choose to find ways to speed that process up. At Apex,
Miller uses a newsletter to keep the company in the customer’s mind.
Finally, by accurately tracking leads and subsequent projects, a remodeling company can
determine which leads are most profitable.
Questions or comments? Call our toll-free SoundOff line at (877) 594-4265.
|Contact ratio:||J/L||"Statistically, you should be closing 20 percent to 25 percent of your leads. If you're closing less than that, you may not be presenting your service to your target market, or your price could be too high. If you're closing a larger percentage, your pricing may be too low, or you might be doing a great job of weeding out and identifying you customers."|
|Volume of total jobs:||$V|
|Ad/marketing expenditures:||$E||"These costs give you a way to judge yourself. If the costs for repeat customers were low, for example, what would happen if you spend to push it along? This gives you a benchmark to compare the various marketing expenses."|
|Cost per lead:||$E/L|
|Cost per job:||$E/J|