I’ve talked to a lot of contractors lately who’ve indicated a decrease in lead flow after an embarrassment of riches the past couple of years. Here are five tips to consider anytime demand is down for your products.
1. Don’t Panic.
Too often home improvement companies get nervous and start cutting prices, which means cutting margins and profit. The customer wins because they get a great product or service at a discount, but your company loses the valuable dollars necessary to run a successful business.
2. Do Not Cut Your Marketing Budget.
When leads are lean, large companies will gain an even bigger market share if small to medium-sized contractors cut back. The rich will get richer and you’ll be left scratching your head wondering how another one of your competitors got acquired by a private equity firm.
3. Create a Robust Referral Program.
Reward your customers with checks for referrals. Or deliver bottles of wine to their doorsteps like Chicago-based contractor Opal Enterprises. Stay top of mind with monthly or quarterly reminders by mail or email as offered by companies like gFour Marketing.
4. Follow Best Practices for Direct Response Marketing.
Emphasize your offers and calls to action, and always include an expiration date to create urgency. The grandma with the Gucci bag whipping out coupons to save 13 cents on banana bread at the grocery store also wants to feel like she’s getting a great deal on a new door.
5. Promote Your Financing Program.
Customers who might not think they can afford a home improvement project at the moment may change their tune if you show them you offer same-as-cash or low monthly payment plans like the guys at Outback Deck who shared their finance-first approach with me on my Rock Stars of Remodeling podcast.
Whatever you do, don’t take your foot off the gas when times get tight.
Add new comment
Related Stories
3 Tips for Qualifying Home Improvement Leads Without Losing Sales
How contractors can disengage from the prospects least likely to buy from them
Marketing Minute: How To Convert Bad Google Reviews Into Business
Director of Home Improvement Drew Barto shares tips on how contractors can turn negative Google reviews into additional revenue
3 Tips for Contractors to Turn Bad Google Reviews Into Revenue
Best practices for responding to Google reviews that will create more raving fans and drive more referral business to home improvement companies
3 Ways to Make Your Home Improvement Brand More Memorable
How replacement contractors can rise above their competitors in the race for brand recognition
Marketing Minute: How to Overcome a Drop in Demand
Director of Home Improvement Drew Barto shares tips on how to survive and thrive in periods of lower demand for your products or services
How to Increase Job Size with Financing
Outback Deck Senior Partners Bryan Miller & John Gwaltney discuss how contractors can implement financing programs into their sales processes that drive revenue by increasing average job size
Master Your Marketing Mix
Effective lead generation requires focus and commitment to marketing mediums
Marketing Minute: Tips for Making Better Videos
Director of Home Improvement Drew Barto offers insight on the importance of video and highlights an app contractors and remodelers should download today
Are Your Text Messages Getting You Into Trouble?
Find out what happened when a contractor sent two advertising texts to the wrong homeowner