Good, solid leads are the lifeblood of your remodeling business. It’s pretty simple: No leads generally means no business. Without good leads, your remodeling business will be shut down faster than a Major League Baseball pitcher with a torn ligament in his elbow.
Leads can be generated in myriad ways, and it’s important to distinguish good leads from bad leads. Good leads result in business and perhaps more repeat and referral business from your current and previous clients. Bad leads only cost your business time, money, and wasted manpower.
In the August issue of Professional Remodeler, we asked our PRIME Advisory Panel, “Which methods are generating the most leads for your business?” Responses included home shows, Internet advertisements, referrals from existing customers, and monthly seminars held by the remodeling firms.
Perhaps the most critical advice offered by the PRIME Advisory Panel: Follow up with the leads in order to generate more business. It’s important to ask the right questions of the potential client in order to distinguish the lead as good or bad.
This month, the 2014 Professional Remodeler Business Leads Survey examines the increase lead generation in 2014 compared with the last two years, as well as a number of critical lead-generation methods that provide positive results to remodelers.
2014 lead generation
Seventy-one percent of respondents reported their lead generation increased for the first half of 2014 when compared with all of 2013. Eleven percent indicated an increase of 25 percent or more, 32 percent reported an increase between 10 and 25 percent, and 28 percent said their leads increased up to 10 percent in 2014 when compared with 2013. Twenty-nine percent reported their leads remained flat or were down from 2013.
Lead generation in 2013 versus 2012
When comparing lead generation in 2013 with 2012, 69 percent of respondents indicated their lead generation had increased. Ten percent indicated an increase of more than 25 percent, 35 percent said their leads increased between 10 and 25 percent in 2013 compared with 2012, and 24 percent reported their leads increased less than 10 percent. Thirty-one percent of respondents indicated their lead generation in 2013 compared with 2012 either remained flat or were down.
Lead generation methods
Remodelers are being more creative in regard to driving new leads for their business. Remodelers offer incentives such as custom upgrades to generate additional leads. They’ve also established and evolved their relationship with architects and engineers as a means to generate leads.
METHODOLOGY
381 remodelers answered the survey via the Internet in July 2014. Participants were a random sample of subscribers to Professional Remodeler print and digital editions.
However, the majority of remodelers continue to rely on word-of-mouth, home shows, past client references and referrals, and the Internet to drive lead traffic.
As part of the 2014 Professional Remodeler Business Leads Survey, we also asked remodelers about ineffective lead generation practices. These methods included Internet-based lead generation services, yellow pages, post cards, and social media to name a few.
Finally, we asked remodelers to reveal the different ways in which they plan to generate additional leads for the remainder of 2014. In addition to the tried-and-true methods that have produced results including networking and referrals, remodelers indicted they plan to dedicate more time to follow-up calls, improve relationships with architects, and concentrate more on generating leads from customers.
New ways to create leads
We asked remodelers about the best new way to generate leads. Here are some of their responses:
- Custom exterior upgrades not offered by the competition
- Marketing to clients by sending out emails related to health, safety, and performance of their home
- Relying on architects and engineers to generate some leads
- Working with architects to target projects
- Advertising in local media outlets has once again proven successful
Ineffective lead generation
We asked remodelers about lead generation methods that are no longer effective. Here are some of their responses:
- Internet-based lead generation services
- Yellow pages
- Postcards
- Social media
- Print advertising in newspapers doesn’t work for people under the age of 55
- Door hangers
Lead generating methods
We asked remodelers what they planned to do differently in 2014 to generate more leads. Here are some of their responses:
- Be more selective when following up on leads
- Join local professional organization to increase networking opportunities
- Concentrate more on current customers and their referrals
- Commit to multiple follow-up calls on referrals and leads; previously I would follow-up one time and be done
- Currently in the process of re-branding company, plan to focus on improving relationships with architects
Research shows leads have increased year-over-year as methods remain tried-and-true.
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