Smart Lead Generation Strategy for Home Service Contractors
Why is home service lead generation essential? The short answer is - it's the most effective way for small businesses to overcome the competition. According to marketing experts Hubspot, most marketers say that their number one goal is lead generation (61%).
Why is lead generation important?
Lead generation is crucial for home service contractors because gaining new customers is essential for growing business quickly and effectively.
The setup for this process is as follows:
- A company needs to collect information from potential customers to generate leads. This information could be basic contact details or more specific data.
- Once a company has all of this information, it can begin contacting leads to generate sales.
Lead Generation Strategies
A lead generation strategy will help you optimize your Google My Business profile. It helps potential customers find you when they search for local businesses and gives them confidence that they are dealing with a legitimate business.
A lead generation company might offer to list your business in directories, email lists, and publish your business on social media platforms.
The quality of leads supplied from such platforms is a factor to consider before you decide to commit to a lead supplier long term.
Lead scoring
What is lead scoring? Lead scoring is a process that assigns "weight" to each lead based on the resulting action. For example, when a website visitor fills out an initial inquiry form, this action will carry less weight than when a potential customer actually requests a quote.
Not all leads will convert into sales instantly. So it's important to continually add value to these leads until they're ready to be converted into customers.
Assessing your lead conversion
For each lead that you receive, ask yourself the question: “Did this person hire us?” or “Did we sell something to this person?” Lead conversion rates help you determine how often leads turn into an actual sale.
How do you calculate lead conversion?
Say you get 50 leads one month, and those result in 10 paying customers. Your conversion rate is 10/50 = 0.2 or 20%.
Lead conversion rates differ across industries and trades. Here are some estimated conversion rates for a general contractor who gets leads from 3 different lead generation platforms:
- HomeAdvisor - 15%
- Houzz - 11.25%
- BuildZoom - 7.5%
Depending on the company and industry that you're in, it can be difficult for a lead to convert after just one contact.
The number one reason that leads fail to convert is that businesses are too slow. If you don't follow up with the prospect within 24 hours, then chances are that they go elsewhere.
7 Actionable Contractor Lead Generation Strategies for 2021
Here are 7 contractor lead generation strategies that will help you produce the demand needed to stay competitive in this challenging industry:
#1. Optimize your Google My Business profile
Start with your Google My Business profile (a free service).
How do I optimize my Google My Business listing?
To optimize your Google My Business profile, you need to complete the following: - Include your website, phone number, and email contact details.
- Add all of your relevant service categories.
- Complete your opening hours and location information.
- Connect with customers through reviews.
What about GMB posts - how do I use them?
Creating blog posts on your GMB profile is a great way to share industry insights with customers and drive them to your website. You can create or link to these articles from the "Activity" section of your Google My Business dashboard.
What about Google Maps - does that link to Google My Business?
Yes! By optimizing your Google My Business profile, you'll have a better chance of getting found through location-based searches on Google Maps.
#2. Implement local SEO strategies
With more than 76% of consumers using search engines to find “near me" services, you must implement local SEO strategies for your home service business. The most effective strategy is to rank number one in local search results.
How do I begin local SEO strategies for my home service business? It's important to identify the keywords that your ideal customers might use in searches.
For example, if you are a landscaper in Denver, you may want to begin with SEO strategies for keywords like "Denver lawn maintenance", "Hire a landscaper" or similar phrases.
Is local SEO expensive?
Local SEO isn't necessarily expensive, it just depends on the company you hire. For example, a home service contractor probably won't pay as much for their local SEO strategy as a big box company trying to compete with other national businesses.
#3. Create a review strategy
How do I create a review strategy?
Besides asking for online reviews from clients, you should also invite them to leave reviews on local rating sites like Google and Yelp. If you own or manage a company profile on these platforms, then take advantage of the ability to ask existing customers for reviews! Requesting 5-star ratings from your customers can help boost your search engine rankings.
#4. Supplement organic search with paid ads
What is the difference between organic search and paid search results?
Paid ads appear above organic search results and are limited to a certain number of characters, usually 30.
In contrast, organic search results are driven by website traffic and other ranking factors – not by how much you pay for ads.
So why do I need paid ads as well as local SEO?
It’s not enough to just have a well-optimized Google My Business page. Without paid search, you can expect to compete against the first page of results for your most important keywords with companies that already have a strong online presence. This could result in losing 50% of potential leads.
Your goal is to rank #1 on the first page of Google SERPs (Search Engine Results Page) for high-intent keywords like ‘plumber near me’ or ‘landscape design Denver’.
#5. Nurture leads with email marketing
How do I do email marketing for my home service business?
Email marketing is an extremely effective way to reach your current customers and generate more quality leads. Once you have generated interest from a lead, you want to nurture that relationship until they become a customer.
Sending customers follow-up emails is an easy way to follow up, build rapport, and remind them that you’re still there when they need you.
What are the basic steps of email marketing for a home service business? There are a few basics that you need to build your email campaign around.
- First, you want to create a list of all the contacts that have opted in to receive emails from you.
- Next, decide on an email template design, and start creating content for your drip campaign. - Once those steps are completed, you can set up your autoresponder. What is a lead nurturing campaign?
A lead nurturing campaign allows you to guide the customer through their journey with your company and convert people from prospects into customers.
For example, local lawn care specialists might send out a series of emails with tips and recommendations for using their lawn care products. Then they could create a special offer or promotion to drive sales of their products and services.
Why is email marketing critical? Let's take a look at some email marketing stats:
According to a study by the Content Marketing Institute, nearly 87% of marketers say that email marketing is still effective, just behind social media at 90%.
What kinds of emails should I be sending? Here are some suggestions:
- Sales Progression Emails
Create an email series that sends messages at different stages of the buying/selling process to keep customers informed and interested in what you offer.
- Thank You Emails
Send an email to thank customers after they make a purchase or hire your services.
- Special Offers
Deliver targeted offers and discounts. Make sure you use clear calls to action in your emails so that each offer directly fulfills the next step in your sales funnel.
- Targeted Messages
Create custom content for each of your leads based on their original inquiry. This helps you gain a better understanding of your leads and their preferences.
- Follow-Up Emails
A simple follow-up email reminding your customer that they haven't yet purchased anything or responded to your quote details can be extremely effective at stimulating sales. Try to send this within one or two days of the inquiry being sent out to keep it fresh in your customers' minds.
You can also include a CTA (call to action) in your email to convert leads into customers. Already have a link in your emails? Great! But did you know that using a call to action "button" can increase lead acquisition by 45% instead of just using plain hyperlinked text?
#6. Build rapport between the leads and your company
How do I build rapport with potential customers?
The customer should never be able to tell that your business is trying to force them to buy. However, if you are friendly and engaging, they won't feel like they are being sold to. This will help you build rapport with potential customers so that when they decide to buy a product or hire a service - they think of you!
Great! But how do I do it?
Send them personal emails! Email is one of the best ways to build rapport with a potential customer.
Don't be pushy when you write your email. Be personable and leave some sort of lasting impression on your new lead or customer. Send them information that they might find interesting but don't try to sell anything at first. Become a trusted source of information and they will come to you for whatever it is that you are selling.
Here are 3 steps to help build rapport with a lead inquiry:
- Introduce yourself, your business, and your website.
- Highlight a relevant blog post on your site or recommend an article for the customer to read. You can say something along the lines of "this might be helpful to you".
- Conclude the email by providing a link to contact you for further information or conversation and thank them for their inquiry.
#7. Run a referral program
What is a referral program?
A referral program lets your customers refer their friends to you in exchange for some sort of reward or benefit. A good referral program should track referrals, have unique referral links, a referrer sign-up page, and an automated reward system.
How does a referral program work for a home service business in Denver?
This is an extremely powerful tactic for home service contractors. Word-of-mouth referrals are responsible for 19% of all buying decisions. People are more likely to use the services that their friends and family members have used. Why? Because they trust them and know that they will only recommend businesses or people who are honest and reliable.
How do I set up a referral program?
The first step is to set up a referral program by signing up for one of the many referral software tools available. Or include a referral submission form on your website.
When someone refers a new customer who books work with you, you effectively get more leads for almost no effort!
Leveraging Lead Generation
Lead generation is the lifeblood of any home service business. Getting the right kind of leads is as crucial as having a quality website in place.
It's not an overnight process, but with the strategies we've discussed in this article, you'll be able to boost your lead conversion rates.
What action are you going to take now?
You can read the full article "7 Smart Lead Generation Strategies for Home Service Contractors"
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