In the competitive world of home improvement, contractors rely heavily on marketing strategies like lead generation to acquire new clients and secure projects. While marketing is a necessary investment for business growth, it comes with associated costs. Therefore, accurately analyzing data is crucial to ensure optimal return on your marketing budget. This analysis goes beyond simply measuring the “cost-per-lead” – a metric that solely considers the initial acquisition cost. A more insightful approach focuses on the “cost-per-job,” which highlights the true cost of acquiring a paying customer.
Unveiling the “Cost-Per-Job” Advantage
Understanding the “cost-per-job” metric empowers you to compare your marketing expenditure against the revenue generated. Remember, not every lead translates into a closed deal. Conversely, a single lead could potentially result in multiple projects down the line.
Imagine your business invests in a billboard advertisement viewed by an average of 5,000 cars daily. This exposure generates five phone calls and ultimately translates into six completed jobs. This scenario reveals the “second life” of leads – a crucial concept often overlooked. One of those initial contacts might return for additional work, significantly impacting your return on investment (ROI) for that billboard advertisement. Analyzing the “cost-per-job” provides a clearer picture of the billboard’s effectiveness compared to solely focusing on the “cost-per-lead.” The same principle applies to lead generation – even seemingly unsuccessful leads hold hidden potential.
Nurturing Leads: Unlocking Their Second Life
A recent conversation with a ReDo member highlighted the significance of the “second life” of leads. This contractor shared his lead follow-up strategy, emphasizing the importance of nurturing leads even beyond the initial contact attempt.
The Follow-Up Formula for Success
The strategy begins with the fundamental step of promptly contacting the lead upon receiving their information. Following up several times within the same week allows for project discussions and the potential scheduling of an in-home estimate. If scheduling an estimate isn’t feasible, a courteous approach is essential. Thank the homeowner for their time, express your willingness to answer any future questions, and even offer to review bids from other contractors to ensure their accuracy.
This contractor takes additional steps to nurture the lead. He creates calendar reminders to follow up later, inquire about their project progress, and offer further assistance. This demonstrates genuine interest in their needs and establishes you as a reliable resource, even if you weren’t initially chosen for the project.
The Power of Perseverance: A Case Study
The contractor provided a compelling example of how this strategy yielded unexpected benefits. He received a lead, followed up diligently, and although not chosen for the initial project, his perseverance paid off. The homeowner ultimately hired him to rectify problems caused by another contractor. This positive experience fostered a lasting relationship, leading to additional home improvement projects further down the line. This single lead, through courteous follow-up and a commitment to building trust, resulted in two projects and a substantial revenue increase of close to $20,000.
Conclusion: Cultivating Lasting Relationships
Leads, when nurtured from the outset, possess a remarkable capacity for generating future business. Don’t be discouraged by an initial “no.” Develop a follow-up strategy that resonates with you and consistently implement it. Consider incorporating your leads into email marketing campaigns, reminding them of your expertise and ability to deliver exceptional home improvement solutions. By fostering positive relationships with potential clients, you unlock the true potential of leads and pave the way for long-term success in your contracting business.
