In a recent edition of the Executive Report, we reviewed the key metrics every successful home improvement contractor tracks to manage the trajectory of their business. Many were related to marketing, one of the largest expenses for established home improvement companies. Economies of scale tend to work backward – as a company needs more leads, the average lead cost increases –the biggest players spend over 15% of revenue on marketing! At this rate, leads are their most valuable assets.
To maximize the value, these companies are fanatical about lead management. Here are some best practices they employ:
Fast Follow-up – An oft-referenced MIT study on lead management determined that the likelihood of connecting with a lead drops by 10x if first contact isn’t within 5 minutes of the inquiry. Successful companies leverage their CRM and dedicated staff for fast replies and conversions to scheduled appointments. A good target is to shoot for is an appointment within the next three days.
Use a Script – When making contact, use a script to collect crucial information and build value in an appointment. If there is a best way to do something, why not do it the best way every time? A script brings repeatability, allowing you to iterate from a known result. A solid foundation to build on matters when raw leads cost upwards of $200.
Frequent Responses – Most companies fail to reach out often enough in the first few days after an inquiry. Obviously, follow-up can turn into harassment, but a few times a day, spread across various methods (call, text, and email), maximizes success without turning off potential customers.
Follow Up After 90 Days – Successful companies work with legal counsel to develop permission statements allowing them to contact leads after the 90-day window mandated by Do Not Call laws. One company we know generates 20% of its revenue every year from leads that are over 90 days old! These opportunities are only possible with quality scripting, appropriate permission statements, and leveraging a CRM. Most companies we work with use LeadPerfection or MarketSharp to further their efforts.
Building systems for proper lead management will dramatically increase your profitability and prepare your company for dry seasons when leads are scarce. I would love to connect with you and dig deeper into the best practices and how to implement them in your business. Feel free to reach out at 937-214-5585 or firstname.lastname@example.org.
Todd Miller has spent his entire career in the metal building products manufacturing industry. He is president of Isaiah Industries, an organization recognized as one of the world’s leading metal roofing manufacturers. Todd is currently Vice President of the MRA (Metal Roofing Association) and a Past Chair of MCA (Metal Construction Association). Through his website, he strives to raise the bar on standards and practices to provide property owners with the best possible products for successful roofing projects.
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