Rather than trying to move in a housing market that is still down in much of the country, many homeowners are deciding to renovate instead, according to new studies. In a recent survey of more than 100,000 homeowners, 23 percent of respondents are planning on adding to or remodeling their kitchen while 28 percent want to do work on their bathroom in the next two years.
With the national average at around $28K, remodeling a kitchen typically costs between $7K and $55K. Bathroom are a bit less expensive with an average of $12K in the United States and a range from $3K to $35K.
The point we are trying to make is that for home improvement companies there is a lot of money to be made out there. The home improvement market is exploding as more homeowners are choosing to stay put. However, these customers do not magically end up seeking you out. You need to develop leads and follow up to get new clients.
How Do You Convert Leads?
As a home improvement business owner, there are essentially three things you need to do to grow your business:
- Find new customers
- Follow up with potential clients
- Stay at the forefront of the mind of prior clients
There are some remodeling contractors who get most of their business from repeat customers, and that is fine if you are not interested in growing your company. However, if you want to get bigger and have a high level of financial security, you need to find new clientele to replace the non-repeat business.
One of the best ways to get repeat business and follow up on leads is with direct mail marketing. You likely have a database full of your former customers’ names and the names of potential customers you have collected by providing proposals or at home improvement shows or other events. This database is as good as gold for you and your home improvement business.
Direct Mail Is No Longer Destined for the Trash Bin
Having your letter tossed into the recycling bin is a risk associated with a lot of direct mail services. Many companies assume that just because they slap “buy our widget!” on a postcard and send it out, they will be able to sit back and watch the money roll in. This is wrong and just plain lazy.
You need to plan your envelope carefully if you want a successful direct mail campaign. Potential customers will be tipped off that they are getting junk mail if you use lots of big words and colors, since this is the tactic typically employed by many marketers. This does not work unless you have something truly groundbreaking to say. Otherwise, you are more likely to have success with a simple white envelope that resembles a bill.
To figure out how to get the best results, use a variety of different direct mail strategies, and be sure you can track their success. Using different coupon codes are a good way to track what is working. And, as you go, keep what works and trash what does not.