Whether you work with us or use any form of lead generation, you know the two most important factors in closing home improvement leads are speed and persistence. Consumers who are interested in renovating their homes want to hear from interested contractors as fast as humanly possible. Persistence and speed gives you the best possible chance of wining new jobs and beating out your competitors for those game-changing home improvement projects.
You have undoubtedly heard from your account managers that calling within the first 10 minutes and then following up with that lead is the best route to take when it comes to the home improvement arena. After all, that is why we offer a 20% discount to those who call our leads in the first 30 minutes. Even if you don’t believe quick calls are the best tactic, the 20% savings should alter your thoughts.
Instead of just saying persistence and speed are the keys to closing sales, MarketSharp, HomeAdvisor and CraftJack decided to take a closer look at the numbers. We wanted to show our loyal contractors just how much speed and persistence can help you win more jobs. After reading this article and viewing our stats, I think you will start to come around.
Responding to Leads in the First Minute can Improve Conversion as much as 391%
I know there are a lot of numbers in the photo above, so let me point out the key stats you as a contractor should care about when it comes to lead generation. As MarketSharp clearly points out, responding to a lead in the first minute can increase your conversion by as much as 391%. That is not a typo. If you can call as soon as you receive a lead from CraftJack, you could increase your possibility of closing that lead by as much as 391%. Compared to those that don’t, you are almost four times as likely to close that lead.
88% of Converted Leads are Contacted in First 24 Hours
Sticking with the same graphic, I would like to draw your attention to circle with the number 88% in the middle. The stat shows that nearly 9 in 10 converted leads are contacted in the first 24 hours. Therefore, if you wait a day to contact your new, hot lead, you are VASTLY decreasing your odds of closing that business.
We understand that contractors are busy and sometimes, they can’t call a homeowner within the first minute every time a new lead comes in. However, most contractors can and should find time to call that lead within 24 hours. Otherwise, as the above stat shows, you are greatly reducing your chances of winning the new project.
78% of Homeowners Choose the First Party to Make Contact & the First Party to Contact a Prospect has a 238% Higher Rate of Conversion than the 2nd
That is right. Nearly four out of five homeowners who submit their improvement project to lead generation companies end up hiring the first contractor that contacts them. Furthermore, you have 238% higher rate of conversion when you call first, compared to the second contractor who contacted the prospect.
Bad cell reception or meetings with current clients can always delay communications with new leads, but as this stat shows, when you are the first contractor to contact a new prospect, you are increasing your odds to close the business IMMENSELY.
Enough about speed. Despite all the stats above showing how important it is to call right away, there is another way to close a lead. Being persistent and calling potential leads more than once can greatly increase your chances of closing new business. How much can it help? After looking inside the purple box above, let me expand a little.
80% of Leads do NOT Close on the First Call
One call is simply not enough. Four of five projects are not closed on the first call. Therefore, whether you contact them or not, all contractors should call potential prospects at least five times. According to MarketSharp, the average lead requires over five attempts to make contact. As is evident by that stat, most prospects will not answer your call the first, second, third or fourth time around.
The belief that sales start and end after one attempt is completely FALSE. Some consumers do not expect contact right away and therefore, do not answer the phone even when you reach out within 24 hours. Oftentimes, homeowners are just like you and can’t answer every call that comes in. That is why it is IMPERATIVE to call more than once.
Making TWO Calls Instead of ONE Increases the Chances of Contact by 87%
If you are in this business, you are undoubtedly a salesperson as well. Any salesperson knows the hardest part of sales is reaching your potential customer.
By putting the minimum amount of effort in, calling twice instead of once, you increase your chances of contacting the prospect by 87%. Luckily for those reading this blog, MarketSharp has also found that 50% of leads are only called once. Even scarier are the stats below.
Clearly, one call does not cut it.
40% of Leads Eventually Convert with Long-Term Follow Up
If at first you don’t succeed, you get up and try again. It is an age-old saying every mother has said to her child, but that same lesson applies in lead generation as well. Two out of five leads eventually convert with long-term follow up. This might mean staying organized and calling numerous times down the road, but following up, even months later, can win you business. Need proof? See how an old $29 lead turned into a $40,000 project with long-term follow up.
While the context was completely different, the lesson holds true in this terrific Jim Valvano quote from his famous 1993 ESPY speech; “Don’t give up. Don’t ever give up.”http://www.youtube.com/watch?v=7boMvBQVQ3Q
With a few stats, graphs and a little inspiration from one of my favorite coaches of all time, I hope we have once for all proved that speed and persistence are not only key to make it in this business, but absolutely necessary to win new jobs and grow your business.