Cost per lead. In 2018, full-service remodelers spent on average 31% more per lead than the average amount spent by replacement contractors. The difference was greatest among the top third, where full-service firms spent 44% more than those in the top third of the replacement category.
2019: Cost per Lead Comparison
Generally, the numbers prove out what is obvious to many business professionals: The more money firms invest in leads, the more earning potential they realize. Comparing overall revenues for replacement firms compared with that of full-service firms shows that success in the full-service sector requires a bigger push. Presumably, the jobs are more complicated and expensive, likely the clients are more wary, and you (your sales team) have to work harder to find customers and land jobs. Still, there’s food for thought: Scroll down to the marketing expenditures. Replacement contractors spend a great deal more than full-service remodelers on marketing, compounded by how many marketing-dedicated staff they hire. Granted the messaging may be easier, but perhaps full-service firms have room for growth if they can get the messaging right.
Lead generation sources for remodeling firms are wide and varied, with digital channels gradually gaining on the most tried-and-true source: repeat business. Compared with full-service firms, replacement contractors lean far more on internet pay-per-click, home shows, television, radio, and (still in this day and age) door-to-door canvassing. Full-service firms lean heavily on job signage, social media, and website traffic.
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2019: Comparison of Lead-Generation Sources
Marketing costs. Replacement contractors spend on average nearly three times more on marketing (measured as a percentage of revenue in the chart below) than full-service remodelers. Although the difference is not evident in the two charts on this page, company profiles show that in the top 100, replacement contractors have, on average, about 10 times the number of employees dedicated to marketing than full-service firms.
2019: Comparison of Marketing Expenditures
