Does It Work?
There is no magic formula to determine: spend “X” dollars to see “Y” returns in the form of qualified leads and/or jobs. But there are ways to figure out if your efforts are paying off.
First and foremost is to track leads. Tom Mitchell, owner of Mitchell Construction in Medfield, Mass., says his company doesn’t have the most elaborate model, “but it’s effective for us.” He created a simple database that includes the forms of marketing the company engages in: Web-based, magazine, newspaper, postcards, e-newsletters, print newsletters, seminars, and referrals. When a potential client calls, the receptionist asks how they heard of the company. A salesperson also asks them this question.
The information then goes into the database. Mitchell can tell where leads came from and whether or not they were converted to jobs. He can then use the information to determine his future budget.
Iris Harrell, owner of Harrell Remodeling in Mountain View, Calif., went from $8.5 million last year to close to $11 million this year. By tracking leads using ACT contact management software, Harrell knows that seminars and consumer classes on topics such as kitchen and bath or aging-in-place give her company its highest lead-conversion rate outside of past clients.
Leads are tracked over 12 categories: past client, referred by past client, neighbor, walk-in, classes/seminars for consumers, jobsite signs, Web site, magazine or newspaper article, direct article, realtors, sub or supplier, and “other.”
At the seminars, she says, “[Attendees] get a chance to come into our design center and [meet] the designers. We have a sheet that attendees fill out at the end of the session. In a room of 20 people, [perhaps] 5 will be contacted.” To further qualify seminar participants, Harrell charges a $20 fee.
The company Web site is also a key lead source. Harrell says her site, which was recently updated, previously “had tire-kickers coming on and wasn’t a good lead source.” Now, 21% of leads come from the Web site and 6% of those become jobs.