Costs have forced many home improvement contractors to reconsider the actual value of a lead, as determined by the price of replicating it. For example, how does the cost of e-mailing a sit/no sale a year later compare to buying yet another newspaper insert?
“We had this information before but we didn’t use it,” Aurgemma says. “Today, to get the quantity and quality of leads we need to run our business at an affordable cost, we have to work smarter … to go for every opportunity to generate a lead.” Prospects, he says, are “people willing and able to purchase within the foreseeable near future. We market to them on an ongoing basis. You must communicate with those folks and have a compelling message.”
Sell More Leads Warm calls cost more, but there’s an upside, at least for companies such as Exterior Innovations, in Savannah, Ga. “The leads are better qualified and friendlier,” president Clark Brockman says. “In the old days, you’d demo one in three. Today you hear of people getting 50% to 70%.”
That’s a good thing, since with marketing costs rising, setting and selling a greater percentage of the leads they issue has never been more important for companies seeking to grow while simultaneously reining in expenses. Selling more of those leads may mean tighter control over the salesforce, and efforts to attract more polished representatives. Companies such as Unique Window & Door, in Indianapolis, and Swing Line Windows, in Pittsburgh, specifically seek college graduates when looking to hire new reps.
Offering corporate benefits will help attract a higher level of sales rep, and today 69% of Replacement 100 companies offer group health insurance, 55% have a 401(k) plan, 37% issue company-paid cell phones, and 34% offer a vehicle allowance. Eighty-five percent of Replacement 100 companies offer bonuses to their salespeople and 53% bonus installers.
But for many companies, the most attractive sales candidate will always be “the person who’s capable of doing a one-call close,” Brockman says.
About the Survey The Replacement 100 is a ranking of leading U.S. companies engaged in the replacement of roofing, siding, windows, decks, and ancillary lines that participated in the 2005 annual survey of home improvement companies. Data collection for the 2005 survey commenced in May 2006 with an initial survey of about 350 companies identified by the REPLACEMENT CONTRACTOR editorial staff, with input from industry consultants. To participate in next year’s survey or for additional inquiries about this year’s list, contact Jim Cory at 215.923.9810 or jcory@hanleywood.com.
Get the Leads Out
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