The remodeling industry has always been an important indicator of the country’s overall economic well-being. As a result of the market rapidly changing, it’s critical to keep your eyes and ears open for hints as to what’s going to happen next. Here are a few things to watch and listen for:
Changing client demographics
Remodelers across the country are seeing an increase (5%/10% to 30%/35%) in the number of clients they have now in their 30s. This is huge. This demographic communicates and obviously buys differently and cares about different things. It’s important to address these differences in your marketing, products/services and processes.
Shifting lead sources
Digital marketing is no longer optional, it’s a “must do.” It’s important to have a great website that catches the eyes of prospective clients because on the web, you only have a few seconds to do so.
Homeowners today place more value on online reviews than a referral. For many years, remodeling businesses relied on word-of-mouth get a good chunk of their jobs. Today, great reviews online can increase the number of good leads you bring in which means more jobs. So be proactive about getting reviews and you’ll see a great return.
Check your tenure and retention rate over the last several years. If turnover has increased, it means there’s lost productivity and increased effort in hiring.
Client questions and comments
Listening to what your clients concerns are can be very useful in predicting what (if anything) is going to be a trend. If you’re starting to hear some of the following comments and questions more often, consider it a trend that needs to be addressed:
- Can you give me a breakdown of the project cost?
- I don’t need to see your presentation, I’ve already checked out your website.
There have always been changes in the remodeling industry. The pace is just so much faster today. Being proactive will help you prepare for what’s to come. At Foundation Finance, we can help you keep up with these changes and set you apart from other remodelers. Follow our blog for the latest industry news.
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