Effective Lead Generation is an Investment – Not an Expense
Are you treating lead generation costs or prices per lead as monthly expenses? If so, you haven’t found the right company to partner with!
Does thinking about setting a “marketing budget” make you cringe? Do you immediately imagine your bank account balance going down, down, down? If you see your lead generation budget as a regular monthly expense, you may be wasting a lot of money! Expenses are car payments, electric bills, and internet costs. Good lead generation is an investment. Something that GENERATES revenue for your business, not an expense.
Most lead generation companies charge a flat rate per month and don’t promise anything in return. Yes, that’s probably an expense. But there are a few pay-for-performance companies out there that can prove their value to you month after month. In addition, many companies no longer require contracts, so you are free to take your investment elsewhere if you aren’t seeing the returns you were lead to expect.
Most Lead Generation May Cost You
The budget you set aside each month for online marketing is probably being considered an expense if you are lumping it in with your other costs. When times are tight, you might think your marketing “costs” should be the first to go. Then you trim other costs to save money. If you could generate reliable leads each month that turn into profitable jobs, your lead generation budget would become a necessary investment (and a sound one, at that!) If you are constantly trying to keep your monthly costs low by cutting into your lead generation budget, you are missing out on the potential to turn your service business into a cash cow. When leads become expenses are when they don’t produce measurable results.
Example: Say you have allotted $500 each month for online marketing of your remodeling business. If you hire a lead generation company that charges a flat rate of $500 each month and tells you they will promote your business online, get you onto the first page of Google and get calls coming in, but then doesn’t produce, this would be an expense.
If you hire a different company and they tell you that you’ll only pay for qualified leads that come in and you get to determine what a qualified lead means to you, you won’t be paying an expense, you’ll be investing in those customers who call you for a quote. And the higher your close rate, the more money your business will make from that marketing investment!
Return on Investment is the way businesses measure the net increase or decrease that comes from investing money. Return on investment, or ROI is the amount of revenue you bring in, minus the amount of money you invest to make it. So if you invest $500 in lead generation, and that turns into 6 qualified leads, and you win 4 new jobs, and each job is worth $1000 in profits, Your return on investment is $4000 (profits) – $500 (investment), or $3500. Imagine if you could invest $500 every month and watch it turn into $3500. Now that’s a solid investment!
Online Marketing and Lead Generation as an Investment
Customers use online searches more than any other means to find service businesses they want to hire. If you’re not there, front and center, with a great reason for them to call you for the quote, you probably won’t get called.
Good marketing entices customers to call you for a quote, which results in jobs, which means revenue for your business. When online marketing in the form of lead generation works in this way, it is considered an investment in your business. Even when times are tight, you don’t want to stop investing in good marketing, because it’s probably your best chance to build your revenue stream back up. Instead, start slow and build as you land more jobs. And don’t spend your excess profits. Keep investing in your business and watch it grow.
How to Increase Your Lead Generation ROI
So how can you spend less money per contractor lead? What is the best way to lower online marketing costs? Get seen and called more often and win more sales from your monthly lead budget!
- Improve Your Visibility and Get More Calls
The more phone calls and emails you get from your monthly marketing budget, the higher the return on your marketing investment will be.
When you sign on for services for online marketing and lead generation, be sure to find a company with a complete package: Highly optimized lead generation sites that will rank well on Google, Bing, and other search engines and the ability to customize the lead generation site and listings with your unique branding.
As important as getting found is for getting calls, making your business attractive to potential customers is also critical. Entice your customers to pick up and call you by displaying high-quality photos of your work and pictures of yourself or your team on the home page. Offer a special promotion to motivate them to call you rather than your competitors.
For other tips on improving visibility and making waves with an online presence, see this article: https://blog.99calls.com/2021/03/16/maximize-digital-marketing-returns-on-a-small-budget/
- Improve Your Close Rate
The higher your close rate, the lower your costs per lead and the more leads you can get for the same monthly investment.
Here are the top 5 things you can do to increase your close rate, and thereby increase your returns:
Always Answer Your Phone: It seems so simple, but we see it all the time. Customers are impatient. They identify a need, search online and call the first contractor they see who looks legit. If that’s you and your phone rings, you are LOSING MONEY every time a call goes to voicemail.
Quick Quote: If you’re able to give a ballpark figure over the phone, go for it. Otherwise, schedule a visit within the next 48 hours to see the job and give a quote. Get in there before your competition.
Professionalism Pays: No, you don’t need to show up in your Sunday best, and actually, arriving in some work clothes lets potential customers know you’re a busy person who other customers already trust. Just change into a clean shirt to change and be prepared with pen and paper to take notes. Listen to what they are asking you to do, and repeat it back so they know you heard it right.
Offer Options: When you offer 2 or even three options for getting the work done, you’ll asking your potential customer not to choose between you and someone else, but between two or three price points from YOU. Offer a budget option, which less expensive materials and less expensive detail, and then one with the best quality. This also lets them know you are versatile and can work with different budgets.
Follow Up: Don’t drop an estimate and run. People appreciate a friendly reminder that you are available to schedule their job. Maybe even give them a discount if they can fill an opening you have in a given month. Persistence pays!
For more information on improving return on investment, learn why combining SEO with pay per click gives contractors the best bang for their buck: https://blog.99calls.com/2020/07/20/benefits-of-combining-seo-lead-generation-with-ppc-advertising/
If you’re ready to really start growing your service business, start viewing your marketing budget as a smart investment, rather than a monthly expense, then find a quality lead generation team to make your monthly lead generation investment work for you. For more information on getting the most from your online marketing investment, give the team at 99Calls.com a call at 800-717-4669.