Discover the True Potential of Shared Leads for Home Service Companies
Whether you’re a general contractor focusing on home renovations or the marketing or sales manager of an OEM or distributor looking for ways to help your contractor channel partners generate leads, tapping into the limitless potential of shared lead sources is a must in today’s home service market. Shared lead sources meet homeowners halfway, reaching them where they’re searching for service providers the most: The Internet. Popular lead sources like Angi, Networx and Thumbtack bridge the gap, linking service professionals with quality leads to boost the bottom line.
While most residential home services contractors understand the fundamentals of shared lead sources, few know how to leverage these sources to see continued success. Lead generation platforms cater to many home service companies, including your direct competitors. With so many rivals vying for the same clients, how do you stand out and make the most of what these platforms offer?
In this guide, you’ll learn the ins and outs of shared lead sources, discover their advantages and disadvantages, and learn how to use them to their full potential. Gain valuable information to benefit your business and learn about game-changing products like HomePro Marketing’s “Leads+” to take your company’s success to new heights.
How to Make the Most of Shared Lead Sources for Your Home Service Business
Finding a steady flow of new leads is a critical piece of the marketing puzzle for home service companies. While there are many ways to drum up interest, more and more businesses in this industry are turning to shared lead sources. It’s not hard to see why.
Modern homeowners are more connected than ever, using the Internet to find service providers that meet their unique needs. Shared lead platforms do a fantastic job of creating those professional connections. For homeowners, it’s an easy way to compare services and quickly find someone to complete a project. In just a few clicks, they can see a list of experts in their area, reach out to them directly and take the first steps to improve their properties. But for businesses, these platforms serve as a valuable medium for growth. They can help you put your company’s name before quality leads and grow your customer base.
Using shared lead sources is an investment, but only some businesses see the return they need to make it worth their while. So how can you utilize these platforms to optimize your company’s success?
Lead Generation 101: Understanding the Power of Shared Lead Sources
First, let’s look at the basics. What are shared leads?
Shared leads are purchased online leads available to multiple companies. It’s just one lead source you can use as part of a larger marketing strategy, but it’s often one of the most impactful. They come from marketing and comparison websites. Some of the most popular platforms for home service companies include:
The concept is simple. Homeowners looking for professional home improvement and repair services easily find these websites to compare companies, read reviews and more. In doing so, they provide key information, such as their contact information, what they’re looking for (roofing, electrician, plumber, air conditioning repair, etc…). The platforms then sell that lead data to you and your competitors, giving you a jumping-off point for your sales and marketing approaches.
Why Home Service Companies Should Use Shared Lead Sources
Currently, only well-established home service companies can succeed by only leveraging referrals, reviews, and basic advertising. But for those newer or smaller companies, it’s harder than ever to stand out among the vast competition. Now, homeowners flock to the Internet to do their research. Homeowners are more empowered and knowledgeable than ever! They have the tools to get the service they need without calling multiple companies for quotes or estimates. You’re missing out on tons of potential business if you’re not tapping into shared lead sources.
The demand is there! According to the Joint Center for Housing Studies of Harvard University, spending for home improvement in the United States was roughly $472 billion in 2022. Projections show that figure climbing to $485 billion by the end of 2023! Meanwhile, the larger total addressable market for home services soared to over $657 billion, according to a report from Angi. There’s significant demand for home services; more people are turning to those comparison platforms for help.
How Your Company Can Benefit from Shared Lead Sources
Your business has much to gain from utilizing shared lead sources. When used right, these leads can be the ticket to impressive growth and revenue.
- Reaching a Larger Audience
- Building Brand Awareness and Reputation
- Improving Trust and Credibility
- Greater Control Over Lead Volume
- Lower Cost
The most popular shared lead sources have millions of active users every month. Angi, Networx, Thumbtack and more have massive user bases. As a result, you’re putting your company’s name in front of more people than ever, resulting in a broader pool of potential clients.
Martech.org says more than 90 percent check out reviews before choosing a home service provider. A study by PowerReviews found that ratings and reviews are one of the most important factors for shoppers. A profile on a shared lead source platform can be a valuable marketing tool. Real clients can leave feedback, boosting your business reputation to gain more interest.
Most platforms vet the contractors and businesses that appear for homeowners. As a result, having a presence on those comparison sites improves your credibility.
Finally, shared leads give you greater control to generate more leads than other lead generation strategies. When you need more leads, simply increase your budget, expand your target area or add services. This is particularly helpful during shoulder seasons when you need to throttle lead flow.
Shared leads are not the same as exclusive leads. The latter is only available to you, but it comes at a substantially higher cost. Shared leads are a more cost-effective option offering quantity.
The Potential Disadvantages You Must Consider
Despite all the good shared lead sources provide, there are a few possible downsides.
- More Competition
- Price Volatility
- Hit-and-Miss Lead Quality
One of the biggest challenges of shared leads is that multiple companies receive the same data. That means your competitors will be cultivating the same prospects you are, forcing your company to take steps to stand out.
Because shared leads aren’t exclusive to you, the competition can result in pricing wars. Clients want the best price possible, so using shared leads sometimes results in pressure to lower your advertised costs.
Only some leads you get will be high-quality. While some homeowners actively use these platforms to find providers, others are only doing preliminary research or getting a rough estimate on pricing.
Lead Response Management: Best Practice to Optimize Your Success with Shared Leads
Shared lead sources are great tipsters that guide your sales and marketing teams in the right direction. Unless you know how to leverage the information you get, your return will be lower than you want. The key is to be strategic in handling and responding to leads that come your way. Here are some best practices that can make all the difference.
- Don’t Waste Time Creating the First Touchpoint
- Personalize Every Interaction
- Be Vigilant About Follow-Ups
- Fine-Tune the Buyer’s Journey
- Track and Analyze Your Efforts
Time is of the essence with lead responses! Waiting too long to initiate contact can result in lost opportunities. A study by the Harvard Business Review involving B2B and B2C businesses found that companies are seven times more likely to have meaningful conversations and qualify a lead if they reached out within an hour compared to those that waited longer.
Another study by MIT found that you’re more likely to connect with a lead if you call within five minutes. Speed makes a difference.
A McKinsey & Company study found that 71 percent of consumers expect personalized communication. Ditch the generic responses and Taylor every interaction to the unique needs of the lead.
Only some leads will engage right off the bat, even if you focus on response speed. InsideSales found in their study that persistence is key. While 30 percent of companies will give up after a few calls, InsideSales says the chances of making solid contact with a lead increase to 90 percent on the sixth call.
Converting leads is more challenging than calling and hoping for the best. In most cases, cultivating a lead can be a months-long process. Marketing Donuts found that 63 percent of people requesting information about a company won’t commit to a purchase for at least three months. Improve the buyer’s journey to support leads every step of the way. Understand their needs and connect them with the right people in your company. Every interaction should have value and push leads deeper into the sales funnel.
You can’t rest on your laurels with shared leads. Monitor your efforts and utilize software to track key performance metrics. Understanding how metrics like response time and sales cycle length affect your strategy gives you the means to improve for greater success.
Tips for Making the Most of Shared Lead Sources
Signing up with platforms like Angi or Porch and hoping for the best is not enough. To obtain the best results, follow these tips.
- Be Active and Engage with Users
- Use Multiple Platforms
- Present Your Business in the Best Light
- Incentivize Potential Customers
- Educate and Inform
Engage with users on every shared lead source platform by responding to positive and negative reviews. People expect a response. A survey by ReviewTracker found that 53 percent of customers expect a response to negative reviews within a week. If you ignore comments, you risk harming your reputation.
Responding shows that you care about feedback. It’s an opportunity to get ahead of reviews while engaging with new, existing, and future clients.
Don’t limit your company to a single platform. While these shared lead sources operate similarly, some are more popular with different demographics. Having a presence on several platforms ensures you’re covering all your bases.
Presentation is everything in the home service industry. Customers expect to see examples of your work, licenses, certifications and more. They want to learn about your company before they give you their business. Complete your profile, check for errors, upload high-quality photos and more.
When competing with several other businesses, incentives can make your company stand out. Consider offering discounts or referral bonuses. The perk will motivate prospects to go to you. A survey by LBM Journal found that over 80 percent of suppliers used discounts to build and maintain customer relationships.
Last but not least, go beyond pricing discussions. The most effective way to convert a lead is to educate them. Tell people why your service is beneficial and why your company is the best option for them.
Shared lead sources can be a game changer for home service companies, but only if they know how to leverage them correctly. Shared lead source platforms help you reach potential clients easier than ever before. However, the competitive nature of these leads forces you to think outside the box to stand out. Employ best practices by improving how your company responds to interested homeowners and how you interact with people using these platforms. Providing consistent and reliable engagement while taking steps to fine-tune your strategy can help you convert more prospects into happy customers.
Are you looking to supplement shared lead sources? Check out HomePro Marketing’s “Leads+” offering. Leads+ is a unique alternative to traditional shared leads, tapping into low/non-shared leads from homeowners looking for a wide range of services. Great for electricians, plumbers, contractors, roofers and more, Leads+ is a more cost-effective option compared to third-party lead sources. Plus, it can dramatically boost lead volume and give you a steady flow of potential customers. Check it out today to learn more about what Leads+ can do for your business.