New Homes Are The Lifeblood Of Growth
One goal every contractor should embrace is to get into more new prospect homes. The reason for this is twofold. First, did you know that 49% of the total lifetime value of a customer comes within the first 30 days? Secondly, 53% of all your customers will spend no more than $500 with you over their lifetime. You simply can’t rely on current customers for growth.
New Homes & The RIGHT New Homes
So how do you know which homes are the good ones? That is where Stochastic’s modeled prospects come in. Using the analysis of our database of over $9 billion in HVAC and plumbing sales, we can identify the best homes to target in your area. We have done this for every zip code in America, down to the individual home level, because not all homes are created equal. We do this by rating each home on a 1-9 scale based on the demographics of replacement customers. From our database, we know that customers who qualify as numbers 6, 7, 8, or 9 are the most likely to be replacement customers.
Targeting Homes Most Likely To Respond To & Buy From You
Using this information combined with the geographic data from the contractor’s MEER Score, we can determine the areas and homes most likely to respond to marketing offers. These homes have an average value of $1,000 to $1,500 more than other homes in the same area. By targeting the homes we identify, the contractor is 7 times more likely to get a new customer from marketing and 2.5 times more likely to sell a replacement.
Use Direct Mail To Reach Your Targeted Homes
In high potential zip codes (you will have between 5 or 20), many of our clients sell between $1,000,000 and $2,000,000 in several, individual zip codes, and they spend $25,000 – $40,000 per year using direct mail in zip codes like these. By spending an incremental $10,000 – $15,000 per year on direct mail in the right zip code as we’ve identified for YOU, you can expect a sales increase of $500,000 – $750,000 per year – in those individual zip codes.
If you can sell – and you spend the right amount (not too much and not too little) on advertising to the prospects we identify with your data and our model, you will increase your sales and the value of your business.
Get a FREE Marketing Efficiency & Effectiveness Review (MEER)
Learn how successful your marketing and sales efforts are in generating new customers, see how that compares with similar contractors, and identify your opportunities.