Do you have a system for generating quality leads that you can turn on and off like a tap?
If you don’t, then you are probably like a lot of custom home builders who rely on referrals in order to sustain their business. Which can be a real problem if you want to grow your company, or if the referrals you are currently relying on start to dry up.
But what if you could have full control over the number of leads your building company generated each month... And you could increase or decrease the flow of quality opportunities as and when you needed them?
Well, now you can. It’s called a ‘Marketing Funnel’ and it converts advertising dollars into new leads, which convert into ideal clients.
When you use it, you can acquire new clients throughout the year as and when you need them, for a predictable cost. So you enjoy a consistent flow of work all year round without experiencing the boom and bust cycles that lead to cash-flow challenges.
According to Blue Corona, a staggering 97% of consumers use the internet when researching local services. Which is why the most successful custom home builders are following a proven online marketing strategy in order to grow their building company.
Meanwhile; the old school builders haven't even created a plan and just continue to do what worked for them 10 years ago... So stop trying to generate leads the old way, it no longer works!
Instead, follow a proven marketing strategy that delivers value to your ideal client. When you do this, you won't have to chase sales, the best clients will seek you out!
One of the biggest myths in our industry is that custom home builders who only do a few builds a year do not need many new leads in order to be successful. Truth is, even if you are only doing 3-6 builds a year you still need to be generating a significant number of enquiries…That is, if you want to reach the same margins that are being enjoyed by the most successful builders.
It’s All Down To Demand And Supply
When demand exceeds supply, margins go up. When demand meets supply, margins remain static.
And when supply exceeds demand...prices and margins tumble and builders compete in a race to the bottom.
So don’t listen to that voice inside your head that is trying to hold you back by saying “You only do a few jobs, don’t get too many enquiries or you wont keep up”
Instead, create more demand for your building company than you need and then turn down the projects and the clients that you don’t want to take on. When you do this, your margins will increase and you’ll get closer to the industry benchmarks, which means you can start to enjoy the lifestyle you deserve as the owner of a custom home building company.
Here are some tips that may help you:
Create A Marketing Funnel
A marketing funnel is simply the key stages within your sales process. For instance, the first stage may be to acquire a lead, the second stage would be to qualify them into becoming an opportunity, and then a paying customer at the preliminary stage; and finally a client for a new build.
That’s a simplified marketing funnel, your own process may involve some more stages such as a design stage or a website visitor, however the point is that each stage in the sales process is a level in your marketing funnel. The reason this is important is because you need to speak to your potential clients differently depending on where they are in the buyer's journey.
For instance, a consumer that had visited your website, but had not requested any further information would still be at the beginning of the buyer's journey. So the type of information you provide to them would reflect the types of questions you get asked by a brand new lead. Whereas, a consumer that is at the prelim stage and is close to signing a building contract requires a very different type of messaging in order to reassure them that your company is the best possible choice for them to make.
So, start by identifying the key stages in your sales process, and then list them out to create your own custom marketing funnel.
Create A ‘Follow Up’ Strategy
When a new lead joins your email list then it’s your job to nurture that prospect with useful information until they are ready to engage in a phone conversation with a builder. This could take months or minutes.
However, what you will find is that the more marketing you do online, the faster your prospects will progress through your sales process due to them having already been indoctrinated through your articles, videos and social media posts. ..it all depends where they are in their own journey rather than where they sit in your sales process.
The most effective way to follow up new leads is through email, so make sure you have an automated follow up email sequence in place, that will keep in touch with every new lead you generate. Leads that are further down the sales process can be followed up using custom-templates. These are email templates that are individually edited before sending, in order to create a deeper, more personal relationship through email.
Having an automated follow up process in place will not only generate far more opportunities for your building company, it will also save you hours of time every week.
Measuring Your Results
The most beneficial part of having a marketing funnel is that you now have the ability to measure your results. Two key numbers to focus on are; cost per lead and cost per sale.
When you measure how much you spend and then record the number of new leads you generate it’s easy to calculate your cost per lead. You simply divide the advertising spend for a given period, by the number of leads generated in the same period.
However, how much you pay for a lead is irrelevant if you don’t know how much you can afford to spend acquiring new leads. There are many ways to do this and the best way for you will depend on how your own building company operates.
One way is to look at how many leads you are generating for each contract you sign and then times the cost per lead, by that figure. For instance, if you generate 10 new leads a month and signed 6 building contracts in the last year, then your cost per sale would be 20 times your cost per lead, because for every 20 new leads generated you get 1 new contract. And when you can make a profit after factoring in both your fixed costs and the advertising cost to generate that sale, then you have the secret formula for growing your custom home building company!
What if you could have full control over the number of leads your building company generated each month... And you could increase or decrease the flow of quality opportunities as and when you needed them? Would it help you to enjoy a consistent flow of work all year round without experiencing the boom and bust cycles that lead to cash-flow challenges?
It’s not easy to create, it took us years of testing to figure it out for our own business…
But once we had the formula... We were able to apply it to any building company and get the same results. And that's why we created a downloadable template for custom home builders called the ‘Construction Marketing Blueprint’.
When you have it, you can easily convert advertising dollars into new leads, which convert into ideal clients. Enabling you to acquire new clients throughout the year, as and when you need them, for a predictable cost.
So you can enjoy a consistent flow of work all year round without experiencing the boom and bust cycles that lead to cash-flow challenges.