The Home Performance
Contracting industry is filled with supremely talented and
highly analytical building performance scientists, auditors,
and engineers. By and large, we are results-oriented,
data-driven and focused on delivering the greatest impact on
each home performance job we undertake. It’s in our DNA.
Unfortunately, it’s been proven that many of the challenges
in the home performance business have nothing to do with the
technical expertise of home performance contractors. The
challenges often lie in the contractors’ inability to
generate enough leads and close enough work so that his
technical expertise can be put to work to save energy and
reduce consumers’ energy footprint.
For better or worse (often, it’s for worse), too many home
performance contractors rely on their technical skills
alone, without focusing their energies and efforts on
marketing and acquiring enough customers to stay in
business. The unfortunate reality is that most companies
simply cannot afford to take a passive approach to
generating leads and closing more sales, especially as more
and more contractors are being forced to adopt a business
model that can sustain itself as federal, state and local
funding programs are reduced or eliminated.
What would it look like if we applied the same laser-like
focus to marketing our business that we do to executing on a
retrofit project? What if we utilized proven Marketing
Science to generate leads and help us market our companies?
Continue reading for insights into how to use Marketing
Science to identify your key metrics.Story
continues below ↓
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Establishing your Metrics through Marketing Science.
Before you can effectively employ a marketing strategy, you
need to know what your target metrics are. This is where the
“science” of marketing really comes in handy. And just like
most things, the “science” is a matter of mathematics.
Follow this simple, 4-step process and you’ll know EXACTLY
what numbers you’ll need to achieve in order to be
successful this year.
1. I need to generate $__________ in retrofit work (separate
from energy audit revenue) to be profitable and stay in
business.
2. My average
job price is $________, so I need to close ___ jobs in 2013.
3. I have a ___% close rate from energy audit to retrofit
job, so I need to conduct ___ energy audits in 2013.
4. I have a
___% close rate on energy audit leads to scheduled energy
audits, so I need to secure ___ qualified leads in 2013. (an
average of __ leads per month)
Now, let’s see how the math might work for a small to medium
sized HPC and what the key markers are.
Marketing Science for Sample HPC
1. I need to generate $1,000,000 in retrofit work (separate
from energy audit revenue)
2. My average
job price is $4,250, so I need to close 235 jobs in 2013.
3. I have a
40% close rate from energy audit to retrofit job, so I need
to conduct 588 energy audits in 2013.
4. I have a
75% close rate on energy audit leads to scheduled energy
audits, so I need to secure 784 qualified leads in 2013. (an
average of 65 leads per month)
This HPC now knows EXACTLY what his key benchmarks are,
assuming of course, that his company performs as expected
and achieves its targeted closing rates, average job price,
etc. Now, you should use your own numbers to calculate your
metrics.
This is the first of several steps that HPCs often miss.
Once you’ve established your key metrics, you can focus on
developing the plan that is most likely to generate the
leads you need for the year. In the next article, I’ll
discuss the science behind the Cost of Customer Acquisition
(CCA) and using your CCA to establish your marketing plan
and budget.
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About the
author:
Rich Carrione is Director of Operations and Marketing for
Warm Thoughts Communications, a leading marketing firm
specializing in the HVAC, home performance, residential
energy and utility industries.
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