HomeTech's Business Building Ideas Newsletter

January 2008 - Volume 3 - Issue 1

In this Issue
Business Building Ideas

Welcome to a new year of Business Building Ideas from HomeTech!

Cool Tools from HomeTech
2008 Cost Estimator Manuals
Feature Article
3 Ways to Use Email to Keep Business Coming
HomeTech ADVANTAGE Tip
New! HomeTech ADVANTAGE Tips Page
Did You Know?
Remodeling Industry Facts and Figures
Welcome from HomeTech

Dear Friend:

Happy New Year!

One thing learned this past holiday season, we think, is that most retailers have realized that consumers are researching and purchasing online now more than ever. According to a recent survey by the electronics industry, the majority of electronic consumers research online for an average of 12 hours before making a purchase.

We believe that just about everyone with the money to remodel their home probably has a computer and uses email. And, if you're not currently using the Internet and email to market your business, we think you're missing a huge opportunity. That's why in this month's article we give you three really simple ways to start using the Internet and email to market your business.

We hope that you truly enjoyed your holidays this year and are geared up for the New Year. This month's article, we hope, will help you to start your year off with a "bang."

Walt Stoeppelwerth
HomeTech Building Business Ideas

P.S. Thanks to all of you who participated in the 2008 Salary Survey! All responses to the 2008 Salary Survey have been received, and we are now in the process of analyzing the results. Look in next month's BBI for highlights from this year's survey and to learn how you can purchase the full report.

Walt Stoeppelwerth

Walt Stoeppelwerth

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New from HomeTech
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2008 Cost Estimator Manuals

The first step to making a profit in remodeling is having accurate costs to develop estimates. Get your copy of the HomeTech Cost Estimator manuals today! Click here or call us at 1-800-638-8292 to place your order now.


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Feature Article

3 Ways to Use Email and the Web to Keep Business Coming Your Way

Traditional methods for marketing your business have most likely included buck slips, space advertising in local newspapers, ads in local telephone directories and lawn signs. Chances are that most of your competitors are also using these traditional methods for marketing their businesses. And, while these traditional methods are effective and should be a part of your overall marketing strategy, a huge marketing opportunity still exists to set your remodeling business apart from your competitors.

We see more and more retailers taking advantage of the Internet and email to market their businesses. We also see more and more consumers researching and purchasing online. More than likely, many of your competitors are still not yet using the Internet and email to their fullest extent to market their businesses. The opportunity exists for you to set your remodeling business apart from your competitors by learning how to use the Internet and email as a key part of your lead generation and sales strategy for 2008.

1. Generate leads with referral email
We hear from many of you that referrals are your most effective lead generation activity. And, in previous articles we've discussed how you can encourage referrals from your customers with traditional methods (see BBI, April 2007 "The Power of Referrals".) By using email, you can make it easier for yourself, and your customers, to generate referrals for your business. How?

After every job you complete, send an email to your customer thanking them for their business and, ask them to refer you. Your goal with this email is to get it passed from your customer to their friend(s). And, here are some tips on how to do just that:

  • Make it easy for your customer to forward your email to their friend(s).
    Include "Send to a Friend" functionality which allows the recipient to click on a button, type in an email address, and usually a brief note, then with one click, send the email off to a friend. (Check out BBI's "Send to a Friend" functionality if you have not done so already.) This functionality is available with most email marketing services noted further below.
  • Offer an incentive to your customer if they forward your email.
    You will be amazed at what people will sometimes do with just a little encouragement. Offering a gift card for a nominal amount or perhaps a discount off of future work if your customer refers you might just be the reason why someone will forward your email.
  • Include a flattering picture of the work you just completed.
    Most likely, your customer is proud of the project that was just completed and will enjoy forwarding a picture of it to their friends.

It's easy to design and send these emails using any of a number of Web-based email tools. See the list further down in this article.

2. Stay "top of mind" with an email newsletter
Email newsletters are a great way to keep your customers thinking about you and the services you perform. They are truly a "win-win" communication -- you are providing your customers with information they are interested in, and you are staying "top-of-mind" with your customers since you are the one sending the information. Staying "top-of-mind" means you are the first company your customers will turn to when they need additional work or pass along to friends when asked for the referral.

To develop an effective email newsletter:

  • Get your customers' permission to send them a copy of your newsletter.
    No one wants something they don't ask for. Make sure you ask your customers first if you can send them your newsletter, then make sure you do it!
  • Keep your newsletter short, interesting and informative.
    Make sure what you put in your newsletter is of interest to your readers. Include only 3 simple sections -- more might make your newsletter too lengthy. For remodelers, great sections can include:
    • What's Hot: Excite your readers about the really cool things that people are doing in their homes. Show off with a few great pictures of the "hot" things. The idea is to get people to dream and imagine their home with this really "hot" thing or give them ideas about what they can do to their home. With each person, on average, knowing 250 people, chances are that either your reader or one of the people they know might be interested in doing this really cool thing.
    • A Quick Tip: Tell your readers how to keep their homes in tip-top shape with a quick maintenance tip or reminder. They will appreciate hearing from you, the expert, on what they should do and when they should do it, to keep their homes in good shape.
    • A Business Reminder: With each issue, you should provide some information about your business -- a new service you are offering, for example.
  • Send out your newsletter often enough to be remembered but not so often that you're not appreciated.
    For many remodelers, this might mean quarterly.
  • Make sure your newsletter looks professional.
    Let your readers know that you value their readership by sending a professional looking newsletter. Constant Contact, Mail Chimp or MyEmma are all good, online tools for developing professional looking newsletters. Or, get someone to help you put your newsletter together. Check out The Remodelers Newsletter or Marketing for Home Remodeling Contractors for resources.

3. Create or fix your Web site's role
It is really important to understand the role your Web site plays in your sales and marketing strategy. With more and more people using the Internet to research potential purchases, making sure your Web site represents your business favorably is vital to ensuring your business' success.

Prospective customers will visit your Web site from your newsletter, from referrals from friends, from conducting a general search on a search engine such as Google, or using an online referral site such as ServiceMagic.com or Contractors.com. Many of your marketing efforts will get people to your Web site, but if your Web site does a poor job representing your business or the work that you do, you've lost these prospective customers. Understanding that your Web site is the next step in your sales process is critical to understanding your Web site's role and will help you to build the best Web site for your business.

To be effective, your Web site should:

  • Look professional.
    Looking professional does not necessarily mean be costly. Start simple. A good tool to check out is this industry-specific web hosting service -- it's free and appears to be very easy to set up, customize and add-in photos.
  • Answer questions that prospective customers are going to the site for.
    Think of your Web site as the sales rep prospective customers are talking to before they actually do talk with your sales rep. On your Web site, be sure to answer the questions you and your sales reps hear every day:
    • What kind of work do you do (additions, kitchens, baths, for example)?
    • What is the quality of your work?
    • How can someone contact you for an estimate?
    • Help people to figure out the process of selecting and hiring a remodeler and you'll have more of a chance of being the one who is selected.
  • Don't forget to ask for the email address.
    When you walk into a store, chances are you see a salesperson. You can easily find a way to let that store know that you are interested in their products or in purchasing their products. Having prospective clients come to your Web site and not asking them for an email address, phone number or other contact information is like that same store having all their sales people sit in a back room and play video games while you are in the store. Clearly show people how they can sign up for your newsletter or get in touch with you for questions they may have about your services.

Spending a little effort, time and budget now to build an effective email and Web marketing strategy should pay off handsomely in the months to come.

Ask customers to Sign Up

Make sure you ask your customers first if you can send them your email newsletter, then make sure you do it!

 

Additional Resources
For more on setting up your marketing strategy: DesignLine shows how saturating the marketplace can pay off

Website design specific to the remodeling industry: Remodeler.com Website Design

Building a client section on your Web site: Remodeling Online, Clients Only


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HomeTech ADVANTAGE Tip

HomeTech ADVANTAGE Estimating System Tips Page

New! Designed to help you with your estimating, help you organize your estimates, save you time when estimating and, help you get the most of your HomeTech ADVANTAGE Estimating System, we've organized all HomeTech ADVANTAGE tips for easy access.

Click here for the HomeTech ADVANTAGE Estimating System Tips Page.

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Did You Know?

Remodeling Industry Facts and Figures
Between 2005 and 2015 the number of U.S. households will increase by more than 14.6 million units, an increase of nearly 13%. Non-Hispanic Whites accounted for 72% of all households in 2005 and will increase by 4.6 million households by 2015. Hispanic and minority households will grow by nearly 10 million units in the same period and account for 68% of the household growth during the decade.

Source:
The State of The Nation's Housing 2007, Table A-11
Joint Center for Housing Studies of Harvard University


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