Since 2020, COVID-19 has caused radical shifts in the way consumers engage with home services providers. We’ll discuss the multiple factors as result of the pandemic that have affected how consumers search for home service providers and why you should keep them in mind. To thrive in 2023, home services marketers need to anticipate future trends and adapt their strategies accordingly. Remember also that inflation does not seem to be easing and this will affect your 2023 business trends also.
Below, I list some of the most important trends home services marketers will see in 2023, as well as how a call tracking solution can help you capitalize on them.
- Costs for Home Services Leads Will Remain High
Home services are an over $500 billion-a-year industry in the US. It’s extremely competitive, and to acquire customers, marketers invest significantly in search and digital advertising. Costs per click on Google Ads for certain home services keywords can exceed $40, while costs per lead often exceed $100.
As the digital advertising landscape continues to become more competitive — and costs per lead continue to rise — home services marketers will face increasing pressure to prove their digital marketing ROI and optimize their spend to acquire more customers at a lower cost.
- Online Search Volume for Home Services Will Continue to Increase
What’s the first thing a homeowner does when shopping for a home service provider? A vast majority go straight to the internet to start researching. Whether it’s Yelp, Google or some other of the many referral apps out here online searching is their go-to source and it’s increasing every year.
The increasing online search volume is sure to increase the call volume at your call centers, so be sure your teams have both the coverage and the resources to provide differentiating customer service.
- Home Services Providers Will Receive Higher Call Volumes
Once customers have chosen their vendors, calling to schedule appointments for inspections and estimates is often the next step. Monthly calls to home services providers increased by 36% from February 2020 to July 2020. With in-person interactions limited by shelter-in-place orders, consumers relied on the call channel to speak with agents, make inquiries about service packages and pricing, and schedule appointments. Though lockdown restrictions have since eased, many consumers have become accustomed to the convenience of contacting home services providers via phone calls. Therefore, call volume is likely to remain higher than it was during previous years, as consumers will continue using this channel to get information and make appointments.
- Consumers Will Continue to Undertake Home Improvement Projects at a High Rate
When the COVID-19 pandemic began and consumers were confined to their homes by shelter-in-place orders, many had the time to undertake home improvement projects they’d been putting off. In fact, 57% of homeowners put an emphasis on home improvement during the first three months of COVID-19.
In the coming year, this trend is projected to continue. To date, more than 70% of Americans have tackled home improvement projects since the onset of COVID-19, with more planned for 2023. In addition, the on-demand home services industry is expected to see 53% growth between 2020 and 2024. In response, many home services companies are creating new bundling packages and promotions to assist consumers with their home improvement projects. Although inflation will stay high all indications are that when it comes to the home and comfort there will be no hold back by the consumer.
- The Total Addressable Market (TAM) for Home Services Will Continue to Grow
Performance has become more of a priority for homeowners since the COVID outbreak. Focus on home improvements, maintenance, and emergency repairs has been on the rise since social interaction has been more restricted. The combined total addressable market of $595 billion, up from $506 billion, is at an all-time high as homeowners are making their homes more comfortable for the long haul.
This is an opportunity that cannot be ignored by your marketing and sales teams. Even with the market slowing, it is still forecasted to grow into 2023 and remain higher than 2022.
6. Supply Chain Issues Will Continue to Drive Up Prices
Every industry on the globe has been affected by supply chain issues because of the pandemic. It’s simple supply and demand. With our major coastal ports backlogged with cargo ships, our Canadian borders stalled, and home repairs on the rise, even items as simple as plywood have quadrupled in price. Hopefully, the COVID numbers will continue to decline, and normalcy will allow the prices to ease for homeowners who want to continue to make improvements on their homes.
Competitive supply pricing can be your business’s differentiator when it comes to attracting new customers. If you can find creative ways to reduce your costs without compromising your quality, it just may give you the edge you need in this market.
Also, with all the new equipment and gases needed to stay within code starting in 2023 for the HVAC segment this will put even more stress on the supply chain and your businesses.
- The Labor Shortage Will Disrupt Projects
The obstacles keep piling up! To make home improvements even more complicated, the available labor force (e.g., carpenters, plumbers, electricians, etc.) has taken a blow as well. Veteran tradespeople are reaching retirement age and not enough up-and-comers are around to replace them. Anywhere from 1%-11% of available trade workers has decreased in the last 4 years. This is partly due to high schools promoting higher education and not trade programs as a viable option after graduation. This is where you need to act in 2023 and become involved at the high school level recruiting students to attend trade school. Offer scholarships or offer to buy their tools. Just be proactive and aggressive.
Transparency with your customers is critical. If you’re managing a labor issue yourself, don’t make deadline promises you can’t keep! You’re not facing this issue alone, so making realistic and honest predictions with scheduling and completion dates will be appreciated by your customers.
- Online Reviews Are Critical for Home Services Companies to Acquire Customers
Your delighted customers are an incredible asset to utilize, especially when competing with other home service companies. Review sites, like Yelp, can be a blessing and a curse so it’s vital to manage your customer reviews and comments. Offering a discount on parts or labor in exchange for a high marks review or referral can be one strategy to build trust with other potential customers shopping for service but never the preferred method. You need to train your staff to show the value of the services you offer. It’s also important to maintain a good relationship with previous customers when the inevitable leaky roof, broken AC/Furnace or replacement job comes up!
Positive reviews will only increase your legitimacy and trust from potential customers shopping for a vendor. Adding before/after pictures can give potential customers an idea of your work ethic, capabilities, and style.
- Home Services Consumers Will Demand Seamless Experiences
Home services consumers will demand seamless experiences across their entire journey. To earn their business, you’ll need to ensure they feel valued and known every step of the way. Eighty-three percent of consumers say they require a positive experience to remain loyal to a brand — regardless of the channel they’re engaging on. If home services marketers fail to provide seamless experiences for consumers, the stakes are high. Eighty-two percent of consumers would switch providers because of an unpleasant experience.
To get an edge over the competition in 2023, home services companies need to embrace personalization across channels. This means providing a seamless experience as consumers transition from online research to phone calls to in-person interactions. For example, serving consumers with web ads targeted to the service they researched on your site, or automatically routing their call to their nearest location.
All industries are changing because of the world environment. Stay on top of your demographic and know your customer and community. Be proactive and use your technology to stay ahead of the game. ServiceTitan can gather and show you what you need to know to wade through all the lows and highs of 2023. Artificial intelligence gives you that one step up on your competition.
