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513 N. Main St., Carroll, IA 51401
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By: Fusebox Marketing | November 18, 2020

Steps Contractors Can Take to Increase Conversion Rates

Did you know that the United States has approximately 830,000 contractor companies, but only 45% of those companies successfully grow? What problem prevents them from expanding?

For most contractors, designing a lucrative online marketing strategy proves the most significant struggle. While thousands of contractor businesses provide outstanding service for their customers, their overall success in leads and sales will suffer, thereby decreasing their conversion rates without a significant online presence.

But there is hope.

Contractors can follow the steps below to increase their conversion rates and change their struggles with growth into the joys of success.

What is a Conversion Rate?

According to Google Ads, over 1.7 million contractor searches take place each month. Approximately 90% of buyers use the internet to solve all their home improvement needs. That means that contractors need to have a substantial online presence to have any measurable success.

But how is online success measured?

One way to measure your online presence’s success is by conversion rates, the percentage of your website visitors who turn into customers, or who take desired measurable action such as signing up for a newsletter, registering for membership, downloading software any activity beyond browsing.

There are six different types of measurable conversion rates that come from your company’s:

  • Overall Marketing Strategies
  • Marketing Channels
  • Page-Levels
  • Campaigns
  • Individual Ads
  • Keywords

So, if website conversion rates have so much importance, how do they get measured?

Conversion Rates and Lead Value

Without measuring the results of your efforts, how do you know what works or how you can improve? Approximately 97% of company marketing efforts fail without useful analytics or without tracking results. You will have a better chance for success by calculating the percentage of your conversion rates and lead value.

What is Lead Value?

Lead value is learning the total value or your leads to make more educated decisions to acquire more.

There are three different types of leads a company can have:

  • Information Qualified: leads at the beginning of the buyer‘s journey (or the awareness stage).
  • Marketing Qualified: leads in the middle of the sales funnel (or the interest or decision stage).
  • Sales Qualified: leads at the bottom of the sales funnel (or the action stage).

How to Measure Conversion Rates and Lead Value

Conversion rates and lead value get measured with the following formulas:

Conversion Rate = Total Number of Sales / Total Number of Website Visitors x 100

Lead Value = Value of Sale / Number of Leads

There is even a calculation for how many leads you need to get the results you want.

Needed Conversions = Desired Revenue / Lead Value

What is a Good Conversion Rate?

Out of 4,372 home improvement websites, there were a total of 977,200 conversions. So, what would that mean about their conversion rates?

The median conversion rate of landing pages for businesses across all industries is 2.35%. The top 25% of websites convert at 5.31% and above, while the top 10% convert at 11.45% and above.

The overall median conversion rate of landing pages for contractor businesses is 2.6%, while top performers have a median conversion rate of 19.5% (based on the top 25th percentile).

Here is a breakdown of the home improvement industry’s four subcategories and their median conversion rates:

  • Home Services = 4.0%
  • Home Renovation = 2.1%
  • HVAC and Utilities = 2.2%
  • Pest Control = 3.1%

According to reports, landing pages for renovations underperform in home improvement. However, the best performing subcategory is home services, with a 1.5x higher conversion rate.

Now that you know all about the importance of conversion rates, here are steps you can take to improve yours.

Ways to Improve Your Conversion Rate

Website Optimization

According to statistics, approximately 48% of people say that a company’s website design is a top factor determining its credibility. Here is a list of other factors that affect a website’s conversion rates.

  • Speed: For every one-second delay in a site’s load time, conversion rates fall by 12%.
  • Approximately 82% of people will not browse unsecured websites.
  • Mobile-friendliness. Approximately 61% of mobile searchers are more likely to contact a local business if they have a mobile-friendly site.
  • A website’s conversion rates increase by 200%-400% with a well-designed interface.
  • High-Quality Images and Video. A video on a landing page increases conversion rates by 80%. Five different videos to have on your website include a company profile video, customer testimonials, How-To videos that answer common questions, animated videos that easily explain comprehensive services, and technician introductions.

SEO and Content Marketing

Search engine optimization (SEO) is the process of getting your website ranked higher in online search results for keywords and phrases most valuable to you.

Statistics prove that SEO and content marketing can significantly improve a company’s success and increase its conversion rates if done correctly. Have a look.

  • Approximately 82% of customers look at companies more positively if they have custom content.
  • Approximately 74% of companies’ number of leads and the quality of leads increased with implemented content marketing strategies.
  • Approximately 70% of consumers prefer to learn about a company’s products or services through content and articles rather than ads.
  • Content marketing costs 62% less than outbound marketing, and it generates more than 3x as many leads.
  • Approximately 52% of marketers state that SEO generates more leads than other marketing initiatives.

A website gets ranked in Google based on over 200 ranking signals. Some of the most important of these signals include content quality and length.

The most effective content length varies for the four home improvement subcategories previously mentioned. Home Services does best with content at around 300 words, while HVAC and Utilities convert best with content under 200 words. Pest control is good with between 400-500 words.

Top 3 Strategies for Improving SEO

  1. Ensure your website has current information for your company’s name, address, and phone number (NAP). Determine NAP consistency across current company listings.
  2. Social Media. Create social media profiles for your company, especially on Facebook, for three reasons:
    1. To own your online real estate (including your website, social media profiles, pay-per-click (PPC) ads, Google My Business listings, and featured snippets in search results).
    2. Customer service on social media is taking over. (Besides, approximately 75% of contractors use social media to promote themselves).
    3. (SM allows you to respond and thank those who gave positive reviews and rectify the problem behind the negative ones). Approximately 88% of people trust online reviews as much as personal recommendations, and personal recommendations increase conversion rates by 5.5x!
  3. Create Free Company Listings. Create listings in Infogroup, Citysearch, Localeze, Best of the Web, Acxiom, Factual, Yelp, YP (Yellow Pages), Superpages, Foursquare, and more.

Approximately 72% of consumers say positive reviews make them trust a business more, while 90% say online reviews influence their purchases. High reviews/ratings help you land in the “local pack” on search engine result pages (SERPs). But how can you effectively and consistently get reviews?

Online Review Generation

It is perfectly acceptable to ask for reviews. You can send out emails or add a CTA banner to your website requesting a review. Remember to make the review process easy by providing directions, offering guidance, giving thanks, and leaving an alternative. Ensure you respond to existing reviews—even the bad ones. While responding to a bad review, make sure to take responsibility, implement any necessary changes, end on a good note, and rectify the problem privately.

Some honorable mentions to improve your website’s conversion rates include: conversion rate optimization (CRO), call tracking and analytics, Google Local Services Ads, email marketing, using more than one call-to-action (CTA), Facebook ads, and Google ads.

By implementing the above information into your company’s day-to-day operations, you will be sure to see your website’s conversion rates significantly improve.