The biggest challenge for remodeling companies, including door and window dealers, is lead generation. In a recent webinar, “Turning Data into Dollars,” offered by Tim Musch, director of business for MarketSharp, 75 percent of remodelers said consistent lead generation was a top concern.

Additionally, 13 percent said closing sales, 5 percent said production issues and 7 percent cited “other” concerns.

So how can door and window dealers and remodelers begin to tackle these challenges? Musch says it’s important to know the value of each lead. According to recent statistics, he notes the average cost of a lead is $327.22.

“Many of you do direct mail, or canvassing,” he says. “This is what has come up to be the average number.” Of the webinar attendees, 33 percent were unaware previously that was the cost per lead.

There are five Rs Musch says can help door and window dealers and remodelers manager their leads: radius, recycle, referral, repeat and report.

  1. Radius: Try to get word-of-mouth by offering an incentive for referrals, mail postcards to neighbors to showcase jobs and ask customers to display a yard sign with your information, saying something such as windows installed by (Your Company) with contact information, suggests Musch.
  2. Recycle: “Ten leads will net you three sales. Of those other seven, 4.2 (or 43 percent) will buy within the year,” he adds. Go back to some of the customers who said, “Not now,” previously. “I suggest you contact these unsold leads at least a couple of times within the first year,” says Musch.
  3. Repeat: Go back to and maintain contact with past customers. You don’t know when they could need repeat services. Musch recommends staying in touch with something as simple as a newsletter.
  4. Referral: Happy past customers lead to referrals. Additionally, Musch says you shouldn’t be afraid to ask those happy customers to refer you to friends and family. If they are pleased with your work, they won’t have any problem telling people about you.
  5. Report: Establish a report of past lead generation to review how you’re doing, says Musch. Refer back to it and compare you current data regularly so you can maintain an accurate view of where you stand with leads and conversion rates.

Finally, Musch broke down how many jobs you could get annually but employing these five Rs:

  1. Radius: “If you get on extra job for every four jobs completed with consistent radius/proximity marketing, that’s 50 new jobs.”
  2. Recycle: “Convert 15 percent of unsold leads to sales; that’s 60 new jobs.”
  3. Referral: “Generating one referral sale from every five jobs makes 40 new jobs.”
  4. Repeat: “Cross-sell 10 percent of existing customers (assuming 600 customers) additional future interest items that makes 60 new jobs at a $3,000 average.”
  5. Report: “Generate 10 percent more sales by being smarter; that can equate to 20 new jobs.”

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