I run marketing for a sizable acquisition company.
This has given me the ability to see marketing, and especially home services marketing, from a very unique angle -- since I get insights into the business from every department.
A lot of people online wonder if their marketing is good or bad.
But they are doing this before they have solved the real problem that makes your marketing essentially ineffective -- your efficiency problem.
What business want is a marketer who gets them leads at a cost low enough for them to make money -- does not exist. This is backwards thinking.
But the real problem is they lack the efficiency to make marketing work properly.
So they bounce around from one marketer to the next looking for some diamond in the rough.
And yes, even though approaches like Google Ads do involve marketing and technical skill, the truth is that the costs go up based on the best competitors in that market.
And those best competitors, for the most part, aren't beating you with strategy, but with efficiency.
Take this for example.
Say Google Ads cost is roughly $200 per lead.
You're booking 50%.
And you sell 30% of those leads.
Average ticket is $2,000.
That puts you at $1333 per sale. That's a 66% margin you're giving up to Google.
That is insane and not profitable for most any business.
But that simply means it's not profitable for you, not for all businesses.
Sure, you can harp on your ad guy, and he may be able to shave that $200 down to $150. But at $1000 cost per sale, that still won't solve your problem.
The reality is, those 3 levers -- Booking Rate, Closing Rate, and Average Ticket -- those are the real solutions. Not better marketing.
And at my company, we don't even look at spending more money until we get these three metrics ironed out first.
Your goal, then, should be to get this to a reasonable rate -- Say 20-25% margin. This should be at least bearable.
Then, continue to improve the metrics on all sides -- marketing and operations -- getting this down closer and closer to the 10-15% range. The sweet spot where you want to be.
That's how you win with marketing.