Understanding the Home Services Customer Journey
| 2060 DigitalWith an addressable market of more than $600 billion annually, the home services market offers ample opportunities for businesses to grow. This article focuses on key consumer data that marketers need to know.
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The home services industry is robust and resilient. When reviewing the economic data, it's not just the sheer size – a total addressable market of more than $600 billion annually – but also the rate of growth that stands out. Despite less-than-favorable economic conditions and higher purchase prices, the home improvement market grew a staggering 26% from 2022 to 2023. These data points prove that the size of the industry’s pie is growing. So, how do home services businesses get the biggest piece?
Marketing strategies in the home services category differ from those in other industries. There are very few impulse purchases, and building brand awareness and trust is critical to capturing new business in the future. Our proprietary research shows that months (and in some cases years) represent the standard conversion timeline in this space., and businesses must optimize their marketing budget by aligning their approach with the unique aspects of this sector’s customer journey.
This article reveals valuable insights into the home services customer journey and explores how marketers can use this information to attract and keep more clients.
Why 60% and 88% Are Key Metrics
From HVAC maintenance to window installation, home services are investments that increase property value and add longevity to critical home infrastructure. And businesses in the industry have plenty of opportunities to capitalize on these services — 60% of households paid for home services in the past 12 months.
If you've ever hired a company to work on your home, you know the pain of navigating a sea of businesses when you're unfamiliar with the industry. Most homeowners are selective and seek out companies they trust before scheduling a service. Data insights reveal the first step in establishing credibility is cultivating familiarity. Nearly 88% of home services buyers say prior awareness of a brand is important. It pays to be known!
Homeowner Bob's Customer Journey
To illustrate the importance of understanding the customer journey, we'll examine the hypothetical process that leads Bob (a fictional homeowner) to hire a local plumbing company for a sewer line repair. Keep in mind that the same customer journey phases, strategies, and principles apply to a range of home services businesses.
Seeing & Hearing
Bob purchased his home a few years ago, and so far, it hasn't needed any major repairs. While he isn't currently in the market for a home services business, he's passively observing various companies in his area that may be able to help with his “gotta fix it eventually” list. Bob knows it's only a matter of time before something goes wrong, so when he sees an ad or commercial, he pays attention.
During the seeing and hearing phase of the customer journey, businesses should focus on instilling brand recognition and building equity with prospects. Though it might be months (or even years) before an audience member converts, the process begins long before their services are necessary.
Trigger Moment
It all started with a small amount of water in the corner of the basement. While it wasn't a full-blown disaster, it was cause for concern. Bob began thinking about calling a plumbing company to come check it out before things got any worse.
The "trigger moment" is a critical stage of the customer journey. An event has changed how someone engages with the service category, and brands have a brief window to make a significant impact. The marketing goal during at trigger moment should focus on relating to the moment and presenting themselves as a solution.
Researching
Bob had never used a plumber in his new area, so he started the search process like any reasonable person: by Googling "plumbers near me."
With so many options to sort through, he began researching the five plumbing businesses at the top of his search query. As he searched, he recalled seeing one of the brands — Paul's Plumbing — somewhere before. Bob didn't remember where he'd seen them (hint: it was a social media ad), but it must have left an impression. With some baseline of familiarity, he clicked on their website to learn more about their business and its services.
The researching phase, in which the audience educates themselves on the businesses that can provide the services they need, allows brands to display their expertise. This stage is the ideal time for companies to differentiate themselves from competitors. The primary marketing focus should revolve around being present, reliable, and trustworthy.
Deciding
After an exhausting evening of comparing reviews, reputations, and websites, Bob was on to the final stage in the customer journey: deciding. He'd narrowed down his options to the businesses with the best reviews from local customers and ended up scheduling an appointment through Paul's Plumbing's website.
In an industry where several businesses offer similar services, the difference can be, and often is, as simple as, "I've heard of them before, they’re in my price range, and they seem capable of doing the job."
The deciding phase is a brand’s last chance to make an impression. By reinforcing their capabilities and competitive advantages – often through a well-designed website or social media channel – consumers start to feel like they "know" a company. That’s brand affinity in action.
Leveraging Consumer Behavioral Insights to Drive Action
The hypothetical story in this post underscores the importance of timing. At any given time, most people in a home services company's target demographic aren't ready to make a purchase. However, when the trigger moment occurs, the brands that have built up enough equity with their audience will get the call.
2060 Digital's extensive customer journey research helps brands promote the right message at each stage of the purchase process. Using proprietary data as the guide, we execute multi-platform campaigns that position businesses for growth. Contact the experts at 2060 Digital for insights into your industry's customer journey and see how we can help your brand stand out when it matters most.