How Do Contractors Get New Leads in 2020?

Today's digital world gives contractors access to many new tools for building their business. But are they taking advantage?

Daisy-Daisy/Getty Images

Over the course of the last decade, technological innovation has left an unmistakable mark on the way human beings operate on a day to day level. Both the positive and negative impact of that innovation can be felt in nearly every aspect of your daily life. Technology now influences how we eat, how we play, and perhaps most significantly how we work.

Despite the fact that the construction industry is traditionally a world that is slow to adopt new practices and technology, the digital age has still managed to significantly change the way modern contractors run their business. The internet offers a variety of new and potentially game-changing ways that contractors can grow their businesses, if they know how to take advantage of the new tools at their fingertips.

The Home Improvement Research Institute (HIRI) recently published a survey of 381 people across various construction and remodeling trades focused on finding out how much modern contractors are using the internet to get leads and find new business opportunities. The results show that while word of mouth is still the top resource construction professionals use to grow their business in 2020, other more tech-savvy alternatives have become more and more prevalent.

Here’s a quick look at the survey results, breaking down what kinds of resources contractors use to grow their business:

  • 88 percent use word of mouth.
  • 72 percent use home improvement websites or apps
  • 54 percent use social media
  • 51 percent use their companies’ website or app

It’s not particularly surprising that almost 9 out of 10 contractors still rely on word of mouth to promote their services. As mentioned above, the construction industry is typically known as a “late adopter” of technology, taking on the mantra of “if it ain’t broke, don’t fix it”. That’s why it’s such a refreshing sign to see that 7 out of 10 contractors are also now using home improvement sites (such as Houzz and Angie’s List) to gain new homeowner clients, and over half are creating social media accounts and company websites to achieve that same goal.

Other popular ways that contractors are getting their name out into the world include online review sites (44 percent) and company signage (43 percent).

Which Methods Pull in More Leads?

It’s clear that modern contractors are employing offline and online methods to grow their businesses. But which method manages to bring in the most new leads?

Apparently, the results are neck and neck. According to the HIRI survey, contractors said that 52 percent of their leads come from online resources, while 48 percent come from offline resources. This clear split indicates that both old-school and new-school methods for finding new leads are still viable, with each pulling in nearly the same amount of business. Home improvement websites or apps accounted for 42 percent of all online leads, more than social media, company websites or apps, and online review sites combined.

Less than 10 percent of all online leads came from online/mobile ads, online directories, and marketing emails. So while it is important to adapt your business to work with new technology, it is just as important to recognize which of these new innovations is actually actively benefitting your bottom line. Deciding which channels will best serve to broadcast your business is an important aspect of business strategy that should be carefully considered before investing in new tools.

Popular Videos