Competition Challenges to the Home Service Company
The Internet has leveled the playing field between large and small home service companies.
Small-to-medium-sized businesses can have a professional-looking digital footprint and run
effective and cost-efficient digital marketing campaigns on the same footing as the more
prominent players in the home service industry. A home business’ marketing strategy now
replaces size. Let’s look at three factors that contribute to the Competition piece.
Material in Short Supply – The National Association of Homebuilders (NAHB) said that 90% of
homebuilders reported material delays and shortages in 2021. These shortages in lumber and
steel are delaying projects already underway and are preventing home service companies from
taking on additional work.
Labor Shortages – The recent pandemic forcing people to work from home has helped to
lessen the stigma of an individual running a home business. The home service industry has
benefitted from the “Great Resignation” atmosphere. Unfortunately, this benefit has allowed
more people to enter the home service business arena, causing a labor shortage of
experienced, trained personnel.
Inflation – Rising inflation is playing a part in the home service business. Homeowners find it
hard to allocate the necessary funds to maintain, service or modernize. Inflation forces the
home service company to run lean and delay adding new services and staff or upgrading their
existing or aging equipment.
Hiring a knowledgeable digital marketing firm can help offset the competition’s challenges.
Marketing Challenges to the Home Service Company
Many home service business owners are proficient in their craft but lack a basic understanding
of digital marketing concepts. Digital marketing, also known as online marketing, refers to
advertising tactics employing digital platforms such as Facebook, Instagram, and Google Ads.
The prospective consumer sees many home services as intangibles until the service is delivered.
Lastly, the home service company businessperson likely has a limited budget and needs to
know their money will be well spent and positive results will be forthcoming.
Basic Understanding – According to Cloudwards, 2.14 billion people shopped online in 2021.
It’s more critical than ever for companies to have a presence online. You’ll know you’ve found
the right digital marketing firm when they clearly explain the importance of employing digital
marketing best practices such as branding, messaging, strategy, platform selection, timing,
budget, and analytics.
Intangibility – The benefits of most home services are intangible until delivered. Customers
cannot see or smell the clean carpet, look out through the sparkling clear windows, or enjoy the
fresh paint in the living room or kitchen. The service person is often selling themself first and
their company’s reputation second. Social media videos and images help to close that
Marketing Budget – It’s hard to measure the effectiveness of a home service radio spot,
billboard, newspaper, or Yellow Page ad. The number of eyes that saw the ads are unknown.
The success or failure of a digital marketing ad can be known for certainty without throwing
good money after bad. Platforms such as Facebook, Instagram, and Google provide analytics
and insights that give almost instant awareness of how an ad’s performing.
Hiring the right digital marketing company makes all the difference in limiting the effects of
Competition and Marketing challenges on the business. The expert digital marketing team at
Salty’s Media helps home service business owners understand and apply proven online
marketing tactics that produce positive results.