So you’re Ready to Grow your Home Inspection Business?
Starting off the Traditional Way
Many Home Inspectors start off slow. Almost all of them follow the same path:
- Get the licence and insurance
- Register a company
- Get a logo and a home inspection kit
- Brand your car
- Hope someone calls
This is the 5 steps most home inspectors follow. It should be no surprise that they find difficulty acquiring clients in the beginning.
The idea is that after you get a few clients they would refer their friends to you when the time comes. That is a very slow way to build a business. To grow your business you need a lead generator that feeds the leads into a sales funnel. In the sales funnel you need a process to maximize your conversion rate. Turn these leads into customers. There are different ways of doing this but today I will talk about the way you can target the right audience and why that matters.
Focus on the Right Audience
This idea was first shared with me with a Marketing Guru based right here in Edmonton. He approached a startup I was working at offering his services for $2000 per day of consultation or becoming the VP of Marketing. He called this idea the “Temperature Theory of Marketing” it is as follows:
In any service that you are offering (including home inspection) all the people in your market fall on a scale. Just imagine a simple triangle like the one below.
At the top of the triangle there are only a few people and as you go down it gets wider with more people respectively. If you are in a city like Edmonton with 1 million people then all the people in this triangle add up to 1 million. Different services have a different triangle shape as the distribution of people from top to bottom will change.
The people at the top of the triangle are actively looking for what you have to offer. They are few, but they are also the ones that cost you the least to acquire and are your most valuable to acquire. The higher up a person is in this triangle the more they are searching for the service you have to offer. It would cost you a lot less to acquire this customer than someone at the base of this triangle. In addition, these people at the top are the ones that will spend the most money on your services.
What does this mean?
So, we briefly talked about the “Temperature Theory of Marketing” but what does this mean for Home Inspectors? Home Inspectors are following the traditional way of marketing, the traditional way focuses on everyone. When a Home Inspector brands their car and drives around the city, the message is getting splashed around to everyone. If 1000 people see the car in a day it’s highly likely that 99% of the people are “cold customers”. “Cold Customers” are the people at the base of the triangle that have little interest in home inspection at the moment. Same goes for distributing flyers to a neighborhood or sending out a radio or tv ad. The message simply splashes everyone and the business doesn’t realize any significant increase in business. The Return on Investment (ROI) is simply too low. It would be a lot more useful to spend less and target a smaller audience but have that audience composed of 99% “Hot Customers”. “Hot Customers” are the best customer type you can have, these are the people at the top of the triangle. Complement this with good branding and you will reap many rewards.
So now what?
Over the next few posts I will talk about what exactly is ROI and how do we measure it? I will also do a post on how you can target the right audience and get those “Hot Customers” all at the lowest Customer Acquisition Price.
Read on and learn how you can Grow your Home Inspection Business!
Your Edmonton Home Inspections Team