The home services industry faced many challenges last year, and this year appears equally demanding. 2023 represented the weakest housing market since the depths of the housing bust that brought about the Great Recession. Homeowners pulled back spending from the unprecedented post-pandemic demand levels of 2021 and 2022. Now, as we head into 2024, the sector continues to grapple with economic uncertainties, labor shortages, heightened competition, and technological shifts, notably from AI.
We spoke with Anthony Milito, director of product marketing at Jobber, a leading field operations software provider, and Corey Halstead, co-owner of Halstead Media, an agency dedicated exclusively to home services clients, to learn how home services businesses are continually evolving while meeting consumer expectations. Here are the top home services marketing trends we discovered.
Which new marketing channels or tactics should you test in 2024?
Jobber recently conducted a study on marketing tools with customers, revealing that nearly 7% of home service businesses don't do any marketing at all. If that's you, consider prioritizing Google rankings and automating review requests.
With the return to pre-pandemic levels of demand, Corey Halstead emphasizes the importance of effective marketing strategies and sales processes for success.
What popular trends will continue into 2024?
In 2024, the ongoing trend of focusing on video content for home services, driven by platforms like TikTok and Instagram, is set to continue. Utilizing a combination of organic search strategies and hyperlocal SEO techniques, complemented by showcasing work through videos, will play a pivotal role in attracting high-quality leads, and effectively converting them into satisfied customers.
How is home services marketing different from other industries?
Home service businesses focus on serving hyper-local areas to establish a strong customer base. Word-of-mouth referrals are crucial, and exceptional customer service helps build trust and loyalty within the community.
New businesses in this sector often face challenges with profit margins that can be very tight, as they strive to establish themselves in the market. Landscape contractors, for instance, tend to focus on larger outdoor projects that require detailed planning and execution. Unlike immediate service needs such as plumbing emergencies, these projects usually involve more in-depth project timelines to ensure the best outcome for customers.
What challenges do you see coming in 2024?
Prospective agency clients now seek comprehensive marketing solutions with a well-rounded approach to digital marketing, shifting from a la carte services to a comprehensive strategy. The rise in new businesses has led to increased competition and more expensive advertising, emphasizing the need for early adoption of technology to enhance customer experiences.
However, this heightened competition in platforms like Google and Facebook drives up costs, requiring a focus on monitoring marketing spend and return on that investment.
How do you feel about using AI in marketing?
Home services professionals often venture into the industry out of passion for homes, expertise in working with physical products, and dedication to exceptional work for customers—qualities AI cannot replace. However, AI can assist with marketing tasks like regular content creation and internal organization, offering opportunities for efficiency and resource management in construction and design.
Key takeaways
The home services industry continues to evolve in response to economic uncertainties, labor shortages, increased competition, and technological shifts. As we move forward, it’s important for home services businesses to embrace new marketing channels, prioritize their Google rankings, leverage technology, and move into things like video content.
Contractors need to adapt to digital marketing and AI, maintain their human touch, and constantly monitor expenses. Success in 2024 requires embracing trends while upholding the timeless values of service excellence and community trust.
