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What is the conversion rate for a General Contractor receiving a lead from Home Advisor, Buildzoom, and Houzz's lead generation service?
Hello! Thanks for your question about the conversion rate for a general contractor receiving a lead from a lead generation service such as HomeAdvisor, Buildzoom, or Houzz. The short answer is that the lead conversion rate for these services is estimated to be around 5-10%. You'll find a deep dive of my research below.
METHODOLOGY
To respond to your request, I first looked at the previous response you received from my colleague to understand what they'd already covered and what could be improved upon. From there, I searched through industry reports, trusted media sites, company website, industry blogs, and other high-quality sources to either find the requested information or find a way to triangulate it more accurately.
INSIGHTS
Despite extensive searching, I was not able to find any thorough studies, polls, or other research on this topic that would give a "hard data" answer to your question, nor do any of the service in question publish such data about their metrics. That being said, I was able to find an estimate from an expert in the industry. Outbound Engine is a outbound marketing company working in real estate and home services, among other verticals. The company regularly publishes content that is relevant to this industry. In this blog post from the company's website, they discuss advice for general contractors using lead generation services. In the article, they estimate that the conversion rate when using these services is 5-10%, which is the best estimate that I could find. This is not far off from my colleague's estimate of 7.5%.
In addition, I found some other interesting data points during the course of my research. According to this source, contractors doing remodeling should expect a 4-5% conversion rate, on average, from their websites. So, based on what we know, lead generation services have a slightly higher conversion rate than websites. That said, this source found that 5:1 is a good "bid-hit" ratio for private contracting work in general. That's 20% conversion, so definitely higher than lead generation services, which makes sense. According to HomeAdvisor, contractors using the service earn $29 of revenue for every $1 they spend on the service, on average. According to Houzz, 58% of contractors using is service experience an increase in their conversion rates. Finally, this source says that referrals generate, on average and not industry-specific, a conversion rate of 11%. Moreover, this source says that 84% of consumers trust online reviews as much as referrals. So, if we assume sites like HomeAdvisor, that rely heavily on reviews, have a conversion rate equal to roughly 85% of that for referrals, that would be 9% or so, which corroborates our earlier estimates.
CONCLUSION
To wrap up, the estimated conversion rate for general contractors using lead generation services like HomeAdvisor, Houzz and Buildzoom is 5-10%. I hope this information is helpful to you! Thanks for using Wonder, and let us know if we can help you with anything else.