How to Better Manage Your Contracting Leads

Well-managed leads are, arguably, the foundation upon which a great business is built. 

But many contractors still aren't up-to-date on the best methods of lead management. It's common for those in the home improvement industry to stick with older systems -- writing out contact details by hand and tracking communications on paper. For years, this is simply how it was done. And you can't teach an old dog new tricks, right? 

Wrong. You most certainly can -- and should -- learn some new tricks about how to organize your contracting leads. Recent innovations have made the process of tracking leads more efficient and accurate. You no longer have to worry about misplacing contact information or forgetting about someone altogether (mistakes that are easily made if you're still doing business on scrap paper). Systems have been developed to help you manage potential clients and set reminders for when to contact them next, ensuring you're always on the ball. 

Here are some ways that contractors can manage their leads more effectively.

Invest in CRM software.

The name says it all: customer relationship management. CRM software is designed with the primary intention of helping business owners to organize their clients and better meet their needs. Many CRM systems provide tools not only for inputting contact information, but also for taking notes on client communications and planning future calls and emails. CRM also makes it easier to book appointments, schedule jobs, and analyze which marketing strategies are most successful at drawing in business. 

For more on how CRM can help you manage your current and prospective customers, check out our features.

Track your lead sources.

Part of crafting a more lucrative lead management strategy is understanding which of your lead creation sources are most effective. This can be achieved through better reporting and analysis of your marketing channels. Using resources such as Google Analytics, you can link up your marketing outlets to real-time reporting mechanisms, gaining access to charts and statistics that will let you know what's working -- and what's not. 

By knowing which forms of advertising are attracting the majority of your leads, you can shift your focus and funding towards those venues. Similarly, if you're more familiar with client behavior, you can get a better feel for how often and through what means you should be contacting them. This is about knowing what your customers want (and how to deliver it).

Respond to incoming leads ASAP.

Contractors who call new leads as soon as they come in have a much greater chance of making a sale. In fact, studies have shown that those who follow up with leads within 5 minutes are 9 times more likely to convert them. Why might this be? 

First, it's a good idea to call a lead while they're still in the mindset of hiring a contractor. Getting in touch with them immediately after they've opted in -- perhaps even while they're still on your website -- is a great way to show your interest in the job and make your move before they move on to something else. If you put off the call until later, you might end up catching them as they're walking out the door, or while they're on the other line with a competitor. 

Furthermore, it's been proven that about 50 percent of sales go to the first company that makes contact. We've all heard the expression: "The early bird gets the worm." In this case, the worm is a contracting job and, probably, a sizeable check. Waiting too long to call a lead can mean a loss of business, even if you offer a better value proposition than your competitors.

Treat every lead like gold.

Your leads are valuable. If they weren't, you wouldn't be spending so much of your precious time and resources on marketing. And when you fail to follow up (several times) with those leads, you're throwing away the fruit of those marketing efforts. 

Don't just call your leads once and then forget about them. Have a system in place for consistently reaching out to potential clients. Call and email them once a day, checking in to see if they'd like to set up an estimate or if they have any questions they need answered. Maintain contact until they give you a definitive answer about whether or not they'd like to move forward with the process. 

If you're feeling especially ambitious, you can follow up with leads on other mediums, as well. Some clients might feel more comfortable texting instead of talking on the phone. You can even add your leads on Facebook and follow them on Twitter, demonstrating that you're present and available via any mediums through which they might prefer to communicate. 

Some customers may react negatively to this, but the majority will see it as proactive, responsive salesmanship -- something that the industry is sorely lacking. Show your clients that you're willing to go the extra mile to earn their business.

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