When we met with our Certified Professional Builders in July 2017, a lot of the discussions in the boardrooms focused on lead generation.
So why did these builders end up spending 12% less in advertising their building companies than they did in Quarter 2?
Answer: They got smart!
…and managed to generate 17% more leads by spending 12% less cash….which in real terms means their cost per lead dropped from $42.89 in Quarter 2, to a mere $32.41 in Quarter 3!
That is a pretty impressive performance, especially when you consider that all of these builders are running Google Adwords campaigns, where the cost per lead is generally closer to the $100 mark!
If we look back at what the same group of builders did in Quarter 3 last year, their performance is even more remarkable.
Advertising spend is virtually the same, but leads are up by over 100%! During Quarter 3 in 2016 the average cost per lead was $66.02. This year, at just $32.41, it’s less than half the amount! That’s a 51% reduction in the cost of acquiring leads, which means all those savings flow straight through to the bottom line.
Lead generation is critical for most building companies just to keep their doors open, but for these builders who are signing contracts at significantly higher margins than ever before, it’s simply going to fuel even more profitable growth.
And speaking of growth, the signs are looking good with total workflow (the uninvoiced value on signed contracts) up by 35% on Quarter 2. Which means Quarter 4 should be another record breaking month for revenue.
Congratulations to all of our Certified Professional Builders. We’re proud to be partnering with you and we can’t wait to see how you guys perform in the final quarter of the year!
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