Marketing and lead generation trends in the Decking & Patio Industry for 2024
15 Min to Maximize Deck and Patio Business Leads Through Strategic Marketing Approaches The deck and patio industry is experiencing significant growth, with outdoor living spaces becoming increasingly popular among homeowners. According to the National Association of Home Builders (NAHB), 70% of homebuyers consider outdoor living spaces essential or desirable. However, despite this growing demand, decking companies face intense competition to find deck leads. Traditional deck builder marketers’ tactics like direct mail campaigns and print advertising are becoming less effective. For instance, the average response rate for direct mail campaigns is just 4.4%, as estimated by the Data & Marketing Association. In response, decking businesses are turning to digital marketing strategies for deck builders. These strategies offer cost-effective and measurable ways to reach potential customers. This blog explores how data-driven decision-making can help decking companies thrive in the modern market. Understanding the Current Landscape of Decking Business The decking business is shaped by evolving consumer preferences and technology. Understanding market present and future trends and competition is crucial for deck construction companies to navigate effectively. Market Trends: US outdoor decking demand is projected to hit $7.1 billion by 2024, driven by increased spending on outdoor spaces. 56% of homeowners plan to add or upgrade decks, indicating substantial market potential. Sustainable, low-maintenance materials like composite decking are in high demand for deck construction. Competitive Dynamics: Decking industry is fragmented, with small local contractors to large national manufacturers. Top four players collectively hold <10% market share, showing a decentralized landscape. Differentiation through product quality, customer service, and effective marketing is key. Technological Advancements: Digital platforms like Houzz, Pinterest, and Instagram are influential for research and inspiration. Mobile devices play a significant role in decision-making, with 51% discovering new products through searches. Understanding these trends helps deck contractors, and companies identify growth opportunities and develop effective deck builder marketing plans to find deck leads. We’ll explore traditional and digital marketing approaches and their impact on lead generation and business growth. Traditional Marketing Strategies for Decking Companies Traditional marketing has been a cornerstone for decking companies in attracting customers. While effective historically, its impact wanes in the digital age. Nonetheless, understanding and assessing traditional marketing’s relevance in the decking industry is crucial. Direct Mail Campaigns: Direct mail involves sending promotional materials like postcards or flyers to potential customers’ mailboxes. According to the Data & Marketing Association (DMA), direct mail to a house list boasts a response rate of about 9%, much higher than email at 1%. However, costs, including printing and postage, average $23.50 per response. Print Advertising: Advertising in newspapers, magazines, and trade publications remains influential, with 82% of adults trusting print ads for purchase decisions (NAA). Effectiveness varies based on demographics, circulation, and ad placement. Trade Shows and Events: Participating in trade shows allows companies that build decks & porches to showcase products, network, and generate leads. The Center for Exhibition Industry Research (CEIR) reports that 81% of attendees have buying authority, making trade shows effective for business development. Additionally, 99% of marketers find unique value in trade shows. Though traditional strategies have merits, they pose challenges like high costs and ROI measurement difficulties. Next, we explore data analysis to evaluate their effectiveness and the shift toward digital-centric strategies. Analyzing the Effectiveness of Traditional Marketing Approaches Decking companies commonly utilize traditional marketing methods, necessitating a thorough examination of their efficacy in lead generation and business expansion. Employing data analysis enables businesses to assess the performance of these methods and make informed decisions regarding resource allocation and strategy enhancement. Cost per Lead (CPL) Analysis: CPL evaluation is crucial for determining marketing campaign efficiency. It entails dividing total campaign costs by the number of leads generated. For example, a $5,000 direct mail campaign yielding 100 leads results in a $50 CPL. By analyzing CPL, businesses can compare the cost-effectiveness of various marketing channels, with average CPL ranging from $11 to $100 across industries. Conversion Rates and ROI: Conversion rates reflect the percentage of leads resulting in desired actions like sales. For instance, a print advertising campaign generating 100 leads, with 10 leading to sales, has a 10% conversion rate. Calculating ROI involves comparing campaign revenue to costs, with a positive ROI indicating profitability. Analyzing these metrics helps identify high-return channels and optimize resource allocation. Customer Acquisition Cost (CAC): CAC measures the average expense of acquiring a new customer through marketing efforts. It’s calculated by dividing total marketing expenses by the number of new customers acquired within a specific period. For example, spending $10,000 on marketing in a month resulting in 20 new customers yields a $500 CAC. Evaluating CAC aids in optimizing marketing strategies for cost-efficient customer acquisition. Utilizing data analysis techniques like CPL assessment, conversion rate analysis, and CAC calculation provides valuable insights into traditional marketing effectiveness for decking companies. Next, we’ll explore the transition to digital marketing strategies and the opportunities they offer for lead generation and business growth. Transitioning to Digital Marketing Decking companies increasingly adopt digital marketing to overcome traditional marketing challenges and find deck leads. Digital marketing strategies for deck-building companies offer cost-effective ways to target ideal customers precisely. This article delves into key strategies supported by data. Website Development and Optimization: A well-designed website is crucial for credibility. Stanford University research indicates 75% of users judge a company’s credibility based on its website. Moreover, Adobe data suggests 38% of visitors leave if the site is unattractive. Investing in website development enhances visibility, credibility, and user experience, driving lead generation. Search Engine Optimization (SEO): SEO Services for Deck builders can boost their visibility in search results, driving organic traffic. BrightEdge data shows organic search contributes to 53% of website traffic. HubSpot research highlights 61% of marketers prioritize improving SEO. Optimizing content and technical elements increases the chances of ranking higher in search results and attracting qualified leads. Pay-Per-Click (PPC) Advertising: PPC ads target potential customers on digital platforms, paying only for clicks. WordStream data indicates businesses earn $2 in revenue for every $1 spent on Google Ads. Statista