The Rhoad Less Traveled
Trends in digital marketing that people should be talking about but are not
Maximizing Profit in Digital Marketing: A Guide for Home Builders and Contractors
In the ever-evolving world of digital marketing, the emphasis has often been on volume: promoting more, selling more. Yet, at Rhoads Creative, we champion a different mantra that aligns with our “data-first, digital-always” ethos. It’s not just about selling more but about selling what’s most profitable.
Understanding Profit Margins in Digital Marketing
Every home builder and contractor knows the value of a good profit margin. Yet, when it comes to digital marketing, this crucial metric is often left out of the equation. But here’s the thing: understanding and leveraging your profit margins should be a central component of your online strategy.
Being transparent about your margins with your marketing agency – yes, even us at Rhoads Creative – is vital. It allows us to tailor our strategies to what makes you the most money for your time. Suppose a particular service you offer has a niche audience but yields a high profit. In that case, our role is to design a strategy that targets that specific demographic, no matter how small. On the other hand, if one service is incredibly profitable and another less so, but you can sell ten times the latter, sharing this data equips us to create projections and fine-tune our approach.
Strategizing Based on Margins: Real-world Applications
Let’s delve into some practical examples:
For the New Home Builder: Imagine you have a housing community that offers a low-profit margin. We’d suggest front-loading the budget rather than a steady, prolonged marketing campaign. The objective? To sell homes rapidly, reducing the time (and money) spent on marketing.
For the High-end Kitchen Contractor: If your profitability triples for kitchen projects exceeding $100k, targeting a specific audience is essential. By analyzing data, we can pinpoint demographics such as homeowners in upscale neighborhoods or professionals in high-paying jobs. This ensures your advertising dollars are spent reaching those most likely to invest in such projects.
The Importance of Reporting and Incorporating Margins
At Rhoads Creative, we believe your data should not just exist but should actively work for you. Folding profit margins into your digital marketing reports is a step towards that. When reporting conversions, it’s crucial to detail which service or home type these conversions pertain to.
But don’t stop there. Trace each conversion from the initial contact point to the project’s completion. Assess the amount spent on marketing for that specific lead versus the profit generated. By doing this consistently for each project, you’ll gain invaluable insights into the ROI of your marketing endeavors.
At Rhoads Creative, our team lives at the forefront of new technologies and trends, ensuring our clients always have a competitive edge. We’re not just your agency; we’re the teammates down the hall, committed to your mission, values and objectives. Ready for a smarter approach to digital marketing? Let’s elevate your profitability together.
"100 terms on page 1 of Google in under 3 months – and home sales are soaring!"