• 31% visit a search engine, searching without a specific brand or business in mind
• 30% look up a business in print in the phone book
• 19% use Internet directories
• 11% look at local search sites like Google Maps (driving directions)
• 3% get their information from a newspaper or magazine

Sure the phone book still ranks second among avenues for prospective customers, but taken in total barely one-third actually use print media to find businesses anymore. And you can feel confident that these numbers will continue to decrease. The phone book of the future will be uploaded, not left on your doorstep.

Source: Small Business Trends

Now that you’ve set up your tracking system, let’s look at why and what you should track.
Testing is the “’life blood” of direct response marketing. Testing is critical for all DR Lead Generation customer acquisition channels. If you don’t test, how do you know which are your best offer(s)? Your best list? Or your best creative package?

If you continuously use the same images, the same offers in the same vehicles – consumers will eventually see you in the same light as the furniture store that’s been going out of business for the past 7 years. There will be no urgency to “act now” in your message. “Sally, we don’t have to call for

“Nth” select testing is the best methodology. By “Nth,” I mean every other piece is the test, every 3rd, every 4th, every 5th, etc. You maintain your testing selection throughout the universe you’re using. If the “Nth” select is not practical in the medium you’re using, while not totally scientifically perfect, you can also use an even/odd zip-code test, different radio/TV stations within the same market can yield valid testing results.

What do I mean by “element?” 1) Graphic design, 2) Offer, 3) Target audience, list, magazine, broadcast station – these make up the Marketing “Triangle.” If you’re testing the graphic design – the offer and target audience have to remain the same. If you’re testing different offers – the graphic design and target audience have to stay constant. You get the idea.

Next, you have to have statistically significant response numbers to be valid. Example: you tested and have twice as many responses from effort “B” as you do effort “A.” Great, you found a winner. Or did you? You got 2 responses from “B” and only 1 from “A.” Theirs is statistically insignificant responses to make any decisions.

The following are annualized results on various tests conducted over a period of a couple of months each. Of course this was over an entire region of the country encompassing 5-6 states. But I believe you can reduce the revenue gains down to a local level and still clearly see the potential benefits of conducting tests for your company.

NOTE: The lowest CPL or best Response % doesn’t always reflect the best ROI

NOTE: For those “math-letes” who are 110% scientifically inclined — if you have a local university handy, you might ask a professor in the math department to write you out a simple spreadsheet with the Chi-squared formulas built in. If you enter your known or “control” response percent and the “confidence level” you want for your test, the macros will tell you how many pieces you have to mail to attain the test results. The higher the confidence level the larger the test and control quantities will be. Depending on how radical your test, this could be a big and expensive gamble. For an initial test, I’d generally recommend a confidence level of 65 – 70%. If the test “beats” your control, then next test should be larger, maybe 75-80%. If the test still wins, I’d consider you either have a new “control,” or you have a test that equals your current control so you can alternate these packages and neither will “fatigue” as quickly.

It’s 2009, you cannot expect different results if you continue doing the same things. Test and see if you can beat your current “control” creative, offer or find a new audience for your products and services.

Following are some tips to help you write an effective company bio:

1. Who is reading it? It is not just homeowners and clients that will read your company bio. Depending on your business, you may want to target possible investors. Your bio should also stand out to local media outlets who may be looking to profile unique local businesses (i.e., free advertising!). You bio should be engaging to a wide spectrum of readers.
2. Useful information that is easily understood. A slew of industry jargon may be fascinating to other contractors, but they are your competition. Instead try to provide useful information, explaining what your company does and how you do it better than the rest, in layman’s terms that anyone can understand. Be clear and concise, if there is any confusion about what exactly you do, readers will most likely move on to some other company’s website.
3. Personality. In addition to describing what, exactly, your company does, try to convey an idea of the company’s personality or culture. That is, exemplify company traits such as community involvement, your mission, values, etc. A focus on the human side of your company will help readers relate and grab their attention.
4. Stand Out. Let the reader know what your company does that makes you different from the competition, including what you do and, more importantly perhaps, how you do it. This could include any awards or honors your company may have received. Also include aspects of your unique company history, such as the company’s rank-and-file beginnings or family legacy.

Your company bio may be the most important piece of literature you ever write, so be sure to take your time and do it up right. Pass it around to employees, family, friends, repeatedly asking the question: “Would you choose my business based on this profile?” Don’t be afraid to check out the competition and look for things that you do — or ways in which you do the same jobs — that is different and stands alone in your community.

But it is work.

While the article in Money Magazine is geared toward homeowners, there are some important lessons for contractors as well. Mainly getting to know the homeowner in today’s market. Even those with the means to put on a new roof or expand the master bedroom are thinking twice about it. For a few reasons:

• the return on investment is at a low point in the current housing market
• the future is incredibly uncertain

Fortunately, however, there are more reasons why homeowners who can, should remodel:

• material costs are falling fast (especially for oil-based products such as vinyl, asphalt)
• smaller, necessary “fix-ups” still need to be done
• increased competition means lower prices, more concessions
• putting money into the home now, while costs are low, will help the home maintain its value

Still, it’s a very touchy game on all sides. Contractors desperately need work, homeowners still need or want upgrades, but the housing market is not finished declining. It is therefore very important that homeowners understand which projects will have the best return on their investment and will likely be meticulous about choosing a project and a contractor, as the Money article itself encourages.

As a contractor, being able to understand and answer homeowner concerns regarding payback, efficiency, and long-term benefits may just be the key to getting hired. The majority of homeowners will be fully aware of their newfound power to persuade. Instead of coming into the conversation resisting this fact — with a salesman’s attitude so to speak — come in understanding it. Show the homeowner that you can save them money, perhaps by encouraging the use of current low-cost materials. Even if your bid is a bit higher than the next guy, if you’re confident, honest, and able to ensure their satisfaction, well that’s a foot in the door right there.

It will also be important to be clear and concise with your bid. Homeowners will want itemized bids and proof of licenses, insurance, and other documents. Interviews will be longer and more detail oriented. Having answers to these questions is vital. Also, if a homeowner is NOT asking these sort of questions, you can volunteer the information and encourage them to be aware of suspiciously low and vague bids from other contractors.

You must also be ready to offer a price break. In a survey, 70% of contractors said they would offer at least a 10% discount on work. The remaining 30% went even further.

These are tough times for the economy and subsequently complex times for bidding remodeling work. Doing the homework is as important as ever. There is a different brand of homeowner now, different from even a year ago. That is how volatile the market is right now. But so far as it goes, remodeling contractors are sitting relatively well right now, if certain forecasters are right. It is a surprisingly good time to remodel. But the ball is in the homeowner’s court and developing trust and a good rapport is as important as ever.

I spoke with the general contractor and owner of a construction company recently. He spoke about how he is giving out his personal cell number and answering all calls. In a fairly rural area, he is willing to drive a couple of hours each direction to give estimates if it leads to more contracts. He has a crew to keep busy, and he knows they depend on him to generate business for their own livelihoods. Not only must the small business owner carry the burden of their own finances in this economy, but those of their employees as well. As this contractor realizes, he must be available at all times to potential clients to make sure he doesn’t lose any prospective jobs.

Using this same company as a firsthand example, they have also increased the amount of services they provide. They have implemented high-tech software to facilitate plan drawing and design, created a website integrated with local real estate companies, and volunteered their services at a few high-profile community events. This progressive approach to advertising has helped their reputation and made their company name more recognized throughout the community.

The key to customer satisfaction is quick follow-through and reliable service. If someone experiences a problem with a job you’ve done for them, the longer they have to deal with the inconvenience, the more resentful they become of you.

If times are slow for you right now, resist the temptation to charge more for your services. Homeowners know there are a lot of hungry contractors out there, and they have their pick of the cream of the crop. Remember, customer satisfaction is the key to repeat and referral business.