Since the impact of COVID-19, the home services market has skyrocketed in demand. Homes are no longer simply seen as a financial asset, they are now the hub of not only our personal lives but professional ones as well.
The pandemic has forced people to change the way they think about their homes, how they want to maintain them and the lifestyle they want to create within its space. Since people are staying home more than ever before, spending has shifted from eating at restaurants or traveling to renovations and HVAC services.
Therefore, the home service industry is experiencing a major transformation. Businesses both big and small are adapting to these changes quickly so they can evolve with the market, stay afloat and seize this new opportunity to grow like never before.
If you’re a home service business leader or thinking about starting one yourself, you might be wondering how you can climb to the top.
In this article, we will go over the most lucrative trends that are reshaping the home service industry and more, so keep on reading if you want the best chance of succeeding!
What Is the Home Services Industry?
The home service industry is a broad term that refers to a variety of businesses that provide services to homeowners and businesses. These businesses can include home improvement stores, home repair companies, landscaping businesses, and more.
This market is a vital part of the economy, and it provides a wide range of services that are important for keeping homes and businesses running smoothly.
The home service industry can be broken down into two main categories: residential and commercial.
Residential services are those that are typically performed in or around a home such as home repairs, painting, cleaning and landscaping.
Commercial services are those that are typically performed outside of a home such as office cleaning, window washing and construction.
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How Large Is the Home Services Industry?
The home services industry growth is unprecedented, and to really drive this point home, let’s look at some handyman industry statistics.
In the United States alone, it employs more than 12 million people and based on Verified Market Research, it is projected to hit 1.13 trillion in the next five years.
This is due to many factors such as:
- An increase in consumer spending on remodeling: The younger millennials are in their early 30s and buying houses, which increased the demand for remodeling.
- Homes have surged with equity: Mortgage refinancing has increased household cash flow and has consumers prioritizing their spending on their homes rather than other means.
- Cheap loans and low-interest rates: COVID-19 has caused a major spike in prices and inflation and has shifted how homes are being financed.
Entering 2021, the total addressable market (TAM) for home services is $595 billion— a 17 percent increase from $506 billion from last year.
This is further broken down across each of the three main categories:
- Home Improvement Spending at $376.9B
- Home Maintenance Spending at $157.7B
- Home Emergency Spending at $60.6B
Evidently, home improvement services are holding the most cultural cache. This is because this service focuses on the preferences of the homeowner rather than acting as an emergency service or a critical function for a home.
Since 40 percent of homeowners see it as an optional service, it shows that consumers still find this service just as much of a necessary lifestyle project as home maintenance and home emergency services.
The Trends That Are Reshaping the Home Service Industry
Now that we’ve identified what the hoe service industry is and just how big it has gotten in recent years, let’s go over the most profitable service industry trends that are reshaping the industry.
Volumes of Internet Searches Have Increased Across Numerous Platforms
The first trend that has changed the scope of the home service industry is the significant increase in internet searches. This is not only through, Google, but through multiple platforms such as Yelp, HomeAdvisor, Angie’s List, Houzz and others.
For example, in 2021, studies have found that nearly 60 percent of all home improvement projects will start with online research. This is up significantly from previous years and is a trend that is continuing to grow.
This means that homeowners are increasingly looking online for home service providers, as well as information on specific services they may need due to the convenience and amount of information that is readily available.
In order to reach these homeowners, home service businesses need to have a strong online presence and be active on multiple platforms. This will ensure that they are seen by potential customers and can generate leads that turn into sales.
Customers Are Now Contacting Home Service Providers Using Google My Business
Far gone are the days of simply calling up your home service provider through their company phone number. Now, customers are turning to Google My Business (GMB) in order to get the home service that they need.
This platform is crucial for customers who are looking for home service providers online. When customers use GMB to find home service providers, they can see a list of businesses that match their search query.
These businesses are also ranked according to their Google reviews, which gives potential customers an idea of what others have thought about the quality of service provided.
If you’re a home service provider, it’s important to make sure that your business is listed on GMB. That way, when potential customers search for home service providers in your area, your business will show up.
You can also encourage customers to leave reviews on your GMB page, which will help you rank higher in the search results.
For Home Service Businesses, Reviews and Recommendations Are Still Critical
In the home service industry, reviews and recommendations are still critical. Consumers rely on them to make informed decisions about which businesses to use.
A recent survey has found that 89 percent of consumers trust online reviews as much as personal recommendations. This means that home service businesses cannot afford to neglect their online presence.
Positive reviews can help attract new customers and grow your business. Conversely, negative reviews can discourage potential customers from doing business with you. That’s why it’s important to actively manage your online reputation.
Here are a few tips for doing that:
- Encourage customers to leave reviews: You can do this by asking them directly, providing links to review sites on your website or social media pages or offering incentives for leaving a review.
- Respond to both positive and negative reviews: Thank customers for their feedback and address any concerns they have.
- Monitor review sites regularly: Make sure you’re aware of what people are saying about your business and address any negative comments promptly.
By following these tips, you can help ensure that your home service business has a positive online reputation.
Tighter Talent Pool for Business Owners
As the home service industry continues to grow, so does the demand for qualified business owners. However, the pool of potential candidates is not growing as fast as the industry itself. This means that competition for top talent is becoming increasingly fierce.
To succeed in this environment, home service businesses need to be able to attract and retain the best employees. This requires offering competitive salaries and benefits packages, as well as creating a positive work environment.
In addition, home service businesses need to invest in training and development programs to ensure that their employees are always up-to-date on the latest industry trends.
By investing in their employees, home service businesses can stay ahead of the competition and continue to thrive in the ever-changing industry.
Bundled Services Is Becoming Popular
As the home service industry grows more popular, bundled services are becoming an increasingly common option for consumers.
This means that instead of buying individual services from different companies, consumers can purchase a package deal that includes multiple services from a single provider. This can be a great way to save money, as well as simplify the process of acquiring home services.
There are many different types of bundled services available, so it’s important to do your research before choosing one. Make sure to consider the specific services you need, as well as the price and reputation of the provider. By taking these factors into account, you can be sure to find a bundled service that’s perfect for your needs.
Here are some examples of how you can bundle up your services:
Bundling Internet and TV Services.
You can offer discounts when you bundle your Internet and TV services together. This can be a great way for customers to save money, as well as get all the home entertainment they need from you.
Bundling Home Security.
Home security systems can be expensive, but you can offer your customers discounts when you bundle them with your other home services. This can help customers save money and keep their homes safe at the same time.
Bundling Home Automation.
Home automation systems are becoming increasingly popular. With this, you can offer discounts when you bundle them with any of your other services. This can help customers save money and add convenience to their homes.
Luxuries Turn Into Necessities
As we mentioned earlier in this article, the home service business is turning more into a luxury service than a necessity. Homeowners are placing more value in their home comfort and design which is driving up growth in the industry.
Many factors go into why homeowners are investing more in their homes. Here are a few:
- The home is becoming the primary entertainment space. Families are spending more time at home than ever before and they want their home to be a comfortable place to relax and enjoy themselves. This has led to an increase in demand for home theater systems, comfortable furniture, and other home upgrades.
- Homeowners are also working from home more often. With COVID-19 and the rise of technology, it’s easier than ever to work from anywhere. This means that people are increasingly looking for ways to make their homes more comfortable and productive workplaces.
- There is also a trend of people wanting their homes to be unique. Homeowners are looking for ways to make their homes stand out from the rest. They want their home to reflect their style and personality.
- Homeowners are also busier than ever and don’t have the time to maintain their homes like they used to. This has led to an increase in home service businesses that offer things like home cleaning, home maintenance and even home design services.
All of these factors have contributed to the growth of the home service industry. This industry is expected to continue to grow in the coming years as more and more people look for ways to improve their homes.
Social Media Platforms Are Becoming More Popular as a Means of Communicating With Clients
We live in the age of the internet, which means we can access pretty much anything we want when we want. This includes home services. For home service providers, there are more ways than ever to connect with potential clients. One popular way to do this is through social media platforms.
If you’re looking to start using social media to promote your home services business, here are a few tips:
- Make sure your social media profiles are up-to-date and look professional.
- Use high-quality images of your work to showcase your skills.
- Write interesting, engaging posts that will capture the attention of potential clients.
- Respond to comments and questions from potential clients promptly.
- Make sure your website is linked to your social media profiles.
- Monitor your social media analytics regularly to see how well your campaigns are performing.
- Experiment with different types of content (videos, infographics, etc.) to see what works best for you.
- Regularly update your social media content so that it remains fresh and relevant.
Social media platforms are a great way for home service providers to connect with potential clients. They provide a way for home service brands to showcase their work, as well as communicate with potential clients about what they offer.
Additionally, social media platforms can be a great way to get feedback from clients about your services. So make sure you are active on social media and that you are constantly monitoring and updating your content. This will help keep you top-of-mind for potential clients and ensure that you are providing valuable information to them.
Key Take Away
To wrap up the current lucrative state of the home service industry in a nutshell, there are some key points that we’d like for you to take with you.
First, there has been a steady increase in demand for their home services over the past few years. This is mainly due to several factors such as the aging population, the COVID-19 pandemic, rising disposable income levels and increasing home-ownership rates.
Second, home service providers are benefiting from technological advancements that allow them to offer more specialized and customized services. In addition, they are also leveraging new platforms and channels to market their services.
Finally, home service providers are adopting innovative business models to stay ahead of the competition. For example, they are offering subscription-based services, on-demand services and integrated solutions. As a result, they can generate higher margins and capture a larger share of the market.
If you would also like to increase your market share, you need a selling system that will allow you to deliver an amazing buying experience for your customers.
At Wizard of Sales, we can help codify your vision, purpose and processes so that you can start increasing your profits today.
Our team of professionals will help you analyze each element of your business we together, we can determine your current performance level and where any improvements can be made.
From financials such as your budget and expenses to KPIs like your customer acquisition rate, we will evaluate every aspect of your company.
After receiving our services, you will not only improve your business operations but also be able to make necessary adjustments to any bottlenecks, blindspots and breakpoints that are discovered along the way.
Contact us to learn more about how we can help increase your C.A.P.