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Are Your Roofing Marketing Campaigns Performing?

Are Your Roofing Marketing Campaigns Performing?

There are so many marketing numbers that it can be difficult to understand what you need to pay attention to.

There is CPC, CPL, CPM, CTR, and many others.

These numbers paint a picture and tell a story of how well your marketing campaigns are performing.

A challenge that a lot of businesses face is relating these numbers to the profitability of their business.

The main objective of a business is to increase the profitability while massive providing value in terms of products and services.

For the rest of the article, I am going to explore these different numbers in your business and how it relates to your company’s bottom line.

These numbers will help you paint a picture of how well your business is performing.

Cost Per Acquisition

This number will help you determine how much you are spending in order to acquire a customer. For many service-based businesses, this number is 0 because they rely on word of mouth.

Word of mouth and referrals are great but they will only grow your business up to a certain point.

Once you’ve reached that point then you have to advertise or grow a sales team to acquire new customers.

A lot of small business owners don’t understand that the biggest companies in the world invest huge amounts of capital to acquire customers.

Dan Kennedy the famous direct response marketer always says that the company that is willing to spend the most to acquire a single customer will always win.

What this means in the roofing space is, in the long run, the roofing company that spends the most money to acquire a customer will always win.

How does that make sense?

Are your roofing marketing campaigns performing?

Think about it.

If a company is spending a lot of money and they are getting SALES as a result then they will always beat the company and grow faster than the company that doesn’t.

A company that is getting sales is building a customer base.

A customer base is one of the most valuable assets in a business.

If you are providing great service to your customers those new customers will generate new referrals for your business.

Referrals are the single best type of leads.

This is why roofing companies that have been in business a long time have a big advantage over companies that are new.

They have a larger customer base and more opportunity for referrals than new companies.

A company that is aggressively pursuing new customers will win vs. the company that stops marketing.

It’s like a race with a never-ending finish line.

In order to understand how much your company can spend on advertising let’s do some math.

What is the average transaction value of your business?

For most roofing companies, a small residential roof replacement is about $10,000 in value and about $2,000 in net profit.

Is that single customer only worth $10,000 in value? How many referrals do you get from customers?

Do you sell them other products and services?

These are the questions that you need to answer to help you determine what each new customer is worth to your business.

Once you understand the value of each new customer then you can determine how much you can spend on advertising.

There are companies that go in the red for 18 months in marketing until they acquire a new customer.

If you are just starting a marketing campaign and are already breaking even then you are doing pretty well.

Are your roofing marketing campaigns performing?

How about commercial roofing?

What is the average transaction value of a commercial roof?

100K? 200K? 1 Million?

Commercial roofing leads are incredibly undervalued.

In a lot of markets, you can get commercial roofing leads for under $100.

I know clients of mine that have had a single commercial client generate millions for their business.

A certain type of commercial client, like a property manager, can be incredibly valuable to your business.

Net Profit Per Sale

Another important number to understand is what is the net profit per sale. We run businesses and we are in it to make money.

You should do everything you can to increase the net profit per sale without hurting the volume of sales.

This means that you should implement supplement strategies to increase the transaction value.

You can sell more on value more than being known as the lowest cost provider.

Opportunity Cost

“A benefit, profit, or value of something that must be given up to acquire or achieve something else” link

When you stop advertising you give up the opportunity to get in front of new customers.

This is an opportunity cost.

The fewer opportunities you have to get in front of more customers the fewer chances you have to make sales.

The fewer chances you have to make sales, the fewer sales you’ll make.

Fewer sales mean less opportunity to grow your customer base which means fewer referrals.

In the long run, the roofing company that stops advertising will lose vs. the company that doesn’t.

You should never stop advertising. In fact, you should increase your advertising in slow economic times and during the winter.

Conversion Rates

What are the conversion rates on your marketing campaigns? On Facebook? AdWords? Website? Etc…

Have you been tracking this information?

The only way to really to track this information is to use a CRM software that lets you track the leads from all your different sources.

Too many people get hung up on what the cost per lead is in a marketing campaign. The important thing is to understand how many of these leads you are actually converting into a sale.

A $200 lead that converts 50% of the time is more valuable than $50/leads that convert only 10% of the time.

Are You Increasing Your Conversion Rates?

What are some strategies you can implement to increase the conversion rates on your leads?

Are you following up with your leads? How many times?

Most leads do not close the first time. On average takes 5-12 touch points before someone takes the first meeting.

It can take a lot more follow-ups to actually close a deal.

Typically, the bigger deals take more follow-ups. This is why commercial deals can take many months of constant follow-up before you get the sale.

You have to be relentless in pursuing these deals. One or two follow-ups will not get you anywhere.


Are you using a CRM to track your leads? If you are not then why not?

CRMs like MarketSharpJob NimbusClaimsExpress, and Sales Rabbit have all been proven to work

There are way too many leads that fall through the cracks in a lead generation campaign. When you track every lead you’ll convert more which means more money in your pocket.


All these numbers will help you understand how well your campaigns are performing.

There are too many contractors that never take the time to understand what these numbers mean for their business.

When you understand these numbers you will make better and more informed decisions.

To succeed in business, you have to make good decisions.

Good decisions will lead to more positive outcomes for your business.

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