Myth: Word-Of-Mouth Remodeler Marketing Is Cheap

I sometimes talk to remodelers who boast that they spend NO money marketing their remodeling company because they get all their business from word-of-mouth and referrals. That they get all their business through word-of-mouth marketing may be true, but it is not true that they spend no money on remodeling company marketing.

To build a business based on word-of-mouth marketing, you have to be spending a fair amount of time, money and effort running a remodeling business that so satisfies your clients that they feel comfortable using you again and referring you. According to a study conducted a few years ago by Guild Quality, 36% of some 35,000 random homeowners surveyed who recently remodeled would not use their remodeler again nor would they refer them to a friend.

The remodeling companies that do the best job of generating word-of-mouth business are the ones that do an extra special job in keeping their clients not just satisfied, but very satisfied. It costs them in hiring and training the right people, paying higher wages for well trained and dedicated staff and subs, in developing and maintaining the right systems, in using quality materials and processes, in doing those extra special things like warranty services, sometimes even after the warranty expires, that makes word-of-mouth remodeler marketing work.

So, while these companies may be spending no money for what are traditionally considered marketing materials, they are spending a good deal of money on remodeler marketing.

If you have any questions about this post or other remodeler or contractor marketing questions, please contact us.