Why investment made by most businesses in Houzz pro plus results in near $0 ROI?
Before we talk about the Houzz Pro Plus cost, let me ask you what is your ROI on Houzz?
I asked this question to several remodeling and design firms and they said it is good and they get a lot of exposure!
Most home remodeling professionals say – “I get lot of views!”, “Lot of profile clicks!”, “Lot of photo impression”
Me: Wow! Great answers!
Me: Let me ask you the question again! What is your return on investment(ROI)? How many leads or clients you get from Houzz?
Home remodeling professional: 1-2 leads a month
Me: That’s nice, how many leads converted in last 6 months?
Home remodeling professional: !?
Me: I mean in last 6 months you got 12 leads, how many paid for your service and how many dollars you made?
Home remodeling professional: $0!
Me: hmm ok.
I discussed this with over 30+ home remodeling and design professionals and all of them said the same thing. Some even said they got 3 leads in last 6 months!
That made me wonder why are architects still paying for Houzz pro plus!
I think the problem is not with Houzz the problem is in your marketing strategy.
When I say that leads or calls from Houzz pro plus users are not hot buyers it is because they are still in the ideation phase they will not immediately buy your architecture service. They might in future only if you engage with them and provide them value and assistance today.
Let me explain it.
Have a look at the architecture service buying pyramid below:
Top 3 % of users in the pyramid are ready buyers, all the architecture service marketing efforts are made mostly for this segment
Buying keywords searches are keywords that contain “costs”, “price”, “architects” eg. This will include keywords such as “remodeling architects in New York” or “remodeling architects cost” etc.
Have a look at number of ads for a buying keyword
Hence the top 3% is completely saturated naturally you will have a very high cost per clicks!
For the remaining 91% and 6%, as mentioned in the pyramid above, architects do not have any strategy.
91% of your future clients are searching for ideas and want to see images, they are people who search on google for “home renovation ideas” etc.
A majority of such users in the discovery and ideation phase visit your Houzz profile.
Because Houzz website mainly ranks for such discovery and ideation phase keywords (The 91% and 6% of the pyramid above)
Have a look at the data below.
Following is a Google ranking tool to find out for which keyword and position any website ranks.
I entered Houzz.com and I got this data – See the red box, Houzz.com is a big website and it ranks for 2.6 million keywords in the US alone, you can view few keyword that Houzz ranks for.
Now have a look at another screenshot from the same tool – I just filtered keywords that have buying intent, for example, keywords having words such as “architects” or “costs” or “price”: All these keywords will include the keywords that your super hot buying customers (the top 3%) are searching.
Have a look at the number of keywords now: only 33,000 in the US
Let us do a simple maths : Buying keywords/Total Keywords = 33,000/2.6 million = 0.12%!
Now let me say that again only 0.12% of users visiting 1000’s of architect profiles on Houzz are looking to buy your architecture service
Well, you will say what about the 99.88% of the users on Houzz?
These are the users in the discovery phase, they belong to 91% and 6% (See the pyramid above)
99.88% of the users who visit your profile page on Houzz are not ready to buy your architecture service right now, but they may in future
Let me come to my original point – Your strategy is wrong because you are treating this segment of users in the discovery phase same as the one in the buying phase.
You need to engage with them till they are ready to buy. Right now you are pitching the users in the discovery phase with your multi-thousand dollar service – This will never work!
You need to change your strategy for discovery phase users, you need to give a specific and low commitment offer. I will write about it in my next post.
Don’t be in a rat race by following what everyone is doing and don’t look for immediate gratification.
Have a long-term strategy to grow your architecture service business.
Do you want to scale your firm?
I help home remodeling, kitchen/bath remodeling and roofing firms get more exclusive leads on demand. So that they can focus on their core competency (i.e. running the business) and living a life of freedom without worrying where their next customer will come from
Let’s have a quick chat to understand if we are a good fit or not.If we are a good fit, I will get you exclusive leads/appointments on demand from locations that you decide.
Please fill in the form below and let’s see if we are a good fit.