January 16th, 2024 | 3 min. read
By Kim Kovelle
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Context on an example metro Detroit flooring company
From tile to carpet to hardwood, flooring is a competitive home improvement industry. Michigan at large is home to over 2,500 flooring installers, all looking for new customers.
For this example, let’s consider you have a hypothetical flooring company in the Detroit suburb of Troy — a city home to several of them. Here’s a snapshot of the situation:
- Goals: Reach people who are looking for flooring stores in your area. You want to be found when potential customers are Googling for residential flooring options.
- Reach: You have one business location and want to reach a larger geographical area — a 30-mile radius of your 48084 ZIP code.
- Zoe plan: Start ramping up marketing to reach a wider audience. Each month, reach 100,000 people interested in home improvement and flooring — at a frequency of at least three times per month, on different marketing platforms.
So, with this focus on ramping up, let’s look at what this plan would cost.
The cost of a flooring campaign in metro Detroit with Zoe
This particular campaign would use three tactics. These are the actual costs priced out by Zoe’s sales director, Michele Potts, based on the criteria in the last section.
Individual pieces:
- Search engine marketing (SEM): $2,500/month
- Programmatic ads (geofencing): $1,000/month
- Facebook lead generation ads: $1,000/month
Total: $4,500/month
Zoe plan: Advanced (mid-tier; its starting price is $4,500)
Minimum investment: $27,000/6 months
In a little more detail, here’s what each one of these tactics will do for your flooring company:
- Search engine marketing (SEM): This uses Google Ads to get leads from customers searching for flooring stores. It’s based on keywords they’re searching for — such as “hardwood flooring” or “carpet installation.” Their “intent” is high — they’re looking for exactly what you offer.
- Programmatic ads (geofencing): You’ll target three other local competitors with this tactic. When someone walks into those competitors, thanks to this phone-based marketing tech, you can start delivering your ads to them. Plus, there’s a retargeting campaign to capture customers who went to your website and left without filling out a “contact us” form — to help keep your business “top of mind.”
- Facebook + Instagram lead generation ads: These social media ads appear in people’s feeds based on their interests. The ads have a field to fill in their email for more information. This tactic also includes retargeting.
A half-year is the typical time it takes for marketing to deliver strong results. The minimum investment is $27,000 for six months. Ideally, you’d continue and increase reach after that.
The ROI (return on investment) on this campaign with Zoe
What could you expect your results to look like with this investment? Here again is a look at the typical outcomes from Michele Potts, Zoe’s sales director.
Individual pieces:
- SEM (search engine marketing): 10-15 leads/month
- Programmatic ads (geofencing) 20% minimum increase in web traffic
- Facebook ads: 10-15 leads/month
Total leads: 20-40/month
New business: 3/month
3 customers typically spend: $14,191
Your monthly return on investment: $9,462 or 215%
A typical flooring company’s closer rate is about 10%, which factors into these numbers.
Looking at this from the big picture of six months, your total sales would be $56,772. Compare that to your original investment of $27,000. You’ll have made that back more than double — with a profit of $29,772.
Next steps for marketing your home improvement business
Getting your flooring marketing on a roll starts with understanding what your agency will charge you and your projected results. This transparency is essential.
Are you wondering if Zoe’s marketing might fit your home improvement business? Talk to us. We’ll guide you through a client needs assessment and help you determine your plan, costs and whether we might be a good match.
In the meantime, be sure to understand what marketing works best in this industry and why — in this roundup of 4 top home improvement marketing tips in metro Detroit (and beyond).
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