Proven marketing tactics for pool and spa professionals

by jason_cramp | March 17, 2024 5:53 pm

By Robert Murray

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In the realm of marketing, everyone has an opinion. While some are insightful, most lack substance, with only a rare few grounded in data and facts. So, how does one discern whom to trust and what to do?

Over the past three years, the pool and spa industry saw favourable conditions, which led to booming business. However, the sector is now facing headwinds, forcing industry professionals to refine their approach to maintain healthy growth in a more challenging marketplace.

According to market research conducted by IBISWorld iExpert[2], industry revenues in home improvement renovations are projected to increase by only 0.7 per cent in 2024, following the 6.6 per cent decrease in 2023. This is a significant change from the 12.3 per cent boom experienced in 2021. The industry has not seen a contraction since the 2007-2009 recession. While the author is not predicting a repeat, it is wise to ensure businesses are prepared for all challenges to maintain their resilience. As author Zig Ziglar once said, “Expect the best, and prepare for the worst.”

Here are five marketing strategies to help professionals align their efforts to be more effective in 2024, as the market becomes increasingly competitive.

Every business operates using the same revenue model

1. Leads × conversion rate = customers

2. Customers × average sale ($) × average gross margin per cent = average gross margin ($)

3. Average gross margin ($) × average frequency of purchase per year × average lifetime of a customer = average lifetime value leads in gross margin ($)

Strategy one: Target the right part of the customer’s brain

People often make decisions based on emotion, and then justify those decisions with intellectual reasoning. The problem lies in the fact that most marketing and sales communication targets the neocortex. While this makes sense because the neocortex handles language, arithmetic, and can absorb large amounts of information, it does not aid in the client’s decision-making. Therefore, it is integral to engage the part of the brain responsible for emotions and decision-making processes—the limbic brain.

Motivational speaker and author Simon Sinek’s research dove into how the best leaders communicated differently from the rest, and what made their communications successful. Essentially, they communicate to the limbic brain through purpose and emotional engagement. Speaking with purpose and letting the world know what one believes is crucial. “People don’t buy what you do, they buy why you do it,” says Sinek. Other famous examples are Martin Luther King Jr.’s statement, “I have a dream” not “I have a plan,” and Apple’s marketing strategy, “Think Different,” which challenged the status quo in the tech world. In the pool and landscape industry, for a business to excel in this endeavour, they must specialize in connecting life and land, aiming to strengthen families by encouraging children to experience the outdoors with all five senses, moving them away from screens.

What are the business’s beliefs? Why do pool and landscape businesses exist, and why should anyone care? Knowing these answers can assist one in building a unique position in their marketplace.

Strategy two: Optimize one’s revenue model

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When engaging with pool and spa entrepreneurs, the sales forecast is primarily driven by projects pre-booked into the future. While there is nothing particularly wrong with this, there are several other ways to drive revenue growth.

This means revenue models can be optimized at any point along this formula.

Here are six ways to optimize one’s revenue model:

1. Invest in marketing to drive more qualified leads.
2. Invest in sales training to close more deals.
3. Raise the price or the minimum project size the business is willing to take on.
4. Invest in faster equipment.
5. Offer maintenance on design build projects—or at least annual check-ins.
6. Engage past customers through annual email campaigns and/or phone calls to check in on their satisfaction and maintain a connection.

Strategy three: Leverage a niche to accelerate growth

When a company says, “We are a full-service, design-build, and installation pool and spa company,” what really sets them apart from others who say the same? The price. No one wants to compete on price—except, say, Walmart. To stand out, one must carve a unique position in the market where their company is not just a choice, but the choice.

What is the company’s specialty? Are they experts in tight urban environments? Do they know the makeup of the ground in their local community better than others? Are they better at estates or cottages? Do they specialize in large industrial spaces? When someone needs expertise, their search ends. Focusing on a smaller customer segment to accelerate growth might seem counterintuitive, but it is a proven strategy. It not only attracts the right customers, but also boosts team efficiency through repetition, fostering expertise. This efficiency leads to quicker job completion, more accurate quoting, and cost management, resulting in increased profitability. Additionally, it reduces the organization’s dependence on a few highly talented individuals by implementing processes and training to quickly onboard new team members.

Strategy four: Ensure measurable results

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Gone are the days of not being able to measure the impact of marketing strategies. A skilled marketer today relies on tools and benchmarks to predict tangible outcomes. When partnering with seasoned professionals familiar with one’s industry, expect clear guidance and measurable goals. These experienced professionals will help one measure progress throughout their marketing efforts, ensuring they understand what is effective, what is not, and how to adjust marketing efforts accordingly.

These measurable goals may include determining:

• The number of desired qualified leads in a year
• Cost per qualified lead in dollars
• Customer acquisition cost

These goals are crucial for generating revenue, which is essential for business growth. Metrics such as impressions, clicks, brand awareness, and community visibility, while important, may not directly lead to increased revenue or business success. Therefore, it is important to prioritize strategies that directly contribute to revenue generation and overall business outcomes.

Service	Cost Per Lead
Landscape maintenance	$175
Fencing	$65
Pool installation	$576
Retaining walls	$156
Design build <$100k	$350
Design build >$100k	$550

Strategy five: Use industry benchmarks

One question arising in the pool and spa industry is the cost of acquiring a qualified lead for projects of varying values—$50,000, $100,000, and higher. While it may seem challenging to ascertain this cost, some businesses have managed to do so.

For instance, the author’s firm worked with more than 30 clients specializing in backyard transformations, and observed that, in 2023, the cost of these leads ranged from $350 to $550 and typically resulted in a conversion rate of approximately 20 per cent. When looking at these figures, it becomes apparent the acquisition cost per customer ranges from $1,750 to $2,750 for a project worth $100,000. This translates to a substantial return on investment (ROI), making it a valuable metric to consider.

Here are some other benchmarks of 2023 for different types of pool and spa projects:

Collaborating with a partner who can benchmark one’s business against others in the industry is a game changer. It indicates whether the business is performing above or below average, assesses the efficiency of one’s marketing investments, and, crucially, ensures transparency with the business’s marketing partner, as everyone operates on the same data.

By prioritizing these strategies, one can position their business to dominate the industry in 2024.

Conclusion

Understanding the emotional drivers behind decision-making is crucial in marketing. To optimize revenue, businesses should invest in marketing and sales training, adjust pricing, improve efficiency, offer maintenance services, and engage past customers. Standing out in the market requires offering unique value propositions, not just competing on price. Modern marketing strategies should be measurable and guided by seasoned professionals to ensure effectiveness. Importantly, in the pool and spa industry, understanding the cost of acquiring leads for projects of varying values is essential for informed decision-making.

[5]Robert Murray is the CEO and co-founder of Intrigue Media, a digital marketing company that helps landscape entrepreneurs generate better quality leads, grow their businesses, and free up their time so they can do more of what they love. He can be reached at robert@intrigueme.ca[6].

Source URL: https://www.poolspamarketing.com/trade/features/proven-marketing-tactics-for-pool-and-spa-professionals/

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