Your go-to guide for home services professionals, straight from the experts at Scorpion. With over two decades of industry experience, we’re thrilled to roll out this publication packed with insights from our industry data and current research.
Our aim is simple: to help your business thrive. We hope the information within does just that, helping you navigate the digital marketing landscape and reach your goals effectively.
Thank you for taking a moment away to read through this report. No one knows better than you that running a successful home services company requires the ability to adapt quickly to changes in technology, customer expectations, and market dynamics.
We’ve run research surveys and dug deep into our own data to give you the insights we think will help you run an even more successful business.
Here’s to the impact you make in homeowners’ lives every single day.
Jamie Adams Chief Revenue Officer
To get a deeper view into the challenges and opportunities local services businesses are navigating, we sat down with Scorpion’s Chief Revenue Officer, Jamie Adams, to gain insight into the conversations he’s having with home services businesses around the country.
“Home services businesses are facing some real challenges right now, including the rising cost of online advertising, increased competition, and economic conditions impacting consumer demand,” Jamie says.
Home renovation spending is projected to decrease from $481 billion in 2023 to $450 billion in 20241. This is attributed to increased interest rates, renovation costs, and declining home sales.
“There’s been a slowdown in consumer demand in the last 18 months, and an increase in competition, mainly from private equity-backed consolidators, that are spending more money on marketing and driving up costs on platforms like Google,” Jamie says.
Getting the best return on investment (ROI) from digital marketing efforts is all about understanding which channels work best and testing beyond the status quo.
“Businesses have to think beyond just Google,” Jamie says. “They have to expand into other channels relevant to their strategy while still focusing on ranking high organically for high intent searches.”
Instead of focusing solely on Google for advertising opportunities, home services businesses should look at other platforms such as Bing, Facebook, Instagram, HomeAdvisor, and Angi.
Once you’ve done the hard work to get a lead to your website, make sure your site is equipped with the right tools to get them to convert into customers. How can a business take advantage of a lead being on its website and help that lead become a customer? Jamie has a few suggestions.
“Give your website users as many ways to contact or book with you as possible. They need a number to call, an easy way to text you, the ability to book an appointment on your website, and a sophisticated online chat option. Each additional opportunity to engage with you increases your opportunity to convert a lead and reduces your cost per lead.”
No matter what channels you’re investing in, your efforts are only as effective as the tools you have in place to capture leads, your process to convert the lead to a customer, and your ability to know what’s working.
“Step one is just ensuring you’re tracking as much as possible,” Jamie states. He emphasizes the need for businesses to understand all of their marketing spend, including by channel, to understand better what the ultimate cost is to acquire a customer.
“One of the things that we’ve been really focused on at Scorpion is integrating all of our digital marketing technology into the operational technology that local businesses use to manage their business,” he says.
“By integrating into our clients’ field service management platform or CRM, we can show not just how many leads they’re getting or cost per lead, but how many customers they are acquiring and how much revenue their investments are truly generating.”
Scorpion is providing end-to-end visibility so home services businesses can see the real ROI they’re getting from organic search, Google Ads, Local Services Ads, Facebook, Instagram, and more.
“Ultimately, what we’re trying to do is give businesses better visibility into the cost to acquire a new customer and how much revenue they’re generating from that.”
This level of insight is a game-changer for local business owners. It revolutionizes their investment strategies and empowers them to make more informed investments.
We’re partnering with the platforms that you use to run your business. As ServiceTitan’s Preferred Digital Marketing Partner, we provide integrations into their platform that allow you to get the most powerful software and marketing tools.
“There are also big opportunities that businesses can take advantage of when it comes to new technologies, particularly machine learning and generative AI. These will continue to reshape consumer behavior,“ Jamie says. “And as consumer behavior changes, the way that businesses respond to that, and how they reach those consumers to buy from them, will also have to change.”
One way home services companies can get ahead of these advancements is by giving customers conveniences they’re familiar with from other business types. “How many businesses enable a direct booking experience? Not enough in the trades. Our data shows that direct booking impacts conversions on a website and delivers a higher quality lead and a completed job.”
AI advancements like ChatGPT have also made consumers more comfortable interacting with conversational technology, like AI chat. And now, consumers expect that same type of experience when dealing with businesses.
“What once was looked at as innovative is now expected by the consumer.”
“Businesses have to pay attention to how these tools shape consumer behavior and find practical ways to use these technologies to get ahead of the curve,” shared Jamie.
With the cost of acquiring a new customer rising, finding opportunities to improve conversion rates on your website makes a meaningful impact on driving profitable revenue.
“If you can increase your website visit-to-lead conversion by two to five percent with online booking, that decreases your overall customer acquisition costs by two to five percent,” Jamie says.
“If you introduce an AI chat solution, you can increase conversions by another few percentage points.” By incorporating these conversion tools into your website experience and improving efficiency, businesses can decrease cost per acquisition by up to ten percent. “That’s meaningful today, especially when leads are getting more and more expensive,” Jamie says.
It’s important to understand how well your leads are converting from each channel.
“Every dollar counts for the small business. When you think about investing in marketing, it won’t get less expensive. Leverage insights and data to make the best decisions so that you can acquire customers in a way that’s most cost-effective for your business.”
“You’re in business not just to drive revenue, but to drive a profit that you can either reinvest in your business or distribute to yourself or your employees.”
Get more of the leads you want with Scorpion’s Leads AI. Know which leads are the most valuable, where to focus your time, and where things can improve.
Want to know more?
scorpion.co/how-we-help/leads-management/
54%
90%
70%
of consumers decide on a home services provider in less than four hours.
of consumers expect a response within 24 hours, the majority of whom prefer same-day communication.
of consumers favor companies that have more ways of contacting them (e.g. phone, text messaging, online chat).
Data from Scorpion’s Home Services Search Trends Survey
Ever wondered how quickly consumers decide on a home services provider today?
More than half of consumers make their decision within just four hours.
It’s not just speed that matters. Today’s consumers are particular. With endless options available, they demand honesty, transparency, and quick solutions. And they want it straight from a reliable source.
To uncover the key trends shaping this industry, Scorpion surveyed just over 700 adults in the United States in our Home Services Search Trends Survey.
From quick decision-making to direct access to technicians, our findings provide insights into the minds of your potential customers. We’ll also explore the rising costs of advertising and give you actionable tips for your marketing strategy.
In the time it takes to fix a customer’s issue, half of the people actively seeking your services have already decided on their home services provider.
in 4 hours or
Your customers aren’t just making decisions quickly; they want you to respond just as fast. Fourteen percent of respondents expect a business to respond within an hour, while 38% want a response within the same business day.
For home services, the importance of reviews cannot be overstated. Positive online reviews not only build trust and credibility but also influence consumer decisions.
Scorpion’s research found that 67% of consumers check at least three different review sources before making a decision, highlighting the significance of reviews in the decision-making process.
Additionally, 50% of consumers read at least seven reviews before feeling confident in their decision, making it critical to have a substantial number of positive reviews.
64% of consumers only consider providers with at least a 4 out of 5-star rating.
This narrow window emphasizes the importance of fast responses to avoid losing potential customers to competitors.
When we asked consumers what could salvage poor review performance, 50% mentioned low costs or value of services, and 44% selected recent improvements in online reviews and scores.
Consumers rely on reviews like never before. They value real-life experiences over company promises, especially when it comes to their homes, so make sure you have a strong review strategy.
Encourage your happy customers to leave their thoughts everywhere they can. But it’s not just about getting reviews, you have to show that you’re listening, too. Respond to feedback consistently, good or bad, to show you’re paying attention and care about making things right.
Your website is your digital storefront. If it’s not hitting the mark, people won’t stick around (or come back). Consumers value transparent pricing information and informative website content. They often conduct extensive research before engaging with a service provider.
Trends Survey revealed that consumers value providers who understand their business, with ‘knowledgeable’ ranking among the top qualities expected of home services providers.
To keep leads engaged, ensure it’s error-free, loads quickly, looks good on mobile, and features clear contact information. A polished website is key to converting visitors into customers.
To showcase expertise, providers should share helpful content on their website, such as blog posts or how-to videos (plus, it should help with your search engine optimization, or “SEO”).
When it comes to websites, even seemingly minor issues can have a significant impact.
Scorpion’s survey data indicates that the following website issues can deter consumers from using a home services company:
ⅼ Spelling and grammatical errors
ⅼ Blurry photos
ⅼ Slow loading times
ⅼ Broken links
ⅼ Difficult-to-find contact information
Consumers, knowingly or not, are looking for signals indicating companies provide superior experiences. Timely communication, including texts with technician photos and post-service summaries, are the gold standard for customer satisfaction.
“We have a company that texts us when the tech is en route and includes a photo of the tech in the text. We have another company that comes monthly and sends us a summary email from the driveway when they’ve finished . . . I love both of them.”2
Scorpion’s Communications Suite offers a simple way to meet consumer expectations for personalized service and easy two-way communication, all in one centralized spot.
Want to know more?
scorpion.co/how-we-help/communications/
“The biggest improvement home services companies can make that would provide me with a better customer experience is more reviews on their website, a live chat service, and texting service as well.”2
Additionally, offering multiple ways to stay in touch, as indicated by 70% of respondents, is important for meeting diverse consumer preferences and delivering personalized services.
Sixty percent of all respondents suggested, when possible, they want direct access to technicians.
Consumers today want quick, reliable, and trustworthy service when managing their largest investment: their home. To stay ahead of the competition, here’s a rundown of what will help you succeed:
Be Lightning Quick: Use automated systems and tools like AI-powered chat to respond to customers ASAP.
Earn Their Trust: Encourage happy customers to leave reviews everywhere, so others know you’re the real deal.
Spruce Up Your Website: Make sure it’s error-free, loads fast, and has the information people need to trust you.
Make It Personal: Offer multiple ways to stay in touch, access to your techs, and photo-sharing capabilities.
By focusing on these strategies, you’ll differentiate your business and position your company as a trusted resource for the communities you serve.
The marketing game for home services is changing fast, with rising costs, increased competition, and artificial intelligence (AI). To stay competitive, it’s important to understand how these factors impact your existing marketing strategies, particularly as we enter the peak season for many industries.
Home Services, Select Industries
As advertising costs keep climbing in the home services industry, businesses face tough decisions on how to get the word out while keeping costs
All Scorpion data is anonymized and aggregated to benchmark performance, identify overarching trends, and pinpoint opportunities for improving marketing efficiencies. in check. Over the past few years, the price of getting leads and running ads has gone up, squeezing advertising budgets even more. This means local service providers have to rethink how they do things to make sure they’re getting
the most bang for their buck. In home services, we found that while advertising costs continue to rise, competition has been intensifying, increasing those costs even further. This can be seen in the cost-per-lead (CPL) data as well as the increase in
advertising spend within home services. Our data shows that the cost of getting leads has increased substantially since 2021. Despite this, businesses are still putting more money into ads even though it’s getting pricier.
Despite a 32% surge in advertising spend in the home services industry, click-through rates have declined by 38%, according to our data.
This decline can be attributed to consumers finding what they need through alternative means, such as organic results, featured snippets, AI-generated search results, local maps and business listings.
Search engine results pages (SERPs) often display local maps and business listings, offering users essential information like nearby electrical services and contact details.
These concise summaries of information appear at the top of search results, providing immediate answers to user queries without requiring them to click through to a specific website.
AI-Generated Search Results
Search engines now use AI to better understand user queries, providing relevant information in an AIgenerated overview.
While we found that more ads are showing up (we’re talking 231% more since 2021), fewer consumers are actually clicking on them. Why? Consumers better understand where to find what they’re looking for and trust the information they are getting from traditional organic results and listings.
Impressions
More people are seeing ads
In the data above, we see clicks on Google Ads are up, but nowhere near the rate which people are seeing the ads (impressions). This isn’t necessarily a bad thing, but it does reinforce how important it is to have an organic and content-focused strategy so your business can get more “free” clicks from organic results, featured snippets, AI results, and listings.
An increasingly popular advertising channel for home services businesses is Google Local Services Ads (LSAs). These ads differ from traditional payper-click (PPC) ads by providing users with immediate access to essential information like nearby electrical services and contact options directly in search results. This shift towards LSAs reflects their cost-effectiveness and ability to drive more jobs for businesses like yours.
Scorpion’s data suggests home services businesses have been increasingly focused on Google LSAs as the best bang-for-buck advertising channel.
Clicks
Visits are up, but not at the same rate
Since 2021, LSA spending has increased by nearly six times the rate of Google Ads and it’s easy to see why, based on cost and volume indicators.
Bing vs. Google vs. Google LSA (2021-2023)
Year-over-year, Google LSAs have consistently outperformed the major digital ad channels, particularly as it relates to CPL and leads generated. In the most recent annual calculation, the average CPL for LSAs across all home services industries was 62% less than Bing, while lead volume more than doubled Google PPC.
And this is all just about paid advertising. Let’s pivot to organic marketing, focusing on search engine optimization (SEO) a critical piece of any successful digital marketing strategy.
Scorpion is Google’s largest premier Local Services Ads partner.
SEO is important; it’s all about ensuring your website appears when people search online. With good SEO, your site gets more visitors without paying for ads. Plus, being at the top of search results makes your business look trustworthy. Ignoring, or underinvesting in organic search means missing out on potential customers.
While paid ads remain essential, combining them with organic tactics can maximize visibility and allow you to meet your customers where they are.
SEO requires expertise and a dedicated effort. The addition of AI into your SEO strategy can help accelerate and scale the impact of your performance. On average, companies using Scorpion’s SEO increased:
ⅼ Organic rankings by 3X
ⅼ Unique leads by 10% year-over-year
ⅼ Organic traffic by 26%
As advertising costs rise and consumer search behavior evolves, it’s crucial to monitor your spending and assess its effectiveness. Keep a close eye on metrics like lead conversion rates and cost-per-acquisition to ensure your marketing efforts pay off. To maximize your advertising budget, consider the following tips:
ⅼ Diversify your ads and target audiences strategically.
ⅼ Allocate funds across different ad channels.
ⅼ Focus on channels that generate the best ROI.
By implementing these strategies, you can attract better leads, convert more customers, and optimize your marketing budget.
To thrive in today’s fast-paced market, home services businesses adapting to customer preferences and improving responsiveness are winning. Here are five actionable tips for success:
Invest in Search Engine Optimization 1
Diversify Your Paid Advertising Channels 2
Prioritize Advertising Where Customers Are Ready for Your Services Now 3
Embrace Artificial Intelligence 4
Measure Marketing Performance by Return on Investment 5
Home services businesses are facing significant shifts and challenges. Increasing advertising costs and changing consumer preferences require a strategic approach to marketing.
By diversifying your paid advertising efforts, investing in organic strategies, focusing on being in front of the customers most ready for your services, utilizing AI technology, and closely monitoring the performance of all of your channels, you can navigate these challenges effectively.
The game is changing for home services professionals, and artificial intelligence (AI) is reshaping the way people discover and trust local services.
In Scorpion’s recent Consumer Search Preference Survey, 75% of the respondents thought that AI improves the experience of searching for local businesses.
Let’s explore AI in search engines and what your business needs to do to win.
The intersection of AI and search is changing how people see, trust, and use search results. Scorpion recently conducted a survey with 1,000 adults in the U.S. to gather people’s opinions about AIgenerated search results.
Knowledge of AI: 1 in 3 people consider themselves very knowledgeable about artificial intelligence.
Experience with AI: 67% have some experience using AI, with education/research, gaming/entertainment, and shopping as the top categories.
Trust in AI: 33% trust AI search results, depending on the source.
Nearly 30% of people prefer having AI-generated answers at the top of their search results.
An additional 27% prefer these results to be hidden, but accessible.
AI understanding and adoption is picking up the pace. And consumers are increasingly embracing AI-generated search results.
While a mere 14% of all respondents trust AIgenerated results completely, a surprising 33% trust AI results, depending on the source. This shows a cautious optimism among consumers.
In 2023, about 13 million adults in the U.S. chose generative AI as their main tool for online searches. By 2027, this number is projected to skyrocket to over 90 million users.5 We’re in the middle of a conversation shift. And it’s powered by generative AI (like ChatGPT, where computer systems create responses based on what they learn from how people talk).
Old Way to Search
Conformed to search engines with keywords and rules.
75% of consumers feel AI improves the experience of searching for local businesses.
Among this subset, home services led all categories, highlighting the growing importance of AI.
New Way to Search (Thanks to AI) Natural, conversational language.
Think about how you ask a friend for a recommendation. You don’t just say “plumber” or call out your zip code. You explain your issue in detail. AI in search is like talking to a knowledgeable friend who understands your needs, preferences, and even your language quirks.
We’ve talked about how conversational search works, but now let’s dig into what you actually get back from it. This is where it gets exciting for your business.
Let’s break it down with an example so you can see what you need to do to get your business ready.
I have a leak in my roof. Do I need to replace it?
When users ask about reliable and affordable services, actual providers pop up in AI-generated responses. Google’s AI gives priority to businesses with genuine customer feedback, pulling information straight from your website and reviews.
Your chances of showing up in AI-generated results increase when you include the most recent and relevant information that potential customers are interested in. If someone asks about credit cards, they will see names of plumbers that mention that payment type on their site.
So, if you know what AI search results look like, you can make sure people can still find your business in the future. Just focus on giving customers the information they really care about.
Google’s conversational AI also prompts users with follow-up questions that may be useful. Businesses can use this opportunity to showcase their expertise.
In traditional search, a user may look for one search term, “Can I install a thermostat myself?” and then scan through the results to see if they can do it themselves or not. With generative AI, that same search query would give the user an AI overview of the answer and also prompt them with follow-up questions, such as:
Are all HVAC thermostats interchangeable?
Are there any safety concerns I should know about when replacing my thermostat?
Can I connect a smart thermostat to an older HVAC system?
These follow-up questions not only provide searchers with more insights, but also give your business the opportunity to shine and showcase your expertise.
Customer experience is crucial for success with AI-driven search engines. Google’s March 2024 core update underscores the importance of quality and authenticity in search rankings. As more consumers turn to conversational search, where detailed queries are essential, it’s important for home services businesses to adapt. Google’s latest update signals a crackdown on “spammy,” irrelevant content, emphasizing the need for highquality, helpful, and original content that resonates with users. This means focusing on delivering valuable information that addresses your customers’ needs effectively.
Remember, your website is your best tool to adapt to these changes. The content you include can make or break your discovery by a prospective customer.
AI can be your new business ally. By implementing these strategic moves, you’re not just adapting to change–you’re owning your future.
Your journey with AI has just begun, and the possibilities are limitless.
About 30% of people want AI answers right at the top of search results. While you can’t control everything, ensuring your business is well-represented in online directories, social media platforms, and your website can improve your chances of being noticed in AI-generated searches.
Your website is your not-so-secret weapon. Make sure it’s not just good, but great. Highquality, authentic content that answers specific questions is the key to winning the AI-driven search game. Showcase what sets your business apart and offer localized information. Consider including details about pricing, service expectations, and specific offerings.
Happy customers are your VIPs. Ask them to share their experiences online, including the specific reasons to choose your business. Great reviews not only make you look good, but also catch the eye of AI. While a star rating can impact where you show up in a list, the content of the reviews helps you show up in specific searches. To maximize your visibility, you should monitor your reputation consistently and encourage customers to provide specific and detailed reviews.
Implement AI-powered chatbots on your website to engage with visitors in real time and convert them into leads or customers. By utilizing AI-driven chat functionality, you can provide personalized assistance, address inquiries promptly, and guide prospects through the conversion process seamlessly and around the clock.
The addition of AI into search is more than a Google algorithm update. AI will fundamentally change how people interact with search engines, and it will significantly change how businesses approach digital marketing. Here are seven ways that search will change consumer and business search behaviors:
Ready or not, the future of home services is here, and artificial intelligence (AI) is your new strategic tool. Let’s explore the impact of AI on home services marketing, uncovering both challenges and advantages.
In digital marketing, search engine optimization (SEO) helps you get noticed on search engines like Google. AI takes it further, helping you tweak your marketing to reach the right audience. Home services pros, it’s time to step up your game, traditional SEO practices are now table stakes.
In simple terms, traditional SEO for a home services business means creating regular blog posts, getting links from other websites, and making sure your website content is about the services you offer. It’s like setting up the basics to be discovered on Google. All of that is great for marketing your business, but in a competitive space, you can use AI to your strategic advantage and outrank your competition.
Generative AI can support your marketing strategy by analyzing trends and guiding your business to outperform your competitors. Powering your SEO with AI helps you rank better and faster. AI can analyze thousands of keyword topics and search engine algorithm updates.
If this sounds daunting, you don’t have to navigate it alone. There are services and solutions (such as Scorpion’s Ranking AI offering) designed to seamlessly integrate AI into your digital marketing strategy.
Incorporating AI gives your organic search rankings a significant boost. This means that your content is optimized for search engines, improving its visibility when potential customers are searching for relevant services.
But it doesn’t stop there. When you pair AI with both organic and paid strategies, it goes beyond search engines. The combination enhances your online presence across various digital platforms, reaching your audience where they spend time online. This includes social media platforms like Facebook and Instagram, industry-specific websites like Angi and HomeAdvisor, and other digital spaces.
This comprehensive approach allows your business to engage with a wider audience.
Next up Let’s delve into the transformative realm of AI-powered chat.
See how Scorpion’s AI gives your search engine ranking strategy a boost.
Ranking AI meticulously analyzes over 40,000 data points for each targeted keyword, ensuring precise SEO strategies to reach the right customers with optimal ROI.
Gaining a profound understanding of your market, Ranking AI identifies successful keyword strategies to outrank your competition, quickly and effectively.
Peek into your competitors’ strategies, leveraging AI-driven insights for an edge.
Discover untapped opportunities, equipping your website to rise higher in the search engine results.
Ranking AI constantly adapts based on realtime insights, ensuring a continuous learning process. Scorpion experts interpret AI suggestions, crafting strategies customized to align with the unique demands of your industry.
Want to know more?
scorpion.co/how-we-help/search-engineranking/
Don’t be fooled by traditional chatbots on websites. Like with AI-powered SEO, AI unlocks new capabilities.
AI isn’t just about making your website visible; it’s about having smart conversations that win you leads and customers.
Unlike traditional chatbots limited to preprogrammed responses, AI-powered chat (exemplified by ChatGPT) takes customer interactions to the next level. It learns the ins and outs of your business, offering a more intelligent and personalized experience.
While chatbots offer fixed responses, AI-powered chat functions as a predictive engine, understanding context and refining its replies based on interactions.
For home services providers, this means creating a communication channel that feels more human and efficient. Whether handling service inquiries, scheduling appointments, or offering tips, Scorpion’s AI-powered chat adapts dynamically to customer needs when they’re on your website.
And it does so around the clock. This means you don’t miss out on leads, and you may not have to pay a nightshift live agent to handle requests.
Integrating advanced technology like AI-powered chat into your website isn’t just about enhancing the user experience. It’s a valuable tool designed to engage your leads and convert them into customers. Let’s explore the benefits it brings to home services businesses.
Here are examples of questions Scorpion’s AI chat can tackle without relying on predefined settings:
How do I know if I need an HVAC replacement?
My sink is leaking. What do I do?
What is the average cost for a roof for a 3,300-square-foot house?
21%
Approximately 21% of live chat support requests often go unanswered, leaving customers in the dark. With Scorpion’s Chat AI, your customers get the answers they need 24/7, setting your business apart.
AI-powered chat is a transformative tool that offers tangible benefits for both homeowners and home services business owners.
Instant Assistance
Receive prompt responses to queries, providing the information they need quickly.
Personalized Interactions
AI-powered chat tailors responses to individual preferences, enhancing the overall user experience.
24/7 Availability
AI-powered chat operates around the clock, providing homeowners with on-demand information and assistance.
Efficient Issue Resolution
Streamline troubleshooting, appointment scheduling, and provide guidance, improving service efficiency.
AI-powered chat doesn’t just field questions—it qualifies leads and books clients on your calendar, even while you sleep. This unique capability not only reduces your administrative burden, but also frees you up to focus on running your business, ensuring your valuable time goes to the areas that improve efficiently and profitably.
As the home services landscape evolves, integrating AI into your marketing playbook becomes an essential strategy. For home services businesses, this isn’t about following trends. It’s about leading the charge. AI marketing tools will help you become a household name that your community trusts.
