If you’re in the contracting business, you’ve likely used or at least heard of Google’s Local Services Ads (LSA). Recently, Google introduced a significant change to this feature that could impact how you acquire leads and ultimately, how you do business. In this blog post, we’ll break down what these changes mean for your business and offer strategies for standing out among the competition.
What is Google LSA?
Google’s Local Services Ads, commonly known as LSA, are a type of online advertising specifically designed for local service providers. When someone in your service area searches for the services you offer, your ad may appear at the top of the search results. Unlike traditional Pay-Per-Click (PPC) advertising, you pay per lead rather than per click, making it a potentially cost-effective way to gain new customers.
The Changing Face of Google LSA
Previously, when you responded to a Google LSA, your business was the focal point of the customer’s attention. However, the new changes mean that your lead could be shared with multiple contractors, thus increasing competition and potentially diluting the value of each lead.
Similarities to Other Platforms
This shift in Google LSA closely mirrors the lead generation tactics employed by other platforms like Angi, Thumbtack, and Home Advisor. These platforms have long operated on the model of presenting customers with multiple quotes from different service providers, essentially creating a competitive environment for businesses. If you’ve ever used these platforms, you’ll find the new Google LSA landscape to be quite similar, with the same challenges and opportunities.
Who is Affected by These Changes?
The changes to Google LSA impact a wide range of local service providers, from home builders and remodelers to plumbers, electricians, and HVAC companies. Any business that relies on Google LSA for lead generation should be concerned about the recent adjustments, as they introduce new complexities into the customer acquisition process.
Why Should You Care?
The implications of Google’s LSA changes extend beyond just heightened competition. Here are some key areas that could be affected:
Dilution of Lead Quality
With more businesses vying for a single customer’s attention, the quality of each lead can be diluted. Customers might get overwhelmed with multiple options, making it difficult to stand out and maintain a strong perceived value.
Increased Marketing Costs
The very nature of shared leads can result in a bidding war among businesses. While trying to outbid your competitors, you may find your marketing costs rising, which can eat into your profit margins.
Necessity for Strategy Shifts
The previous dynamics of Google LSA allowed for a more straightforward approach to lead acquisition. The new model demands a shift in strategy, requiring businesses to invest more in follow-up processes, customer engagement, and unique selling propositions.
Elevated Customer Expectations
As customers get used to receiving multiple quotes and options, their expectations may rise, necessitating a higher level of service and responsiveness from businesses to clinch the deal.
By understanding and proactively adapting to these changes, you can better position your business to thrive in the new competitive landscape created by Google LSA.
How to Win the Job in a Competitive Environment
Navigating this new landscape requires strategic adjustments. Here are some tips for standing out and winning the job:
Quick Response Time
The early bird gets the worm. As soon as you get a lead, call them back immediately. This not only shows your eagerness but also sets the tone for a prompt and professional relationship.
Impress on the First Call
Your first call with a potential client is the perfect opportunity to make a lasting impression. Be prepared, courteous, and listen carefully to the client’s needs to offer the best possible solutions.
Leverage Your Google My Business Profile
Make sure your Google My Business Profile is up-to-date and showcases excellent reviews. A solid online reputation will make you more appealing to prospective clients who are comparing multiple options.
Provide a Detailed, Competitive Quote
When you’re up against several businesses, your quote has to stand out. Provide a comprehensive, yet competitive quote that breaks down the costs and benefits of choosing your services.
Limited-time discounts or additional services at no extra cost can make your offer more attractive. Be cautious, however, not to undermine the value of your service by providing too many concessions.
The recent changes to Google LSA have introduced new challenges for contractors aiming to secure valuable leads. However, by understanding these changes and implementing effective strategies such as quick response times, impressive initial calls, and leveraging strong Google Business Profiles, you can still win the job and continue to grow your business.
About Home Builder Reach
Home Builder Reach specializes in helping growth-focused home builders, home remodelers, and general contractors reach their revenue goals through a blend of online and offline marketing strategies. We’re here to help you navigate the complexities of digital marketing so you can focus on what you do best: building and remodeling homes.