Like last year (and the year before), people continue to face inflation challenges, while mortgage rates and home prices keep rising. Combined with supply chain issues, all-around higher costs, labor, etc., all directly affect home service businesses. One big question lingers and weighs heavily on consumers and business owners: When will things truly begin to turn around, and will we all start experiencing actual relief?
We collected data from over 270 home improvement business owners to better understand their concerns, and while we are seeing some positive moves, with rising costs at 58%, they are down 10% YOY. And priorities like customer retention and growth 40%, down 5% YOY. At the end of the day, when reviewing the results, one thing has remained constant: effective advertising is essential to success. On the flip side, we surveyed over 1,600 homeowners to gauge their thoughts and gain insight into their home service spending and what motivates them to dig deeper into their wallets.
Key findings:
- 77% (up 5% YOY) of homeowners prefer to receive ads that contain an incentive or offer
- Almost half of H&G businesses get the bulk of their jobs via advertising
- 25% of consumers budget up to $500 annually on home maintenance, and 33% $750 or higher
- 63% of H&G businesses budget between $10,000 and $75,000 for advertising per year
- House owners want services more than once—they want the full-season discount
- 9 out of 10 business owners agree that direct mail WORKS for their company
- More than half of consumers would like to receive home & lawn offers in the mail
- Seasonality impacts most businesses, and many adjust services to stay competitive
- 58% of consumers would switch service providers for a lower cost, 39% with a coupon / offer
All growing lawns need maintenance
“Some of these businesses should offer loyalty to customers who have used them so much over the years. That will increase more referrals for their business.”
“It would be better if the ads were clearer about the actual prices and shipping costs, and included reliable product reviews to make decision-making easier.”
Homeowners may need a little more incentive to get them to pick up the phone and call or scan a QR code to learn more details about a particular lawn care company they’re interested in. While it’s no surprise that low cost took the top spot as a motivator for consumers to switch lawn service providers, it’s interesting that customer reviews (40%) moved up a spot from last year, pushing businesses that provide a wide variety of services into third place with 38%.
Now we know there is money on the table, and homeowners are more willing to part with it if offered an incentive. 42% of respondents are in it for the long haul, choosing 25% off a full lawn care season as the top offer they want, with 31% seeking 50% off their first lawn service.
They’re out there; let them know you are
“Digital advertising with strong targeting and clear performance tracking delivers the best results for our home and garden business. Transparency, measurable ROI, and flexibility are key factors in our advertising decisions.”
“I think home & garden advertising works best when it is visually appealing and demonstrates practical use, like showing real-life setups or DIY tips. Clear, seasonal promotions also help capture attention.”
“Home & garden advertising works best when it combines digital strategies with local.”
“AI has significantly improved my experience by providing highly personalized recommendations for my specific home decor style. It saves a lot of time by filtering through thousands of products to find exactly what fits my garden’s dimensions. However, I would appreciate seeing more diverse budget options in the sponsored search results.”
Last year, over $426 billion was spent on advertising from TV to iPhones to coupons in the mail, and that number will only get larger. Translation: businesses need to advertise because, if you’re not, someone else definitely is, and they’re selling products and services that most likely match yours. Thus, how will potential consumers in your area or across the nation know if you don’t get your message out there and in front of their faces? When we asked H&G business owners how they get the lion’s share of their business, while referrals (16%) and word-of-mouth (32%) hold significance, 37% said good old-fashioned advertising brought in the most jobs.
“Home and garden ads could be more eco-friendly, focusing on sustainable, long-lasting products.”
The combined impact of direct mail / digital
“I like seeing home & garden advertising that is inspirational and practical, showing how products can actually be used.”
“I think the only way to have truly effective advertising in this space is to offer a discount in the ad.”
“Effective home & garden advertising balances seasonal timing, quality visuals, and targeted messaging to reach the right audience.”
“AI-generated images in ads often showcase impossible, “photoshopped” plants—like bright blue or neon-colored flowers—leading to consumer disappointment.”
Direct mail with QR codes to targeted households breaks through the ad noise and finds and gets into the hands of consumers who are looking for and more likely to respond to your products. From digital to direct mail, which channels are most popular from the perspective of current business owners? Mobile display ads (72%) take the top spot of channels H&G advertisers currently use, with social media ads (71%) right on its heels in second, and direct mail at the #3 spot (52%). These results bode well for both mediums as advertisers work to build more cohesive customer journeys by combining direct mail with digital for a robust omnichannel experience to increase engagement and raise ROI.
The argument for direct mail is strong and getting stronger, as 9 out of 10 home and garden businesses use or have considered using direct mail advertising. Maybe for its tactile versatility, where receiving something in your mailbox, holding it in your hand, and then putting it in a pocket or merely up on the fridge as a reminder. Or, an easier, more accessible selection when a homeowner needs improvement, landscaping, window replacement, etc., and they got an offer right in their palm! According to AudienceSCAN®, 78% of U.S. adults keep and read the ads they get in their mailboxes.
When we asked H&G direct mail advertisers how many years they had used direct mail as part of their business marketing mix, 79% said 3-10+ years—and a whopping 94% agree that direct mail advertising has worked for their business. Here lies the next question: Why? Or what do you like about advertising with direct mail? The top 3 answers were price (56%), response rate (53%), and customer service received (48%).
There is no shortage of big pest locations
“For it to be very descriptive and to offer pricing. Because that is very important in this economy, to tell exactly what it is offering.”
“I’d like home & garden ads to be more visually clear, show practical uses, and highlight quality and value.”
“I’m not even so much as interested in discounts as I am interested in trustworthy companies that don’t overcharge you and then only do half the job. I would rather pay full price and have a job well done.”
Now we know that if you live in Florida vs. a different, perennially colder area in the United States, your pest situation might be a constant battle for peace—that doesn’t mean homes from California to New York don’t have their fair share of creepy-crawlies to tend with. At the same time, 49% of homeowners pay up to $50 a month for pest control services (29% pay up to $100 or more).
Like lawn care, low cost took the top spot for reasons consumers would try or switch pest control services at 55%. However, companies that provide a variety of services (31%) remain a popular choice among consumers, while coupon offers (35%) and customer reviews (37%) increased in this category. Businesses listen up; consumers are looking for that one-stop shop they can trust and expect good deals from.
“We offer different services in different seasons because customer needs change throughout the year. For example, lawn care and planting are more in demand during the rainy or growing season, while pruning, cleaning, and maintenance are more common in the dry season. It helps us stay relevant and serve clients better all year round.”
“Our business adapts to the climate and local environment. By offering season specific services, we make sure customers receive the right type of care at the right time, whether it’s planting and lawn improvement in spring or storm cleanup and winter preparation later in the year.”
“I offer different services in different seasons because people’s needs and priorities change throughout the year. Demand can shift based on weather, holidays, budgets, and industry trends, so adjusting services helps me stay relevant and useful. It also allows me to maximize income opportunities by focusing on what clients are most likely to need during a specific time of year.”
Home is where the budget is spent
“Clear information and honest product details make home and garden advertising more useful.”
“Home and garden ads are more effective when they show real-life use cases and clear pricing.”
“I just know as a single mom, I’m always looking for upkeep of my lawn.”
There is just no getting around it as a homeowner: homes need regular maintenance and upgrades—it is what it is. And our respondents have sought a wide range of services. Maintaining that HVAC (heat and air conditioning) system again is the most popular at 59%. Plumbing again took the next spot (58%).
Encourage spending with offers
Similar to our recent local advertising survey, despite rising cost concerns, most respondents listed healthy advertising budgets. 74% have an annual ad budget of $10,000 or more, with 52% budgeting $25,000 or more (10% $75,000 or more!) for advertising. 39% of these owners also plan to increase their ad spend this year, with 51% planning to maintain current spend.
The big how, is how home and garden businesses plan to spend money on advertising. 26% plan to spread it out throughout the year, while 17% take a more cautious approach and move money around based on performance.
Homebuyers (just like last year) are taking on more and more costs beyond a mortgage these days, so they are planting roots and sticking around longer. Meaning, the right offer to the right target audience at the right time might just land a contract that lasts for years. When we asked, on average, how much our respondents spend on home maintenance from housekeeping to carpet and window cleaning to power washing, etc., in a year, 22% spend up to $250, and 58% spend $250+ up to over $750+ per year.
With many homeowners cutting insurance in many parts of the country due to impossibly high premiums, the writing on the wall says they’re biding their time and savings because they know they’ll have to pay to repair those surprise incidents (fire, flood, hurricane, and more) on their own not if, but when they occur. When asked, on average, how much they spend on home repairs (i.e., electric, flooring, painting, plumbing, HVAC, etc.) in a year, 48% spend up to $1,000, and 33% spend $1,000+ up to over $3000+ annually on said repairs.
Note: 77% of homeowners prefer to receive ads with an incentive or offer.
My castle; my preference
“I tend to look at advertisement postcards in my physical mailbox more than I do email promotions and offers.”
“Effective home & garden ads should be personalized, relevant, and not intrusive.”
“Consistency builds trust among consumers, who are more likely to advocate for brands that they perceive as reliable and authentic.”
“I am impressed with how AI can now suggest complete room layouts and gardening plans based on my previous searches. It acts like a digital interior designer that helps visualize how different elements will look together before I make a purchase. My only feedback is that the advertising algorithms should be less aggressive once a purchase has already been completed.”
59% of survey-takers said they prefer to receive home & lawn offers in the mail (tactile, unchanging coupon with the headline and offer strategically placed so as not to be missed is as good as currency). Email at 37% (both of which are more than social, websites, mobile ads, etc. combined), in its own way, is a static image that is yours and will not change once opened and saved from your inbox.
Creepy? Not creepy? But effective!
There are various personalized advertisement options to reach existing and potential customers. From new home buyers to birthdays to anniversaries, it doesn’t hurt to add a little bit of personalization on a postcard that arrives at the same time as coupons.
Regarding personalized offers and what homebuyers would like to receive, the engagement and high percentages from our respondents’ replies are pretty telling. Yes, consumers like to be reminded that service providers appreciate them and value their business. And, hey, an easy one is the birthday message—no matter who it comes from, when somebody says, “Happy birthday!” it always feels good—it just does.
“Customer demand shifts throughout the year, so we adjust our services to match seasonal needs.”
“Offering different services in different seasons allows us to meet changing customer needs and preferences throughout the year.”
“Different things you can do like in the summer we mow lawns in the winter we clear snow.”
Make it a season they remember
Home and garden business owners credit April through September as their peak season, with May (62%) June (65%) and July (61%) being the top 3 busiest months. While also recognizing the beginning of the year, January (67%) and February and the end of the year, October, November and December (63%) are their slowest periods. But this doesn’t mean there aren’t opportunities to take advantage of all year.
“We offer discounts on remodeling kitchen and bathroom during winter months to drum up busy because of the weather limits our outside work time.”
“In the summer I cut grass and in the fall I rake leaves and in the winter I shovel snow.”
“I offer different services for different seasons because one service is more in demand for only certain months and the other is in demand on the opposite months.”
Slow seasons happen for many businesses. However, during these times, it’s still essential to advertise. Seasons change, but your ads will continue to resonate with customers as things pick up again. For example, a landscape or lawn care company can install holiday lights, clean gutters, pressure wash windows, etc. Similarly, for summer, a snow removal business could use its service trucks to move equipment and gravel around or help with other road maintenance. One must realize how vital ingenuity in advertising is to success—always thinking, brainstorming with staff, and finding new ideas to get the word out about your business.
“Offering different services in different seasons allows us to meet changing customer needs and preferences throughout the year.”
“Trust” is a powerful word
“I have mostly used small local companies, but have gotten quoted a price and then it ends up being double the estimate because of some ‘unexpected’ issue. Scammers!”
“I’d like home & garden ads to be more visually clear, show practical uses, and highlight quality and value.”
“I like seeing home & garden advertising that is inspirational and practical, showing how products can actually be used.”
More than ever, deciding to spend money on home improvement / lawn care is a major decision for most Americans. So, we asked our survey respondents to choose from a list of advertising brands they consider “trustworthy.” Last year, 2 brands took that top spot, a constant reminder of the relationship between advertiser and consumer. However, surprisingly, those two companies, Google (31%) and Amazon (32%), were again tied for the highest honor when it comes to home improvement brand promotions. Maybe it’s the excellent return policies or the incredible catalog mixed with impeccable customer experience and service. HGTV again holds the next position with 27%, but YouTube (23%) is jumping up on the list, looking to grab position #3!
While the survey is no obligation, and homeowners can choose the direct mail brands that they believe to be considered “trustworthy,” Valpak is happy to be still ranked as the most trustworthy direct mail brand:
We say it a lot because it’s true: Advertising is an investment in your business and will boost brand awareness, jobs, profits, and more if done strategically, i.e., with the help of tools and a trustworthy / knowledgeable ad partner.
For owners, as well, trust is the keyword. Much time and money goes into advertising and finding the right fit for your company, so a business must choose the best brand / channel for its products and services.
While the survey was blind (sent/managed by PureSpectrum), H&G business owners still ranked Valpak as the most trustworthy direct mail brand:
You can hear it. It’s on the table; the money is talking
There is money to be spent on advertising by H&G businesses, as 72% of owners we surveyed listed an annual revenue of $250,000 or more and 40% at $1 million or more! Yes, even with inflation and hidden home buyer fees, there is still money on the table. As many homeowners know what it takes to maintain a happy home, business owners know and are aware and striving for success, staying, + growing power. Are you spending enough on your advertising efforts and with enough reach and frequency to make a real impact on your target audience? Are you using the channels your audience prefers and looks to when searching for your type of service? Are you incentivizing sales and rewarding loyalty to returning customers? Knowing how to read the writing on the wall is just as important as the writing when driving your company to the next level. Proven advertising solutions, data-driven insights, and a local marketing expert who lives and works in your neighborhood—there’s every reason to partner with Valpak on marketing!
