Phil Risher says 90% of home-service companies fail at digital marketing because they don't track return on ad spend through their CRM. An arborist spent $2,000 monthly on ads and generated $70,000 in opportunities, but only $5,000 closed, revealing a sales problem, not a marketing one.
90% of home services fail at digital marketing because they don't track return on ad spend. We had an arborist company that we started working with a couple months ago. They were spending money on ads, about $2,000 a month, but they had no idea what was actually working or what wasn't working. When we put in our return on ad spend tracking, we realized that they spent $2,000 and they generated $70,000 in opportunities for their business, but they only closed $5,000. What this illuminated was that it wasn't an actual marketing problem. It was that they weren't tracking their return on ad spend all the way through. They had to fix their sales process. This is why, if you know the full picture, spent this much on ads, got this many leads, this much potential revenue, and this much close, you'll know what to fix in your business to help you grow. If it's just a leads issue, you can fix your leads issue. If it's a sales issue, fix your sales issue. But most companies fail at digital marketing because they don't know all the numbers and they're just flying blind with a gut feeling. So the lesson here is if you're spending any money on ads, you're working with a digital market or you're doing it yourself, you need to track it all the way to return on ad spend. Inside of your CRM, you need to know that you spent $2,000, you got 10 leads that generated $50,000 in potential revenue, and you closed $10,000. That's you need to know and make the best decisions to help you grow your business.
