Survey Shows a Rise in Millennial Home Services Spending
The home has easily become a focal point of both family and work life. Many people are still working from home and after seeing a major shift across industries to accommodate this change, it’s become clear that remote work is here to stay.
With more time being spent in the home, improvement projects, home renovations, and repairs are high on the to-do lists of many.
We conducted a survey to get some insight into consumer behaviors in the home services industry. Interestingly, we found that millennials are among a key demographic that you should be targeting.
Marketing to Millennials
True, there are generational differences that will require you to target each group differently, but why not focus on Gen Xers or the Baby Boomers? A key reason your efforts are better spent on millennials is that the older generations have something you will be fighting against — brand loyalty.
It’s already hard to acquire new customers, and they’ve had time to find their preferred provider. Seventy-nine percent of our survey respondents said they would continue to use their current brands, while only 21% were open to trying a new home service company.
It’s a smart move to focus your home services marketing on targeting millennials. They are the least loyal generation and are rapidly taking over the housing market. Now that work has made them home-bound, they are actively looking for ways to enhance at-home living.
Here are some of our key findings from our survey:
- The top service priority for ages 18-29 was home renovations, leading at 44.60%.
- Ages 30-44 saw renovations as the second-highest priority at 41.83%, with lawn care at number one.
- Among all age groups, lawn care was the number one planned home service for 2021, from 45.35% of respondents.
We also found that millennials were among the group most influenced by direct mail, and surprisingly the age group least influenced by word of mouth. As you’re developing your marketing plan, incorporate direct mail into your strategy. It will get your business noticed with the least amount of competitor noise.
Millennials — being the crafty, tech wizards of the age — are also more likely to leave an online review after a good experience. And because word of mouth is so impactful to all other age groups, you’ll still be indirectly targeting the other generations through your reputation. So let them do the work for you!
Home Improvement Spending Surge
As more homeowners seek to increase the value of their property and make improvements, much of the spending surge is coming from the younger generation. In our survey, we asked how much our respondents plan to spend on home improvements and repairs in 2021. The average came to $1,744, while those planning to spend the most (—an average of $2,241, almost a $500 difference!) were between the ages of 18-29. The younger respondents were also those more likely to spend a little extra for organic solutions, at 58.99%.
That extra spending is money that could be going right into your business’ pocket. If you’re unsure of how you could be targeting this group, our home service experts at UpSwell can help you get started. You’ll get a free marketing assessment and our marketing specialists will build a strategy that is perfect for your business.