Key Trends in 2020 for Home Service Companies
As experts in the home service category, we take a regular pulse of what’s important to homeowners. Each year our initial HomePulse survey identifies the key trends home service companies should consider while making decisions during the upcoming year. These trends provide insight into the best ways to reach and communicate with homeowners, helping home service companies quickly adapt to consumer needs and demands.
1. Homeowners are much more confident about spending as we enter 2020.
Compared to our 2019 HomePulse, homeowners are much more likely to making a significant purchase for their home in 2020.
Last year, 38% of homeowners indicated that they were likely to make a significant purchase. In 2020 this number jumped to 61% of homeowners.
This confidence may diminish as the year progresses and we get closer to the presidential election in November, so go after homeowners early in the year.
2. Not all homeowners are the same.
Millennials will be the fastest growing group of homeowners for the next few years; therefore, homeowners will now primarily be made up of three distinct groups — baby boomers, Gen Xers and millennials. With 73 million people, there are now more millennials than baby boomers. While baby boomers and Gen Xers still currently comprise the largest number of homeowners, home service companies must be aware of the differences between these groups when communicating, developing promotions and considering an appropriate marketing mix. Below are a couple of responses to questions from our HomePulse survey that highlight the differences.
3. Home maintenance / service agreements are popular.
In this year’s HomePulse, the number of homeowners indicating that they have a maintenance/service agreement doubled.
12% in 2019 vs. 24% in 2020
Home service companies should continue to promote the value of their maintenance/service agreements in 2020, especially to millennial homeowners. In this year’s HomePulse, 28% of millennials indicated that they currently have a maintenance/service agreement.
4. Brand awareness is critical.
With more competition than ever fighting for a piece of homeowner dollars, it is imperative for home service companies to break through the clutter and drive top-of-mind awareness. Our recent HomePulse revealed that 70% of homeowners expressed that they are made aware of or try a home service company directly from a company’s advertising efforts. In 2020, home service companies should make sure they are highlighting their key differentiators, saying it loudly and often.
Random sample of adults from across the country who own a home and are the primary decision maker for home service issues.
