By 2024, the global market for online on-demand home services will grow to $1,574.86 billion. Currently valued at around $600 billion, the home service business is growing fast. The New York Times says it's expected to have a compound annual growth rate of 49% by 2021.
This is good news for electricians, plumbers, cleaners, and other trade professionals forming the industry.
The people who live on the internet and mobile accessibility are behind this growth. Smartphones are bridging the gap between real-world services and instant online services. If people can order groceries to their doors, why not hire a cleaning service too?
This has created new conditions for consumers and service providers. Yet high-quality service and customer loyalty are still key to survival and success.
It's important to understand these changes for your business's success. Here are 8 home service trends that are reshaping the industry.
1. New Technology Is Making Rapid Changes
Technology and AI is changing how customers connect to home service providers. This is the same technology that allows people to scan items and search for them online. The AI can provide all the necessary details like the price for the products pictured.
Likewise, customers can soon use voice recognition for the home services they need. Another innovation can allow them to take a picture of a household fix and get a quick quote for it. Emerging mobile apps are starting to provide these services.
As these technologies mature, customers are likelier to trust them. They'll use these apps to secure whatever home service they need.
Providers who'll can give better and faster quotes for customers. This will also give them better leads for their business.
2. Former Luxuries Are Now Necessities
People are now spending more money on home services. Demand for home services like home repair and remodeling was once low. Now, millennials who see their time as another resource are willing to spend more on services that were once treated as luxuries.
This has created a greater need for speed and convenience. Yet pricing continues to be a challenge for home service providers. The lack of a standardized approach adds to the instability of prices and is a cause for competition.
There's also a trend of discounts among home service providers. These aim to win and keep more customers.
3. Social Media Is a Main Marketing Channel
Social media remains a powerful platform for growing a business' audience. Many providers are now creating great online content to build their customer base. Video tutorials on platforms like Facebook and Instagram are a great way to showcase expertise.
Consumers search for everything they need online. Your first point of contact with potential customers should look professional.
Customers now also prefer to book services online. Studies show that 56% of customers prefer to message a business on social media or websites. They prefer this over calling through customer service.
4. The Fragmented Market Is Good for Aggregators
The home services market is still fragmented. Aggregators that offer customers various home services remain an attractive option for customers. They prefer this over local providers despite schedule flexibility, low prices, and quality.
To stay competitive, providers need to offer all those benefits as well as excellent service. This is one of the important home service business trends to keep in mind.
5. Home Services as Bundled, On-Demand Service
Customers now expect home services to be on-demand. They can have a package they ordered online delivered within 24 hours. They want home services that can also deliver within the same time frame.
They're also looking for simpler ways to secure related services. This is what's called "bundling". An example of this is when an airline reservation also offers an option to book a car to the airport via Uber.
This is one of the significant trends in home service to plan for. Providers must find a way to bundle their services with other relevant services.
6. Search Engine Optimization
Consumers now have more options with the rise of platforms like Amazon Home Services and Google's Local Services. The focus is on response time, pricing, and reviews.
This is one of the home service industry trends that tells you low pricing is no longer enough. You'll need to rethink your paid search strategy and how you optimize reviews.
This means SEO and user user experience is more crucial than ever. Customers are defaulting to Google's suggestions. Even established providers with quality services must use these platforms to gain footing.
7. Older Homeowners Are Driving Spending
Older homeowners hold a large chunk of the market share. This together with their increasing spending is driving the market.
In 2017, older homeowners made up more than half of home improvement spending. Expect this number to reach 54% by 2020. This is a key home service business trend.
They are also a growing demographic. Thus, tapping their market share is becoming more crucial.
72% of 50-64 year-olds and 62% of those over 65 use Facebook on a regular basis. This means Facebook is an important avenue to connect with this demographic.
8. A More Competitive Talent Pool
Like in many industries, recruiting and keeping talent is a big challenge. This links to millennials driving cultural changes in the workplace. As they become a bigger part of the workforce, they're demanding a better work environment.
Home service providers should consider giving more defined career paths and learning opportunities. Communication tools must also improve for a better employee experience.
Use These Trends for Your Home Service Business' Success
The home service business is seeing rapid growth. Alongside this growth are trends that are reshaping the industry. This generation of consumers is willing to spend more on on-demand home services.
New technologies and platforms are contributing to new consumer demands and expectations. They're also creating new conditions for how providers and customers connect and interact. Social media and search engines are important platforms for gaining solid market footing.