What We Have Covered in This Article
Last Updated on May 10, 2023 by Editor Futurescope
The home service industry is booming like never before. To enjoy a comfortable life within your home, you would probably need professional assistance from experts like landscapers, HVAC technicians, cleaners, electricians, and plumbers to name a few.
Realizing this, residential homeowners are also seeking home warranty solutions. If you look at some home warranty insurance definition basics, you will know that it focuses on the replacement, repair, or service of home appliances and systems. It protects homeowners from expensive unexpected repair bills.
We have seen tremendous development in the home services industry over the last decade; to the extent where the industry is all set to experience a growth of CAGR of 35.81% in the next three years. With such rapid growth, we foresee emerging trends that will be reshaping the home services market.
In today’s technologically advanced market, we have customers who have busy lifestyles and prefer services on demand through digital platforms. Additionally, these individuals also have smartphone access, enabling new venues for instant online services. So, now when people can purchase anything online why can’t they schedule a plumber to fix a leak in the same manner? Let’s navigate through the top home service trends that you should know:
1. Increasing Dependence on Social Media:
It’s no surprise that consumers’ purchase decisions are greatly influenced by the Internet. For this reason, today’s consumers use social media to know more about any service they wish to opt for; home services are no different. Either they hop on social platforms to read reviews or consult influencer messages to make more informed decisions. Hence, customers greatly care about how a product or a service is reviewed before they make a purchase decision.
2. On-Demand Home Service Market:
Customers seek convenience and quick responses along with quality service. As the market is flooded with competition, bundling is one of the few things that can really make a change. Businesses can change the game by offering related and relevant home services in a bundle. And this helps in expanding the customer base.
For millennials, time is everything. And they’ll be able to save a lot of time by viewing and choosing from all specialized services in a single place. The future trend for the home services industry is going to be complete “Uberization”, meaning consumers will need on-demand services, that too along with simplified ways of booking related services.
3. Incorporation of Technology:
The latest home service industry trends are more inclined toward technology adoption in not just one, but many aspects. For instance, businesses that embraced technology are providing faster and more accurate quotes to their customers. Not just this, they are also generating more leads and increasing their profits.
On the other side, voice recognition along with AI is enabling consumers to request home service providers and get quotes instantly. In the future, customers will be able to just click a photo of the fix they need and get instant quotes from service providers. Such technologies are allowing customers and service providers alike to measure and analyze every detail. According to research, more than 55% of customers search online before scheduling any home service.
Customers now use mobile apps to seek home services and they trust apps for online booking and reliable services. For this reason, emerging businesses are developing user-friendly apps that can help customers.
4. Luxuries Become Necessities:
The spending capacity of millennials has increased and this allows them to spend more on home services that were once considered luxuries. Now, millennials are more concerned about redesigning and redecorating according to their preferences.
However, this trend is directly influencing the pricing of the home services market, making it much more volatile. Without any standardized approach, pricing remains to be the biggest challenge that home service providers are facing. Businesses are offering discounts to acquire and retain customers in this highly competitive market and they are even framing home services as necessities with attractive pricing options to attract new customers.
5. Client Communication Channels Are Evolving:
The ways of communication between home service businesses and homeowners are rapidly changing. For instance, now a majority of people prefer messaging a business on social media or website instead of calling them. If a new business ignores this communication channel, then it will miss out on a huge potential customer segment.
It’s a great opportunity for home service providers to show their skills and quality of work on online platforms and it’s a reality that customers will evaluate a service provider based on their appearance on these platforms.
To build audiences, home service businesses are creating engaging content such as videos for Facebook and Instagram. Informative content, a professional look, and some creativity have taken home service providers a long way.
Summing up, the home services industry is on a steady rise and is estimated to stay like that for the next few years to come. With many having a higher purchasing power, these luxuries are now regarded as necessities in many cases, and service providers are certainly marketing it that way.
