Boosting ROAS for a Home Services Provider

The Challenge: The home services industry—particularly in roofing and HVAC—is notoriously competitive. Saturated with countless providers, both large and small, businesses in this space often struggle to stand out and keep their marketing costs manageable. A prominent roofing and HVAC company came to us with exactly this issue: their cost per lead (CPL) was unsustainably high, and their campaigns were being drowned out by the competition. Despite their reputation and years of experience, they couldn’t effectively convert ad spend into meaningful returns.

The challenge was clear: how do you bring down the cost per lead in an oversaturated industry where competitors are constantly driving up bidding costs, while also maintaining high lead quality?

Our Approach: At ClickPhD, we understand the unique challenges of the home services industry and how difficult it can be to stand out in such a crowded market. Our strategy was laser-focused on addressing these difficulties head-on, using a combination of smart targeting, strategic differentiation, and cost-saving techniques to boost ROAS while reducing CPL.

1. Precision Local Targeting: One of the biggest hurdles in the home services industry is fighting for visibility in a tight geographic area. To combat this, we implemented hyper-local targeting that focused on high-value zip codes with a strong demand for roofing and HVAC services, but less aggressive competition. By narrowing our focus, we reduced wasted spend and directed ads to homeowners who were more likely to convert.

   
   

2. Keyword Refinement in a Competitive Space: In a highly saturated industry, bidding on general terms can quickly drive up costs. We carefully analyzed both broad and niche keywords relevant to our client’s services and targeted long-tail keywords that their competitors were missing. This strategy not only lowered costs but also attracted customers with specific, high-intent needs—such as “emergency roof repairs” and “HVAC installation financing.”

   
   

3. Competitor Differentiation: After conducting a deep competitive analysis, we found that many of the client’s competitors focused on price-driven messaging, resulting in a race to the bottom. Our approach was different: we focused on the client’s strengths in quality, local expertise, and customer satisfaction. By crafting compelling, value-driven ad copy and landing pages, we spoke directly to homeowners looking for trusted, long-term solutions—rather than just quick fixes.

   
   

4. Advanced A/B Testing & Continuous Optimization: In a competitive industry, even small adjustments can make a big impact. We introduced a rigorous A/B testing process, constantly refining ad creative, calls-to-action, and landing page design. This helped us continuously optimize performance, driving down the cost per lead without sacrificing lead quality.

The Results: Reducing the cost per lead in the home services sector is notoriously difficult, especially given how saturated the market is. However, our data-driven approach helped us achieve a 35% reduction in CPL—a significant accomplishment in such a competitive environment. Additionally, the client’s ROAS increased by 60% within the first quarter, allowing them to stretch their marketing budget further than they had imagined possible. Lead volume grew by 25%, but more importantly, the quality of the leads also improved, leading to higher close rates and greater revenue growth.

Our ability to fill in the gaps left by competitors and leverage cutting-edge marketing tools allowed the client to break through the noise and dominate their local market. Despite the industry's saturation, we delivered sustainable, measurable results.