Webcast/Panel Discussion: Lead Generation Best Practices for Construction

1. Webcast/Panel Discussion: Lead Generation Best Practices for Construction December 15, 2010

2. Welcome Moderator/Speaker: Neil Brown Chairman Construction Marketing Association neil@ConstructionMarketingAssociation.org

3. Welcome Panelist: Jesse Josephson VP Marketing Construction Journal j.josephson@constructionjournal.com

4. Welcome Panelist: Russ Hill President Ultimate Lead Systems russh@ultlead.com

5. Agenda – Lead Generation • Why is lead generation important? • Lead generation survey results • Lead sources: traditional, internet and social media • Construction lead services • Dodge vs. Reed Construction Data • Other national services • Regional services • Contractor/Remodeler services • Government services • Other lead services • Practical perspectives on lead services • Lead management examples • Questions

6. Lead Generation - Construction Why is Lead Generation Important? • With both commercial and residential construction down significantly in almost all markets, the pool of available projects is smaller than ever • The recent 2011 Construction Marketing Outlook Survey identified lead generation as a top priority for 2011 • Marketing budgets and resources (including staff) are smaller • Sales leads are one of the most important measures of marketing activities, and ideally can be traced to contracts or sales

7. Lead Generation - Construction Lead Generation Survey Results (4 questions) • What lead generation techniques or sources do you use to market to the construction industry? • Which lead generation technique/source has shown the best results for your company? • Which lead generation technique/source has shown the worst results for your company? • Which lead generation technique/source do you foresee using more in the future?

8. Lead Generation - Construction What lead generation techniques/sources do you use? Sales Prospecting ranked highest with 70% of respondents using, followed by Trade Shows/Events (60%), Internet registrations (58%), Email (57%), Search Engines (45%), LinkedIn (44%), Advertising (40%), Publicity (38%), Social Media (37%), Direct Mail (34%), Per-Per-Click (PPC, 23%), Training Programs (21%), Reed Construction Data (17%), Other Lead Services (15%), and Telemarketing (13%). Dodge Reports, Networking via associations and Referrals tied at 11%. Specification services like ARCAT, CSI and e-specs were used by 4% of respondents.

9. Lead Generation - Construction Which lead generation technique/source has shown the best results? Direct Sales ranked highest at 23%, followed by Referrals (19%), Trade Shows (13%), and Website SEO (11%). Networking events and Reed Construction Data tied at 6%, followed by Dodge, other lead services, Email and Direct Marketing at 4%. Other mentions included Telemarketing, PPC, jobsite visits, LinkedIn, channel promos at 2%.

10. Lead Generation - Construction Which lead generation technique/source has shown the worst results? Advertising led worst results at 28%, followed by Trade Shows and Yellow Pages at 11%; Pay-Per-Click and Direct Mail at 9%. Telemarketing and Dodge Reports followed with 4% of mentions.

11. Lead Generation - Construction Which lead generation technique/source do you foresee using more in the future? Social Media led all at 30%, followed by Internet (12%), Email (9%), Telemarketing (6%); Association Networking, PPC, Referrals, Dodge, and Training Programs and tied at 4% each. Reed Construction Data and Trade Shows follow at 2%.

12. Lead Generation - Construction What type of company are you? 19% of respondents were building materials (manufacturers or suppliers), followed by 18% commercial construction, 15% construction service providers, 13% architectural engineering, 11% residential construction, 9% for both construction equipment and remodeling, and 2% construction technology or property management.

13. Lead Generation - Construction Traditional Lead Sources • Direct mail/email lists • Online databases (e.g. D&B) • Customer service telephone surveys • Outbound telemarketing • CRM systems • Customer database entries • Trade show card readers • Trade show registration lists • Association member lists • Association events • Trade print advertising reader response • Secondary market research (published, publicly available, e.g., internet) • Primary market research • Syndicated market research (similar to Lead Services)

14. Lead Generation - Construction Internet Lead Sources • Website registrations • Contact/Conversion Forms • RSS registrations (typically email address) • Pay-Per-Click (PPC, SEM, e.g., Google Adwords) • Web Reverse IP Address Services (Lead Advantage, Leadlander) • Google Alerts • Urchin Tracking Modules (UTMs) • Email service provider reports

15. Lead Generation - Construction Social Media Lead Sources • LinkedIn Connections (email addresses, InMail) • LinkedIn Groups (post discussions, offers) • LinkedIn Companies • Facebook Friends, Fans, Groups, Likes • Twitter Followers • YouTube Subscribers • WeFollow.com • URL Shortener (e.g. Bit.ly offers tracking) • Bookmarking (Digg, Delicious, StumbleUpon) • Radian6 (identify bloggers, etc)

16. Lead Generation - Construction Construction Lead Services • Reed Construction Data and McGraw-Hill Dodge Reports are the big dogs! Nationals in both public and private projects, with value-added services like bidding, and project planning • Planning stage, such as proposed architect selection, schematics, bid stage, etc. • Categories such as commercial, industrial; with subcategories (e.g. medical offices, retail, parking garages, etc) • Type of work, such as new construction or addition • Contract type • Location • Company information for planners, general contractors, major trades, etc. • Materials specified including company names and models if appropriate • Value of the project and often value of major subcontracts

17. Lead Generation - Construction Reed Construction Data (RCD) • Partners with American Institute of Architects (AIA), RSMeans • RCD claims stronger private project access via AIA and RSMeans • Reed Bulletin report; Reed Connect interface • Full database approx. $60k per year, SmartSpecs $12k/year • Monthly subscriptions start at $110 per month • Founded 1975, based in Norcross, GA; US and Canada reedconstructiondata.com

18. Lead Generation - Construction McGraw-Hill Dodge Reports • Partnership with Associated General Contractors (AGC) • Full database reported to be similar in cost to RCD • Target Leads delivers cost per lead for keywords • Subscription pricing; starts at 10-pack covers 2 regions for $59/month; 20-pack $79/month • Founded 1903, based in New York; US and Canada dodge.construction.com

19. Lead Generation - Construction McGraw-Hill Dodge Reports

20. Lead Generation - Construction McGraw-Hill Dodge Reports

21. Lead Generation - Construction • BidClerk.com • http://www.bidclerk.com/index.html Free listing; $69.95/month for all leads ($59.95 for 12 months); public project focus although list private and residential; limited project detail • TheBlueBook.com • http://thebluebook.com/ Free listing; covers top metros; various advertising levels determines lead invites; integrated bidding services; affiliated with Dodge Reports ConstructionWire.com http://www.constructionwire.com/ BuildCentral brand name; claim 194,000 projects with focus on private and commercial NationalContractors.com http://www.nationalcontractors.com/membership.htm Commercial and residential, Federal and State; starting at $24.99/month; directory Other National Lead Services

22. Lead Generation - Construction Regional Lead Services CDCnews.com http://cdcnews.com/ Construction Data Corporation; commercial project focus; Eastern (US) seaboard, Texas, Michigan; offers free trial Construction Information Systems http://www.cisleads.com/ Northeast focus (NY, NJ, CT, PA, DE); public and private sectors; source directory ConstructionJournal.com http://constructionjournal.com/ Eastern seaboard; public and private projects; offers free trial ConstructionLeadJournal.com http://www.constructionleadjournal.com/ Western US incl. CA, AZ, NV, CO, UT, WA, OR; weekly project list from $84/month for county or metro iSqFt.com http://isqft.com/ Partner with AGC (Associated General Contractors of America) for local coverage; SupplyLink LEADS for BPMs; regions incl. North Central, Southwest region, Rocky Mountain region, Oklahoma; integrated bidding and project management AECleads.com http://www.aecleads.com/ California; public projects CNCnewsonline.com http://www.cncnewsonline.com/ Michigan and Ohio; planning room, CSI specs

23. Lead Generation - Construction • Residential Contractor/Remodeler/Handyman Lead Services ServiceMagic.com http://www.servicemagic.com/ $99 enrollment fee; $7-55 per lead depend on size; non-exclusive distribution HandyAmerican.com http://www.handyamerican.com/ Free listing; $29.95/month all leads with bid capabilities; consumer reviews ConstructionWork.com http://www.constructionwork.com/ Free listing; $39-$399/month lead reports; directory; banner ads, RFQs, etc. Yodle.com http://www.yodle.com/ Manage websites and online marketing for small contractors; $69 monthly fee with $447 website set-up; advertising options ContractorLeads.com http://www.contractorleads.com/ Residential construction and remodeling; manage internet, direct mail and advertising for monthly fee Angie’s List http://www.angieslist.com/angieslist/ Consumers pay membership fee; ratings of home services rank high in search; paid advertising options

24. Lead Generation - Construction • Government Projects Onvia.com http://www.onvia.com/ Database of government projects in US and Canada for 89,000 agencies; industry solutions for architectural engineering and construction supplies BidSync.com http://www.bidsync.com/ Electronic bidding software; claim 70,000 public government agencies FBO.gov https://www.fbo.gov/ Federal Business Opportunities including construction projects

25. Lead Generation - Construction • Other Lead Services Equipment Data Associates http://www.edadata.com/ Equipment lease database of UCC filings; used by construction equipment and capital equipment manufacturers and suppliers ARCAT.com http://www.arcat.com/ Manufacturers directory and architectural product specifications; target architects and engineers Sweets Network http://products.construction.com/ Catalog and directory of architectural products and specifications from McGraw-Hill Construction

26. Welcome Panelist: Jesse Josephson VP Marketing Construction Journal j.josephson@constructionjournal.com

27. Proactive vs. Reactive Lead Services REACTIVE: Some tools are designed to produce incoming leads from people that have expressed interest in your products/services and want to hear from you. These are tools geared toward the smaller, single-family residential contractor (like ServiceMagic), where you respond to specific inquiries. PROACTIVE: Other tools are designed for commercial/government contractors and suppliers and require the user to identify opportunities and proactively pursue them in their desired method (like Reed/Dodge). Identify which tool is most appropriate for you and if it’s the Dodge/Reed type of service, be sure you understand a service like this will only work as well as you work it.

28. Common uses of Construction Lead Services • To find immediate and future opportunities to pursue • To obtain current marketing pricing/bid results information • To research a company’s recent activity/find ideal companies to work with • To solicit building owners/tenants for “post-project” products and services • To work with the architect to specify a particular product into the drawings

29. Example of a Project Report • Most lead services provide similar information on individual projects. Here’s an example of the primary information on a Construction Journal report in it’s Bidding phase:

30. Example of a Company Analysis Report • Some lead services provide the ability to view project activity associated with a particular company. This is an example of a Construction Journal Analysis Report.

31. What are construction firms doing differently in response to the reduction in construction activity? • Shifting from the reactive to the proactive: Sharpening the marketing axe and seeking new opportunities/new relationships for the first time in decades. • Expanding geographical horizons: Increased the distance they are willing to travel. • Expanding to new areas of work and finding strategic partners to provide more value to your proposal. • Focusing on relationship building instead of project bidding: The effectiveness of “hard-bid” ratios as a business model have declined or diminished entirely. • -Embracing business development tools and efficiencies long ignored: Technology and the modern sales process changed and left many construction firms in the dark ages over the last two decades – those succeeding in today’s market are having to catch up fast with CRMs, online marketing, etc. • -Measuring results: Building better profiles of potentially lucrative and winnable projects/relationships based on prior track record and then using modern tools to pursue those only with today’s limited resources.

32. Perspective on the construction market decline • Numbers conflict about how construction starts will rise or fall in 2011 and when will it truly recover. • What you don’t need to know: All those conflicting numbers and threats of doom and gloom. • What you do need to know: No matter who’s numbers and stories prove accurate, there will be a huge number of construction starts the U.S. in 2011 worth at least: • $400 Billion • (that’s with a B) • Make no mistake, the pie is still BIG. It’s always been big. It’s just that it got HUGE there for a few years –that was the anomaly– today is the norm. *McGraw-Hill Construction forecasts 2011 U.S. Construction starts at $445.5 billion.

33. Welcome Panelist: Russ Hill President Ultimate Lead Systems russh@ultlead.com

34. Identify who your visitors are & their visit history! Visitor Company Detail & Page Views

35. Company Detail See visitor profiles & identify key contacts! Visitor Company Detail & Contacts ULTIMATELEAD.com

36. AdCam Online Campaign Manager… Visitor Traffic by Browser & Operating System Easily create & manage campaigns and track visitor response and R.O.I! ULTIMATELEAD.com

37. Dashboard 1 Access leads directly from the dashboard links or via simple navigation

38. Grid 2 High Priority leads and requests for sales calls are displayed in RED.

39. BlueBook Link Click here to display detail for Blue Book Invitations-to-Bid details

40. BB Sample

41. Call Report1 View qualifying information provided by prospects and completed surveys… Schedule follow-up contact dates and receive reminders… Easily add follow-up and closure information to keep track of your sales leads… (Your feedback helps marketing generate more & better leads! Leads can be closed as SOLD, BOUGHT COMPETITIVE, REQUEST ADDRESSED or NO OPPORTUNITY. The more information the better.)

42. Plot Map Sample Track lead follow-up results and sales dollars by rep.

43. Plot Map Sample Plot Lead Locations View lead locations, plan travel routes, Get Directions and display lead details

44. Lead Generation Construction • Generating sales leads in the construction market is more critical than ever due to the shrinking pool of projects and prospects. • There are many sources of leads including traditional, internet and social media; leads can be generated thru marketing, or purchased. • Construction firms tend to purchase leads from a large variety of sources including the two large nationals (Dodge or Reed), other nationals, regionals, contractor/remodeler services, government services and more. • Building product manufacturers tend to generate leads thru traditional, internet or social media sources; however if their products are specified by architects or engineers, or jobsite visits are key, they could use construction lead services. • Effective lead management is key to understanding marketing return on investment and ensuring sales executes effectively

45. Q&A

46. Thank You! The Construction Marketing Association (CMA) is a network of marketing managers and executives in construction-related fields. CMA provides professional development and training, resources and information, networking and recognition. Find us: http://www.ConstructionMarketingAssociation.org www.ConstructionMarketingBlog.org Twitter.com/ConstructMarket Facebook.com/ConstructMarket LinkedIn.com (Construction Marketing Association Group) Next Webcast: Supercharge Your PR – January 14, 2011

47. Panelist Bio’s Jesse Josephson is VP of Sales & Marketing at Construction Journal, one of the top lead services in the southeast region. Jesse is an experienced leader specializing in team management, process improvements, strategic partnerships, and driving business development through a blend of sales and marketing strategy. He has previously held Vice President positions at Private Schooling Direct and PartsBase, Inc. Jesse began his career at NewsMax Media, where he was Director of Advertising Sales. Russell Hill is President of Ultimate Lead Systems. Founded in 1983, Ultimate Lead Systems provides web based customized sales lead management & CRM programs, email marketing, and website tracking services to both Fortune 500 and small B2B companies including such construction industry clients as Sherwin-Williams, Ridge Tool, Eaton, CAT Lift Truck, Mitsubishi Lift Trucks, MTD, Lincoln Electric and others.  Russ is a member of  the Business Professional Advertising Association, Sales & Marketing Executives, Direct Marketing Association. In 2005, he was named to Crain's Who's Who in Technology. Prior to founding ULS, Russ was a media rep for Industrial Equipment News. Neil Brown is Chairman of the Construction Marketing Association. He has been CEO of numerous marketing consulting and creative agencies for the past 15 years, managing some of the biggest brands in the construction sector. Prior to the agency-side, Brown was a brand manager at electrical products marketing powerhouse IDEAL Industries, and later CMO of an architectural metals manufacturer.