Slowdown in activity but conversion remains resilient

By Neil Cooper-Smith, senior analyst, Business Pilot:

June saw a further softening in lead volumes and sales, but strong conversion rates suggest that buyers who are in the market remain committed.

Average lead volumes dropped for a third consecutive month, from 102.8 in May to 97.7 in June, a 5% decrease. This follows a broader seasonal trend, with many homeowners’ pausing major home improvement plans as summer holidays and school breaks approach.

Sales volumes also saw a modest reduction, from 50.6 in May to 49.4 in June, a 2.4% dip. While this is the lowest level recorded since January, it remains in line with previous years’ seasonal values, reflecting a natural dip in spending during the costly summer months.

The good news is that conversion rates continued to climb, increasing from 41.1% in May to 42.0% in June, a 0.9% gain. This marks the third month of consistent growth in conversion, indicating that while the top of the funnel may be narrowing, those entering are more serious buyers.

Average order values declined slightly, from £3,891 in May to £3,754 in June, a 3.5% decrease. This aligns with ongoing caution in consumer spending, possibly influenced by continued high borrowing costs and a need to prioritise essential over premium purchases.

This mixed picture mirrors broader economic conditions. The Bank of England kept its base interest rate at 4.25% in June, maintaining a tight policy stance amid persistent services inflation. Meanwhile, households remain under pressure from high household costs and subdued wage growth, with the main rate of inflation remaining at 3.4% in the year to May – the highest for more than a year.

Despite these constraints, the steady improvement in conversion rates offers a silver lining for installers. It reinforces the importance of nurturing and qualifying leads, as well as providing flexible, value-driven offers to close deals.

At Business Pilot, we continue to believe that visibility and insight are your biggest advantages. With lead volumes easing and competition for jobs rising, tracking performance and acting on real-time data is more essential than ever.