The home services industry has historically competed on price. Lowest bid wins. That model is dying, and the companies that don’t adapt are going with it.
After nearly 30 years in this industry, from running my own roofing company to managing multi-market operations at Great Day Improvements, I’ve watched the shift firsthand. The companies pulling ahead aren’t the cheapest. They’re the ones that make every interaction with the homeowner feel professional, transparent, and genuinely helpful.
TL;DR: U.S. companies lose an estimated $75 billion annually from poor customer service, yet 70% of consumers will pay more for superior service (Housecall Pro, 2025). In home services, customer experience has replaced price as the primary competitive advantage. The companies winning market share invest in communication, transparency, and follow-through at every stage of the homeowner relationship.
Why is the old transactional model failing?
Nearly 40% of consumers stop doing business after a single poor call experience, and 60% of callers hang up if kept waiting longer than a minute (AnswerConnect, 2025). The old model worked like this: homeowner calls, contractor shows up, gives a price, does the job, sends an invoice. Minimal communication in between. The relationship ended when the check cleared.
That model worked when homeowners had limited choices and no way to compare experiences publicly. Now? Every customer interaction gets reviewed on Google, shared on Nextdoor, or discussed in a neighborhood Facebook group. One bad experience doesn’t just lose you one customer. It loses you the next ten who read about it online.
I’ve seen this play out across all four markets I manage. The contractors who treat customer experience as an afterthought are the ones struggling to fill their schedules.
What does great customer experience look like in home services?
Housecall Pro’s 2025 survey of over 1,000 homeowners found that 68% now expect photo or video proof of completed work, and 94% are more likely to book a service if they can do it online (Housecall Pro, 2025). Great CX isn’t one big moment. It’s a series of small ones that add up to trust.
It starts at first contact. How quickly do you answer the phone? Is your website professional? Can someone book online? Then it continues through the consultation. Are you on time? Do you explain the scope clearly? Do you leave the homeowner feeling educated rather than pressured?
During the project, it’s communication. Updates on timeline changes. Clean work areas. Respect for the homeowner’s property and routine. After the project, it’s follow-up. Did you check in to make sure everything looks right? Did you make it easy to leave a review? Did you earn the referral rather than just asking for one?
Is technology the answer, or just a tool?
ServiceTitan reports that 62% of home service companies say finding new clients is their biggest challenge, and 86% of consumers read reviews before making a hiring decision (ServiceTitan, 2025). Technology can improve every stage of the customer experience. CRM systems, automated scheduling, digital invoicing, real-time project tracking. The tools exist.
But technology without genuine care is just efficient indifference. I’ve seen companies with beautiful apps and terrible follow-through. The app sends a text saying your technician is on the way, and then the technician shows up an hour late with no explanation.
Technology is an enabler, not a replacement for human connection. The best companies use it to support what they already do well: communicate clearly, show up prepared, and treat the homeowner’s home like they’d treat their own. I wrote about industry trends driving this shift in more detail.
What’s the real ROI of customer experience?
Businesses that focus on customer retention are 60% more profitable, and customers will spend 17% more with a company that offers high-quality service (Zonka Feedback, 2025). The math on CX is straightforward. A satisfied customer tells a few friends. An unsatisfied one tells the internet.
In home services, referrals are gold. A referred customer costs you nothing to acquire, shows up with trust already established, and converts at dramatically higher rates. People are four times more likely to buy when referred by a friend. Yet 83% of satisfied customers are willing to refer, while only 29% actually do. That gap is a massive opportunity for companies that make referral behavior easy and rewarding.
Compare that to the cost of acquiring a cold lead through advertising. When I was scaling Roofed Right America across four markets, referral business was consistently our highest-margin, highest-close-rate channel. That didn’t happen by accident. It happened because we invested in the experience that generated those referrals.
What should homeowners look for when hiring?
The American Customer Satisfaction Index reported an overall score of 76.9 out of 100 in 2025, with the best companies significantly outperforming that average (Comrade Digital, 2025). If you’re hiring a contractor for a major project, the sales experience is your preview of the project experience. Pay attention to how they communicate before they have your money.
Do they return calls quickly? Do they explain the scope in plain language? Do they provide written estimates? Do they have a process for keeping you informed during the project? These aren’t nice-to-haves. They’re indicators of how the entire job will go.
I’ve covered this in my posts on what homeowners should know before starting a renovation and what goes on behind the scenes in this industry. Informed homeowners make better decisions.
The bottom line
The home services companies that will thrive over the next decade are the ones that treat customer experience as a core business strategy, not a department or an afterthought. Price matters. Quality matters. But in a market where technical skills are scarce and digital marketing costs keep climbing, the experience you deliver is what sets you apart.
For more industry insights, explore my blog or connect with me on LinkedIn.
Frequently Asked Questions
Why is customer experience more important than price in home services?
Because 70% of consumers will pay more for superior service, and a single bad interaction causes nearly 40% of consumers to leave permanently. In a market where online reviews amplify every experience, the companies that invest in CX generate more referrals, higher close rates, and stronger retention than competitors who compete on price alone.
How can home service companies improve customer experience?
Focus on communication at every stage: fast response times, clear written estimates, proactive updates during projects, and follow-up after completion. Housecall Pro’s 2025 data shows 68% of homeowners expect photo or video proof of work, and 94% prefer online booking. Technology should support human connection, not replace it.
What is the ROI of investing in customer experience?
Retention-focused businesses are 60% more profitable. Customers spend 17% more with companies offering quality service, and referred customers convert at four times the rate of cold leads. In home services, where the average referral rate is around 2%, even small improvements in customer satisfaction translate to measurable revenue growth through referrals and repeat business.
About Khary Penebaker
Khary Penebaker is a Regional General Manager at Great Day Improvements, overseeing operations across Chicago, Madison, Milwaukee, and Minneapolis. He previously built Roofed Right America from startup to $35M+ in revenue with 180 employees and founded Penebaker Enterprises, growing it from $1.5M to $15M. A gun violence prevention advocate and former Everytown for Gun Safety Fellow, Khary brings two decades of leadership experience in construction, operations, and civic engagement.
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Last updated: March 25, 2026