Consumers Selective in Paying for Home Improvement Services While Professionals Adapt to New Market

GOLDEN, Colo., April 27, 2011 /PRNewswire/ -- Homeowner remodeling activity remains down while spending on home maintenance and convenience services continued to make gains in this tough economy, according to a nationwide survey released today by a leader in home improvement. ServiceMagic released its 2011 first quarter home improvement data and nationwide survey results showing that for the fourth consecutive quarter, demand for convenience services such as lawn and garden care; cleaning and maid services; and handyman services has increased, while home remodeling activity has declined for the third consecutive quarter. The survey also revealed that less than a quarter of service professionals in the home improvement industry utilize a company Facebook fan page and around 5 percent are using Twitter to market their business.

"As consumers shift from investing in large home improvement remodeling projects to convenience service and maintenance projects; the marketing strategy of the small businesses in our network has shifted as well," said Craig Smith, president for ServiceMagic. "Professionals in our network are utilizing online marketing tools and looking for new opportunities such as deals and social media to bring in new business."

Homeowners overwhelmingly indicated that their motivation to hire convenience service professionals was because they have less time to do these services themselves. Furthermore, 45 percent of homeowners plan to utilize these services for seven months or more on a regular basis. Service-oriented professionals are taking advantage of the opportunity with 60 percent reporting they are offering deals and discounts to increase their volume of new customers.

Results from the service professional online survey indicate that 19 percent of home improvement professionals in the ServiceMagic network have a company Facebook page, and 5 percent of these professionals utilize Twitter for business. Of those with a company Facebook fan page:

• 35 percent are using the platform to share company news
• 32 percent are using their page to showcase project portfolios and customer testimonials
• 13 percent are offering deals through their Facebook page
• 16 percent are using it as a customer service channel
• 4 percent use their Facebook page schedule appointments

Of the professionals with a company Twitter handle, sharing company news was the top use for this social media channel. Less than 3 percent of consumers indicated that they are using Facebook to locate service professionals for home improvement projects, however 28 percent of service professionals have received job leads through their company Facebook page.

The data is collected from ServiceMagic's Q1 2011 Home Remodeling and Repair Index, containing information compiled from 1.3 million service requests received through ServiceMagic's online marketplace from January to March of this year, as well as results from a survey of homeowners and service professionals conducted in April. The online survey examined homeowner's intentions and motivations regarding home improvement projects; as well as looked at how service professionals in the home improvement industry are using social media to market their business.

More Information
Home Remodeling and Repair Index Highlights
Survey Results
Home Improvement Fact Sheet
Leading Indicator of Remodeling Activity (Joint Center for Housing Studies recent press release)

Survey Methodology

This survey was conducted online by ServiceMagic, Inc. in April 2011. This survey polled 300 service professionals and 525 consumers in the ServiceMagic network.

About ServiceMagic®, Inc.

ServiceMagic is the nation's leading website connecting consumers with prescreened, customer-rated service professionals. Headquartered in Golden, Colorado, ServiceMagic was recently named Colorado Technology Company of the Year and draws nearly four million unique visitors to its website each month. ServiceMagic is an operating business of IAC/InterActiveCorp (NASDAQ: IACI).

SOURCE ServiceMagic, Inc.