When online marketing and digital lead generation are responsible for negative consequences and developments

🌞 With the increasing need for PV systems and the increasing digitalization of sales, new challenges and risks arose, which were particularly amplified by lead generation in online marketing and are still relevant. This development leads to a variety of negative consequences that not only destabilize the market, but also have a significant impact on end users and specialist companies.

💡🔌 The unregulated competition in the PV market

🌪️ The market for photovoltaic systems is highly competitive. There are now providers on almost every digital corner who want to bring their services to men and women via various channels, from social media to private networks. Online marketing had recognized the PV trend and specialized in lead generation, which created a veritable flood of providers. However, it is often not specialist companies, but students, housewives and housemen who offer part-time consulting services through online marketing agencies and flood the market with cheap offers. However, this development has its downsides.

While the number of providers increases, the quality of the services offered often falls by the wayside. This is particularly problematic in an area as technically demanding and safety-relevant as the installation of solar systems. The shortage of qualified specialists, especially trained electricians, who are responsible for connecting systems to the power grid is becoming increasingly clear. Despite the increasing demand, there are not enough certified professionals to carry out installations properly and safely.

🔧 The need for professional installation

🔩 A central problem in this unregulated market is the professional connection of photovoltaic systems. According to §13 of the Low Voltage Connection Ordinance (NAV), electrical systems that are installed behind the mains connection of a house may only be connected by certified installation companies. But often it is not these specialist companies that dominate the competition for the sale of solar systems. Instead, online marketing agencies dominate the market, specializing in sales but taking little to no responsibility for installation, especially for connecting the systems.

This trend means that although numerous solar systems are sold, the technical and legal requirements are often neglected. The responsibility for the professional connection is then passed on to the specialist companies, who are, however, often confronted with inadequate preparations and false promises from the previously commissioned consultants. This not only leads to delays, but also to additional costs and risks that both specialist companies and end customers have to bear.

💰 The price war in the solar market

📉 Another serious problem is the aggressive price war in the solar market. Due to increasing competition and the abundance of providers, the prices for photovoltaic systems are continually falling. What seems attractive to end consumers at first glance, however, has significant negative effects on specialist companies. They have to create more and more offers in order to even receive an order.

More about it here:

• The B2C market in the solar system sector has cannibalized itself - Unregulated competition: How the solar market has lost its professionalism

The effort involved in creating offers and advising potential customers is often disproportionate to the sales achieved. In addition, the inhibition threshold for customers to obtain multiple offers has decreased significantly due to digitalization. With just a few clicks, potential buyers can request countless offers, which further increases the pressure on specialist companies.

❓ Dubious lead generation business model

💼 The business model of many online marketing agencies that specialize in lead generation is particularly problematic. These agencies place targeted advertising in order to generate customer contacts, which they then sell on to solar agencies. These solar agencies are often construction crews from abroad who take care of the installation, but often do not have the necessary technical qualifications.

😞 Frustration among specialist companies and end customers

🥺 The developments described lead to a high level of frustration for everyone involved. Specialist companies are increasingly confronted with customers who are disappointed because the promised services were not provided. They then often have to repair damage even though they were not responsible for the previous advice. These additional tasks place an additional burden on specialist companies that are already under heavy strain and lead to financial losses.

The situation is also unsatisfactory for end customers. They often feel like they have been duped and, in the worst case scenario, have to live with a poorly installed or faulty system. The problems often only become apparent when the system is commissioned, for example if the promised feed-in tariff is not achieved or the system does not perform as expected. These disappointments lead to a loss of trust in the entire market and make it difficult for specialist companies to build long-term customer relationships.

📣 Similar topics

• ☀️ Challenges in digital PV distribution: competition and shortage of skilled workers
• 🌍 Unregulated markets: risks for end consumers and specialist companies
• 🔌 The importance of properly installing solar systems
• 💸 The intense price war in the solar market and its consequences
• 🕸️ Problematic business model: lead generation and its effects
• 🏘️ Loss of quality due to inadequate installation: A danger for customers and companies
• 📉 Frustration in the PV market: The perspective of specialist companies
• 🛒 Customer dissatisfaction: Poor performance and loss of trust
• 📈 The digitalization of the PV market: opportunities and risks
• ✅ Solutions for a regulated and professional solar system market

#️⃣ Hashtags: #PVMarkt #Solar Energy #Specialist Installation #Digitalization #Consumer Protection

💡🌞 In highly competitive markets, such as the photovoltaic sector, the balance between offer, price and quality is a major challenge. While digital lead generation and online marketing make it possible to reach a larger target group and acquire new customers, Risks also arise, particularly with regard to price competition.

📉 Price war as a risk

🔍 Increased competition often leads to a price war where companies try to differentiate themselves on price. This may lead to an increase in sales in the short term, but in the long term there are significant risks:

1. Quality losses

A strong focus on reducing costs and prices can result in companies having to skimp on the quality of their products or services. In the photovoltaic sector, where reliability and longevity are crucial, this can lead to massive losses of image and trust.

2. Customer satisfaction and trust

Decreasing quality often leads to dissatisfied customers. Negative reviews and feedback can significantly damage a company's reputation and increase marketing efforts to regain trust.

3. Brand perception

An ongoing price war can negatively influence the perception of the brand, so that the company is perceived as “cheap”, which in the long term reduces customers' willingness to pay and further intensifies market competition.

🏆 The importance of quality in marketing

🔍 In this context, quality should take a central place in the marketing strategy. A company that shines with high quality standards and reliable products can stand out from the competition and build long-term customer relationships. Therefore, the following strategies should be considered:

1. Value-based marketing

Instead of just focusing on price, companies should emphasize the added value of their products. In the photovoltaic sector, these could be factors such as energy efficiency, environmental sustainability, longevity and technical support.

2. Customer focus

Marketing campaigns should prioritize customer needs and expectations. Emphasizing quality and long-term benefits can increase trust and reduce price sensitivity.

3. Transparency and education

An educational marketing strategy that highlights the advantages of high-quality photovoltaic systems over cheaper, inferior alternatives can support the customer in making a decision and defuse the price discussion.

Networking vs. lead generation: Don’t let your LinkedIn account be misused for lead generation campaign efforts – Image: Xpert.Digital

When people use LinkedIn primarily for direct sales, they often lose the trust and support of their contacts. LinkedIn is a platform based on the principle of professional networking, not direct sales. Anyone who pushes too quickly to complete the sale runs the risk of being perceived as pushy or even unprofessional. This can be particularly problematic when trying to sell to contacts who are not yet ready to purchase a product or service.

More about it here:

• Discover the true value of LinkedIn: Networking instead of selling

📈 Leads – potential customer contacts – are crucial in digital sales. Companies invest heavily in online advertising, content marketing, search engine optimization (SEO), and social media campaigns to generate leads. Especially in the B2C sector, where end customers are concerned, digital lead generation offers a seemingly simple way to reach interested parties. But in a crowded market like photovoltaics, this development leads to undesirable side effects.

📉 The drop in prices as a result of intense competition

In a crowded market like that of photovoltaic systems, there is a risk that providers will compete primarily on price. The result is a massive drop in prices, which not only reduces profits, but can also affect the perception of the quality of the product. Especially for complex products such as solar systems, which require a high investment and a long service life, a price that is too low can send the wrong signal.

📉 Loss of quality due to aggressive pricing strategies

Another problem caused by aggressive pricing strategies is the loss of quality. Providers that try to gain market share through low prices often have to cut corners elsewhere. This may mean investing less in research and development, using lower quality components, or neglecting after-sales service. In the photovoltaic industry, where quality and longevity of systems are crucial, this can have serious consequences.

🔄 The challenge of customer loyalty

Another problem with digital lead generation is the lack of customer loyalty. Focusing on acquiring new leads can result in existing customers being neglected. But especially in an industry like photovoltaics, where long-term maintenance and service play a crucial role, customer loyalty is extremely important. Customers who do not feel well looked after or are dissatisfied with the service after purchase are unlikely to become brand ambassadors who recommend the company to others.

🌐 The role of transparency in digital marketing

In the digital world, transparency is a key to success. Today, customers can easily find out about and compare products and services. In the photovoltaic industry it is therefore particularly important to offer honest and transparent information. Providers who try to win customers through misleading advertising or unclear pricing not only risk negative reviews, but also the loss of trust.

💬 The influence of online reviews and social media

Another aspect that needs to be taken into account when it comes to digital lead generation is the influence of online reviews and social media. Customers who report bad experiences now have the opportunity to spread this information widely on social networks and review portals. Negative reviews can significantly damage a company's image and turn potential customers away.

🌿 Sustainability as a differentiator

Another important factor that cannot be neglected in the discussion about the negative consequences of digital lead generation is the topic of sustainability. The photovoltaic industry is not just about selling solar systems, but also about promoting a sustainable energy supply. Companies that engage in price competition risk losing sight of this central concern.

☑️ Industry expert, here with his own Xpert.Digital industry hub with over 2,500 specialist articles

Konrad Wolfenstein

I would be happy to serve as your personal advisor.

You can contact me by filling out the contact form below or simply call me on +49 89 89 674 804 (Munich) .

I'm looking forward to our joint project.

Xpert.Digital is a hub for industry with a focus on digitalization, mechanical engineering, logistics/intralogistics and photovoltaics.

With our 360° business development solution, we support well-known companies from new business to after sales.

Market intelligence, smarketing, marketing automation, content development, PR, mail campaigns, personalized social media and lead nurturing are part of our digital tools.

You can find out more at: www.xpert.digital - www.xpert.solar - www.xpert.plus