The results of Interconnection Consulting’s annual Online Mystery Shopping Study shed light on the service performance of window dealers in Austria. While the response time of dealers to online customer inquiries is improving and an increased focus on closing deals is evident, customer consultation and quoting remain critical areas with room for improvement.

In the study, a total of 132 window dealers were contacted via email to make a specific inquiry about a renovation project. Additionally, three questions were asked to assess service quality. The results show a pleasing increase in dealers’ responsiveness: While only 58.7% of dealers responded to the initial email inquiry last year, this year the response rate rose to 75.8%. After a follow-up email and a call, the response rate increased to 93.2%, although slightly below last year’s rate of 96.7%.

Decrease in Offers, But Increased Focus on Closing Deals

However, the study also revealed some concerning trends. While responsiveness increased, the number of dealers who provided an offer after the email inquiry dramatically decreased – from 60.0% last year to only 44.7% this year. Yet there is hope: the focus on closing deals, i.e., dealers following up after providing an offer, significantly improved from 13.6% compared to 5.4% last year. Nevertheless, this figure is catastrophically low and should be above 80%.

The average response time to customer inquiries improved to 2.3 working days compared to 2.8 working days last year, with a notable 59.1% of dealers adhering to the golden rule and responding within 24 hours. The average time to provide a quote also shortened to 5.6 days, compared to 6.7 days last year.

Regarding communication preferences, the study showed that 49.2% of dealers prefer communication via email. Only 23.7% suggested a personal meeting, while only 13.6% proposed a phone call to advise potential customers.

Despite the improved response times, the study indicates a decline in the quality of customer consultation. Only a third (35.5%) of dealers answered all three questions about installation, delivery time, and sun protection, compared to 59.1% last year. Mag. Panorea Kaskani, author of the study, emphasizes the importance of these results: “It is encouraging to see window dealers responding more quickly to online inquiries. However, there is an urgent need to improve the quality of consultation and enhance sales closure.”

The market for external personnel service providers in Austria experienced a slight setback last year, as indicated by a recent study by Interconnection Consulting. After two consecutive years of double-digit growth, the overall value of the market decreased by -1.7% in 2023. Although growth in 2023 was conservative, increases in value are expected in the coming years.

In 2023, the market for personnel service providers in Austria generated a total revenue of 203.5 million euros. Despite this solid result, it failed to reach the remarkable previous year’s level of 207.0 million euros with a double-digit growth of 20.9%. Staffing services saw a lower decrease in value, while quantitative growth (number of filled positions) declined significantly by -8.5%.

This discrepancy can be attributed to increased placement fees charged by personnel service providers, partly due to salary increases resulting from inflation (placement fees are typically tied to the salary of the placed candidates), and partly due to increased staffing efforts.

Despite the overall negative growth in 2023, some professional groups experienced positive developments, while others faced challenges. The tourism sector saw a notable increase of 6.2%, making it the sector with the highest growth rate. The IT sector maintains its leading position with a revenue share of 22.0%, showing high potential for future growth. Particularly promising is the growth potential in the engineering sector, with a projected growth rate of 5.0%.

In terms of the number of placed individuals, the entry-level sector accounts for 15.1% while in value it represents only 7.0%. Executive search accounts for 44.9% of total revenue but only about 20.4% in quantity, illustrating the significant variation in placement fees between the areas.

Direct sourcing is becoming increasingly important in the industry, while traditional portal searches are losing ground. According to recruiters, portals rarely deliver suitable profiles, especially in the specialist area, which is described as partly dried up. Therefore, there is a growing reliance on direct sourcing, even in the specialist recruitment sector, which was previously mainly associated with executive search. Companies are increasingly relying on active sourcing to counteract the shortage of skilled workers.

Since many companies do not have a sufficient pool of applicants and still primarily rely on online portals, the demand for external support from recruiters will remain high. In this context, the focus of consulting is increasingly shifting towards quality. The quality of applicants is still more important than the speed of filling positions.

The leading personnel service providers in Austria, alphabetically listed, are Deloitte, Egon Zehnder, epunkt, ISG, and Michael Page. These companies account for approximately 27% of the total market, with epunkt playing an outstanding role as the market leader, especially in the IT sector. The top 50 players have a combined market share of 75.7%. The industry remains dynamic and, despite short-term challenges, offers promising opportunities for the future.

The annual online mystery shopping study by Interconnection Consulting on the service performance of German prefabricated house manufacturers reveals a worrying trend: Manufacturers increasingly take more time to respond to email inquiries. The quality of responses is declining, despite an improved initiative in follow-up.

As part of the study, a total of 98 prefabricated house manufacturers in Germany were contacted via email with specific inquiries about a construction project. The results show a significant deterioration in the companies’ response times. While last year 64.6% of manufacturers responded within 24 hours, this year only 26.9% did so. The average response time increased from 1.9 to 2.9 working days.

The inquiry included questions on various aspects, such as energy-efficient and ecological construction. However, only 43.0% of the companies answered all four questions, compared to 50.0% last year. Particularly alarming is that one in four manufacturers (25.8%) did not answer any of the questions asked. However, companies like Danwood, Nordhaus, and Luxhaus stood out positively in answering the questions and in the quality of their responses.

Although the follow-up rate of prefabricated house manufacturers has improved, it remains alarmingly low. The follow-up rate improved to 25.8%, compared to 17.7% last year. This improvement, while encouraging, still does not meet expectations for effective customer care. Ideal follow-up behavior would mean that over 80% of companies actively pursue the interests of potential customers. However, reality shows that only a quarter of prefabricated house manufacturers meet this standard. Companies like Rensch-Haus, Huf Haus, and Favorit, however, set outstanding standards in their closure orientation.

„The improvement in follow-up is encouraging, but we must not forget that it is still a critical point for the prefabricated house industry,” commented Panorea Kaskani, author of the study. “It is essential that companies continue to work on optimizing their customer care and ensuring that potential customers are adequately supported. Only then can they ensure long-term success and gain the trust of customers.”

The construction sector was hit hard by a downturn in 2023, but the thermal insulation market was not severely impacted by the steep decline (-2.6%) thanks to widespread European and governmental measures. Following a period of stagnation in 2024, the market is expected to rebound by the year 2025, according to a study by Interconnection Consulting.   Germany Is the Biggest Market The EU aims to be climate-neutral by 2050, which supports by numerous subsidies with cooperation with national governments measures. This has created a protective cushion, that prevented the insulation market from collapsing significantly in 2023 and will help it rebound earlier. In 2023, the market fell more in value (-4.3%) than in quantity (-2.6%), as the prices partially stabilised after two years of heightened demand, inflation, higher prices of energy and inputs, which pulled the prices dramatically high. Projections indicate that by 2027, the volume of insulation market is expected to reach 226.9 million cubic meters across the surveyed European countries, with a compound annual growth rate of 2.2% compared to 2023. Nonetheless, the analysis forecasts a rebound, with the market value projected to reach 21,296.8 million euros by 2027. The largest thermal insulation market is Germany with a share of 18%, followed by Poland with a share of 14.6% in terms of quantity. Together with Great Britain and France from TOP4 countries, they hold almost 54% of European insulation market.   Mineral Wool as the Preferred Insulation Solution Mineral wool retained its dominance in terms of sold quantity, commanding a market share of 39.9% in 2023, followed closely by polystyrene at 36.6%, and PUR/PIR at 13.8%. Notably, there's a discernible shift away from polystyrene towards other product categories in several countries, attributed partly to concerns over its limited fire resistance despite its cost-effectiveness. Bio-insulation products are witnessing a surge in demand across most European nations, buoyed by government support and growing ecological awareness among consumers. Although currently holding a smaller market share, bio-insulation products exhibit the highest growth potential.   The Renovation Segment Strengthens Its Market Position Roughly half of the sales are allocated to walls, with roofs accounting for approximately one-third, and floors making up 12.9%. The primary purchasing segment is residential construction, constituting over 66% of the market. New construction is just ahead of the renovation segment with about 58.5% respectively 41.5%, where renovation is expected for growth in next years. The most important companies in the European market are (alphabetically): Austrotherm, Baumit, DOW, Ecotherm, ISOVER, Kingspan, Knauf, Owens Corning, Paroc, Recticel, Rockwool, Ruukki, Saint-Gobain Weber, Sto, Sundolitt, Swisspor, Synthos, URSA. The study examined: Germany, Austria, Switzerland, Spain, Italy, France, UK, Netherlands, Belgium, Sweden, Czech Republic, Slovakia, Poland, Romania, Türkiye