"Customer acquisition is an investment, but customer retention (loyalty) delivers profitability". According to Guy Master, in a recent article in CRM Buyer. For homebuilders this translates into lower marketing and selling costs, higher sales conversion ratios, and lower warranty costs. With the economy in its current state, it's more important than ever to invest in technology that helps improve the home-buyer's experience.
However we are seeing just the opposite response. Home builders are reducing technology investments and budgets in keeping with reductions in home sales. Although this appears to be a rational response it is the wrong time to cut and the right time to increase investment in customer loyalty technologies. Here is why this may be happening.
A new and dramatically different type of consumer and new home buyer is emerging. This home buyer will be much more connected through their social networks and mobile devices. They will expect homebuilders to be able to deliver information and resources through these networks and devices.
In the days of fast paced home building sales, most builders were already behind in terms of their investment in customer loyalty technology and services. Those builders that have invested will have a significant competitive advantage over those who have not invested. Especially given combined a dramatically different new set of home buyer expectations that will demand better customer service solutions.
Here are some crucial steps from the NAHB Research Centerthat every builder can take to build customer loyalty and strengthen their referral base. The 10 best practices highlighted below come from the NAHB National Housing Quality Award winners. New communications technologies will play a crucial role in the successful implementation of these time tested practices.
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NAHB Recommendation |
Enabling Communication Technology |
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Educating buyers about the home construction process and inviting them to be involved in the building of their home. |
Well designed web-based plans and option viewing programs. Construction process education videos and web notifications. |
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Floor plan layouts that demonstrate insight into making the home an inviting place to live. |
Provide computer modeling and 3D renderings of floor plans. |
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Thoughtful human factor designs that anticipate needs such as placement of light switches, electrical outlets, and hose bibs. | |
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Keeping buyers informed of construction schedules and progress without being asked first. |
Send updates to note important milestones with relevant educational information. |
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Having the home ready for closing BEFORE the scheduled closing date. |
Communicate punch list items to project team immediately in real-time. |
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Pre-final punch-outs so complete that the customer finds zero defects at final inspection – but you find a few minor items. |
Track and manage reporting data to benchmark performance at final inspection. |
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All final punch list items are completed before closing. |
Send certificate of occupancy to buyers electronically with status report. |
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A week after move-in, call to schedule visit to take care of any problems found. |
Send and receive appointment and scheduling confirmations. |
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Two weeks after move-in the company President calls to see if there is anything that can be done. |
Automatically notify division president(s) when to make contact with new homebuyers along with contact profile. |
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Willingness to accept warranty responsibilities without being confrontational. |
Send homebuyers details about their warranty responsibilities several times prior to closing. |
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Fast response to callbacks. |
Provide online appointment scheduling |
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Pro-active warranty inspections at six and 11 months that find things that the customer did not see. |
Send notification and set-expectation for warranty walk meetings. |
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A home maintenance inspection/review two or more years after closing. |
Send notification of warranty accomplishments and provide opportunity to schedule post-warranty walks. |
For more information about potential solutions please visit http://www.constellationhb.com/buildserv-chs.php
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