Surprising Pathways

Leading edge customer communications services enhance Shea Homes leadership.

Exciting news regarding the J.D. Power – "Overall Customer Satisfaction Report for 2009".  

BuildServ’s Ownership Guide client – Shea Homes competes in 5 of the 24 markets surveyed in the report.   Shea Homes was ranked highest for Overall Customer Satisfaction in 3 of these 5 markets (Phoenix; Denver and San Francisco) and second highest in the other two markets(Inland Empire, Orange County and San Diego).  

Furthermore, Shea Homes accomplished these ratings 3 of the 5 most competitive U.S. homebuilding markets where BuildServ’s leading edge customer communication services have enhanced their leadership position.

 

"Overall customer satisfaction improves for a second consecutive year, averaging 811 on a 1,000-point scale in 2009, and up 32 points from 779 in 2008. Markets with the highest levels of overall satisfaction in 2009 include Orange/San Diego, Calif.; Sacramento, Calif.; Phoenix, Ariz.; Inland Empire, Calif.; and Tampa, Fla.. In addition, overall satisfaction has increased in 22 of the 23 individual markets that were also surveyed in 2008."

 

Please find the details of the report in the link below.  It also appears that there are other Constellation success stories here too.  These successes include Brookfield Homes, Ashton Woods, John Wieland Homes, Town & Country, Classic Homes, Meritage Homes, and others.  Here is information from the press release.

http://www.jdpower.com/corporate/news/releases/pdf/2009172-natl.pdf  

Invest Now or Languish!

"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.

NAHB Recommendation	Enabling Communication Technology
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.
Floor plan layouts that demonstrate insight into making the home an inviting place to live.	Provide computer modeling and 3D renderings of floor plans.
Thoughtful human factor designs that anticipate needs such as placement of light switches, electrical outlets, and hose bibs.
Keeping buyers informed of construction schedules and progress without being asked first.	Send updates to note important milestones with relevant educational information.
Having the home ready for closing BEFORE the scheduled closing date.	Communicate punch list items to project team immediately in real-time.
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.
All final punch list items are completed before closing.	Send certificate of occupancy to buyers electronically with status report.
A week after move-in, call to schedule visit to take care of any problems found.	Send and receive appointment and scheduling confirmations.
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.
Willingness to accept warranty responsibilities without being confrontational.	Send homebuyers details about their warranty responsibilities several times prior to closing.
Fast response to callbacks.	Provide online appointment scheduling
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.
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