Ride ManagementThe art of setting and managing expectations.
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Even when builders believe they have a system for ensuring a perfect home at the final orientation walk, they are much better off not promising this to buyers. If a builder promises this level of perfection and somehow manages to achieve it, all the builder has accomplished is simply meeting the buyer's expectations. All the builder has is a satisfied buyer. There is no delight, nor is there a gain in trust points with the buyer.
In contrast, builders would be far better served by simply telling buyers: “Although we will do all we can to build a home in which all issues have been resolved before move-in, small things are bound to happen. After all, this is a product built by more than 45 different contractor firms, over 200 individual people working directly on the construction crews. Our climate creates temperature swings that cause constant expansion and contraction in all wood products. Our promise is that we will do all we can to get everything right before you move-in and repair any remaining items within five, 10, 24, or 40 days.” (Builders: Choose a timeframe that can be achieved at least 95 percent of the time.)
This is honest, realistic, and ultimately the best strategy. The only surprise the buyer will receive is no punch-list (great!) or one that has been completed ahead of schedule. What a delightful surprise.
TEAM EFFORTThe Keys To Managing ExpectionsHOME BUILDERS HAVE LEARNED THE HARD WAY that if they do not actively manage their buyers' often-unrealistic expectations—and the criteria buyers use in evaluating builders' performances—then builders are essentially allowing their buyers to drive the home buying experience. When that happens, it becomes next to impossible to impress or even satisfy buyers.
Even when the builder takes command of the purchase process, effectively framing and then meeting buyers' expectations, buyers aren't likely to be impressed. That is because simply meeting buyers' expectations will result in merely satisfied buyers. But to get delighted buyers—buyers who are much more likely to refer friends—builders need to establish expectations at levels they can consistently exceed.
Gathered from builder workshops conducted by Eliant, here are some specific approaches big builders are putting into practice to correctly manage the process of setting and managing home buyer expectations:
Start with an “E-Team.” Establish a team comprised of representatives from sales, design, finance, escrow, construction, purchasing, and customer care. Identify specific expectations to be set with each buyer, and train all customer contact personnel to only use this list of expectations. The team should:Establish responsibility. Examine the question: Who sets expectations for home buyers? The answer: every customer contact person. Each has the responsibility to reiterate expectations from the “E-Team's” master list. However, the purchase counselor has the primary responsibility of starting and maintaining this process during the purchase experience.Develop a script. Get sales, design, construction, and service personnel together to agree on what their promises will be—and commitments to stick to the general “script.” Choose words carefully. Never say: “We aim to exceed your expectations.” This then becomes the expectation, and builders will be doomed, unable to ever exceed it. Purchase counselors should pay special attention to following the “script“—particularly promises about quality and service and the simple truth that there is no such thing as a perfect house.Calibrate the goals. Builders are likely to gain as much—or more—from exceeding a lowered expectation as they are from performing at a high level without setting a specific expectation. This explains why a builder can exceed internal performance criteria, while home buyer satisfaction ratings fail to improve in a commensurate fashion. Make absolutely sure that every promise can be made 95 percent of the time—or better. This includes everything from “I'll call you tomorrow by noon,” to “We will complete your walk-through items within five working days after move-in.” The purpose of every promise is to set a target that you plan to exceed.Use the right performance measures. When establishing the correct number of days to promise clearing the punch-list, do not use last year's average performance (for example, 17 days) and then promise that number; if the previous average is the target, builders will fail to meet this expectation 50 percent of the time. Instead, analyze the prior year's data and identify the number of days it took to clear the punch-list with 95 percent certainty. If it is 36 days, round this number up, promising all buyers that the punch-list will be completed in 40 days—and plan to do it in 20.Plan special presentations. Offer “new home buyer orientation” meetings or “meet your neighbor” sessions where members of the builder's community team explain their role in building the buyers' homes—and reaffirm certain expectations. Standard Pacific Homes, for instance, uses such occasions to present an electronic slide show with actual pictures illustrating how new homes will typically change over time due to settling and weather-induced expansion and contraction.Don't tip your hand. Do not allow purchase counselors or anyone else to spoil the surprise and inform their buyers that, for example, the division president will be paying a visit on move-in day. This only spoils the surprise and turns what would have been an extraordinary event into what will become an expected event, squandering a valuable opportunity to make both a positive and unexpected impression on the buyer.Review. Assess. Improve. Meet twice each year to reconfirm the accuracy of these promises.Grand ExpectationsWhat Every Builder Needs To Establish With Home Buyers.
Managing buyer expectations begins with each member of the builder's team setting the right expectations—consistently, clearly, and in a way that demonstrates an appreciation for the customer's point of view. Builders who excel at pleasing their customers make a point to specifically tell their buyers about the following:
