Option Overload
Providing the right value in the personalization experience.
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Simplify the selection process. More and more builders are using Web-based design and options selection tools that link to the home plans builders are actually selling. These online tools not only let buyers experiment with different options—saving valuable design consulting time—they also give buyers more time and a feeling of greater control to make sound decisions. In addition, it makes it easy for buyers to see a running cost tally of their selections—expressed in monthly carrying costs based on prevailing financing rates.Don't set unrealistic expectations by over-merchandising models. Builders should always have at least one model that shows mostly base or standard features. Most buyers will come away deeply disappointed to learn that it will cost up to 25 percent to 40 percent of the new home's price to upgrade their home to the standards they saw—and that they say typically sold them on buying the home—at the builder's model.
OPTED OUT: In this example, the builder experiences a net loss of trust credits and therefore misses an opportunity to earn added trust from home buyers.
Design counselors who earn top satisfaction scores do so in part by framing buyers' expectations about the realities of the home buying process right from the start. Among the issues builders say are most important to discuss with buyers:
The rigidity of design/options cut-off datesThe time promised to return buyers' calls to design personnelPolicies regarding visits to the home siteThe anticipated quality of the home at final orientation and the likelihood of a punch-listThe quality of the home at move-inExpected changes in the home over the first few years due to normal settlingIf builders want to succeed in smoothing the home buying experience, helping buyers restrain their expectations invariably makes it easier to exceed them.
Extraordinary Touch PointsBest Builder Practices In The Personalization Experience
Buyer completes “Lifestyle Profile”
Use online questionnaireUse questions to aid design center consultant in assisting buyerPlace summary/analysis in file and on company intranet site (for authorized access only)Designer offers to visit buyer's current home to gain information about buyer's design style and needs
Use observations to add to “Lifestyle Profile”Visit (or offer to visit): this confirms that the design consultant is sincerely interested in personalizing the home for the buyerDesign center consultant or options coordinator provides the homeowner with information to fully justify the value of the selections offered
Provide a detailed “Comparative Pricing vs. Local Retailers” summary on selected optionsPurchase consultant and options coordinator review list of benefits of purchasing options and upgrades directly from the builderProvide “Monthly Estimated Incremental Cost” for each design/construction option and upgrade (based on the estimated interest rate of the loan)Provide options and upgrades info on builder's Web site for new buyers
Full presentation of all structural and design optionsProvide ability for buyer to:Review choices before coming to design centerCalculate monthly cost on mortgage paymentCalculate down payment requiredProvide a CD or book of options“Design Center Open House” each month
Schedule conveniently (5:00 p.m. to 8:00 p.m.)Provide snacks and soft drinks (wine optional)Arrange for child care onsite or with convenient and professional daycare centerAllow buyers opportunity to browse without feeling pressured to make decisionOffer 15 to 20 minute PowerPoint presentation on “what to expect” with follow-up e-mail to all buyersPurchase consultant accompanies one buyer (each quarter) to the initial design center selection session
Ask buyer's permissionTell buyer the reason, which is to make sure the purchase consultant is keeping updated about new selectionsDesign center manager (not consultant) contacts all buyers whose survey ratings are below target
Sends note: “Thank you for returning your survey and for your candor; this helps us improve our customers' experience”Asks: “How could we have done this better for you?”Send follow-up note of thanks to respondentsOffer child care on site
Provide a place for kids to watch parent-approved DVD moviesHave remote TV monitors throughout the showroom so parents can watch their childrens' activitiesOffer “Child Care Gift Certificate” for parents to use wherever they wantMirman is CEO and Roqueta is president of Eliant, an Irvine, Calif.-based research and consulting firm specializing in home buyer satisfaction solutions. For further inquiry, contact www.eliant.com
ADDED TOUCH: In most cases, the difference between a builder earning the highest rating (a “6”) and a builder earning a “very satisfied” (5) rating on a six-point scale depended on whether a builder's personnel did or did not go above and beyond the buyers' expectations.
