New Home Builders:You have a Customer Care / Warranty / Experience Department.You have Customer Care / Warranty / Experience ProcessYou have Customer Care / Warranty / Experience goals / targetsDo you have a strategy to get there?
It takes roughly 200,000 steps to build a new home; it used to take 100,000. Homes are still largely built by hand. And typically by 18-20 different companies. So rather than plan for perfection, plan for reality. Assume you are going to have 15 - 25 action items per close. After you have accepted that reality; The goal is to now make that reality as amazing as possible.------In the competitive world of new home construction, in a world where home builders are buying down mortgages, affordability is an issue, and where quality and value are paramount, the defining factor for success often boils down to the customer experience.For new home builders, with the speed of a tweet or reddit thread; crafting and implementing a customer experience strategy isn't just an option—it's a necessity. But how do you measure the effectiveness of such a strategy, and ensure it aligns with the expectations of your buyers?Here are 8 key metrics (pick 3!), methods, and 4 examples (start now!) that can guide you in evaluating and refining your customer experience strategies.
Similarly, the most recent interaction is heavily weighted because it's fresher in our memory, influencing our overall perception of the experience and our decision-making process regarding whether to continue engaging with a brand or service.For new home builders, understanding this aspect of human psychology emphasizes the importance of not only minimizing negative experiences throughout the customer journey but also ensuring that the conclusion of the service—such as the final home walkthrough, follow-up service, or even how you respond to a request—is as positive as possible.By doing so, builders can influence the lasting impression of their brand, encouraging loyalty and positive word-of-mouth, pivotal elements in a competitive marketplace where emotional connections can significantly impact buying decisions.
Their buyers were often so happy to have the warranty close; because now they could finally stop dealing with the builder. No Bueno.
It takes roughly 200,000 steps to build a new home; it used to take 100,000. Homes are still largely built by hand. And typically by 18-20 different companies. So rather than plan for perfection, plan for reality. Assume you are going to have 15 - 25 action items per close. After you have accepted that reality; The goal is to now make that reality as amazing as possible.------In the competitive world of new home construction, in a world where home builders are buying down mortgages, affordability is an issue, and where quality and value are paramount, the defining factor for success often boils down to the customer experience.For new home builders, with the speed of a tweet or reddit thread; crafting and implementing a customer experience strategy isn't just an option—it's a necessity. But how do you measure the effectiveness of such a strategy, and ensure it aligns with the expectations of your buyers?Here are 8 key metrics (pick 3!), methods, and 4 examples (start now!) that can guide you in evaluating and refining your customer experience strategies.
Understanding the Importance of Customer Experience
Customer experience in home building extends beyond the quality of construction. It encompasses every interaction between the builder and the buyer, from the initial consultation to long after the keys have been handed over. A positive customer experience can lead to higher satisfaction, loyalty, referrals, and ultimately, a stronger brand reputation. But to achieve this, (and keep the investment funded!) builders must first understand how to measure and analyze their efforts.Some Science about humans:
Some intel that are hard laws in CX: Humans have a unique way of remembering experiences, emphasizing the most emotionally charged moments—particularly the lowest point of the experience and the most recent interaction. This tendency is closely tied to the "peak-end rule" in psychology, which suggests that people judge an experience largely based on how they felt at its peak (i.e., its most intense point) and at its end, rather than based on the total sum or average of every moment of the experience.The lowest point can trigger our brain's fight or flight response, a primal mechanism designed to protect us from harm. When a customer encounters a negative experience, this survival instinct kicks in, marking the memory as significant to help avoid similar situations in the future.Similarly, the most recent interaction is heavily weighted because it's fresher in our memory, influencing our overall perception of the experience and our decision-making process regarding whether to continue engaging with a brand or service.For new home builders, understanding this aspect of human psychology emphasizes the importance of not only minimizing negative experiences throughout the customer journey but also ensuring that the conclusion of the service—such as the final home walkthrough, follow-up service, or even how you respond to a request—is as positive as possible.By doing so, builders can influence the lasting impression of their brand, encouraging loyalty and positive word-of-mouth, pivotal elements in a competitive marketplace where emotional connections can significantly impact buying decisions.
Key Metrics for Measuring Customer Experience
1. Customer Satisfaction Scores (CSAT)
CSAT surveys at pivotal moments—such as post-design consultation or after move-in—can provide immediate feedback on buyer satisfaction. This metric helps identify strengths and areas for improvement in specific interactions. Think pulses of data, not pages of data.2. Net Promoter Score (NPS)
NPS gauges the likelihood of your customers recommending your service to others. A high NPS is a strong indicator of customer loyalty and satisfaction with the overall experience, not just the end product. This is the goal, not the journey; NPS moves slowly & lags; so have it as a north star, and coach leaders on the leading indicators of NPS.3. Customer Effort Score (CES)
This score reflects how easy it is for your customers to get their needs met. High effort can lead to frustration and a negative experience, even if the final product meets expectations. Count the steps to interact with your brand. We worked with one builder & it was 15 steps per action item. Average 15 items per close. Planning for buyers to take 225 steps & then beg them for a 5/5 NPS was (shocking) not working.Their buyers were often so happy to have the warranty close; because now they could finally stop dealing with the builder. No Bueno.
4. Quality of Communication
Effective communication is crucial in the home building process. Surveys focused on communication can help assess whether your updates and responses are timely, clear, and helpful. You need enough data timeslices to predict the CSAT outcome. Surveys are often too late.5. Project Completion Rates and Timeliness
Adhering to timelines is critical in the construction industry. Tracking and analyzing project completion times against initial estimates can offer insights into your operational efficiency and its impact on customer satisfaction. This can be hard these days; so plan for that reality, overinvest in transparency & frequency, buyers will forgive you if they trust you.6. Post-Move-In Satisfaction
Quality issues may only become apparent after living in the home for a few months. Post-move-in surveys can capture satisfaction levels regarding workmanship and response to warranty issues. Be fast when they reach out. We worked with one builder that took issues over voicemail and text, until that rep left the company--buyers were stranded wondering what was going on. It's crazy how many builders still rely on voice mail for issue intake.7. Referral Rates
Monitoring the rate at which existing customers refer others to your building company provides a direct measure of your strategy’s effectiveness in generating positive word-of-mouth. Hard to measure; need to get in the prediction business based on longitudinal data across the whole experience. Home buyers buy in peer cohorts; social media can help you understand the cohort & the source of the lead.8. Repeat Business
Repeat business is a strong indicator of trust and satisfaction. Tracking how many customers return for new projects can help quantify long-term loyalty. (we have another post coming up that talks about how this is complicated for home builders, but it happens more frequently than you can guess).Implementing and Measuring the Strategy with Real-World Examples
The collection and analysis of these metrics require a structured approach, integrating automated survey tools, CRM systems, and data analytics platforms. But beyond just metrics, implementing tangible strategies that resonate with your audience is crucial. Here are 4 examples of strategies, each with a clear objective to enhance the customer experience:1. Digital Customization Tools
Objective: Enhance buyer engagement and satisfaction by offering a personalized home design experience.Example: An interactive online platform enables potential buyers to visualize and customize their future homes through VR tours and 3D modeling. This not only increases satisfaction but also strengthens the buyer’s emotional connection to the home.2. Comprehensive Customer Portals
Objective: Streamline communication and ensure project transparency, reducing buyer stress and enhancing trust throughout the construction process.Example: A customer portal that provides real-time updates and facilitates easy communication with the project team. By keeping the buyer informed and engaged, this strategy reduces anxiety and builds confidence in the builder’s reliability.3. Post-Move-In Care Program
Objective: Build long-term relationships and ensure continued satisfaction through proactive post-sale support.Example: Scheduled check-ins and a comprehensive warranty service demonstrate ongoing commitment to quality and customer satisfaction, encouraging positive referrals and repeat business.4. Mapping Your Buyer's Customer Experience Journey
Objective: Enhance understanding and anticipation of customer needs at every stage to tailor services and interactions for maximum satisfaction.Example: Implementing a detailed mapping of the customer's journey from initial interest through to long-term ownership. This map would include key touchpoints such as the first inquiry, design and customization discussions, construction updates, the closing process, and post-move-in support. At each stage, specific strategies are developed to optimize the interaction based on customer feedback and expectations.By understanding and planning for each phase of the journey, builders can proactively address potential pain points, leading to a smoother, more enjoyable experience for the buyer, fostering trust and loyalty, and setting the stage for positive reviews and referrals.Continuous Improvement: The Key to Success
The construction of a home might end with the handing over of keys, but the customer experience strategy should continue to evolve. Regular reviews of the metrics listed above, combined with a willingness to adapt based on feedback, are essential. Engaging your team in understanding these metrics and their impact can foster a culture focused on continuous improvement and customer-centricity.A well-defined and consistently applied customer experience strategy can set a new home builder apart in a crowded market. By focusing on the key metrics that matter most to your buyers and committing to ongoing refinement of your practices, you can not only meet but exceed customer expectations.In the world of new home construction, the foundation of success is built on the satisfaction and loyalty of your homeowners.Our mission is to simplify the homeowners & home builders customer experience. Let Iris do the work.
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