The field of medicine has long known that a small dose of a disease can immunize against a full-blown outbreak. Similarly, home builders can use the concept of inoculation to administer a dose of reality to ward off dissatisfaction with home buyers. In fact, inoculation is an essential technique to manage customer expectations and increase homeowner delight. Like modern medicine, the concept of inoculation used by home builders needs to be well understood and properly administered in order to provide an effective prescription for customer loyalty.

In its basic form, inoculation in home building is simply strategic communication. The objective is to give a tiny dose of unpleasant news to home buyers to increase their immunity to realities that may occur during their home building experience. Properly executed, inoculation allows a builder to discuss some of the realities of home building and some of the problems that could happen but often don’t. This small dose of unpleasant news reduces the likelihood of a customer contracting a massive case of disappointment and dissatisfaction if problems occur.

There are a few key principals for using inoculation to manage expectations:

Pre-emptive: It is too late to inoculate for a disease that has already occurred. Therefore, home builders need to be pre-emptive and constantly prepare home buyers for what might happen. Honesty builds credibility, and upfront, transparent communication with home buyers provides a solid foundation for delivering an exceptional customer experience. This early communication also provides a strategic opportunity for a builder to define its role as the “expert” and to develop its position as a “trusted advisor” to home buyers.

Identification: There are literally thousands of points of failure that can occur in home building, and it is imperative for a builder to know where specific “pain points” may occur with customers. Much like the medical profession conducts research to know what it should be immunizing for, home builders need to measure and monitor their processes and customers to ensure that they are inoculating for specific problems that a home buyer may experience. Discussing every possible problem will create unnecessary fear and uncertainty, while missing out on the opportunity to inoculate for a highly probable pain point will increase the risk of homeowner dissatisfaction. Builders should look at customer data and talk to staff and trades to understand where things go wrong and what upsets or worries customers. This reinforces the idea that “you need to measure what you need to manage.”

Acknowledgement: Any issue that could create dissatisfaction is a problem to both the builder and the buyer and needs to be addressed. Recognition of a potential problem provides an opportunity to explain to a home buyer the prescribed course of action should the problem occur. This creates another occasion to instill confidence and trust, which are the cornerstones of customer delight.

Clear Explanation: Once a home buyer is informed of a potential problem, it is imperative to clearly explain what it is and why it may happen. This is a great time to take off the hard hat and to assume the role of teacher, describing some of the aspects or complexities of home building that a buyer may not understand. As the expert, a home builder needs to be precise and clear on what the potential problem may be, why it may occur, the impact that it may have, and the plan of action should it occur.

Projection: Although builders should take full responsibility for the home building process and their customers’ experience, they should discuss potential problems that are beyond their control. These could include the availability of specific trades or certain materials, or possibly delayed municipal approvals or inspections. Projecting matters that fall beyond the control of the builder not only exposes a home buyer to what may occur, but also fosters additional home buyer knowledge and understanding. Note, however, that “projection” can only be used on issues that do not fall within the control of the home builder, as it is a weak argument to project uncertainty on something that a builder has complete control over.

Resolution: To successfully use inoculation to manage expectations, a home builder must explain how any potential problem will be resolved. Warding off an outbreak may cause some side effects, but a home buyer must feel confident that the remedies available are tested, effective, and will bring the desired results. Home buyers expect builders to be experts and to deal with issues effectively. That’s why builders need to clearly explain to customers the processes that are in place to monitor progress and to provide frequent updates.

The concept of inoculation in home building must be carefully crafted and strategically administered. Improper use of this technique can create a collage of uncertainties and expose a minefield of potential problems that will unnecessarily instill fears and concerns in home buyers. Properly applied inoculation techniques create home buyers who know in advance what could happen and are much better prepared to deal with problems when they arise. This results in increased customer delight, which drives referral sales and decreases service costs — a healthy prognosis for every home builder.

Tim Bailey is general manager of AVID Canada, the leading provider of customer loyalty research and consulting to the home-building industry. Through the AVID system, home builders improve referrals, reduce warranty costs, and strengthen their brands. He can be reached at tim.bailey@avidglobal.ca.