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Delight Drivers

Where the best home builders make their difference.

June 15, 2010

In home building, the quest for industry-leading levels of customer delight demands quality and excellence, from sales through to service. Although there are many moving parts that require consideration, a few key areas  stand out, where industry leaders truly separate themselves from the pack.

Communication: The best in the industry excel in providing accurate information: timely updates, and clear explanations of processes. They understand that everything a homeowner experiences must be part of a carefully designed process, whether it is with sales, design and décor, construction, or warranty service. Every process must be clearly explained, accurately represented, and timely in order to create the framework for a delighted customer experience.

Quality of workmanship: It is easier to give birth than to raise the dead, and likewise it is better to deliver on quality than to try to recover from a lack of it. Leaders in customer experience outrival the market when it comes to delivering quality materials and workmanship, acknowledging that a concerted effort in this area elevates customer satisfaction while reducing future warranty service costs. A customer who becomes skeptical of quality will investigate further, with a more critical eye, necessitating additional service resources that can quickly outweigh any upfront efforts toward quality.

Condition of the lot: Providing pre-drywall walk-through tours for homeowners improves the customer experience and allows many issues to be resolved at an early, and more cost-effective, stage of construction. Even if a pre-drywall walk-through tour is not part of your process, you can be sure that most homeowners pass by their “work-in-progress” numerous times during construction. The outward appearance of things creates a significant impact on a homeowner’s perception of a builder’s level of quality and caring. This also holds true for prospects as they drive through communities. As a result, clean and tidy lots are image-enhancers that drive sales while increasing satisfaction.

A clean and ready home: Image is everything in this vital area, and the best in the business know this well. The pre-delivery inspection is the time for a home builder to shine and really show off expertise and ability. Customers do have a tolerance for some items that may require minor corrections, but a clean and ready home at the P.D.I. and at closing is critical. This is a key litmus test for meeting and exceeding customer expectations, where perceptions of quality, construction problems, deficiencies, and caring further solidify a homeowner’s final judgment about his or her builder. Much like trying to work with curing concrete, the window of opportunity for recovery at this point is extremely limited because customers’ impressions become firmly set.

Number of items corrected before move-in: As much as perfection should be the goal, no one expects a new home to be completely free of deficiencies, fortunately not even a customer. There is an expectation, however, that a home builder will do the utmost to correct any known items before move-in, and failing to meet this expectation is a recipe for dissatisfaction. Home builders with the highest levels of customer delight understand that it is in the best interest of both the customer and the builder to clean up known items before move-in. After all, unfinished items at move-in frustrate the home buyer, who will be more likely to search out additional items and less willing to provide future referrals. Additionally, correcting known items after move-in costs more for a builder in terms of time, coordination, and resources.

Days past to make corrections: Unfortunately, the nature of home building can create some timing issues or delays when it comes to making corrections. These instances should always be the exception, however, instead of the rule. Leading home builders in customer delight understand the value of timely correction of deficiencies and the impact this has on their customers’ overall experience. What may be just another item on a list for a home builder is a daily reminder for the homeowner that his or her new house needs repair. Quick corrections assure customers that they will continue to be cared for well. In turn, a confident homeowner will reduce demands on staff and resources, while providing referrals for future sales.

Customer-centric warranty practices: A new home requires service, and how this service is conducted is a significant differentiator for leading builders. Most homeowners lead busy lives, and frequent interruptions for warranty service can turn referral advocates into resentful customers. Planning and communication are key drivers for maintaining delighted customers during the warranty stage. It is essential to complete the most amount of work with the fewest visits. Service workmanship must be of the highest quality, and the job is not complete until all clean-up is done. In addition, follow-up communication with a homeowner should be a standard practice, as it demonstrates a high level of caring and keeps a proactive pulse on any remaining issues. This is an area where “most” is just not good enough; all outstanding homeowner concerns must be resolved for long-term customer delight. To homeowners, any unresolved concern is a permanent blemish on both their home and their experience with their home builder.  

Delighted customers do not just occur; they are created by having a thorough understanding of the key drivers for customer loyalty, combined with an unwavering commitment to deliver on these fronts. Industry-leading home builders are well aware that each referral from a delighted homeowner is not a gift, but rather an achievement.

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, Tim’s team improves referrals, reduces warranty costs, and strengthens the brand of its industry-leading clients. He can be reached at tim.bailey@avidglobal.ca

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