Seven Marketing Strategies for Homebuilders to Make It Through 2009
Homebuilders I can see the light at the end of the tunnel. You may be wondering right now what I am drinking since Builder Sentiment is at an all time low, traffic is down, and so were new permits in January. In the long-term what matters most is what you do right now to make it to the calmer waters of 2010 and beyond.
1) Get Back to Basics. Operationally if you haven’t done this by now, you’re probably in Chapter 13, but have you gone back to basics with your brand? Consumers in the downturn are looking for trust, equity, and propositions that are topical. It’s time to sharpen your brand focus and ensure your authenticity. If you haven’t done it yet, now is a good time to start thinking about doing some consumer research or developing a consumer insights panel.
2) Are You Green? Energy efficiency messages are quickly becoming a point-of-parity for builders. If you’re not building Energy Star or some other basic Green standard you are falling behind. The next challenge will be to differentiate from the rest of the “energy efficient” builders. Becoming more sustainable and using more sustainable materials is the next step. Going green is not all about energy savings either. Being green, organic, or sustainable are aspirational values that consumers increasingly hold. Consumers desire to be seen as good stewards of the planet and as conscious consumers. Builders have to tap into consumers emotions around this issue to be successful (see related post).
3) Create Engaging Events. Now is not the time for the mundane. Your “Dream Home Event” or “Giant Year-End Countdown” sale is not cutting it anymore. Consumers are seeking authenticity more than ever. Here’s a freebie: if you are marketing a community with large lots create a “Dogs Love New Homes Event” and invite your leads, prospects, Realtors, and homeowners to bring their dogs to test drive your community. Set up a Frisbee contest or dog agility course. Your prospect’s heart-strings will be pulled when they see Fido (and their kids) playing in a beautiful new backyard. Fido plays a role in their purchase decision so don’t forget to address the “Thank-You” cards to him (if you don’t think the dog idea is any good just take a look at all the internet chatter about the Obama dog…we’re crazy about our pets).
4) Bring Back the Interest Rate Promotions. Homeowners buy on monthly payments. There is no doubt you can get prospects into a larger or better home at a more affordable monthly payment than they currently have.
5) Develop Your Follow-up programs. Our study in 2007 discovered that 64% of homebuilder prospects were not being followed up with. That percentage has definitely improved since then, but the messaging still needs improvement. If you’re going to following-up make sure you are following up relevantly.
6) Embrace Social Media. Assuming you’ve broken your addiction to the Saturday and Sunday full-page ads in the newspaper and have gone digital. Now is the time to step it up and increase your Social Media presence. First develop a social media strategy. Then develop your messaging and tactics. Remember it’s a two-way conversation and it takes a long-term commitment to make it happen.
See my friend Mike Lyon’s posts on Social Media for homebuilders.
http://www.doyouconvert.com/blog/2009/01/15/social-media-advice-for-new-home-sales-execs/
7) Be Optimistic. I know this really isn’t a strategy…rather more of an ingredient for your strategies. Americans are hopeless optimists, but there is so little of it right now, and everyone could use a little hope and cheer. To reignite some optimism in your market I am recommending that clients re-commit to those charities they were working with before the downturn (even if it means fewer dollars committed and more man hours). Get out and shovel driveways for elderly in the next snowstorm. Whatever it is, get doing something positive and inspiring for your community. If anything it will help raise your company morale and your optimism will be a beacon to your market which transfers to positive feelings about your brand in the long-run. See how one company is building their entire brand on optimism and giving back. Brand New Day
Do you see any light yet?
Good basic strategy but how about creating a unique product that does not compete on a “bricks and sticks” basis with everyone else? And how about training and retraining the sales staff to sell – they may have forgotten how or never learned in the first half of this decade, and coaching them daily.
Couldn’t agree more Daniel. The good builders are taking this opportunity to optimize their product offerings and hopefully sales training is a daily/weekly practice for everyone.
I couldn’t agree more with the two comments here. Sales training is critical, and many out there have not been trained properly (ever). I see it over and over in sales offices, even in this tough environment! Training and coaching should be ongoing. Along with the sales 5 steps, study on the economy and the true effects this (and the negative media)has on a buyer’s purchasing mentality. People still need homes and want to purchase. Daniel is right on the money with the Builders needing to take a new look at product and creating something new and unique.
Here is another approach geared to the same result – http://www.residentialmarketingblog.com/2009/12/life-is-not-a-%e2%80%9czero-sum%e2%80%9d-game-but-homebuilding-must-be/