This got me thinking about homebuilder sales centers.  Why not have a fleet of bicycles stored at the sales center for prospects to use to tour the community?  Typically there is an empty garage where the bicycles could be stored, plus you could purchase a few cruiser bikes for less than $1000.  This would give prospects the opportunity to more intimately experience your community instead of driving through by car.  It would be a differentiated purchase experience that they would be hard-pressed to forget.  If your community is in a Master Planned Development it is even a better way for a prospect to see how their home will connect to parks, schools and stores.  Not to mention it gives the sales associate the opportunity to burn a few extra calories through the day.

In an age when dogs get massages, see therapists, get Christmas gifts, and have birthday parties now is the time for homebuilders to start thinking about designing home features and community amenities around the family pet. It may also be one way to get fresh prospects in the door during the downturn.  Pet related industries have not been hit as hard by the recession, which shows strong consumer desire to care for pets even though there is less disposable income.

Take a look at these statistics:

• About 63% of U.S. households have a pet, the American Pet Products Association found in its 2007-2008 pet owners survey.
• The average owner spends $580 to $875 a year on food and care for their dog, the American Society for the Prevention of Cruelty to Animals says.
• PetSmart opened 112 new stores and 45 new PetHotels during 2008. The chain’s 2008 fourth quarter net income was $78.4 million, or $.62 per share.
• American Pet Products Association estimated that in 2009, Americans will spend an approximate $45.4 billion on their pets — a $2.2 billion increase from what pet owners shelled out in 2008.

http://www.zootoo.com/petnews/bearmarketcantdogpetindustrysn-1231

According to the American Pet Association:

• 22% of Dog owners celebrate their dog’s birthday
• More than half of American dog owners are more attached to their pets than to at least one other human being.
• 39% of America’s pet owners display their pet’s picture in their home.
• 16% of America’s pet owners keep a picture of their pet in their wallet or purse
• 70% of dog owners admit to giving their dog a Christmas gift.

Bob Vetere, President of the American Pet Products Association recently made the following comments during the release of research findings during the 2009 Global Pet Expo, “people are cutting back on a lot of areas, but are not cutting back on their pets.  They are postponing those vacations or downgrading their cars just to make sure that Fido and Fluffy are well taken care of.”  Given the constant influx of negative news on the economy, it can be hard to believe that the pet industry is faring as well as it is, Vetere concedes.  Yet he cites an increasing number of empty-nest baby boomers, in addition to society’s overall humanization of pets, as contributing factors behind the trend.  “Baby boomers have had their children leave home and move on, and they are looking for something else to care for. Especially in stressful times, focusing on pets can make people feel more at ease,” Vetere says of why people care about their pets now more than ever before.  “People find animals comforting,” he said. “It’s a very compelling drive right now.”

According to Susan Bady of Professional Builder magazine (http://www.housingzone.com/blog/110000611/post/720042872.html), kitchen designers surveyed in December 2008 by the Research Institute for Cooking & Kitchen Intelligence (RICKI for short) said there has been an increase in requests to create such things as pet feeding stations, pull-out beds integrated into kitchen cabinets, steps up to a window seat for a small dog and a custom bird cage that puts the bird on center stage in the kitchen.

Furthermore, Honda is now building a pet friendly version of its popular Element model and Toyota is coming out with “pet options” for its new Venza model. The new version of the Element features a built-in bed in the cargo area, a private electric cooling fan, a spill-proof water bowl, a doggie ramp to enter and exit the vehicle, and a mesh net to keep animals separated from people.  Rubber floor mats are embellished with a dog-bone design to top it off.

There are many ways homebuilders can take advantage of these trends in their home designs and communities.  Here are a few to start considering:

In the home:

• Build an indoor safe space for a dog or cat that can be closed off easily from the rest of the house. This space can be used as an indoor kennel.
• In kitchens build cabinets to hold pet food, roll out drawers for pet food bowls and water.
• In the garage build a dog shower to wash fido or to clean his dirty paws before he enters the house.
• Use pet friendly flooring materials that will be more resistant to pet spills
• Build a dog run, and place landscape in areas where it won’t get trampled

In the community:

• Create a dog playground that is the center of the community.
• Turn a rarely used pocket park into dog park
• Partner with companies that offer pet services such as doggie-day care, poo pick-up, or vet services.
• Install lots of dog sanitation stations through-out the community
• Install dog water fountains

Creating a pet-based theme to market the community could be very break-through as well.   Tapping into people’s love for pets if done properly could be a very strong emotional pull.  A pet-themed marketing approach would no-doubt garner national media attention and PR for a builder.  It couldalso be a way to differentiate a neighborhood inside a larger master-planned community.

How else could builders use pets as a way to differentiate their homes and communities?  If there are any builders taking this approach already I would love to hear about them.  Please pass on their website.

If you know of a builder we could talk with that would be interested in helping the study by putting us in touch with consumers please have them contact me directly at brendan@armoryideas.com

Can YouTube be used as a marketing and lead generation tool instead of just a sales tool for builders?

If you are suffering from insomnia one possible antidote is to type in “homebuilder” on YouTube and scroll through the mundane collection of videos that appear.  The clips posted by builders are a montage of uninspiring model tours, walk-throughs, and poorly produced TV ads.  One of the top-ranked videos is an attractive sales person giving a tour of a laundry room of all things.

I applaud the builders who have uploaded their content to YouTube.  You are way ahead of your competitors in understanding social media and web 2.0, but could YouTube be doing more for you?  Companies in other industries have successfully used YouTube to generate increased brand loyalty and increased sales.  I believe if you replicate some of their strategies you can also use it as a new source for leads.

Developing content for YouTube is different than developing traditional media.  It is imperative to post short videos as the attention span of Internet viewers is limited.  Do not spoil the video by making it entirely an advertisement.  Just posting your latest TV ad will not work.  Promote subtly for better results.  Remember to embed your URL into the video because it is an ad for your website.  Your initial goal should be to generate leads for your database through prompting some type of action.

If you want your video to go viral then there is no room to be a nervous Nellie.  It needs to either have shock and awe, sex appeal, or use an outrageous headline that encourages people to check into it further (i.e. “Alien Buying New Homes in Development”).  Furthermore, a video usually just doesn’t go viral on its own.  There are a handful of somewhat controversial “tricks,” and social media tactics to get the ball rolling.

Here are three strategies to ignite your YouTube marketing efforts:

1) Create a contest – one very popular tactic is to get users to create videos that will be judged.  This is a great way to generate a ton of content about your brand in a short period of time.  The more good content the better.  Just do a search for any of the national builders and some of the top videos are negative hits.  Having a large library of content would help insulate the presence of negative content.

2) Do Something Outrageous With Your Product – If you have product feature/benefit that really stands apart demonstrate it in an unconventional way.  Blendtec is probably the most successful case study for this strategy with their “Will It Blend?” campaign.

3) Be A Thought Leader – If you have a process, technique, or program that makes you unique then don’t be afraid to demonstrate it or talk about it.  If it really isn’t a differentiator you’ll end up as one of those yawn generating videos that I talked about earlier.  Zappos uses YouTube to answer customer question and as way to demonstrate their renowned customer service oriented culture.

For more specific YouTube Tactics check out the following post by Zeke Camusio:

http://www.theoutsourcingcompany.com/blog/tag/youtube-marketing-strategy/

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?            

However, signs are beginning to creep in showing the potential to squander this opportunity like GM did with the EV1. Many builders are only talking about green or energy efficiency as a cost savings measure when they should be talking about green as an aspirational and emotional connection to the community as well. Consumers buy on emotion and justify with facts.  The industry needs to appeal to people’s hearts first then their pocket books much like Toyota did with the Prius.

A UC-Davis study found that consumers purchased Priuses for the symbolic benefit and what it communicated to others.  Prius drivers wanted to project an image of “socially responsibility,” “environmental stewardship,” and to be seen as “pioneers.”  Toyota has been successful in capitalizing on these consumer emotions through their marketing.  Even the consumers who said they purchased the Prius for cost-saving reasons could not calculate their savings payback.    Further evidence that consumers were more interested in projecting an image of frugality and intelligent consumerism to their friends and family.

The quicker the builders can start appealing to consumers’ green hearts as well as their pocket book the better off they’ll be.  They really need to take an emotional and rational approach to their green marketing instead of just a rational approach. The consequence of consumers not connecting emotionally will be price discounting of “green” homes and loss of any additional margin or profit incentive to build more green communities.

More to come on this…

Also see recent Seth Godin post on rationale marketing:

http://sethgodin.typepad.com/seths_blog/2009/02/the-rational-marketer-and-the-irrational-customer.html