Using CRM to Build Homebuilder Customer Loyalty

At first glance, it might seem a bit strange to read about brand loyalty in the home building industry.

On-site Social Media Walls encourage social interaction

You might ask: don't folks buy one home at a time?  And, don't most hope to live in their current home for years? Once they decide to move, does it even make sense to suggest buying a new home from the same builder?

While there might be some truth in each of the statements above, there's also a considerable amount of weight behind having homeowners blog, Tweet and post about their new home purchase, refer a friend and, yes, actually have their current builder be "top of mind" when considering a new home in the future.

Acquiring new customers is good, but it's just the beginning.  Businesses only win big, Jai Rawal posits in his recent 6 Ways to Builder Customer Loyalty at Every Touch Point article, when customers can be nurtured into loyal customers. Rawal goes on to suggest that providing a satisfying emotional experience helps create loyalty.

After all, it's estimated to cost 6-7 times more to acquire new customers than to nurture a current one into an ongoing relationship!

Schedule events, use CPS CRM to invite & remind

How to engage home buyers at every touch point?  While there are ideas that might not resonate too well with home builders such as adding a points-based loyalty program (think your local market, airlines and hotels), it is possible to kick-up your CRM system a notch and start taking advantage of his other suggestions -- and consider adding complimentary touch points to maximize your impact:

• Engage your prospects and buyers via social channels.  We've talked about CPS' Social Media Wall -- an easy-to-implement tool capturing and displaying social media content in sales and information centers.
• Encourage current buyers to become brand ambassadors through referrals. Nielson reports that family and friends are the most persuasive influence on buying decisions.  Use social media and a referral program so your customers can easily and confidently promote your communities.  Send letters and/or emails reminding homeowners about your referral program -- frequently.  Most people won't remember it exists after 1 month.
• Use email marketing to keep in touch with homeowners.  Here's where CRM shines as you can create pre-set pieces, schedule their delivery and dial-in recipients (only those buyers in the last 6 months, everyone with a pool, all Plan 2 homeowners, etc.).  Send a referral program reminder, invite homeowners to a summer BBQ at the sales center, offer a coupon to the new pizza place...all focused on engaging and reconnecting with your homeowners.
• Delight Your Homeowners on Special Occasions.  It doesn't have to be overly exciting -- a simple thank you on the anniversary of their closing or birthday wishes.  A recent Fulcrum study found that 75% of customers receiving a birthday message from a company thought more highly of the company.  Again, CRM excels at this type of automated -- yet personalized --messaging.

Intrigued by the concept of brand loyalty?  Interested in exploring how your organization can put some of these ideas into action? Contact us for a demo -- or visit our website.