Builders: Automated Construction Software Helps Gain Efficiencies

Good News: Homebuilder Order Growth Continues to Accelerate

Have the details at your fingertips!

One of our most recent blogs Homebuilder Construction Rates Accelerating; Let's Talk Efficiency  was developed as a result of two recent Zelman & Associates comments,

"Builder order growth has continued to accelerate; excess speculative inventory has been absorbed and housing starts are picking up to satisfy demand."

"Increasing construction activity always presents the risk of cost inflation and labor tightness."  

Are Your Operations Optimized to Meet the Challenges?

There's nothing quite like throwing ice water on good news, is there?  How are builders addressing cost inflation and labor tightness? Possible to make adjustments and see results relatively quickly?

We'd like to suggest the answer is: YES!

Let's take a look at one of CPS' builder clients currently using our automated construction scheduling software,  FieldCollaborate. When asked how they previously managed their construction process, the CEO replied:

"Email and phone. We were really disjointed. There were disputes among FieldManagers about trades because they didn't know who was working on what, when."

Costs and Labor Can Be Better Managed! 

Sound familiar?  What has changed with the implementation of a scheduling system?

"Because you can plan out jobs far in advance (we schedule out 6 months), builders and vendors can forecast materials, allocate labor toward our jobs, etc. The purchasing team can negotiate better prices with vendors as they're able to pinpoint quantities and timing."

Using a Portal to Helps Get Everyone on the Same Page!

We've also talked about the value of SST (self-service technology; take a look at uses throughout a builder's organization in this Blog). FieldCollaborate offers SST with its Vendor Portal. Vendors, using authorized credentials, are able to view their schedules (as well as drawings, photos, notes and the like) up to 6 months in advance.  Builder staff access the same Portal. Everyone's looking at the same schedule, same calendar, same workload.

Critical is the short-term view regarding efficiency:

"The Portal eliminated a lot of phone calls, texts, etc. That extra time allows us to continue to move homes."

Want to find out more about the efficiency and profitability advantages provided by automated scheduling software? Contact us; we can provide a full-featured FieldCollaborate demo!

Homebuilder Construction Rates Accelerating; Let's Talk Efficiency

Builder Order Growth Continues to Accelerate

Alan Ratner, Managing Director of Homebuilding Research at Zelman & Associates, recently delivered great news for homebuilders saying,

 "Builder order growth has continued to accelerate; excess speculative inventory has been absorbed and housing starts are picking up to satisfy demand."

Isn't this great news for everyone associated with the homebuilding industry?

Yet, Increased Construction Activity Presents Risks

Ratner continues,

"Increasing construction activity always presents the risk of cost inflation and labor tightness." 

 If you've been reading our Blog, you might recall a March 2019 article noting Ashok Chaluvadi's comments in Builder,

A key issue cited by 82% of builders is the cost/availability of labor. What's particularly noteworthy is labor replaced building material prices -- which had been the hot topic in 2018.

Increasing Costs and Labor Shortages Turn Focus to Efficiency -- Particularly SST

This environment (increasing costs, labor shortages) provides an opportunity for builders to laser focus on areas specifically under their control --  operations -- in order to increase internal efficiencies (and, in turn, profitability). One opportunity is automated construction scheduling -- particularly SST elements (that is, self-service technology). 

SST had somewhat of a bad reputation in years past.  It may have tried to do too many things in too disparate ways. However, attitudes change; today, demographics and technology make SST an important tool for home builders as they consider that increasing workplace productivity is the option most under their control, today.

SST implies technology and construction management software leverages SST

An effective construction software implementation gets everyone within the building process (and that includes both in-house and vendors) on "the same page" as to which tasks need to be accomplished, in what order and on what date.

Cloud-based software makes the information available to everyone, 24/7, anywhere anytime. That means you can expect a reduction in delays, dry runs, phone calls, texts, misunderstandings. 

In a sense, getting everyone on the same page is a good first step in exerting organization control.  Interested? CPS' FieldCollaborate is award-winning automated construction software; contact us and we'll give you all the information needed so you gain productivity while experiencing this order growth!

Homebuilder Customer Service: A Critical Link

Homebuilder Customer Service is a Hot Topic

We've been talking about homebuilder customer service frequently this year; you can see earlier Solution Blogs here (Putting Metrics on Your Dashboard) and here (Add Focus to Actionable Customer Service).

Is Customer Service a Priority?

Value-Unique Motivates Referrals

Today's homebuyer and homeowner expect to receive a quality customer service experience. What will set your team apart is a value-unique experience. That's service that will generate posts, Tweets, and, most importantly, referrals. How to get value-unique?

Are You Prioritizing the "Most Important Department"?

There's a new Hanley Wood Construction Wire article asking, "What's the Most Important Department in Home Building?" and customer service emerges as a top contender! Author Jim Haffner points out that the "last person who interacts with customers leaves a lasting impression."

That doesn't mean that sales or construction (or estimating or accounting, for that matter!) aren't important. What it does seem to highlight is that customer service needs to be considered a critical component of the entire building process -- and that, sometimes, it is regarded as an afterthought.

Metrics: Effective Measurement Tools!

The last contact point can offer the most memorable experience -- frequently because your homeowner expected everything to already be in tip/top shape. No one likes to have to reach out for repair but... it does happen.

Go Quick, Consistent and Memorable

Why not make it as easy and straightforward as shopping on Amazon? CPS WarrantyWatcher provides a 24/7 Homeowner Portal so owners can quickly and easily submit a request directly to the customer service department -- complete with photos! And, they're able to use the same Portal for status updates and request history.

Go the extra step and ask your customer service rep or vendor to include a photo so they're able to check things out on their phone on the way home... isn't that value unique?

Key customer service terms: quick, consistent and measurable. You're able to take care of quick with the 24/7 portal! WarrantyWatcher also provides the metrics that allow for measurable! Do you know your longest outstanding Work Order? How about the most frequent warranty issue? How easily could you locate homes with a recalled microwave? Usable data is your friend in these cases!

Finally, there's the value in consistency as it will pay off in referrals. Your homeowners need communication -- not necessarily conversation! Keep them informed and they will be comfortable with your process -- even if that replacement part is taking time to arrive.

Technology Provides Desired SST

Technology facilitates your ability to deliver on your homeowner's expectations and there's really no other way to meet their need for SST (self-service technology). A recent Radial article summarizes:

Self-service channels consistently outperform other channels in terms of consumer satisfaction. Your homeowners love self-service because it reduces friction and provides immediate and consistent answers.

Builders: Buyers are Expecting an Enhanced Sales Office Experience

Consumer Expectations Are Changing Rapidly

Our Blog has focused on SST recently --  that's self-service technology (read here and here).

Your Buyers are Looking for Information!

Self-service hasn't always had the best of reputations; however, attitudes, preferences, and expectations change quickly. One reason is changing demographics; another is technology.

In other words, today, self-service is not only a solution but a preference for many. 

Customer Satisfaction is Driving Kiosk Implementation

SST isn't happening in a vacuum, however.

Improving customer satisfaction and customers' perception of the business are top reasons for deploying digital signage. Enhancing the customer experience, improving the customer journey, is driving the transition from a static, pre-set experience to a dynamic, immersive sales office environment fueled by interactive kiosks. 

Meet Your Home Shoppers Need for Information and Lifestyle

CPS has been providing interactive touchscreen kiosks to homebuilders for the last 10 years. We understand what's involved in providing an exceptional, end-to-end experience (in this case, that includes the customer and technology).  

Encourage Your Buyers with an Intuitive Process

Here's what we've learned about improving the customer experience and interactive kiosks:

1. Interactive -- coupled with dynamic creative -- engages shoppers from the minute they walk in. 
2. Home shoppers want your product to meet their needs so give them the information to make that happen!
3. A recent Metrostudy Consumer Insights series affirmed Location & Home Design to be the most significant motivators so use interactive floorplans, drag 'n drop furniture and interactive local area maps with great-looking graphics to tell your story!
4. The kiosk process needs to be so intuitive that your home shopper wants to engage.  Don't make it too complicated or geared towards sales agent operation!
5. Interactive is age-agnostic! Boomers and Millennials want information -- the type may vary but they're both trying to visualize how to your community and homes meet their objectives!

Visit CPS at PCBC 2019

We'll be at PCBC 2019 in San Francisco starting May 29; visit us in Booth 141 or contact us for a one-on-one demo to see how we can work together to create an enhanced customer experience!

Builders: Put Metrics on Your Dashboard!

SST Emerging as a Preference 

Concise, actionable information - 24/7

We've been talking about SST -- that's Self Service Technology -- recently; you can review Solutions Blogs about migrating your homebuyers towards SST customer service options here.

There are a couple of key elements associated with the trend towards SST; demographics and technology. Cloud-based software applications are making information available 24/7, anywhere/anytime.

Preferences and expectations are changing, too; what was once viewed rather negatively is now seen as not only a solution but a preference!

Builders Have 2 Audiences Looking for Information: Buyers and Their Own Team

The benefits of SST apply across the builder audience:  homebuyers and your own team of field managers, operations staff, accounting, corporate management. 

Homebuyers Obtain Concise, Personalized Information via Portals

How can that be? Your homebuyers have access to information through web-based portals with data published through web-based software applications.  It's concise, time pertinent, personalized and available 24/7. 

Portals recognize their participants through credentials. So, it's straightforward for your buyer to locate stage of construction photos or warranty issue status.  They're able to use their phone or tablet and there's no digital clutter: their specific and unique information is presented clearly and concisely.

Metrics Deliver for Corporate Team Members

A business metric is defined as a quantifiable measure used to track and assess the status of a specific business process. Every business area has unique processes that need to be monitored.  Sales, for example, track marketing and social media metrics; senior management tracks key financial results and trends.

Metrics encourage your organization to become more data-driven -- and that's particularly true when SST features are built-in to your software applications.  Think: visual and interactive! 

Portals: Personalized status 24/7 for your buyers

What might your warranty team need as metrics?  Submitted requests, requests turned into work orders, open work orders?  The team doesn't necessarily want all the details at first glance; they're interested in scope and outliers.

Customer Service Rep "A" has 150 open work orders with 20% over 30 days; "B" has 260 open orders with only 5% over 30 days. That's easily viewable in a pie chart, for example, Then, drill down for details; you might find "A" has a community's worth of "manufacturer microsoft recalls" and is waiting for replacements.  

You're able to locate that type of information using a software-generated visual dashboard such as those provided by CPS' WarrantyWatcher. 

Visual Metrics Focus Attention and Investigation

SST means personalized, concise information 24/7, anywhere/anytime. Setup your dashboard to measure the data that's critical to your business -- adjust the timeframe, drill down for details, focus on what's important, offer Portals to your buyers -- that's CPS WarrantyWatcher!

Builders: Increasing Productivity Helps Offset Labor Costs & Availability Issues

Builders Rank Labor Cost & Availability Top Issue for 2019

There's a great article by Ashok Chaluvadi in a recent Eye on Housing article in Builderonline describing anticipated challenges facing builders in 2019; you can read it here.

SST is one option designed to increased productivity

A key issue cited by 82% of builders is the cost/availability of labor. What's particularly noteworthy is labor replaced building material prices -- which had been the hot topic in 2018.

What options are available to a homebuilder to counteract labor's increasing cost/decreasing availability -- particularly in the short run?

SST Helps Builders Impact Productivity

We know the number of trades people is limited; a significant number of experienced workers are "aging out"  and there haven't been enough Millennials entering this specific workplace.

Automated Quality Inspection Tools add focus

SST (that's self service technology) had somewhat of a bad reputation in years past.  It may have tried to do too many things in too disparate ways. However, attitudes change; today, demographics and technology make SST an ever emerging tool for home builders as they consider that increasing workplace productivity is the option most under their control, today. SST implies technology and construction management software leverages SST:

• SST takes advantage of 24/7 cloud-based information: An effective construction software implementation will get everyone within the builder's organization and their vendors on "the same page" as to what tasks need to be accomplished, in what order and on what date.  Cloud-based software makes the information available to everyone, 24/7, anywhere/anytime.  That means you should expect a reduction in delays, dry runs, phone calls, texts and misunderstandings.  In a sense, that's the first step.
• SST provides a focus on the builder's scheduling process: This might seem strange to be #2 in the list.  However, it's sometimes difficult to modify processes, implement software and drill down into issues all at the same time.  Some builders start operating in a SST environment and then examine what can be done more effectively as they reap the fruits of 24/7 information and a consistent, measurable pace. Developing a schedule provides consistency and accountability; you're able to see (24/7!) the status of every job and employ metrics to highlight problem areas. You should also see the benefits from your vendor's perspective: they can look ahead and plan. You're working more collaboratively! Expect to see both decreased cycle time and a further reduction in dry runs as your team refines their build process.
• SST facilitates Quality Inspection Tools: We can all agree call backs are inefficient, cost money and can impact buyer satisfaction.  There aren't many things worse than finding punch items at the buyer walk through! Why not add a short check list alongside key tasks that provides an accessible, consistent way for your field managers to evaluate completion and direct feedback for the vendors? If there's an issue, CPS Field Collaborate, for example, auto-generates punch items that are emailed to the vendor and auto-tracked until resolved.  Again, everyone (builders, management, vendors) is on the same page, 24/7, looking at the same issues and focused on resolution. SST continues to provide reminders to your field managers of outstanding issues and continues to email vendors until resolution. 

CPS' FieldCollaborate is the 3rd version of our construction scheduling software designed specifically for homebuilders and offering the 24/7, anywhere/anytime access we discussed. Interested in finding out how it can increase your team's productivity? Use our contact form to schedule a one-on-one demo.

Why Implement Interactive Kiosks in Your Sales Office?

SST: Attitudes are Changing About Self-Service Technology

Our Blog has been talking quite a bit about SST recently --  that's self-service technology (read here and here). Self-service hasn't always had the best of reputations; however, attitudes, preferences and expectations change quickly. One reason is changing demographics; another is technology.

Interactive meets the need for fast & concise information!

So far, we've focused on the operations side of homebuilding as technology provides builders with a new way to make information available 24/7 to their vendors, homebuyers and staff within their organization as they're able to leverage cloud-based solutions.

It's communication without conversation!

Interactive Kiosks are Self-Service and More!

Interactive technology provides many of the customer service benefits associated with self-service.

Whether your demographic is Boomers or Millennials, your home shoppers want fast and concise information. And, they're interested in content that's tailored to their specific situation: that's personalization! That type of information delivery adds up to a new level of customer service that's actionable and personable!

Interactive reaches across demographics!

Interactive technology goes a step further as it delivers content that's engaging, exciting and impactful.

Why Interactive is a Must for Homebuilders!

First, it's engaging! Take a second to ponder what are you more likely to look at and consider: a static sign with pre-determined messaging or a screen that offers you a choice of content (and that's designed to be tailored to your objective)?

81% of survey respondents say interactive displays grab their attention more effectively than static. 

CPS has been providing interactive touchscreen systems since 2008 and we've always said: interactive grabs your home shopper's attention from the minute they walk in the sales office door!

And, it's not just that there are gorgeous graphics! Grab your attention means providing the type of information your home shopper is seeking!  They're able to drill down beyond those gorgeous graphics to the details behind your floorplans (yes; there's a Jack and Jill bath; yes: the bonus room can turn into a 5th bedroom!), drag 'n drop furniture to see how your plan fits their lifestyle and email/print the results!

They're locating actionable and personalized information, in other words.  That's what interactive digital technology is designed to provide.  Our next Blog will focus on how exciting and memorable signage will further your sales efforts.

Builders: Smaller in size? Add Focus to Actionable Customer Service

Smaller Means You Can Be More Nimble

Recently, there's a great Frank Anton article in Builderonline: Three Ways Small Home Builders Can Be Big Winners --  it's worth reviewing; you can read it here.

Anton notes he's "big" on stats & trends -- and in the 45 years he's been around the the housing business, he's usually been on the right side of predictions.  One he missed: how large the "majors" would become.

But, he says, smaller builders and those in smaller markets are in a great position. They're not occupying the same "space" as the NYSE builders.

Smaller Allows You to Focus on Personalized Customer Service

Anton suggests smaller builders have an opportunity but.. they need to focus on key metrics and one of the most critical is customer service. And, to be honest, it is one of the most controllable!

He goes a step further and suggests thinking of the process as concierge service!

SST is a Preference for Many

SST (that's Self Service Technology) provides smaller builders with a manageable way to connect with home shoppers and buyers -- and the price tag is reasonable!

Self-service hasn't always had the best of reputations. However,  attitudes, preferences and expectations change quickly. One reason is changing demographics; another is technology.

Self-service is one of those quickly evolving expectations.  Today, self-service is not only a solution but a preference for many -- regardless of age. 

Use SST as Your Concierge

What? How can SST (that's self service, isn't it??) provide concierge-level service to home shoppers and buyers? 

Your customers want fast and concise information. Communication doesn't have to mean conversation! They're also interested in information that's tailored to their specific situation: that's personalization! It adds up to a level of customer service that's actionable and personable.

Take advantage of technology to facilitate delivery of the types of information that will make your customers feel your attention!

SST Delivers Information Quickly, Concisely and When Requested

What sorts of personalized information can technology provide in this concierge service idea? Here are a couple to consider:

• Online, real-time sitemaps - Let your home shoppers know the details as to what's available; over 90% are going online so why not provide key info from the get go?
• Construction status updates - How about using your construction software's Portal to deliver weekly "stage of construction" photos?
• Stage of the sale updates - Use your CRM system to deliver automated emails letting your buyers know where they are in your 10-point buying cycle
• Focused Warranty reminders - Setup a schedule using your warranty software for automated email reminders: Fall gutter cleaning, Holiday light tips, Spring lawn advice, Summer air conditioning advice are just a few examples. You might be sending them to multiple individuals but they're offering specific, actionable information that your homebuyers can put to use.

Remember: Referrals are the Most Cost-Effective Source of Traffic

Happy home shoppers and buyers will have you "top of mind" when talking about their home shopping experience!

Interested in finding out more about technology options facilitating this type of concierge service? CPS can help you; contact us to schedule a one-on-one demo and what your customer satisfaction and  referral rate grow!