birmingham homebuyer insights august 2014
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Digital Marketing Consultant* Building Industry Specialist – 19 Years• MIRM, MCSP, CAPS, CGA, AA, Broker• Past Chair National Sales & Marketing Council• Past Chair Professional Women in Building• 2011 NAHB PWB Woman of the Year• 2011 NAHB NSMC Bill Molster Award• 2010 NAHB MCSP of the Year!•2 2009 NC Distinguished Associate of the Year!
Tammie Smoot
Digital Marketing Consultant* Building Industry Specialist – 19 Years• MIRM, MCSP, CAPS, CGA, AA, Broker• Past Chair National Sales & Marketing
Council• Past Chair Professional Women in Building• 2011 NAHB PWB Woman of the Year• 2011 NAHB NSMC Bill Molster Award• 2010 NAHB MCSP of the Year!•2 2009 NC Distinguished Associate of the Year!
BDX : Who we areA team of online marketing experts.Solutions to create the complete digital experience
May I Ask a Favor?
1. Facebook : Builders Digital Experience2. Tweet - #the_BDX3. Who is Bill Barnes?4. Thank You to our HBA Staff and Tony Birk
Agenda• What homebuyers are looking for in a new
home and how to position your homes better
• Messages that resonate with Realtors• Demystifying New Home Sales
• Start Fresh Buy new• The HomeBuying Time Line• Ideas to use today
• Insights & Implications
Strategic Industry Initiative
Expanding the New Home Market
The New Home Industry has a problem&
It is time to do something about it!6
What is Start Fresh. Buy New?– Large scale, industry wide campaign
promoting the advantages of newly-built homes to home shoppers.
– Comprehensive, national research plan to gain insights from both consumers and agents.
– First-of-its-kind consumer marketing & promotional campaign reaching millions of home shoppers in 2013 and 2014.
.
Examine Significant Industry Questions
How is the face of today’s home shopper
changing?How is the
generational cohort shift affecting the shopping process?
What are the primary barriers to “New” home
purchases?
Why is appeal for new growing/waning?
Capture “Pulse of Shoppers”How financially confident are
home shoppers at the moment?
Which options are most popular today?
What type of incentives are most
motivating to shoppers?
What type of appliance brands are most appealing
to shoppers?
Website
* Video views: >360k
*Total site visits: >1.1MM
Engagement:Time spent: 03:20 min
www.startfreshbuynew.com
Most Popular Site Content
Start Fresh. Buy New. Digital Ads
© 2013 Builders Digital Experience, Inc. All rights reserved.13
Insights from Home Shoppers, Recent Buyers & Real Estate AgentsSummer 2013 Tracking StudyBDX & Hanley Wood
Research
Agent Study Executive Summary
14
Realtors overwhelmingly rely on MLS to learn about new builder properties
• Beyond MLS, realtors learn about new homes through builder announcements and from other agents/brokers
While realtors have a good understanding of why people are buying, they overestimate why buyers work with realtors
• Buyers look to realtors for help finding a home and negotiating price rather than mkt knowledge
About half of all realtors prefer to sell existing homes • Those that are not likely to recommend new homes to prospective buyers cite
difficulties with pricing and convincing buyers of the value
Nearly two-thirds of realtors believe that builders are not offering useful training about how to sell new homes
As expected, realtors recognize that new homes outperform existing homes on energy efficiency, customization, etc.
• Similar to prospective buyers, realtors have varying opinions about whether new homes offer higher quality construction than existing homes
1
2
3
4
5
of homes sold are “Used”
90%But 18% of
Home Shoppers Preferred
New Birmingham MLS Jan- June 2014 7536 Homes Sold – 800 New…… About 11%
of shoppers are considering both New and Used
But What about Birmingham???
2012 – 11%
2013 – 10%
2014 – 11%
of shoppers who initially prefer New, ultimately buy Used
© 2012 Builders Digital Experience, Inc. All rights reserved.19
We Lose Shoppers……
© 2012 Builders Digital Experience, Inc. All rights reserved.20
Why Oh Why…..
Longer Buying Cycle
85%of recent home buyers worked with an agent
agents are crucial
91%of those preferring new yet bought used worked with an agent
Resulting Marketing Gap & Opportunity…
The Majority of the Realtors and Home Shoppers think that used homes are more affordable
© 2012 Builders Digital Experience, Inc. All rights reserved.24
Why Buyers Use Realtors
© 2012 Builders Digital Experience, Inc. All rights reserved.25
Realtors Primarily Rely on MLS to Learn about New Properties
26
None of theseOther
Radio advertisingTelevision advertisement
Local magazine/publicationSocial media (i.e., Facebook, Twitter, etc.)
National real estate listing websitesLocal newspaper articles
Billboards and roadside signageLocal newspaper advertisements
Online advertisement
Online search engines (i.e., Google, Yahoo, etc.)
Local Real Estate/New Home PublicationsLocal real estate listing websites
New home open houses hosted by buildersNew community/model home visits
Other agents/brokersBuilder announcements (e.g., e-mails, etc.)
Multiple listing service (MLS)
0% 25% 50% 75% 100%
18
557
1313
1616181820
2529
3738
4549
80
Sources of Information
% of respondents
Base: All, 3,044 ● Q14: How do you become aware of new homes offered by builders that are available to prospective (residential) buyers that you work with? Select all that apply.
Make it EASY
• Clearly State the REALTOR REGISTRATION & COMMISSION POLICY
• Add VIDEO Tours
• Include a PDF of your BENEFITS and STANDARD Features
• Include HOMEOWNERS ASSOCIATION information
• DIRECTIONS to the Community
• SHOWING INSTRUCTIONS? Lockbox?
• CONSTRUCTION STATUS
© 2012 Builders Digital Experience, Inc. All rights reserved.27
Email Marketing – Tips* One of the best methods for directly reaching your audience
* More affordable than most other methods
* Information is up to the minute
* Rapidly becoming the end user's preferred method of communication
• Results and conversions are easily tracked
Where will you get your list from?
What service will you use to send out the emails?
Who is designing your emails?
How will I manage unsubscribes?
© 2012 Builders Digital Experience, Inc. All rights reserved.28
SPAM Compliance
Best practices and CAN-SPAM compliance
http://www.thebdx.com/sites/default/files/CAN-SPAM.pdf
Federal Trade Commission's rules concerning CAN-SPAM
http://www.ftc.gov/bcp/edu/pubs/business/ecommerce/bus61.shtm
© 2012 Builders Digital Experience, Inc. All rights reserved.29
What the Realtors said ……
© 2012 Builders Digital Experience, Inc. All rights reserved.30
What Do Realtors Really Want?
• Know & Trust the Builder & Developer
• Builders Sales Person is a Trained Professional
• Customer Satisfaction
• Bonus – Added Commission – Spiff
• Know that they will get paid• Give them the tools that they need
© 2012 Builders Digital Experience, Inc. All rights reserved.31
What Do Realtors Really Want?
• Respond Quickly
• The Community is an Easy Sale
• Recognition
• Clearly Communicate Your Commission Policy
© 2012 Builders Digital Experience, Inc. All rights reserved.32
Know your Competition
© 2012 Builders Digital Experience, Inc. All rights reserved.34
Let’s do the math……
© 2012 Builders Digital Experience, Inc. All rights reserved.35
© 2012 Builders Digital Experience, Inc. All rights reserved.36
Realtors’ Focus on What’s Most Important Does Not Align with Buyers Or What Helps Sell New Homes
37
Base: All (3,044) ● Q19: For each attribute below please indicate the extent to which you believe existing and new homes offered by builders differ? Use your mouse to slide the marker towards your answer. ● Q15: When working with a client to purchase a home, how likely are you to recommend they purchase….
0
25
50
75
100
A OS H J
LT
P KQ E D F
M C U V N R BG
I
Most Important Home Features for Driving Rec-ommendations to Clients
Overall Importance
Average
A Lower cost per square foot/More space for the money
B Lower maintenance costs (money and time spent)
C More living spaceD Less living spaceE Proximity to good schoolsF Convenient to
shopping/entertainment/activitiesG Safer neighborhoodH Character/Uniqueness of homeI Convenient to workJ Convenient to friends/familyK Larger yard or lot/More space
between housesL Established neighborhoodM Ability to customize house to best
suit you and your familyN Community amenities (pool, park,
golf course, etc.)O Quality of constructionP Architecture/Overall design
(appearance of house)Q Better floor plans for me and my
familyR Energy efficiencyS Sense of community within
neighborhoodT Mature trees & landscapingU Prestige/ExclusivityV Storage space
Impo
rtanc
e*
Attribute*Derived Importance: The scores are shown as relative importances using TreeNet Analysis
© 2012 Builders Digital Experience, Inc. All rights reserved.38
© 2012 Builders Digital Experience, Inc. All rights reserved.39
Mortgage Calculator -* testimonials * describe the
process
ProspectWave 1
ProspectWave 2
0%
25%
50%
75%
100%
3952
6148
Ownership
OwnRent
ProspectWave 1
ProspectWave 2
17 14
78 83
5 3
Type of Construction
Custom built on own lot Existing Home
Brand new home offered by builder
More Renters Are Shopping
40
ProspectWave 1
ProspectWave 2
39 43
61 57
Type of Home
Single Family Detatached Other
Current (Prospect) Primary Residence
Source: BDX 2012 and 2013 Homebuyer Insights Study, Hanley Wood, Chadwick Martin Bailey
*New v/s Used• How do I buy
• * Credit Seminars
© 2012 Builders Digital Experience, Inc. All rights reserved.41
0.00
2.00
4.00
6.00
8.00
10.00
12.00Quality of
constructionSafer
neighborhoodBetter
floor plans
Energy efficiency
Lower maintenance costs
More living space
Lower cost per sq. footArchitecture/
Overall designLarger yard
or lot
Convenient to work
Top 10 Most Important Considerations for Home Purchase
Wave 1 New SegmentWave 1 Indifferent SegmentWave 2 New SegmentWave 2 Indifferent Segment
Average
Top Criteria Remain Largely Unchanged: Quality Reigns Supreme
42
Mea
n im
porta
nce
Source: BDX 2012 and 2013 Homebuyer Insights Study, Hanley Wood, Chadwick Martin Bailey
0% 25% 50% 75% 100%
30
21
33
31
39
38
41
49
58
61
80
31
20
31
23
36
35
34
47
58
63
77
New is BetterExisting is Better
0%25%50%75%100%
29
13
20
13
11
11
8
6
6
7
2
25
11
18
14
12
10
9
6
7
5
2
Prospect Wave 1 Prospect Wave 2
New Homes Have Improved/Maintained Performance in Many Areas But Lost Ground on Quality
Energy efficiency
Ability to customize house
Lower maintenance costs
Better floor plans for me and my family
Community amenities
More living space
Storage space
Prestige/Exclusivity
Architecture/Overall design
Safer neighborhood
Quality of Construction
43
Existing is Far Better (4pts)
No Difference(Middle 3pts)
New is Far Better (4pts)
Items rated on an 11pt slider scale with anchored ends. Data shown excludes middle 3 points. Items sorted by gap score (new-existing).
Attribute Performance (sorted from high to low based on gap between new minus existing)
Note: Movement of approximately 4 pp is considered meaningful
Source: BDX 2012 and 2013 Homebuyer Insights Study, Hanley Wood, Chadwick Martin Bailey
0 5 10 15 20
0
4
5
5
7
9
10
8
11
12
12
16
0
5
5
6
7
9
11
9
11
12
11
14
Prospects
Recent Buyers
Buyers Use Essentially the Same Factors to Determine Quality of New and Existing Homes
Durability
Workmanship/Craftsmanship
Structural Materials
Fit and finish
Warranty
Architectural Design
Performance specifications
Energy ratings
Built to specifications
Newest technology
Good for the environment/green
Other
44
0 5 10 15 20
0
5
6
7
8
9
9
10
10
11
11
13
0
6
6
7
8
9
10
9
10
11
11
13Existing Quality New Quality
Importance of Criteria for Determining Quality(among shoppers who will or did consider each type of home)
Source: BDX 2012 and 2013 Homebuyer Insights Study, Hanley Wood, Chadwick Martin Bailey
How do we combat this?
Builder Toolkit
Builder Toolkit
Available on….
Nashville
Nashville
Nashville
Nashville
Insights & Implications
The process is lengthy & emotional… the joy gap is real
JOY Gap
- Joy!- Relax – focus on your
“want-to-do” listJoy
OFFER ACCEPTED
BEGIN JOURNEY
Excitement“I’m ready for a new
adventure!”
Worried“I hope I make the right
choice.”“Who can I trust?”
Nervous“Can I afford it?”
“Did I buy a lemon?”
Exhilaration“I found the house!”
Tentative Excitement
“We did it, but now what?”
MOVE-INDATE
Cautious“Will the build process
go okay?” (new)“What will the
inspectors find?” (existing)
Life in an EXISTING home
Life in a NEW home
- Joy (guarded)- Stressed – list of “to-do’s” is long
9 out of 10 buyers start their new home search online.
Are your new homes on the HBA
Website?
For effective consumer messaging…
…illuminate shortcomings of Used homes
…and emphasize the attributes shoppers value most
Designed for Living
Low Cost of Ownership
Quality Construction
Energy Efficiency
*Focus our messaging on criteria that are considered most important to recent buyers, where gaps exist in perceptions of new and existing homes
Quality of ConstructionNeighborhood SafetyBetter Floor PlansLower cost per square footArchitecture/ overall designLower Maintenance Costs
• Keep in mind that those who purchase existing but PREFER NEW are likely to be young Families (working full time , aged 40-60, planning an increase in family size.
*Research across the Chartbeat network has shown that if you can hold a visitor’s attention for just three minutes they are twice as likely to return than if you only hold them for one minute.
Brand Awareness, Perception & Opinion
How do you stack up with regards to value?
What can I do to improve my image?
How would you rate each of these builders as far as construction quality is concerned?
What is your local brand awareness, aided & unaided?
How likely would a shopper refer you to a friend?
#1 Feature of Top Selling Plans
• They’re presented well. Make sure your marketing materials match your customer’s high expectations.
www.builderonline.com
Bad Photo = Bounce
“According to research from the National Association of Realtors, 98% of home buyers who searched for a home online said photos were among the most useful features of real-estate websites.”
Start with quality content: image quality
Average
+15%
-15%
Set Yourself Apart????
Start with quality content
VS
Images by BDX -media
MLS – Best Practice FLOOR PLANS
BDX Confidential Material - Please Do Not Distribute
De-Stressing
Entertaining
Flex Space
Storage
Livability At A Glance!Floor Plans Without The “Clutter”
EXAMPLE: This traditional Ranch home is perfect for entertaining, offers a Master Suite for peace and quiet, space for a home office, future nursery, or guest room, and plenty of storage.
BDX Confidential Material - Please Do Not Distribute
Interactive—take it up a notch!
Hot Spots
Drag & DropFurniture
CustomizablePlans
Social MediaIntegration
Interactive Floor Plans—let her play (and share)!
Whichxample?
Give them the tools they need - Video:
Compete Research results show 86% of new construction intenders identified community & home videos as a primary resource during their shopping process.
BDX Confidential Material - Please Do Not Distribute
• Model Home Tour• Community Tour• Outside The 100 Acres
• Company History• Company Philosophy• Message from the CEO • Meet the Team
• Buyer Testimonials
GREAT Video Ideas…
• Warranty• Customer Service• Educational (Viral)• Financing
• New Initiatives• Our Process
• Design Tips• Move-in Welcome
• New vs Used
Let’s take a look at some examples!
Why You Need Video• 88.6 Million people
view online video each day (comScore)
• 53X increase in front page Google results with properly optimized video. (Forrester)
• 90% of shoppers feel video is useful when making a purchase decision.
Back to main page
BDX Confidential Material - Please Do Not Distribute
Consumers engage across multiple devices!
Affordable for all: Responsive design (one site!)SAS (s/w as a service) Self managed thru content mgmt tools
BHI Confidential
Use technology to help her visualize, play, and connect…
• Online design tools (pre sales, design process, home ownership)
• Sales tools for field use…
Builder Insights Initiative • Understand your buyers and your Realtors• Provide the tools for the Realtors to help
you!
• Your biggest competition is Used
• BDX Toolkit – get it today
• Examine your brand, your content and your market strategy
• Educate your sales team and your Realtors.
THANK YOU FOR ATTENDING
Tammie Smoot MIRM, MCSP, CAPS, CGP
Digital Marketing Consultant– Building Industry Specialist
Builders Digital Experience
2011 NAHB Professional Women In Building – Woman of the YearPast NAHB NSMC Chair
Past NAHB Professional Women in Building Chair
The Carolinas704-507-4411
Tsmoot@theBDX.com
Builders Digital Experience
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