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 are A team of online marketing experts. Solutions to create the complete digital experience
May I Ask a Favor? 1. 2. 3. 4.
Facebook : Builders Digital Experience Tweet - #the_BDX Who is Bill Barnes? 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 generational cohort shift affecting the shopping process?
How is the face of today’s home shopper changing?
Why is appeal for new growing/waning?
What are the primary barriers to “New” home purchases?
Capture “Pulse of Shoppers� How financially confident are home shoppers at the moment?
What type of incentives are most motivatin g to shoppers?
What type of appliance brands are most appealing to shoppers?
Which options are most popular today?
Website www.startfreshbuynew.com
* Video views: >360k *Total site visits: >1.1MM Engagement: Time spent: 03:20 min
Most Popular Site Content
Start Fresh. Buy New. Digital Ads
Research Insights from Home Shoppers, Recent Buyers & Real Estate Agents Summer 2013 Tracking Study BDX & Hanley Wood 13
Agent Study Executive Summary 1 2
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
3
About half of all realtors prefer to sell existing homes
4
Nearly two-thirds of realtors believe that builders are not offering useful training about how to sell new homes
5
As expected, realtors recognize that new homes outperform existing homes on energy efficiency, customization, etc.
•
•
Those that are not likely to recommend new homes to prospective buyers cite difficulties with pricing and convincing buyers of the value
Similar to prospective buyers, realtors have varying opinions about whether new homes offer higher quality construction than existing homes
90%
of homes sold are “Used”
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
We Lose Shoppers……
Why Oh Why…..
Longer Buying Cycle
agents are crucial
85% of recent home buyers worked with an agent
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
Why Buyers Use Realtors
Realtors Primarily Rely on MLS to Learn about New Properties Sources of Information Multiple listing service (MLS) 48.95% Builder announcements (e.g., e-mails, etc.) 45.04% Other agents/brokers 38.14% New community/model home visits 36.53% New home open houses hosted by builders 28.98% Local real estate listing websites 24.51% Local Real Estate/New Home Publications 19.51% Online search engines (i.e., Google, Yahoo, etc.) 18.07% Online advertisement 17.87% Local newspaper advertisements 16.16% Billboards and roadside signage 15.67% Local newspaper articles 12.65% National real estate listing websites 12.58% Social media (i.e., Facebook, Twitter, etc.) 7.39% Local magazine/publication Television advertisement 5.12% Radio advertising 4.76% 8.02% Other None of these 1.02% 0%
25%
50%
80.19%
75%
100%
% of respondents Base: All, 3,044 â—? 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
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?
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
What the Realtors said ……
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
What Do Realtors Really Want? • Respond Quickly
• The Community is an Easy Sale
• Recognition • Clearly Communicate Your Commission Policy
Know your Competition
Let’s do the math……
Realtors’ Focus on What’s Most Important Does Not Align with Buyers Or What Helps Sell New Homes A
Lower cost per square foot/More space for the money B Lower maintenance costs (money and time spent) C More living space D Less living space E Proximity to good schools F Convenient to shopping/entertainment/activities G Safer neighborhood H Character/Uniqueness of home I Convenient to work J Convenient to friends/family K Larger yard or lot/More space between houses L Established neighborhood M Ability to customize house to best suit you and your family N Community amenities (pool, park, golf course, etc.) O Quality of construction P Architecture/Overall design (appearance of house) Q Better floor plans for me and my family R Energy efficiency S Sense of community within neighborhood T Mature trees & landscaping U Prestige/Exclusivity V Storage space
Most Important Home Features for Driving Recommendations to Clients 100
A
O
S
H
J
75
L
T
P
Importance*
50
Average
K
Q
E
D
F
M
C
U
V
N
R
25
Overall Importance 0
Attribute *Derived Importance: The scores are shown as relative importances using TreeNet Analysis
B
G
I
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….
Mortgage Calculator -* testimonials * describe the process
More Renters Are Shopping
Current (Prospect) Primary Residence
508%
100% 75%
276%
4797%
6098%
7795%
50% 25%
Type of Home
Type of Construction
Ownership
0%
Prospect Wave 1
Prospect Wave 2 Own Rent
6067%
5673%
3933%
4327%
Prospect Wave 1
Prospect Wave 2
8282%
5203%
3902%
*New v/s Used • How do I buy • * Credit Seminars
1697%
1442%
Prospect Wave 1
Prospect Wave 2
Custom built on own lot
Existing Home
Brand new home offered by builder
Source: BDX 2012 and 2013 Homebuyer Insights Study, Hanley Wood, Chadwick Martin Bailey
Single Family Detatached Other
Top Criteria Remain Largely Unchanged: Quality Reigns Supreme Top 10 Most Important Considerations for Home Purchase
12
Mean importance
Quality of construction Safer 10 neighborhood Better floor plans 8 6
Average
More Lower maintenance Lower cost Larger yard living space per sq. foot or lot Energycosts efficiency Architecture/ Convenien Overall design to work
4
Wave 1 New Segment Wave 1 Indifferent Segment 2
Wave 2 New Segment Wave 2 Indifferent Segment
0
Source: BDX 2012 and 2013 Homebuyer Insights Study, Hanley Wood, Chadwick Martin Bailey
New Homes Have Improved/Maintained Performance in Many Areas But Lost Ground on Quality Attribute Performance (sorted from high to low based on gap between new minus existing) New is Better
Existing is Better 2.03% 2.27% 4.88% 7.21% 6.61% 6.48% 6.2% 5.59% 8.84% 7.94% Prospect Wave 10.26% 2 10.7% Prospect Wave 11.99% 11.26% 1 13.62% 12.64% 17.58% 20.1% 10.57% 12.56% 25.1% 28.69% 100%
75%
50%
25%
77.03% 79.66% 63.41% 61.26% 57.62% 58.1% 47.05% 49.35% 33.84% 40.92% 35.37% 38.49% 36.48% 38.57% 23.37% 31.2% 30.79% 32.58% 20.43% 20.91% 30.69% 30.06%
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 0%
Quality of Construction
0%
25%
Note: Movement of approximately 4 pp is considered meaningful
50%
75%
100%
red ends. Data shown excludes middle 3 points. Items sorted by gap score (new-existing). Existing is Far Better (4pts)
No Difference (Middle 3pts)
Source: BDX 2012 and 2013 Homebuyer Insights Study, Hanley Wood, Chadwick Martin Bailey
New is Far Better (4pts)
Buyers Use Essentially the Same Factors to Determine Quality of New and Existing Homes How do we combat this? Importance of Criteria for Determining Quality (among shoppers who will or did consider each type of home) Existing Quality New Quality 14
Durability 11 12 12 12 11 11
Workmanship/Craftsmanship Structural Materials Fit and finish
11 11 11 11 10 10
9 8
Warranty
9
10 10 9 9 9
11 10
Architectural Design
9 9
Performance specifications
7
7
8 8
6 5 5 5 5 4
Energy ratings Built to specifications Newest technology
Recent Buyers
0
5
5
Prospects
0 0
Good for the environment/green Other
13 13
16
10
15
20
7 7 6 6 6
0 0 0
5
Source: BDX 2012 and 2013 Homebuyer Insights Study, Hanley Wood, Chadwick Martin Bailey
10
15
20
Builder Toolkit
Builder Toolkit
Available on‌.
Nashville
Nashville
Nashville
Nashville
Insights & Implications
The process is lengthy & emotional… the joy gap is real Life in a NEW home
Excitement “I’m ready for a new adventure!”
Exhilaration “I found the house!”
Tentative Excitement “We did it, but now what?”
Joy
- Joy! - Relax – focus on your “wantto-do” list
JOY Gap
Life in an EXISTING hom - Joy (guarded) - Stressed – list of “to-do’s” is long Worried “I hope I make the right choice.” “Who can I trust?”
BEGIN JOURNEY
Nervous “Can I afford it?” “Did I buy a lemon?”
Cautious “Will the build process go okay?” (new) “What will the inspectors find?” (existing)
OFFER ACCEPTED
MOVE-IN DATE
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
Energy Efficiency
Quality Construction
*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 Construction Neighborhood Safety Better Floor Plans Lower cost per square foot Architecture/ overall design Lower 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.
Br and Awar eness, Per cept ion & Opinion
What is your local brand awareness, aided & unaided?
How do you stack up with regards to value?
How likely would a shopper refer you to a friend?
What can I do to improve my image?
How would you rate each of these builders as far as construction quality is concerned?
# 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 Phot o = 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
+15% Average
-15%
Set Your self Apar t ????
Start with quality content
VS
MLS – Best Practice FLOOR PLANS
Images by BDX -media
Livability At A Glance!
Floor Plans Without The “Clutter�
De-Stressing
Entertaining
Flex Space 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.
Storage
I nteractive—take it up a notch! Interactive Floor Plans—let her play (and share)!
Social Media Integration
Hot Spots
Drag & Drop Furniture Customizable Plans
Give them the tools they need - Video:
ampl e? x h c i h W
Compete Research results show 86% of new construction intenders identified community & home videos as a primary resource during their shopping process.
GREAT Video Ideas… • Model Home Tour • Community Tour • Outside The 100 Acres
• • • •
Warranty Customer Service ! Educational (Viral) s e l p Financing x am
e
e Company History m o s t • New Initiatives Company Philosophyk a o o l • Our Process Message from the CEO a e k a t Meet the Team s ’ t Le • Design Tips • Move-in Welcome • Buyer Testimonials • • • •
•
New vs Used
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
Consumers engage across multiple devices!
Affordable for all: Responsive design (one site!) SAS (s/w as a service) Self managed thru content mgmt tools
Use technology to help her visualize, play, and connect… •
Online design tools (pre sales, design process, home ownership)
•
Sales tools for field use…
BHI Co n fid e n t ia l
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 Year Past NAHB NSMC Chair Past NAHB Professional Women in Building Chair The Carolinas 704-507-4411 Tsmoot@theBDX.com
Builders Digital Experience