fundamentals in your processes. The more that technology advances in the industry, the more essential these fundamentals will become:
- A buyer makes a decision based on emotion and backs it up with facts. No amount of automation can substitute for the human interaction that facilitates most major buying decisions. E-mail can’t communicate body language, emotional tone or eye contact. And it can’t facilitate a real-time discussion.
Prospects still want to feel as if they are special, so it’s important to treat them that way. Take their calls and meet with them in person, even if it’s inconvenient for you.
- Buyers want choices. Technology is probably most effective for this aspect of the sales process. A good Web site lets a builder explain the product and process in a way that makes prospects feel like they are already part of the team. The same Web site can display myriad product choices and let buyers indicate their preferences online. Before you put that information online, make sure you have good systems in place to coordinate selections, options and upgrades.
When it comes to managing prospects and buyers, the more integration between the processes mentioned above and your customer database the better. Most sales office software products have features that handle the “contract to closing” process, but they don’t connect with construction scheduling or cost analysis functions.
Whether you’re evaluating integrated software systems or you want to fine-tune the way you currently manage prospects and buyers, follow the steps below to make your front- and back-office operations work more efficiently.
- Plot your CRM path. Lay out the critical path of customer communications, decisions, actions, etc., as carefully as you plot your construction schedules. Identify the different customer processes for homes built to customers’ orders on bare lots and the processes for spec or inventory homes. After you’ve documented your CRM paths, see what you can do to improve them.
- Stay in contact. Is the sales agent responsible for ushering the customers and their jobs through the various production phases? Or do you turn customers over to your contract administration, selections or customer service department? In a smaller organization, the job may be handed over to the project manager after it’s sold.
Make sure you explain your process to your customers beforehand, and that you maintain communication with them throughout production. Many builders give customers private portals on their company Web sites so they can monitor their jobs online. It’s one way to manage expectations and keep the project going smoothly.
- Cut cycle time. Coordinating your production processes with your CRM path (for example, determine the latest date customers can pick out lighting without compromising the production schedule) helps decrease cycle time between prospect visits, lot selection, loan approval, final selections and other buyer-related processes.
- Find out why you didn’t make the cut. Solicit feedback from prospects that didn’t buy from you. Find out what they are looking for and why they didn’t choose your company. You’re Web site is a good tool for that.
Web sites provide a good opportunity for people to provide information anonymously. Former prospects may not feel comfortable telling you in person or over the phone that your entries lack punch or that your salespeople are too “hard sell.”
Once you’ve gathered the information, use it to fine-tune your product development, communication systems and other functions.
Earlier Articles in This Series
- To read, “Know Your Technology Needs Before You Invest,” Part 1 of this series, published April 14, click here.
- To read, “Strategic Planning Software Can Help Focus Your Business Model,” Part 2 of this series, published April 21, click here.
- To read, “Does Your Planning Software Match Your Project's Sophistication?,” Part 3 of this series, published May 5, click here.
- To read, “Don't Put the CAD Before Your Product ,” Part 4 of this series, published May 26, click here.
Next: Selections and change order management
Note: Various software products are mentioned throughout the tech talk series. The intent is not to recommend these products as being right for you, but to identify some fairly well-known players and to note a few new ones. My apologies to vendors who are not mentioned — the omission was not intentional.
Bill Allen is president of W.A. Allen Consulting and a member of NAHB’s Business Management & Information Technology Committee. His company, headquartered in Redmond, WA, provides information technology consulting services and process management assistance to the home building industry. Allen can be reached at 425-885-4489 or via e-mail. Or visit the W.A. Allen Consulting Web site.
Want more information about using technology in your business? Check out the online resources available from NAHB’s Business Management Department: “Tools for Running Your Business.” There are also articles about human resources, financial management, sales, production, customer service and other business-related topics. In addition, visit the NAHB Software Users Network Discussion Forum (SUN) to ask technology consultants and other builders what they think of various software packages and applications.
BuilderBooks.com also offers a variety of publications about computer technology. To view or purchase these publications online, click here.
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