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Week of February 14, 2005

Front Page

* Demand for Rental Housing Poised for Improvements in 2005
* Help Tsunami Victims Rebuild Their Homes
* Senate Passes Class Action Bill, House Approval Expected This Week
* Housing Snapshot

President's Message

* NAHB Is Your Business Partner

Housing Politics

* President Proposes Spartan Spending on Some Housing Programs
* Builders Support OSHA Reform Package
* Builders Support Congressional Efforts to Improve Endangered Species Act
* NAHB Ad Campaign Targets Congress for Support

Housing and Economics

* Eye on the Economy

Business Management

* Survey Finds Contractors Often Underestimate Expenses
* Don’t Be a Mind Reader: Ask Home Owners for Feedback

20 Clubs

* Builder 20 Clubs Help Maximize Benefits of NAHB Membership

Multifamily

* NAHB Statistical Model Helps Identify Apartment Features That Bring Higher Rents
* Apartment Builder Andrew Chaban Honored for Affordable Housing Advocacy

Small Builders and Remodelers

* A Cool Kitchen Checklist to Wow Your Clients
* Kitchens, ‘Hiving’ and Financing to Drive Remodeling Trends in 2005
* Will You Be the Next Remodelor™ of the Month?

Building Systems

* Covenants Prohibiting ‘Prefabricated’ Housing Can Unintentionally Exclude Systems-Built Homes

Seniors Housing

* Marketing, Customer Satisfaction, Design to Be Featured at Senior Housing Symposium

Education

* Take Advantage of National Designation Month — Before It Ends

Research

* Report Calls Smart Kitchens a ‘Technology to Watch’

State and Local

* Florida Builders Determined to Continue Fight Against ‘Outrageously High’ School Impact Fee
* New Hampshire Takes Up Regulation and Licensing to Curb Contractor Abuse

Workforce Housing

* Accommodative Zoning Helps Developer Build Affordable Homes in Newport News

Labor

* Proposed Budget Would Cut Job Corps Funding, Move Youthbuild to Labor Department
* Freddie Mac and NAHB Student Chapter Job Site Events Focus on Housing for Working Families

Building Products

* 30-Year Warranty Offered on EIFS Residential Systems

Builder's Engineer

* Dip in the Road

Building News Coast To Coast

Association News & Events

* HomeAid and ‘Extreme Makeover’ Build Transitional Shelter for Two Denver Families
* Get GM Discount Pricing on More Than 80 GM Vehicles
* Subscribe Your Employees to NBN Online and a Digital Camera Could Be Yours
* Calendar of Events

NBN Back Issues

 

Don’t Be a Mind Reader: Ask Home Owners for Feedback

As an ambitious Nebraska teenager with initiative, I fell for a multi-level marketing “opportunity of a lifetime.”

According to the family friend who recruited me, wannabe customers would be literally waiting for me to knock on their door and sell them — cans of instant shoeshine and earthy-scent aftershave.

Brimming with optimism, I ordered a case each of the shoeshine and aftershave. Why wait for customer orders? I already knew in advance what customers wanted. Figuring on re-ordering after my first day, I boldly went door-to-door...

Many years later, after paying movers to transport full cases of instant shoeshine and earthy-scent aftershave lotion from house to house, I finally trashed the stuff.

How could I have been so wrong? No one wanted what I had already decided they needed — a shine on their shoes and the smell of the forest on their skin. I didn’t fall prey to a zealous marketer as much as I fell victim to my own miscalculation of thinking I knew the customers better than they knew themselves.


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Only Customers Can Tell You What They Think About Their Satisfaction

Companies sometimes make that mistake, too. Remember the XFL (Extreme Football League)? Or Gerber’s Baby Food for Adults? Or the ill-fated New Coke? These are all cases of companies thinking they knew what the customer wanted when in real life it just wasn’t so.

Builders aren’t exempt when it comes to thinking they know their customers without actually asking them. Our company recently conducted a builder survey. We asked 2,600 builders nationwide that have annual volumes ranging from fewer than 50 to thousands of homes how they use home owner feedback to improve their businesses.

Why Builders Don’t Survey

The vast majority (75%) of builders we surveyed don’t survey their buyers. We asked them why, and these were their top five reasons:

  1. We’re already customer focused.
  2. Surveys are too complicated (either for us or our home owners).
  3. We don’t get meaningful reports that help us manage the business better.
  4. Only dissatisfied home owners respond.
  5. We don’t receive information that we didn’t already know.

Wow! And I thought I was arrogant in believing people wanted cheap shoeshines and aftershave.

Say I’m old-fashioned, but give me a builder who realizes customer satisfaction surveys are as much a part of the home building process as the quality of basic construction and I’ll show you a builder whose business will endure any hiccups in the economy.

Most Home Owners Want to Answer Survey Questions

In defense of builders, nothing is perfect. Houses are handmade. However, recognizing that houses are imperfect is not enough to get you off the hook if you don’t survey your home owners. For the most part, your home owners will value the opportunity to respond to a survey.

Three Tips About How to Conduct Surveys

Whether you currently survey or need to begin surveying your home owners, what can you do to get useful feedback from your customers? Here are three tips:

  • Don’t do it yourself — Retain an independent company, ideally one that specializes in surveys.

You’re probably a conscientious builder who truly values customer feedback, but chances are you don’t know about “language bias,” response formats or good question design. A survey from an independent source will have a lot more credibility with your buyers than one sent out by your company.

  • Figure out your objectives — What do you want to know from the survey? Your objectives will shape your survey questions.

Certainly you want to learn what your company can do to better improve the home buying and building experience. Knowing what your customers want and using that knowledge to improve and develop new products is just as important as good customer service.

  • Don’t get carried away — Avoid the temptation to tackle all the issues with a single survey, or your customer will be overwhelmed.

Limiting the survey to 30 questions makes it more focused and concise and yields better measurements and feedback. Customers won’t answer a long survey.

Only the customer can tell you what they think about their satisfaction. They have entered into a business partnership with you and want to talk about their building experience. It costs money to survey and the responses can be painful, but it’s not nearly as costly or painful as ignoring your home owner’s need to provide feedback.

Paul Clem is president of How America Thinks, the Overland, Kan.-based company that developed RateMyBuilderOnline, a Web-based tool for measuring consumers’ satisfaction with home builders For more information, e-mail Clem or call him at 913-469-0070 x14.


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NAHB Has More Than 170 Resources to Help You Run Your Business More Profitably

Go to NAHB's Business Management Tools Web pages for instant access to more than 170 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. 


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