The 101: Building Great CX for Home Builders
- Gary Stein
What is Customer Experience?
We’re not fans of corporate speak. You know what we mean. Sometimes you read about a new technology that promises hyper-parallel alignment spatial processing or a business practice that is absolutely guaranteed to realign distributed organizational centres toward centres of excellent organizational distribution.
What we are fans of is how customer experience can improve home service businesses. So, we want to always make sure that customer experience—or CX—is always crystal clear and kept simple. That’s why we especially like this article from McKinsey, titled (ever so simply) What is CX?
There are two things we like here. The first is the clear explanation of what this business practice really is: CX, or customer experience, encapsulates everything a business or an organization does to put customers first, managing their journeys and serving their needs.
We added that underline for the word “everything”. Because customers don’t parse out their experience, thinking about the sales process or the closing process distinctly. They are going to think about the entire experience as one big thing. And that one-big-thing is what gets communicated when one of their friends asked them “how was your experience with that builder? Would you work with them again?”.
The other thing we like about this definition is how actionable it feels. Where a lot of people have said that CX is everything you do, this one is subtly, but importantly, different. This definition is everything they do to put customers first. It acknowledges the specific efforts you make to prioritize your customers. This is good because it really homes in on those CX improvement efforts.
The other thing this clear definition does is set up the article to discuss what they see (and we agree with) are the four components of CX. The places where you would put customers first: brand, product, price and service. The article is well worth the read. But here’s a few thoughts from us on how home services companies can improve CX across those four areas:
“CX, or customer experience, encapsulates everything a business or an organization does to put customers first”
Brand
We might have put this last, since the brand is the sum of everything the customer believes about you. Customers, however, put it first, so we will as well. Your brand encapsulates not just products or services but also the commitment you extend to your customers. It is imperative that a fundamental aspect of your brand lies in the commitment to deliver an exceptional customer experience. But remember, you need more than just words. To substantiate that promise, you require a compelling Reason to Believe (RTB). Ensure your communication highlights specific actions or qualities that unequivocally demonstrate your brand’s commitment to delivering a top-notch experience.
Product
This is where modern business gets interesting. People—especially Millennials–consistently report they are tuned to buying experiences, not just products. They want to know what it will be like to work with you and be confident that the experience will be positive. Product has become inextricably intertwined with service. For many home services companies, this holds significant importance, as engagements and sales cycles often span extended periods involving numerous interactions. How you service people is your product.
Price
Considering the intersection of price and customer experience (CX) involves two key perspectives. Firstly, it’s essential to establish relevant price points for each customer segment. This is particularly evident in industries like home building, where communities encompass a range of housing options. While maintaining consistency in brand, quality, and service, the customer experience should be inclusive, catering to every potential community member. The second perspective emphasizes the psychological aspect of pricing – people inherently desire to feel they’ve received more value than what they paid for. Ensuring a little extra, provided at no additional cost, reinforces the idea that customers are valued and special.
Service
Shoot. We just said that product and service are the same and now we have to write something different about service. Umm… how about this: service needs to be easy, responsive and on the customer’s terms. If they want to text, text. If they want to talk, talk. Open as many channels as you possibly can for communication. Modern communications platforms allow for this level of flexibility, and it may even make your team more efficient.
The operational dynamics of businesses involve many interconnecting parts. In the realm of home services, the complexity is heightened, given the multitude of tasks involved in facilitating home ownership, moving, and settling into a new home. Adopting a simple framework such as this can effectively guide teams, keeping them aligned and organized in their pursuit of delivering the best experience possible.
Virtuo works with home builders, realtors, financial institutions, and insurance providers to deliver exceptional experiences for their customers. Learn more.
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