Whether or not we
like it, buyers’ expectations are increasing. Ever demanding expectations are
transferring from consumer goods and automobiles to home building. Twenty years ago car
buyers expected warranty problems, but not today. The same holds true for homes. Customers
expect to be treated well, and have trouble-free homes delivered on time. We should expect
no less from ourselves and the homes we build.
"One of the
flaws our industry has is that we always blame the consumer for not being educated,"
comments Tom Gillespie of Kennedy Community Development. "There’s a fundamental
principle called `listen to your customer.’ I would propose that the customer
satisfaction drivers are changing."
Educating homebuyers
on the "realities of construction" helps manage expectations, but it is not the
long-term answer. This so-called "education" only serves to prepare the
homeowner for disappointment and to lower expectations, i.e., expect to close with a list
of callback items. While "production defect standards" are useful for limiting
unreasonable demands, they do not have a positive effect on customer satisfaction. Meeting
lowered expectations does not produce high satisfaction levels.
"The consumer
is not the one that’s ignorant, it’s the builder. It’s more about how we
adapt our businesses around meeting their needs." reports Pat Hamill, Oakwood Homes.
"It’s really about how we create adaptive companies to meet consumer needs.
It’s not about education. They don’t want to learn."
Leading builders
listen to what customers really expect, then develop the capabilities to exceed those
expectations, i.e., complete homes with zero defects. This assures customer satisfaction,
and presents the opportunity to amaze homebuyers who understand the accomplishment.
"There are
three kinds of companies," report Hamel and Prahalad in their book Competing for
the Future: "Companies that try to lead customers where they don’t want to
go; companies that listen to customers and then respond to their articulated needs (needs
that are probably already being satisfied by more foresightful competitors); and companies
that lead customers where they want to go, but don’t know it yet. Companies that
create the future do more than satisfy customers; they constantly amaze them.
How you respond to
demanding customers defines which kind of company you are. The future of your company
depends on listening to customers from a new perspective. Use the experience to gain
insights into changing market expectations, then set goals for meeting them. Next time a
customer complains – smile, they just gave you a gift!