A NEWSLETTER FOCUSING ON BEST PRACTICES IN HOMEBUILDING™
Winter 2005
 

Why Do Customers Leave?

By the National Association of Home Builders, www.NAHB.org

When it comes to the question of why businesses lose customers, the perception that sales staff don’t care ranks as the leading factor, according to a new study by the Small Business Administration (SBA).

Nearly 70% of those polled in the SBA study responded that the perception of a non-caring staff led them to leave and buy from other businesses—by far the strongest response of six factors. Product dissatisfaction ranked second, with 14% of those polled. Price ranked third, with 9% of customers citing that as the reason they changed businesses. Recommendations of friends ranked fourth, ahead of moving away, and death.

SBA’s study reinforces that paying attention to your customers is more than courtesy and common sense. It also contributes to keeping customers from leaving and taking their business to your competitors.


Six Great Customer Service Examples

The National Association of Home Builders found these six creative ways that builders keep customers satisfied. For more business tips, visit www.NAHB.org.

1. A Michigan builder helps first-time buyers get their finances in order so they can buy one of his homes. He pays a portion of their closing costs or pays off their credit card debt up to $2,000 to get them to qualify for their loan.

2. A California builder holds a groundbreaking party for his new buyers to celebrate their new home. Naturally, he asks the new owners to bring all their friends and family.

3. After completing a home, deliver the keys to the homeowners along with a teddy bear that has your company’s name on it. When prospective customers with kids come to the office or go through a spec or model home, give them a teddy bear too!

4. An Illinois builder sends a follow-up letter within a week to each prospect who visits his models. The letter outlines his company’s pledge to their customers and underlines the caring attitude the company maintains, which separates them from the competition.

5. By maintaining a library of house plans, one builder helps his customers focus on floor plans, styles, and elevations when they are developing their own house plan. He also holds an open house, with the customer’s permission, at his new homes to promote his company to potential customers, friends, realtors, and others.

6. A builder encourages his customers to throw a ridge-raising party when the highest point of the house is reached. The customers appreciate the opportunity to celebrate their new home with friends as well as the trade contractors and employees who are making it possible.

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