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Virtual Marketing
Advances in Technology Are Changing the Way Homes Are Marketed
Over the past 20 years, developing technologies have changed the way we all live and work. The homebuilding industry, in all its phases, is no exception.

Itís no secret to builders that technology is a proven marketing tool for reaching out to potential buyers, serving their needs, and keeping track of them. Many builders are also finding that an integrated variety of high-tech tools can make it easier to make the sale and boost profits.

The Internet is one technological advance that simply canít be ignored. People turn to the Internet to find out about anything and everything ‚ including new communities and the companies that are developing them ‚ because itís quick and convenient. Well-constructed, easily navigable, and content-driven Web sites are more important than ever because they provide users the information they seek, while supporting a companyís brand and establishing credibility. Buildersí Web sites can explain to potential buyers who they are, what they do, and what their communities have to offer. Company Web sites also allow builders to communicate the personality of their communities and businesses and to demonstrate their uniqueness.

Compare, for instance, JohnLaingHomes.com and KBHome.com. John Laing Homesí Web site has an introduction featuring a cartoon dog and cat designed as a Flash animation; links on the homepage are labeled ìFinding Your Home,î ìBuying Your Home,î ìLoving Your Home,î and ìGet to Know Us.î KB Homeís Web site features a map highlighting the states in which the company builds and links labeled ìFind Your New Home,î ìFinance Your New Home,î and ìPersonalize Your New Home.î

Different online approaches appeal to different buyer personalities and play an important part in branding. Regardless of how Web sites are designed or what tools are provided, one thing is certain across the board: Web sites must be kept up-to-date with fresh information and provide value of interest to the target audience. Otherwise the site becomes nothing more than a stale virtual brochure.

In addition to providing a Web presence that satisfies the needs of the audience, promoting that Web site should get equal billing in your online marketing strategies. For example, SEO (search engine optimization is the process of increasing the amount of visitors to a Web site through search engine placement) is a relatively new technology and is an essential Web development component for directing more qualified traffic toward the site. In a very real sense, the Internet has leveled the playing field among builders. The relatively inexpensive construction of a Web site allows smaller builders to compete more effectively with larger companies, when they might have lagged behind while trying to compete with more expensive direct mail and advertising strategies. Potential buyers donít just stick to official company home pages, though. Many buyers start with sites such as realtor.com.

ìWhen people buy a home, one of the first questions they ask is, ëIs this a quality builder?í A lot of them go online to do research,î says John Burns, president of John Burns Real Estate Consulting, which does strategic planning and market research for builders. For example, Burns says many buyers check out the companyís J.D. Power and Associates scores.

ìIf the builders have a lot of litigation, (buyers) can learn about that online too,î adds Burns. ìThere are no secrets anymore.î

Resources taken to the next level

Web sites arenít just text and still photos either. With higher bandwidths and faster processors, surfers are enjoying multimedia experiences that allow builders to better showcase their products with interactive floor plans and video tours, complete with audio.

ìThe advent of interactive floor plans, inventory management programs, and the dramatic evolution of both virtual realty models and interactive CD-ROMs ‚ both on the Internet and in sales offices ‚ are enabling highly effective pre-sales programs and are increasing sales capture rates overall,î says Tom Weston, owner and creative director of the Weston Group. ìThese technologies donít necessarily translate to eliminating the need to merchandise product, but go a long way in improving the early buying experiences for many buyers and are especially effective in mid-rise and high-rise environments, where multiple product types make modeling all plans impractical and cumbersome.î

Electronic research ‚ though it provides vital background information buyers need ‚ cannot replace a visit to a model home, according to Mollie Carmichael, vice president of residential product planning for The Irvine Company. The full impact of a community and the buyerís emotional response to a house he may actually purchase can only be achieved by visiting the community itself.

That visit should, Carmichael notes, reflect information on the Web. Builders shouldnít advertise perks they canít deliver or buyers will arrive at the community anticipating something ‚ parks, for instance, or spectacular landscaping ‚ that doesnít exist. That disappointment can spoil a sale, as well as cause lasting damage to a brand. Builders also should consider how best to convey to buyers the value of the technology included in their homes. Pulte Homes met this challenge by opening a performance center to provide information to buyers and to demonstrate the quality of a Pulte home.

The performance center showcases tension cabling in the house foundations and energy-efficient glazing on the windows. Visitors can view an actual light box with two window panes, seeing how heat passes through two product types. The center also compares the homesí batting to standard insulation. Visitors can see firsthand that the lack of air pockets in the insulation both decreases noise and increases efficiency. Pulteís nine-step sales process and the quality product brands they incorporate are also featured. Pulteís ìDare to Compareî checklist allows homeowners to review a laundry list of Pulte features and compare those features with those offered by other builders. Once buyers are interested in a community, technology can help them pinpoint exactly what they want in their homes. Compact discs are often used to manage the auction and upgrade process, Burns notes. Buyers can take a CD home with them and, at their leisure, learn about the upgrade process before they even step into the design center. In the design center, clientsí patience is finite; most stay only a few hours. But those who come into the center after having reviewed the CD already have some general knowledge about upgrading. They may not spend any more time in the center, but they may well spend more money because, Burns says, they come in better educated about the process. All these advances have changed the role of the salesperson, notes Jennifer Fidelman, director of marketing for Playa Vista.

ìIt used to be that the salesperson was the first point of contact, and that the salesperson would be in charge of educating and selling,î she says, ìBut now, buyers arrive so much more informed. Theyíve seen the floor plans, reviewed their options, and have much more specific questions, which require a sales agent to be far more educated.î CRM: Customer Relationship Management. Once the sale is complete, e-mails and other tools are used by builders to stay in touch with buyers. By utilizing captured data through profiling and cookies, builders are able to provide customers with a more personalized online experience. However, companies must be sure to ask their clients how they would like to be contacted ‚ whether by e-mail or phone or some other method. If clients opt out of receiving e-mail from the company, their requests must be heeded.

There are other options that put the ball in the buyerís court. Beazer Homes, for example, offers a Web site especially for its buyers (MyBeazerHome.com). Access is automatically granted at the time of contract. The site contains information buyers need both before and after closing, such as construction and mortgage status and warranty information.

Technology is part of the product

Once theyíve used it to find and buy their homes, buyers expect advanced technology within their new homes. For builders, staying on the cutting edge of technology is a continuous task.

ìFor example, high-speed wiring is important, and plenty of outlets in all the rooms,î says Burns. ìWhatís kind of interesting on that is Category 5 wiring was the big trend until recently. Now with wireless networks, you donít necessarily need a wired home.î

What we consider necessities today ‚ reliable cable, plenty of outlets, energy efficiency ‚ are really just the basics. Technology can create not only a comfortable home, but a smart one ‚ a fact that builders and homeowners alike are starting to take advantage of, says Kevin Berg, western division sales manager for CompUSAís Digital Living.

Technology can, he says, provide pragmatic solutions to various issues. A homeowner can set up a system that allows him, with the touch of a single button, to open the garage door and simultaneously light up a path to the house so that he can safely walk from the garage into his home. Another homeowner might link the window treatments with an astronomical time clock. As the sun moves across the sky, window treatments close, both to protect the interior from sun damage and to manage the temperature.

Homeowners donít need a degree in engineering to manage these tasks, Berg says.

ìIf you can read and youíre not afraid of basic technology ‚ PDAs, cell phones, things like that, you can deal with this,î Berg says.

The upshot? Technology is a boon to builders as they develop communities, seek and qualify buyers, and offer what buyers are looking for. The key is to stay abreast of technological developments and stay in touch with existing and potential buyers by keeping your data current; in other words, keeping eyes and ears open. And you donít need any special technology to do that. Leveraging technology is the key.

Jo-Anne Redwood is the vice president and a creative director of Capstone Studios. Established in 1985, Capstone Studios is a full-service design agency that creates and implements integrated marketing solutions.