Have you noticed that your incentive packages are no longer working? Are you frustrated that your closing costs credits aren’t compelling? Your design center credits don’t delight? Does it seem like the only solution is bigger concessions, only to find that even those don’t work?
As builders, it’s easy for us to fall into kind of rut. After all, we know that buyers typically negotiate the same things: price, closing costs, dues, and options and upgrades. So it only makes sense to build campaigns around what buyers tell us they want, right?
The problem is that after awhile all builders start to sound alike. And the bigger issue is that even though these are the concessions that may convince a buyer at the closing table, they often aren’t enough to entice a buyer from their computer to our sales offices.
Basically, your incentives just aren’t sexy. And if you want to compete over the noise of the thousands of marketing messages your buyers are bombarded with daily, you have to sex it up.
Sexing up your promotions and campaigns doesn’t mean giving away more concessions (in other words, don’t worry, this won’t hurt a bit). It simply means repositioning them to appeal to buyers on something other than logic.
Let’s look at an example of how you can sex up your marketing to get more potential buyers to your sales office:
Anatomy of a Campaign
Let’s say that you as a builder agree to a $5,000 concession. Buyers can use this for closing costs, design center options and upgrades, or two years of neighborhood dues. This makes sense, because you know that the majority of your buyers negotiate these three items at time of contract.
Unfortunately, to many buyers your campaign message comes across like Charlie Brown’s teacher (“Wah wah wah, wah wah”). Even if you know that 90% of your buyers will end up using the concession for financing, it may not be sexy enough of a message to get someone to opt-in or visit your sales office. It may be something that gets them across the line and into contract as a closing tool, but without a compelling marketing message you may never get them to the table.
To create more excitement and emotion for potential buyers, focus on how that concession can be used in your design center. Create a campaign such as “Create Your Own Designer Kitchen” with credits for upgrade appliances and designer backsplashes.
Another alternative is to promote a seasonal campaign in which buyers can use the credit to install a high tech home theater system and be in their new home in time for Superbowl (think of the referrals!).
By appealing to the “sex” factor first and the logic factor through follow up and on-site sale presentations, you increase the number of potential buyers who enter the top of your sales funnel as well as conversion of existing prospects. But there’s another benefit as well.
Kiss and Tell
Between a message of closing costs or a high tech theater system, which of these marketing campaigns are more likely to:
- Be more compelling and shareworthy on your home builder Facebook page?
- Be most retweetable from your home builder Twitter page?
- Be most likely to get picked up by media through an online press release?
- Get buyers calling, logging on, and visiting?
- Get the biggest home builder email open rate?
- Get the most home builder blog views, likes, comments, and conversions?
Sexy campaigns create a greater awareness of your brand, more memorability of your product, and a wider reach of your message.
Lust & Logic
I can hear some of you protesting – “But Dawn, my buyers really need the concession for move-in costs.” Here’s the thing:
If you sell a buyer on the sexy idea of how they can create a kitchen to be the next Food Network Star or be the envy of all their friends on Superbowl Sunday, then they’ll move mountains to find a way to finance their own closing costs. Even if the majority of buyers do choose closing costs credits, the buzz factor of a sexy incentive gets people talking – to friends, to family, to co-workers. Online and offline. You can’t buy that kind of advertising.
The important thing is to get buyers in the door where a skilled, consultative salesperson can help them identify the best way to use their incentives for their specific situation.
The Morning After
The risk of sexy incentives is that they are more likely to lead to buyer’s remorse, so it’s imperative that the on-site sales team does not use these incentives as a crutch, but as a prospecting tool to bring in new buyers and move existing prospects off of the fence.
Sexy incentives are no replacement for the basics: quality craftsmanship, a skilled and professional sales team that builds trust and properly qualifies, an engaged and responsive support team (construction, escrow, mortgage), a realistic and affordable mortgage that suits the buyer’s needs, a commitment to high homebuyer satisfaction ratings, and open feedback channels.
Use Protection
Of course, in all of this marketing it will need to be clearly defined that the use of concessions in this way is optional and can also be used for closing costs, other design upgrades, or neighborhood dues. Due diligence with your lender, your compliance department, your broker (where applicable), or other regulatory entities is always recommended.
(Need a Sexy Campaign?)
Let us help you find the sizzle to boost sales for your new home community. Contact us today to find out more about our marketing and consulting services.
2 Comments on "How to be a Sexy Home Builder: An Unconventional Marketing Guide"
Hi Dawn,
This is a very interesting post, I work for a home theater installation company and recently we’ve been in contact with home builders and architects because some of the more up-scale purchasers expect something to blow their mind before they make a purchase. Funny how that works, but in an economy like this you gotta do whatever it takes to sweeten the deal.
Hi Chris – Nice to meet you; thanks for stopping by the blog. I agree that it’s important to always add a bit of style to (a whole lot of) substance. This is particularly true when builders need to move inventory during the holidays, or sell more challenging floor plans or home site locations. Sounds like you’re the guy for builders to be talking to!
- Dawn