Issue link: https://read.dmtmag.com/i/106888
MARKETING CONSULTANT 12 Strategies for Thriving in the Returning Market BY SCOTT STROUD At both the International Builders Show in Las Vegas and the Louisville Manufactured Housing Show last month, the themes had to do with the growing demand and returning market for new homes. All indications are that it's time to get it back in gear; to begin thinking about growth strategies and investments – hiring instead of laying off and improving outdated properties and processes. With that in mind, here are 12 strategies – principles for success – to consider implementing in your business: 1. Differentiate. Differentiate your products, community or services to stand out from your competitors and attract more buyers. Answer these questions: • What is your 'Unique Selling Proposition' (USP) – the single overriding benefit that sets you apart? • How do your customers or residents see you as superior to their alternatives? • Why would a customer buy a home from your company rather than your competitor? These questions are too easy to answer in a shallow way without much thought. However, the more time you take to clearly identify what makes your different – in terms of benefits that your customers can see and relate to – the more you'll be able to integrate your USP into your marketing, your sales approach, even your service and community messaging. 2. Streamline operations. Look for ways to reduce overhead, cut costs, control inventory, and minimize waste. Outsource support tasks and services, such as bookkeeping – and even some marketing tasks, unless or until you can justify onboarding new employees. FEBRUARY 2013 24 THE JOURNAL However, understand that cutting costs is a small measure compared to increasing revenue, so balance being frugal with smart spending in income-producing areas, such as targeted marketing and sales training. 3. Think in terms of cash flow. Most business owners describe growth initiatives in terms of profits, but generating and protecting cash flow is a better short-term strategy. If you make decisions based cash flow, then you'll be better able to develop long-term profit strategies. 4. Make homes easier to sell and build. Value is the key objective of today's homebuyer, and it's measured in terms of quality, comfort, location and cost. Focus on affordability, livability, sustainability, and design. Once again, streamline your product offering by eliminating models or options that aren't in high demand or don't return strong profits by redefining Standard, Standard Upgrade, and Custom. 5. Reduce exposure to risk. How? Start by maintaining a high standard of quality in materials and workmanship. When a company focuses on quality the first time, there is less need to have to go back to fix items later on. Remember, a great product produces great customers and great customers create a profit. Communities reduce exposure through preventive maintenance and replacing outdated product. This too increases value and customer satisfaction, justifies price increases and attracts a better clientele. 6. Create a superior customer experience. Today's buyer demands attention, respect, and follow through, and they reward that with their trust and business. But that trust can be fickle; drop the ball anywhere along the way and you're back to square one. Start at the beginning by polishing your sales presentation and making it all about the customer's needs, not about your product. Speak to the 'why' that is putting them on the market in the first place. Then, be completely open, honest and responsive to their needs, wants and objections. Customer service and customer relations pay off big time with referrals. Allocating a portion of your advertising and marketing budget is one of the best places to spend your dollars, since referrals are the best lead source in the industry. 7. Network. Utilize the combined marketing power of vendors, suppliers and complementary products and services. Expand your sales force by forging strong relationships between retailers and communities, and with Realtors and builders. Partnering can be a "win-win" for everyone. Remember, they are also looking for ways to build their business. 8. Reconnect with past customers for referrals and add-on sales. Create a loyalty program and make that a line item in your marketing budget. Develop a program that will let you stay in touch with past customers, four times the first year, three times the second year, two times the third year and one time each year, thereafter. Invite past customers to your marketing events and let them mingle with prospects. That loyalty shows new buyers your long-term commitment to them and goes a long way to establishing trust. 9. Reduce customer acquisition costs.