Issue link: https://read.dmtmag.com/i/251530
FEBRUARY 2014 22 THE JOURNAL Technology 2014 – Big Benefits for Small Builders BY SCOTT STROUD MARKETING CONSULTANT Technology. To many, that term means all the latest and greatest gadgets; "things" to spend money on, then figure out what to do with them later. I was once one of those had-to-have-the- latest-coolest-stuff guys. Not anymore. My current car (okay, a pickup) I've had for over 10 years. I don't own a Blu-ray player, and have no immediate plans to purchase one. And the primary use of my cell phone is for talking to people. In other words, I'm not a gadget addict. I've got enough 'things'. But show me how I can re- alize a true, tangible benefit from something – save time and energy; make life less confusing or frustrating; help me keep track of my appoint- ments and to-dos; allow me to follow up with my peers and/or clients better; make me better at what I do – and you've got my attention, even if it's by means of some new technology. Yet, homebuilding is still considered a 'tradi- tional' trade, and those of us in the industry tend to be reticent to change, satisfied to keep things the way we like them. So, we may sometimes be a bit too wary of 'technology' even when it can deliver big benefits. So, let's not talk about technology. Instead, let's talk about tools that solve big problems that cost us time, energy and money every day. After all, we love tools; we don't hesitate to buy a new compound miter saw or a pneumatic nail gun when we see it can shave 20 minutes off a job. Listed below are some big problems we all face, and some tools that can help you solve them: Problem: We're wasting too much money on marketing and not attracting enough qualified leads or consistently converting enough sales. As I've stated in this column before, on av- erage 97% of your potential buyers – those that visit your website or read your ad – never take action to contact you, even when they want what you've got! Why? Because they need to know more about you so they can develop enough trust to invest their time with you. Solution – Offer prospects something educa- tional and valuable to them – a white paper showing how your homes are stronger, more en- ergy efficient and a better value than site-built homes; a PDF of your current inventory or your manufacturer's catalog; a free report on "5 Things You Should Know Before Purchasing Your Next New Home." Use these as 'lead magnets' – enticements to compel prospects to give you something in return for this information: their name and email ad- dress. Now you can continue to deliver relevant information to them, building their interest in your product and helping them get to know and trust you. And this entire process should be completely automated so that it doesn't cost one minute of time from you or your sales staff… until the buyer indicates that they are ready to talk to someone. Results of an automated nurture program: In- crease your leads and conversions by 300% or more… without spending a penny more on ad- vertising or making your sale team spend time making cold calls to unqualified prospects. Problem: It's like pulling teeth to get good marketing and sales reports, the information I need to make realistic projections and plan for spending or growth. Veteran business owners know that you sim- ply can't manage a business from QuickBooks alone – your accounting will tell you what hap- pened, not what's coming down your pipeline. But generating the reports your need takes time and energy away from the more urgent day-to- day activities of running a business. Solution – Use a Business/Accounting Man- agement system that brings all your marketing, leads, sales, job cost and fixed cost data onto one screen, with at-a-glance, real-time report- ing that allows a business owner to know how the business is performing and where any trouble spots might exist that need attention – before they become problems. Results: Better deci- sions that lead to more stable cash flow. Problem: After a sale is made, there are so many details that have to be handled, it's hard to keep everyone on one page so that we don't waste time due to lack of communication inter- nally or with vendors, suppliers, etc. This is a 'biggie'. When sales activities aren't managed by consistent processes and practices, communication and scheduling can become a nightmare. On the other hand, putting in place and conforming to streamlined processes can save time (sometimes days), cut down on missed deadlines, and keep communication fluid – and jobs finished on or before schedule. And, lest we forget – time is money! Solution: Sales Process Automation systems allow one to codify the sales process into finite stages, and then put in place checklists for each stage along with automated notifications to staff or vendors involved. Those responsible for each task can check off the task when it is accom- plished, allowing management to identify what has been done and where hold-ups exist so that these can be quickly dealt with. Problem: We sell and deliver the home and then lose touch with the buyer, so we aren't get- ting the referral sales we should. Face it; you're probably affected by this one. And there's really no excuse for it. Solution: Institute a Loyalty Program that stays in touch with past customers, keeps them informed of what's new with your company, community or product line; recognizes and sends them communications on key events (holidays, birthdays, move-in anniversaries,) and gives them a chance to participate in company events, such as open houses, new product debuts, home shows, etc. And, once again, these can be automated so that no one every misses a com- \ 27