Here are some 'top-line' facts -
- 43 developer brands were spontaneously mentioned - and this was only in the central belt of Scotland! What an enormous range of brands for potential homebuyers to choose from, and more importantly to have some knowledge and opinion of before visiting or considering buying from
- when we delved below the level of awareness into familiarity and brand positioning, we found that potential homebuyers had little or no depth of understanding or ability to differentiate between the various brands
- ....and then consider that buying a home is (for most people) the biggest single purchase they will ever make - how do they reach a decision?
Answer - good old 'word-of-mouth'.
Yes, when we asked how they differentiated between the brands and how they formed opinions of them, the resounding responses were - "their reputation" and "whether they were recommended by friends and colleagues". Interstingly, not by the style of homes they build!
So, forget multi-media advertising campaigns and glossy brochures, forget posters, signs and even state-of-the-art websites, what they heard over a pint or whilst sharing a pizza with their friends determined how good or bad a developer was and whose homes were better than the rest.
So, whats the message? - Ignore 'word-of-mouth' and social media at your peril.
And a tip for developers - there is a 'win-win' here - give your existing customers a great home-buying experience and positive reasons to talk about you and they will spread great news on your behalf.
The full report is available from pHc - www.phconsulting.org.uk
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Hi Philip,
ReplyDeleteI enjoyed reading your article, but I can't help thinking that the answer to your question is - whichever builder has built the property you like in the right location. Whilst some builders have had a poor 'build quality' reputation at times I still think the largest impact is the type of property and it's location. What are your thoughts?
I think this is a really interesting set of findings and although location, location, location is crucial, when it comes to some locations, like Leith in Edinburgh, there's a lot of developments competing for attention. In those instances, reputation is a powerful factor, especially if it is turning people off looking at a property or showhouse?
ReplyDeleteHi Philip,
ReplyDeleteVery interesting - and a sharp contrast with the national research we carried out for the HBF in the early noughties when, in spontaneous recall tests, consumers were struggling to mention more than a handful of housebuilder brands. Something must be happening to raise awareness so dramatically - vastly improved marketing by most housebuilders, I would venture to suggest.