Convert Internet Leads Into Sales With Dedicated Follow-up
By Blair Kuhnen
A great Web site yields a steady harvest of leads. But without dedicated follow-up, those leads will likely die on the vine.

Internet leads are more plentiful than ever, but onsite traffic and time constraints prevent most sales associates from responding to them adequately. Some associates perceive Internet leads as “tire kickers” and, predictably, don’t devote the time or energy to convert many of these leads into buyers.

That’s opportunity wasted, because Internet shoppers tend to be strong prospects.

Builders find that more A-list prospects are requesting information online, and that most prospects are not using real estate agents. These potential buyers are more self-directed, and, with lower broker co-ops, can yield higher margins for builders. However, the strongest of these prospects (those who ask for more information) are often poorly served.

Typically, most builders put Internet leads through a routing process before anyone can respond to them. The first response is rarely more than an automatic “Hi, I’m Joe and I'm here to help. Call me if I can be of assistance.” Most builders stop there, and so do most prospects. Additional follow-up, if any, usually is limited to a few e-mails.

You could spend time convincing sales representatives that Internet leads aren’t just tire kickers, but this approach often robs time from other sales activities. You also could highlight and celebrate successful Internet lead conversions and, over time, you might turn your salespeople into believers.

Put Your Internet Leads Into the Hands of an Online Sales Counselor

A more pragmatic and effective approach is to hire a good online sales counselor (OSC). This person receives all Internet leads automatically and follows up on them the same day. Treating every Internet lead as a “hot lead” is almost guaranteed to make your Internet marketing strategy more effective.

Have the OSC also handle all incoming “off-line” sales leads (from toll-free phone numbers, direct mail, etc.), and work out of your divisional office. His or her goal is to develop rapport and drive physical traffic into your communities.

Think of the OSC as a concierge who helps prospects access your company's product offerings. The OSC is salesperson with a strong service orientation.

When hiring an OSC, look for a person who has these qualities and skills:

·      Self-directed. The OSC works independently and rarely receives the type of guidance or coaching that on-site sales representatives get. He or she has a can-do attitude.

·      Sales, communication, and service skills. The OSC starts dialogs with prospects via phone calls and e-mail. Trust develops as the OSC provides customer service, makes commitments, and delivers on those commitments.

·      Extensive product knowledge. The OSC must provide detailed product information to help build credibility and trust. He or she has binders of information and other resources on hand, but must understand the communities and homes for sale. Internet leads should perceive the OSC as a single information source.

·      Solid computer/Web skills. The OSC should be facile with all the tools of the trade (e.g., e-mail, simple databases, Web sites, etc.). You don’t necessarily need a technology expert, but the person you select should be very comfortable with electronic media and tools.

Internet Leads Are Pre-Sold Prospects

A well-handled Internet lead who visits a community in person has completed his or her research and is essentially pre-sold. That lets on-site salespeople do what they do best. “All they have to do is focus on the emotional part of the sale, not the facts and figures,” says Pete Balestreri, vice president of sales and marketing for Chicago-based William Ryan Homes.

A small company may not have the resources to hire a dedicated OSC or to contract with one who works off-site. Nevertheless, you’re losing sales if you let Internet leads slip through your fingers. Assign OSC duties to someone within your company who meets the above qualifications. Write the duties into the job description.

If a company’s sales rise incrementally, they’re taking them from another builder. If you’re not following up on all your leads, you’re likely the one they’re taking them from.

Study Says Business Smarts Win Customers’ Trust

When choosing a construction firm, customers say that trust and integrity are more influential than the bid price. That’s what Intuit Construction Business Solutions found when it commissioned a survey of more than 500 customers of commercial and residential construction firms.

Released in Las Vegas at the 2004 International Builders’ Show, the study revealed that residential customers are especially concerned about trust. Forty-three percent of respondents cited it as the number one reason they selected a particular construction firm.

Personality and professionalism also count. More than 80% of respondents said those characteristics were important factors in choosing a firm. Along with trade skills, personality and professionalism contribute to a contractor's reputation and can mean the difference between success and failure when dealing with customers.

“The message for contractors is clear: Company integrity is as critical to the success of a construction business as the cost of the job and the quality of the finished product,” says Carol Novello, president of Intuit Construction Business Solutions, which distributes Master Builder and other software products aimed at the construction industry. “The study shows that it is just as important to have the right business management skill set and processes as it is to have the ability to lay a foundation and finish a job.”

Good business systems demonstrate your integrity to customers early on. “Even at the front end when we do an estimate, they see we’re using state-of-the-art equipment and they know they aren’t getting flimflammed,” says Bill Murray. Co-owner of Savannah Homes in Florence, KY, Murray uses integrated software to keep track of everything.

Customer Satisfaction Ratings

The Intuit study found that contractors generally succeed at keeping their customers happy. Eighty-four percent of the home owners surveyed said they would recommend their contractor. And approximately 60% of the commercial and residential respondents trusted the firms they hired.

When builders slip up, they sometimes turn in shoddy work or leave customers wondering about a project’s status. A total of 56% of residential customers cited job quality as their primary reason for dissatisfaction. Other key factors included low productivity and efficiency. All respondents felt that construction firms need to do a better job of communicating with them.

Novello noted that maintaining a personal touch with customers can be difficult given the challenges faced by contractors of all sizes. “It's not easy to keep up with the demands of today's construction world,” she says. “Business challenges go beyond bad weather, thin margins, customer disputes, and scheduling problems.”

One way to keep communication flowing with your customers is to schedule regular meetings with them at the start of a project. That’s what Daimon Doyle, president of Doyle Custom Homes in Olympia, WA, does. “You need specific, standing appointments to get together to discuss the project’s status, the next steps, and to address the client’s questions and concerns and brainstorm together,” Doyle says. “Otherwise it doesn’t happen.”

The meetings benefit Doyle’s entire business as well as his customers and their projects. “They help me increase my efficiency, keep the project on track, and keep down costs,” he says. And, even better, customers realize they’re working with a builder who has good business systems, which helps build trust. As Doyle puts it, “We’re not reinventing the wheel each time.”

About Intuit Inc.

The GLI Crisis: Be Part of the Solution

Addressing the general liability insurance crisis continues to be a top priority for NAHB this year. During NAHB's Board of Directors meeting in Las Vegas, GLI Task Force Chairman Mike Sivage presented his group's final report and recommendations, including news of a promising new partnership with insurance services firm Marsh USA. Beginning with a survey of select NAHB members to gather essential information, Marsh will help us develop new insurance products for the exclusive use and benefit of our membership.

It is absolutely critical that those who have received the Marsh survey promptly and clearly complete the form and send it in as instructed.

The sooner we have this crucial information, the sooner we can develop a solution to the ongoing crisis. Contact Mary DiCrescenzo at 800-368-5242 x8250 or David Jaffe at 800-368-5242 x8317 for more details. [return to top]

Zero Downpayment Mortgage Announced
FHA Commissioner John Weicher chose the 2004 International Builders’ Show as the place to announce HUD's plans to begin offering a zero downpayment mortgage. NAHB has long advocated such an option as an essential tool for expanding homeownership. Essentially, the plan would eliminate the statutory requirement for a minimum 3% downpayment on FHA-insured single-family mortgages for first-time home buyers. Weicher called this his agency's "most significant move in more than a decade." For more information, see our press release. [return to top]

Model Green Building Guidelines

NAHB and the NAHB Research Center announced a plan to jointly develop a voluntary set of Model Green Home Building Guidelines. These guidelines will provide a nationally recognized baseline for determining minimum thresholds for resource-efficient, cost-effective and practical home building methods. Want more info? Contact John Ritterpusch at 800-368-5242 x8325 or Richard Price at 800-368-5242 x8495. [return to top]

Business Management Opportunities From NAHB’s Councils

New Concrete Home Building Council

NAHB's Building Systems Councils proudly unveiled a new member of the family at the IBS. Founded through a partnership with the Portland Cement Association, the Concrete Home Building Council (CHBC) is open to concrete and cement manufacturers nationwide. Builders specializing or interested in concrete home building are encouraged to join the Systems Builders Council. The latest edition of Systems Built Advantage has more information. You can also contact David Kaufman at 800-368-5242 x8357.

New 20 Club Addresses Growing 50+ Market

Do you build for-sale or rental communities that cater to boomers, empty nesters, pre-retirees, active adults, and seniors? Want some more business direction? If so, you’re encouraged to join NAHB’s 50+ Senior Builder 20 Club.

NAHB’s newest Builder 20 Club is open to CEOs, presidents, owners, principals, and partners in the building industry who are actively serving the 50+ seniors housing market, the fastest-growing segment of the building industry. Architects and industry professionals involved in assisted living are invited to join, too.

Members of the 50+ Senior Builder Club will be grouped with other industry leaders from non-competing markets whose companies have a similar size and operations. They will meet privately to exchange ideas and develop business, strategic, and marketing plans to better position their organizations for success.

For more information on the 50+ Senior Builder 20 Club, e-mail Kristin Peck or call her at 800-368-5242 x8105. Visit www.nahb.org/20clubs for more details.

Seniors Housing Symposium 2004: Sign up Now to Save

Make plans to attend Building for Boomers & Beyond: Seniors Housing Symposium 2004, an educational and networking conference for industry professionals who serve the 50+ housing market.

More than 500 builders, developers, architects, interior designers and merchandisers, land planners, sales and marketing professionals, and others are expected to attend the conference. It will take place April 14-16 at the Hyatt Regency Chicago in downtown Chicago.

Sponsored by the NAHB Seniors Housing Council, this year’s symposium focuses on the lifestyle component of 50+ seniors housing. Highlights include 19 education sessions with separate design, finance, marketing and sales, research and trends, and multifamily tracks; an active adult community bus tour; an exhibit area featuring products and other services targeted to the mature market; networking opportunities, and more.

Register online by February 27 to take advantage of the early bird discount. For more information, visit www.nahb.org/build4boomers or contact NAHB’s University of Housing at 800-368-5242 x8338 or registrar@nahb.com. [return to top]

Builder Bright Ideas

·      A Michigan builder helps first-time buyers get their finances in order so they can buy one of his homes. He pays a portion of their closing costs or pays off their credit card debt up to $2,000 to get them to qualify for their loan.

·      An Illinois builder sends a follow-up letter within a week to each prospect who visits his models. The letter outlines his company’s pledge to its customers and emphasizes the company’s caring attitude. This helps it stand head and shoulders above the competition.

·      A builder maintains a library of house plans to help his customers focus on floor plans, styles, and elevations when they’re developing their own house plans. He also holds an open house (with the customers’ permission) at his new homes to promote his company to potential customers, Realtors, and others.

You’ll find hundreds of terrific tips on accounting, personnel, customer service, sales and marketing, management, trades, production, and design in More! Management Ideas That Work from NAHB’s Business Management Department. The book costs $25 for NAHB members and $31.25 for non-members. Call 800-223-2665 to order from BuilderBooks, or click on More! Management Ideas That Work to order now. [return to top]

Member Advantage: Get 15% Savings at NEBS on First-Time Purchases and Future Orders

NEBS offers thousands of personalized products, including checks, forms, labels, and more to make it easier to do business. To receive your special discount, be sure to use MAILCODE 33390 online or call 1-800-225-6380 and mention MAILCODE 33390.

This offer excludes Merchant Card Services, Payroll Processing, Work Clothing, Promotional Products, and 401K Plans.

To order online and for details on more than a dozen other money-saving Member Advantage discount programs, click here or go to http://memberadvantage.nahb.org.