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What Do You Do With A Live One?

bankowned What Do You Do With A Live One?I have had my worst fears confirmed. There truly is a missing link in the evolution of new home sales. At least in the Seattle market. For my out of town readers, I’m checking up on you as you read this, so don’t get too smug…yet.

New homebuilders spend tens of thousands of dollars on websites, and even more on media ads and internet campaigns in search of those increasingly elusive buyers. One of my worst fears as a provider of marketing advice and services was the thought of how many buyers get lost through the cracks of a well planned marketing campaign? A few weeks ago, I realized I was in the market for new home. After 19 years on Bainbridge Island, it was time to make the move back to the city, perhaps downsize, find a cool neighborhood, explore the options of condo convenience or single-family privacy. Here was my chance to do some first hand research. I had everything a “live one” needed: motivation, a price range, a timeline and questions. Here we go, I thought. I’ll use this opportunity to see who is doing the most outstanding job of following up on leads.

To even the playing field, I established some rules. I would look in the Seattle Times New Homes Saturday two times. First on March 22, and then two weeks later on April 5. I chose the Times because it was the most expensive place a new homebuilder can go to generate live ones…leads that is. We’re talking about ads that cost from about $1,500 to well over $6,500 for single run. That’s how important new leads are. Second rule, I would only respond via the builder or building’s website. I would completely fill out the form, answer all questions, and only initiate the test if the project fit my price range and other criteria. I would then proceed to answer questions, etc. as the bubbly sales agent followed up on this live one. So, on week one, eager to meet some exciting new people and see some wonderful new product I began my quest. I had some great places to choose from and even knew quite a bit about many of them. Here’s who I signed up for more information with: Caymus Townhomes, Veridian Cove, Cooper Creek (Centex), Berrywood (Quadrant), Element, Trace Lofts, Bellevue Tower, Ruby, San Juan Passage, Front 9, Verdeaux, Canal Station, Brix, diModa and Centerra. I would have signed up for a cool project in Columbia City, a neighborhood I love, but the listing agent only offered his phone number, not even an email. I guessed he didn’t want me to call him after midnight, the dope! Two weekends later I added The BelBoy, 5th and Madison, Polygon at The Point, One Main Street, The Vue, The Parc and Olive 8. If you or your client are represented above, you might want to stop reading right here.

The scorecard:

Eric Jones of Centex. You’re my hero. Centex sent an auto-responder and Eric followed up with several polite emails and phone calls, engaging me in conversation about my needs. The agent for San Juan Passage sent an excellent personal response within hours after my inquiry. Sean from Ruby followed up with an email wanting to know more about what I was looking for. OK, that’s three out of twenty five! The rest of you? Pretty much missing in action.

Williams Marketing rocks in the auto-responder department, every project I inquired about netted me a quick robot reply. One auto-responder even promised me a 24-hour personal follow-up. That was March 26… I’m still waiting. I got few other auto-responder messages, and on more than half—thirteen out of twenty-five—of my inquiries, I received absolutely no acknowledgment or follow-up.

The lessons learned? Before we spend a builders’ hard-earned money on ads, search and outreach, all of us have to sharpen up how our sales teams get the resulting leads and think long and hard about effective follow-up and lead tracking systems. Each lead, in these current market conditions, is costing builders and developers in the high hundreds or even thousands of dollars each. The least we can do, from the marketing and sales side, is make sure someone invests in at the minimum a phone call and a personal email.

If anyone mentioned above has some lame excuses to offer or would like to bust my chops, that’s what the comment box below is for.


Posted by: Al Doyle | Permalink

7 comments

7 Comments so far

  1. Kris Hoots April 14th, 2009 12:53 pm

    Wow Al! That’s like mystery shopping, even though you’re serious. I wonder how they would have responded if they had known who you were. Cannot wait to see who suddenly responds to you because they found their name on your blog.

    Thanks for the great reminder about sales and follow-up. We are encouraged to do a better job because of your experience here.

  2. Kelly Noble April 14th, 2009 1:42 pm

    Al I could say I am surprised but it sounds like the same old story. Sales people HATE follow up. I think it’s because of their innate fear of rejection. I always say if someone gives you their information it’s just like an invitation so call, write, email and do so until they say stop. Best of luck in your home search!

  3. Paul Buerk April 20th, 2009 10:16 am

    Al, I’ve had a similar experience when I bought my current house. My wife and I spent countless weekends looking, then finally found a place we could agree on. It was a new development with a nice, well-appointed sales center, and had some choices as to lots with the model that we wanted. Financing was all approved, and we were as ready as we could possibly be. After our third time going to the development and having nobody show an interest in our purchase, we found our eventual home on the drive back. If anybody had simply asked us if we were interested in buying the house, we would have done it.

    You know me…. I’m a salesguy. I couldn’t believe it. That’s why I’m always checking back with you!! :)

  4. Leighton harder April 20th, 2009 11:24 pm

    Al

    Another great reminder on followup and being consistent. Great insights once again.

  5. Al Doyle April 20th, 2009 11:48 pm

    I know you are a student of human relations and can sooo relate to being left hanging! I’ve had quite a few call from “bosses” today, and one or two from sales reps who should have called me the day I gave them permission.

  6. Al Doyle April 20th, 2009 11:50 pm

    They are now responding…since the cat has been let out of the bag! I’m going to track this one for a while.

  7. Al Doyle April 20th, 2009 11:51 pm

    Kelly, it would be interesting to have this kind of “test shop” in your market. I might talk to a friend who live in Colorado Springs and have her do the same thing.

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