Death of a Sales Office
by Steve Ormonde on 07/20/10 at 6:08 pm
Why haven’t the “old school” new home sales offices died? Did the people in charge not notice that the consumer from the 60’s is not the same as the consumer of today?
Back in the old days, it was easy to impress a visitor. Put some fancy renderings on the wall, create a mini version of the neighborhood on a tall coffee table and hand out a professional brochure.
But today’s consumer is savvy. Very savvy! They communicate with all their friends instantly on digital smart phones. They plan their vacations online in minutes. And their cars have communication tools built-in too!
This consumer knows how to communicate efficiently, and more importantly, expects to. If this is true, why have so few builders taken advantage of new technology to communicate their neighborhood design and features with their visitors? Are they afraid? Is the new home sales office just not the place for technology?
Yes, most of them are now using the web to reach out, but what about the point of sale? Are they missing something, or am I?
What do you think?
David Cristofaro
Jul 23rd, 2010
Interesting perspective, and definitely there is significant room for the use of technology to present floor plans, configurations, etc. to the potential homebuyer. Focus 360 creates some pretty amazing stuff in that regard.
I think they are slow to implement these capabilities because emotional engagement with a potential future home is about walking around in the models, sitting on the furniture, talking about Sally’s bedroom and if her furniture would fit, etc. It is an exciting thing to do. The memories of my first new home purchase are anchored in these visits. Putting too much online means taking out the potential for a visit, and eliminating person to person sales opportunities and this emotionaal engagement.
Where I think there is room for the use of this technology is once they have completed the walk through. Offering up virtualized environments for them to review, choose from, modify, and approve as well as offering those little reminders about their last visit would prove very powerful. Safe to say, one additional home sale per track would more than justify the expense, and once they become more mainstream (thanks to Focus 360 again) the cost will drop further.
Replacement for the sales office? I think it will never happen. Supplemental to the sales process post multiple visits or agreement? An opportunity to increase close rates measurably.
David D. Cristofaro
Founding Principal
Actionable Research
http://www.actionable.com
Administrator
Aug 2nd, 2010
Great insight Dave! Perhaps my point wasn’t clear enough. I am referring to the sales office “design” (Point of Sale), not the physical office itself. What are your thoughts on the current physical sales office “design”? Technology to assist visitors or no?