The Keys to Selling New Homeowners on Technology are Expectation, Information and Education
There are certain products and services that are easy to promote. The importance of drinking milk springs to mind. The fact that you can get it "your way, right away" at Burger King is another good one. Home technology, however, is not one of those services that easily resonates with the consumer.
The biggest challenge: It takes a good deal of educating and tactful packaging to make consumers appreciate what home technology integration can do for their new homes, and what makes sense for them. It's no wonder. The term "home technology" is broad. Products are new and changing fast. The technologies behind them are changing just as fast. And the images too often associated with home technology are luxury homes or designer rooms.
It's not as easy to market home technology as a flame-grilled Whopper, but it can certainly be done successfully. There are a few key factors to consider as you take home tech to the new homebuyer.
1. Partner Wisely
For many builders, offering home technology products requires that you expand your current homebuilding services. Just as you would select any other subcontractor, think of the integrator as part of your own operation, partnering with one that will represent the same professional values. Maintaining that consistency leads homebuyers to see you and the installer as one.
2. Keep It Simple
No one wants to sweat the small stuff. When it comes to system integration, homeowners want the custom experience without having to give input at every single step of design and installation.
This requires that system providers make some independent decisions, but between reasonable customer consultation, installer knowledge, and your specifications, you can give an end user the experience they want without calling their office every half-hour for another "go-ahead."
3. Who's Selling?
Ask yourself who is informing your customers about all the technology available out there. To make sure your customer hears the right message, it might be valuable to have a dedicated customer liaison familiar with custom installation, or your contractor may be able to handle the customer flow you want to maintain. Regardless of who sells, one thing seems certain: homeowners are longing to be educated on what's out there.
"Most customers don't even know systems like distributed audio exist, which is scary, because everyone loves music," says Michael Turner from Stereo and Video Integrators in New Jersey, which partners with Masco. "We'll meet with a customer, on behalf of the builder, to discuss the options available––central vacuum, alarm, structured wiring––and after showing them what's out there, 99 percent of them get at least a music system."
4. You're Invited!
Staging public events can benefit homebuilders in gaining the attention of a large, target-rich audience. Whether you reach a thousand or a handful of eyes and ears, the guiding concept behind a successful event lies in making it an engaging experience. It should appeal to as many senses as possible while communicating what's essential about home-tech products and services.
Model homes are ideal for showing customers what's possible through custom installation, particularly if you've installed a home theater, distributed audio system, customized lighting controls, and the like. If you don't have access to a model home, your office boardroom can do the trick. Set up a plasma screen or front-projector and some speakers for demonstration. Lay out some sandwiches and sodas (or, depending on your target audience, wine and cheese) to loosen things up. Then start talking, keeping it a casual presentation.
5. Marketing Materials
The best way to get homebuyers to listen to your recommendations on custom home tech is to use a variety of communication tools. Printed materials are a given. They quickly outline the products and services you offer, and remind the customer why your company is the best choice.
6. Flexible Financing
Even if your clients have less disposable income, it doesn't mean they don't desire a more luxurious lifestyle. The more flexible you can be as the builder in accepting payment for added options, the more comfortable homebuyers will be in discussing those options with you.
One way builders make it easier to pay for integrated systems is by including the cost in the mortgage. It's a comfortable arrangement; since nearly everyone's already paying for something in installments, it yields at least an equally greater profit margin or more considering added interest, and the homebuyer is able to deduct the cost on their annual tax return.
7. Who's Your Target?
Your approach to marketing home tech must be appropriate to the homeowners with whom you typically deal. If you build entry-level homes, you'll no doubt miss the sale of a $100,000 home theater, as great as that would look on your bottom line. At the same time, if that's the bigger and better system your client is likely to purchase, be sure your contractor is equipped to handle the high-end specifications.
Also, don't underestimate the buying power and influence of others in a household. Many builders make the mistake of assuming it is the male of the household they should focus on. But studies show that women purchase the majority of all products and services for a home, and more than half of men say choosing electronics is a shared decision. Dad may have eyes for the 60-inch plasma and surround sound, but there's more than one thumbs-up for central vacuum, intercom networks, and whole-house music.
8. No Magic Formula
Ultimately, there are many variables that will determine what products or services you may want to offer. As you get more involved with home-tech manufacturers, installers, and the demands of customers, be conscious of what proves most successful for everyone involved. Focus on the products and services that match the lifestyles, expectations and budgets of your customers. That will give them the best home-tech experience, and give you the testimonials you need as you grow your new home-tech business.
