Branding a home builder can be a bit of a challenge, since product preferences vary so widely by region, according to Mollie Carmichael, principal at Zonda Advisory. To shed some light on the definition and building blocks of brand as a concept, the “Design the Funnel: Marketing & Consumer Acquisition” panel at the 2020 Builder 100 virtual conference featured Adrian Foley, president and CEO of Brookfield Homes, to examine how the builder is reshaping its brand and creating a greater focus on service.
Breaking Down the Brand
What is a “brand” all about, and why is it important to customers? Is the brand the product being sold, or is the brand about the experience? Even in industries where the delivery of a product or a service seems clear-cut, this definition can vary—and the application and utilization of any brand goes a long way to determine its impression on customers.
“One of the things I do with all my focus groups is I will ask people, 'Tell me your favorite brand and why,’” Carmichael says. “And there’s always one that comes up that’s a bit of a head-scratcher to me—not because the brand isn’t a great brand, but, why do they say it’s a great brand? So I’m going to use Lexus as an example. And I will tell you, the experience people get after owning a Lexus and bringing it in for service, and the treatment they get, it just constantly comes up. [People say], 'I will never own a car other than a Lexus because of this experience that I had.' They never talk about the car when they talk about the brand.”
Applying this same logic to other well-known brands, Foley considers Apple “clearly a product … wrapped in an incredible service,” with design, device servicing, and customer treatment cited as examples. The Tesla brand, in his view, is more focused on the product, albeit a product that provides a strong driving experience. “They, and the car industry, might be proxies for our industry, to think about how we can transition ourselves to be more of a service,” he says.
The Brookfield Homes Brand
Foley defines Brookfield Properties as a “global real estate services company,” active in commercial and residential real estate, business operation, retail, office properties, and hospitality. The company’s home building business stands as an exception, with a stronger emphasis on product over service.
“I think what is evident is that our customers don’t really enjoy our sales experience," he says. “I think there’s a huge step up that we can advance our industry in raising that bar and getting it consistent.”
Over the course of the COVID-19 pandemic, Brookfield has honed its home buying process to accommodate the technology to successfully navigate pandemic-era sales, including virtual visits and self-guided access to model homes via smart lock. “We think of it as accelerated and questioning the need for the traditions that our industry has leaned on, like a model complex or a sales environment. So the question is, what does that look like moving forward?”
From there, the company has focused specifically on improving its experience, forming a “Sales 2.0” plan centered around meeting the customer “where they are.” In one step, this means replicating the experience of a physical sales process as closely as possible in a virtual space. “Anything you think you can see by being present, you should be able to do online,” Foley says.
In another, the company will outline for the customer all of the components that go into the home’s pricing—a first for the sector, according to Foley. This is done with the aim not only of reassuring the customer, but also reducing the possibility of third-party brokers being brought into the process. “We are envisioning an incredibly transparent process,” Foley says. “We think it’s the right direction. We think the more builders do this, the better.”
Third, Brookfield aims to make the process of buying a home easy—and, fourth, to guide customers through the process from start to finish, whether in person, online, or a mix of both. While Foley does not believe the functions of a sales office, model, or salesperson will be going away, he believes that the sales process as it stands needs to move from selling a single home to creating a “customer for life” through the quality of the experience. In this model, Carmichael says, the salesperson becomes an advocate or ambassador, rather than just a transaction broker.
By remaining with the customer throughout the process of buying, owning, and moving homes, Brookfield aims to build a level of trust, and in turn create a brand association with quality service. The company will accept third-party brokers as part of the sales process, but intends to point out to its customers how much those outside services cost them.
“You [the buyer] have complete transparency, and you are on this path with us,” Foley says. “We are trying to reduce this advocacy need, and grow a trust and an emotional bank account with the [customer].”
Following the initial sales process, Brookfield is designing an extended warranty for its new homes. This will include ongoing upgrade services for customers, as well as guidance on the value of the home as an asset. “We think of it as a home relationship, kind of like how the car industry has a car relationship,” Foley says. “That buyer may transition out of that home, and we’re happy to help as they transition out and another buyer transitions in.”
When the resident is looking to sell, Brookfield will offer to “pre-certify” the home, providing upgrades and other services that the owner can pass on to the next buyer. “We’re also building a relationship with that new customer coming in, so we’ve essentially got a zero cost of customer,” Foley says. “And really, we’ve just extended the lifetime value of that home to a new customer.” If the buyer wishes, Brookfield would be able to serve as an iBuyer or iBroker, and the buyer can “trade in” the home for another Brookfield home. This would not be required; the buyer could still choose to sell the home through a third party.
To this end, Brookfield’s brand aims to become the seller of new homes in addition to pre-certified homes, and the resulting customer experience could extend across a lifetime. “It’s lost on us as an industry, that opportunity,” Foley says. “Everybody comes in after we’ve built the house, and it seems like we should be benefiting from doing the hard work of creating that customer in the first place.”
