Originally posted 1/14/2019.
I often ask my clients to answer, “Why should I be your customer (client or patient) (CCP)?” from the point of view and value proposition of their ideal CCP’s, not their point of view. That question is also featured in many of my seminars and workshops. In fact, I posted a blog in October 2015 entitled “What is Your Product or Service?” which expanded on that very important question. I just finished an article in the December 2018 edition of Builder magazine entitled “Closing The New vs. Existing Divide” by Vincent Salandro which offers another very practical take on this subject.
While focusing in on the factors that lead home buyers to buy newly constructed homes rather than existing homes, the article presents a statistical approach to understand home buyer preferences and how a builder might increase their market penetration. The article quotes data from the Zillow Group New Construction Consumer Housing Trends Report 2018 to make a strong case for developing a very deep understanding of the value proposition of the ideal customers of new home builders.
The Zillow Group report found that while 38% of potential home buyers considered buying a newly constructed home in 2017, only 11% purchased one. In delving deeper into the data, the author expands on many of the factors that would be useful in refining a builder’s definition of their ideal customer. Some of the factors included where:
- Age – new home buyers tend to be older
- Ethnicity – 74% of new home buyers self-identified as Caucasian/White
- First-Time buyers vs. Moving Up or Downsizing buyers
The article goes on to look at the top fourteen reasons buyers purchase new homes. Such factors as:
- Everything is new/never used – 48%
- Ability to customize features of the home – 23%
- Ability to have smart home features – 6%
These were a great look at new home builder’s customer value proposition.
Finally, the article looked at how new construction home buyers shop for their home. Most who purchase newly constructed homes relied on technology, 68% using a laptop or desktop and 46% using mobile devices to shop for their home. Only one-third of new home buyers used mobile, much less than buyers who purchased existing homes.
What does this have to do with your business? To answer that, I have a homework assignment for you. I suggest you ask yourself the following questions:
- How well do you understand your ideal Customer, Client or Patient? – When is the last time you gathered any market statistics that might be used to refine who your ideal CCP is?
- How well do you understand ALL the various factors that make up your ideal CCP values? – Have you asked your CCPs why they buy from your company?
- How well do you understand how your ideal CCPs found you? – Are you “hanging out” in all the places you should?
My colleagues and I are well equipped to assist you to better define, understand and find your ideal customers, clients or patients. The better you are at serving them, the more successful you will be.