5 Common Customer Care Mistakes in Homebuilding – and How to Fix Them

In the homebuilding industry, providing an exceptional customer experience is as crucial as the quality of the homes you are building.  As Builder Lead Converter explains, ‘The customer is the most important part of any home building and renovation process, and providing them with a positive experience is just as important as selecting the right materials and having flawless workmanship.’  However, customer care teams often encounter challenges that can impact client satisfaction and project success.  Unfortunately, missteps in client communication or service can lead to disappointed residents, negative reviews, and lost referrals.

In this blog, we will discover the five prevalent mistakes customer care teams make in the homebuilding industry, along with actionable solutions to address them.

1.     Poor Communication with Clients

Effective communication is an important component of success in most industries, but for homebuilders, it is absolutely crucial.  When the commitment and price tag are as high as they come with a property purchase, it’s understandable that emotions will run high and customers will need more attention than they do for everyday purchases.

Homebuyers expect regular updates and prompt responses to their concerns.  ‘Customers may feel ignored or undervalued when their inquiries or concerns are not addressed promptly and effectively,’ explains technology publisher, Tech Radar.  And yet, with multiple sales processing simultaneously, and numerous customers to deal with, it can be hard for the customer care team to stay on top of all the queries coming their way, meaning clients often feel left in the dark due to infrequent updates or unclear information.

Communication is important throughout the build of the new home, and beyond.  However, never is it more important than when there is an issue, either with delays to the date of completion or with defects after the home is completed.  When issues arise, ‘Acknowledging mistakes and owning up to them is one way to gain the trust and loyalty of your clients,’ advises building communication provider, Buildertrend.  Failure to act on errors quickly, soon leads to dissatisfaction and complaints, especially if you are not communicating about the problem and what you are doing to solve it.

The Fix

Regular, transparent communication builds trust between homebuilder and buyer, and keeps customers engaged throughout the build and purchase of the property.  It is important, therefore, to implement a structured communication plan, and explain what that will look like from your earliest opportunity.  Whether you provide weekly or monthly updates or only notify customers of exciting milestones during the build, the more they understand what they should expect from you, the less they will worry about the progress of the project and come to you with questions.

The same approach can be taken within the organisation, to ensure that all teams are up-to-date on progress and any issues arising.  ‘Internally, hold brief daily huddles or weekly meetings to review progress, next steps, and any challenges,’ advises residential construction software developer, Bolster. 

When there is a problem, take responsibility at your first opportunity, apologise, and explain what you are doing to rectify the issue. 

Utilising a Customer Relationship Management (CRM) system can also help you maintain clear and consistent communication throughout the project lifecycle and speed up the process to free up time for your team.

Internally, it is also important to ensure staff are fully trained in effective communication techniques such as active listening, are encouraged to listen empathetically, repeat back key concerns and clarify before responding.  This is an important tool for any customer-facing role.  Designating a single point of contact and communicating who that contact is and how to reach them is also a great way to ensure the most skilled communicators are those dealing with customers regularly.

2. Overpromising and Underdelivering

Setting unrealistic expectations regarding project timelines, costs, or potential outcomes can damage trust between homebuyer and builder, and lead to disappointment.  ‘Making commitments you can't keep can significantly undermine trust between you and your customers,’ advises Tech Radar.  It can also hinder chances of a long-term relationship and limit the time the homebuyer will remain a resident in one of your homes.  FSM software provider, Frontu, goes as far as saying, ‘By promising too much in a short period of time, a construction company can lead itself to ruin.’

The Fix

In homebuilding, it is vital to establish clear expectations from the outset.  Discuss potential challenges and set realistic timelines and budgets, which can be done in person or through written guides provided at the point of reservation.  Transparency about possible delays or cost overruns fosters trust and helps manage client expectations effectively, especially when your homebuyer feels educated on why those issues might arise.

It's also essential to provide accurate estimates and be transparent about potential delays.  Unfortunately, there are many components of homebuilding that can cause delays, such as skills and materials shortages, severe weather instances and unforeseeable conditions on site.  Managing expectations through honest communication helps build credibility and fosters long-term client relationships.

It is extremely important, due to regulations as well as best practices, not to use high pressure sales tactics.  These strategies rely heavily on making big promises and these can never be guaranteed to be kept so avoid them at all costs.

Any commitments you’ve made to clients, whether regarding communication timelines, or dealing with issues or deadlines, be sure to track and review them.  Hold regular internal meetings to ensure commitments made to clients are on track and achievable.  If not, be sure to communicate issues promptly.

3. Neglecting Customer Feedback

Failing to seek or act on customer feedback can hinder operational improvements and erode trust between homebuyer and builder.  ‘Companies frequently solicit customer feedback but often fail to take meaningful action on it, which can leave customers feeling undervalued and ignored,’ explains Tech Radar. 

The Fix

Actively seeking feedback at various project stages and demonstrating a commitment to addressing concerns shows homebuyers that their opinions are valued.  Implement feedback systems and actively respond to feedback, making necessary adjustments to systems as processes to illustrate your commitment to understanding where your service might be lacking.  ‘Interactions such as conversations, meetings, emails or even surveys allow customers to provide precise feedback necessary on both sides in order for each one to understand fully what has to be done,’ advises Build Lead Converter.

Demonstrating that you value client input can enhance satisfaction and loyalty.  ‘Regularly inform customers about how their feedback has prompted specific improvements,’ suggests Tech Radar.

Finally, incentivise feedback by offering small rewards or recognition to residents for participating in feedback processes.  This could be achieved through mentioning the feedback and your response to it in a regular newsletter, which also encourages stronger residential engagement.

4. Inadequate Documentation

‘Documentation is often an overlooked aspect of contracting work.  However, it’s crucial for a smooth and legally sound project,’ says roofing and remodelling contractor software provider, Leap to Digital.  Poor record-keeping can lead to misunderstandings, disputes, and even legal issues.  ‘Quality is a cornerstone of project success, and poor documentation can severely compromise it,’ cautions AI project management provider, Dart.

The Fix

‘A well-documented project provides protection for both the contractor and the homeowner.  In addition, it ensures transparency throughout the project,’ advises Leap to Digital.  Therefore, maintaining comprehensive records of project details, communications, and agreements is vital to ensure the best customer experience.  In the process of the property purchase, both parties should always be able to access important documents and certificates.

Using digital documentation tools to centralise and secure all project-related information, ensuring that documents are stored and available to all interested parties.  Standardising document templates for quotes, changes to orders, and communications is also a good way to ensure consistency and clarity.

To really emphasise the importance of documentation to your team, it can be used as a team KPI, where you include documentation compliance in staff performance evaluations.

As with any information stored digitally, regularly ensure all data is backed up securely to avoid information loss or disputes.

5. Failing to Prioritise Customer Service

Focusing solely on construction quality without considering the client experience can have a negative impact on the homebuilder-buyer relationship as well as tarnish your reputation.  ‘When businesses emphasize short-term sales at the expense of fostering long-term relationships, they ultimately undermine customer loyalty,’ explains Tech Radar.  Business plan template provider, B Plan, advises that, ‘While the focus may be on delivering high-quality construction projects, neglecting the needs and concerns of the client can lead to dissatisfaction and negative reviews.’  

The Fix

Customer service should be embedded into your company culture.  Staff should be trained on the importance of the homebuyer experience and providing post-construction support, such as clear processes for handling warranty claims.

Prioritising customer service can differentiate your company in a competitive market, lead to higher survey scores and an increase in referrals.

To optimise your service, it is important to address client needs, provide a strong aftercare service and support, and ensure quality assurance demonstrates a commitment to client satisfaction.

To keep track of customer satisfaction you can use satisfaction ratings to gauge and improve the client experience.  This can be achieved through regular surveys, which are sent out at various stages of the build, purchase and post-build, home-living experience.  And don’t focus purely on your relationship with your customer today.  Tech Radar points out that, ‘Instead of solely focusing on individual transactions, broaden your metrics to include customer lifetime value.’  This information provides an ‘Insight into how much revenue a customer is likely to generate over their lifetime with your business,’ explains Tech Radar.  This data can be used to help you make informed decisions about how much to invest in nurturing these relationships, targeting your marketing efforts, and tailoring your services to meet individual customer needs effectively.

By recognising and addressing these common pitfalls, customer care teams in the homebuilding industry can enhance client relationships, improve project outcomes, and build a strong reputation for reliability and excellence.

Spaciable can help you achieve a customer experience your residents will rave about, discuss with their friends and promote to other prospective home users.  To find out how we can help you streamline and optimise the home user experience, please get in touch here.