What is valuable to your customer?

When I speak with leaders in the real estate industry about their current challenges, many will start with rising costs, increased competition and lack of available lots. These challenges frequently drive their strategy to increase sales and/or profits.

What I rarely hear from them, however, is an understanding of what their customers value and how they are (or are not) answering this need. I recently read an article by the Harvard Business Review, (which you can read here), that says that by taking the time to understand what your customers value, you can set about adapting your offering or communicating a set of values about your business that match their expectations. They’ve identified set of 30 fundamental values and have presented them in a pyramid graphic, and the idea is to think about what consumer values your brand/product/service can satisfy.

I was reflecting on this article as I reviewed NAR’S Home Buyer and Seller Generational Trends Report, find it here. Their survey found that 38% of buyers who purchased a new home were looking to avoid renovations and that there was only a median of 15 miles from the homes that recent buyers previously resided in and the homes that they purchased, (for 64+ buyers the median distance was 30 miles).

A conclusion we can draw is that convenience and location are what these customers valued. That’s great to know, but if you are facing increased competition, you’re going to need to convey why YOUR product offering is more valuable than your competitors. Are you a premium or value brand? What is it about your product that drives the customers purchase decision? Is it service, aesthetic or something else? In order to be competitive, you’ll need to move up from the functional elements of value to the emotional to really connect with your customer.

As noted in the HBR article, “Whenever an occasion to improve value presents itself, managers should start with a survey of current customers and likely prospects to learn where the company stands on the elements it is (or is not) delivering. The survey should cover both product and brand, because examinations of the two may yield different insights. For example, the product itself may deliver lots of value, whereas customers have difficulty getting service or technical support.”

What do your customers value in a home?

If you’re interested in discovering what your customers value, we’d love to help. Please connect with us here!