The Power of Data and Why Builders Need It
The concept of data and analytics have been around for years; most organizations now understand the value of capturing data and applying analytics to optimize their business. Today, gathering data to help a company better understand their customer segment is increasingly necessary for growth and success. Advanced analytics and analytics in general, not only adds value to business operations and drives profitability, but also offers a wealth of possibilities if utilized effectively.However, many enterprises still struggle to maximize these opportunities.
In a recent article, data and analytics guru Bernard Marr said: “While the average small business has less self-generated data than big players. . .this doesn’t mean big data is off limits. In fact, in many ways, big data is more suited to small businesses, because they’re generally more agile and able to act more quickly on data-driven insights.”
In traditional industries such as homebuilding, big players that have continued to dominate for decades hold a certain hesitation toward integrating data-driven solutions into their business practices. However, the shift towards leveraging data analytics and the infinite value it can bring across every industry is unavoidable. It is our operating philosophy that businesses, especially homebuilders, have an opportunity to leverage data and analytics to reduce error and uncertainty that is present in decision making. In the case of homebuilders, data provides the opportunity to drive more homebuyers to their sales centre by simply understanding their customers better.
As data analytics gains more attention in various industries, including the new home market, organizations of all sizes are pursuing this valuable capability-- sometimes cautiously, sometimes with great enthusiasm. In a survey conducted by Deloitte, they note that 49% of respondents said that data helps them make better decisions, 16% believe that data leads to the enablement of key strategic initiatives, and 10% use data to create better relationships with customers and business partners. The survey also indicated that the two main areas that data and analytics drive ROI are in cost reduction and income production.
Whatever the motivation may be for a business to adapt data and analytics into their business process, the next question often becomes “what do I do with this data?” and “where do I get it from?”
DATA IMPROVES DECISION MAKING
While there are many influences when it comes to making decisions-- whether it be what’s happening in your company, your industry, or simply following your own intuition-- there is nothing as persuasive as hard data to back you up. That is why we believe that data and analytics can be leveraged to support homebuilders in making high-impact business decisions to create more home buying success stories.
Our customers utilize the customized data we provide in many different facets of their business such as decisions regarding land planning, targeted marketing spend, and ultimately understanding who their customers are and what they are looking for in their dream home. In the case of land planning, our comprehensive model dashboard allows builders to see which floor plans and features are likely to be the most successful based on each buyer’s specific demographics and geographic region. Considering the enormous investment that goes into planning and building a new community, it is critical to make the “right” or most educated decision the first time.
DATA TO UNDERSTAND YOUR CUSTOMER
Data unlocks powerful insights into consumer buying habits and preferences. This information provides builders a deeper understanding of the needs, wants and motivations of each of their customer segments. Nearly every home builder has faced the challenge of having floor plans not perform as well as anticipated or felt the pain of an underwhelming ROI of an expensive marketing campaign that didn’t reach its intended audience.
However, tracking and reviewing data empowers homebuilders to uncover the strengths and weaknesses within their organization related to customer success. Our robust platform helps builders select optimal designs and floor plans based on customer specific data by utilizing web traffic heat maps, integrated demographics, product and community breakdowns and consumer behavioural patterns.
DATA AND HOMEBUILDING
In today’s digital age, utilizing data to run your business is the bare minimum. If you’re not using data to uncover insights that will guide your business into the future, you will become a business of the past. Fortunately, the advances in data processing and visualization make growing your business with data easier than ever.
During our time in the homebuilding industry, it has become clear that merely using a static report doesn’t support homebuilders in effective decision making. We must provide information in a way that is most impactful to our decision-makers within this industry. Historically, homebuilders have had to rely on outdated data or census data to aid decision making. The problem surrounding the use of this data is two-fold. First, future decisions are being made using data that may no-longer represent the current state of the industry or consumers. Also, this static data is not customized to the homebuilder’s specific customer segment, but rather is overarching and generalized for all homebuyers in a given region.
In order for homebuilders to gather valuable insights, the data they utilize must be dynamic and customized to their specific business. Our AI-driven platform tracks and utilizes real time data from your existing web traffic, enabling builders to better understand the specific needs of their customers.
The concept of data-based decision making is not new. It is a tried-and-true method changing the way organizations in every industry are conducting business. By integrating fact-based data to support decision making, home builders can confidently build a strong foundation for long-term growth. It is those companies that are able to best understand their consumers’ buying habits that will inherently obtain a competitive advantage. At OpenHouse.ai, we are passionate about empowering homebuilders, large or small, to make informed decisions supported by real-time data-driven insights.
We’re here to create more home buying success stories through the use of data and advanced AI technology.
If you are interested in hearing more about the value and resources we can provide your organization, please fill out the form below. One of our team members will connect with you shortly. We look forward to embracing the digital future with you.
- The OpenHouse.ai Team