By Kevan Irsch
Since 1957, Los Angeles-based KB Home has been a top U.S. homebuilder, building thousands of homes for families each year. KB Home has adopted an aggressive design center approach, offering state-of-the-art studio experiences for new home buyers. This approach coincides with their build-to-order business model. This model is based around freedom of choice for the buyer, and the design studio is a core part of KB Home’s plan to drive custom-minded buyers. In August of 2005, KB Home implemented a comprehensive options selection tool, Envision, in four of its markets. I spoke with Lisa Kalmbach, Senior Vice President of Design Studios for KB Home, and discussed KB Home’s successful experience with Envision at the recent 2007 Summit in Austin, TX.
As KB Home began to research different options selections tools, they realized the common missing link in the available choices was comprehensive, informative product content. KB Home began to wonder how they could possibly get all this content themselves. “We really needed someone to bring in the homebuilders, the content, the manufacturers,
and create this wonderful online program. We had to have [them] as our partners in this or we didn’t think it would work,” says Kalmbach. KB Home also recognized that since the amount of products they can offer buyers is now limited only by their own capacity, they would need to be able to educate themselves on all the available options on Envision. “In the KB Home Studio, there are thousands of products to sell, and we have to know the features and benefits of all the products so we can help design the consumer’s home the right way,” says Kalmbach. Additionally, buyers can now educate themselves at their own leisure about the products available specifically to them, allowing suppliers to communicate directly with the buyer.
Watch Lisa Kalmbach's Interview
KB Home has also pleased buyers by bringing options integrators into the design center process. Some product lines, especially technology, can be complex and outside the design consultant’s area of expertise. “We realized some products are difficult for design consultants to sell, so we ask the integrator to spend some time in the studio,” says Kalmbach. While the design staff can help the buyer understand how the products relate to their lifestyle, the integrators can answer all the technical questions, like how the product works. KB Home is seeing a 10-20% increase in options sales, especially in aesthetically lacking but incredibly useful technology products, thanks to having an integrator in the studio. “First of all,” says Kalmbach, “we hear how they’re explaining the product to the consumer, so we adapt those ways of explaining it. Second of all, when we start to install the product, people out in the field know they can call the design studio and ask questions.” Having experienced, informed representatives of the products on hand takes a lot of pressure off of design center staff and allows them to concentrate on the design aspects of their jobs.
In select markets where the system is offered, the minute the signed contract hits the door, KB Home sends out an email to the buyer inviting him/her into the Envision platform. According to KB Home, there is a 21-day period between the sale date and finalization of options selections. “Buyers using Envision come in with their wishlist - they’re very well-educated on the products - some buyers spend days researching - and we are able to have a more in-depth conversation with them,” says Kalmbach. Based on feedback provided by buyers, they want to see pictures, the product in the room, how it works, and the benefits of the product. “We sell more of the suppliers’ products that spend the time giving us deep, rich content. It’s that simple,” says Kalmbach. Envision is having a major impact on KB Home’s customer satisfaction - over 90% of KB Home customers say Envision is easy to use. According to Kalmbach, “Envision is a great product to have throughout the homebuying experience.”
To get engaged with Envision today, visit www.newhometechnologies.com or contact envision@newhometechnologies.com. To learn more about KB Home, visit www.kbhome.com.
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