by Blair Kuhnen
Why do builders seek to build in markets where there is strong job growth? It’s demand for housing, of course. Are any of you looking to expand into Detroit or Cleveland? Probably not. Does it make sense to do expand into markets with more demand than supply? Absolutely! Easy to say, but hey, it’s not exactly easy to pull up the stakes in Detroit and move to San Antonio.
What if you could find above average growth right where you are while driving higher customer satisfaction? It comes down to segmentation. There are segments that are growing faster than the average, and will for years to come. These are segments where new housing demand is strong and will stay strong. Here are just a few to consider: Hispanics, Baby Boomers, Asians, and Europeans (with all those inflated euros). Some segments are niches. If you have one of these in your local market, great. Start tapping into it. Two of these growth segments are nationwide and available to every homebuilder.
Hispanics and Baby Boomers are here and now. They are buying and will do so for decades. You need to get your fair share. You don’t have to move, but you may need to change your marketing, your advertising and even your product. Let’s take them one at a time. Continue Reading...
Hispanics’ collective buying power will surpass $1 trillion by 2010, represen ting a 400%+ increase since 1990. It’s time, if you have not already, to put bilingual sales and customer service folks in place. It’s time to cater to this market by altering the product to align with the target segment’s culture. How are you going to reach them? Guess what - they are on the Internet just like everyone else. They may behave differently online, but they are there. Customers appreciate when you reach out to satisfy their needs with unique messaging; this will lead to increased customer satisfaction and retention. With Casas Nuevas Aqui (http://www.casasnuevasaqui.com), you can reach this key segment for nominal cost, and even receive translation services for your website and Casas.
Baby Boomers are just now getting into their sixties. This key segment represents over 28% of the adult U.S. population, and one in four Boomers already owns a second home. The first are now eligible for early social security. They are not likely looking for a new McMansion or a trophy home, but a well-appointed home. It’s not a slam dunk, but the demand is there and growing. Reaching them is pretty straightforward. Again, the Internet comes to mind. With New Retirement Communities (http://www.newretirementcommunities.com), you can quickly tap into this high-growth segment with targeted results at no additional cost to your New Home Source listing fee.
Is it easy to change your product, promotion, and processes to target these high growth segments? Not really, but it’s a lot easier than moving to San Antonio. It’s also a lot more profitable.