Is social media the next home buying revolution? As people change how they interact using the web and social media, how they buy houses is also evolving.
People no longer use real estate agents as taxis to look at houses - instead the web is now their key research tool.
Statistics from Nielsen's 2010 Social Media Report show more than two in five online New Zealanders are interacting with companies via social networking sites. This reinforces the notion New Zealanders are open to engaging with brands and companies online.
Online customer feedback about new homes is instantaneous and accessible, enabling people to be more educated before they speak to a new home builder. This means the ease of the solution and the simplicity of the offering are becoming increasingly important. People use the web and social networks to pre-qualify and find the new home solution that best suits them.
People now have a greater awareness of the value of their time and their personal space and this is changing how they view marketing. Traditional methods no longer penetrate and new home companies now need a more personal approach - and the ability to withstand scrutiny.
The Nielsen report shows social media is playing an important role in product and service purchasing decisions - 44 per cent of New Zealanders have published opinions about products, services and brands, while 73 per cent have read other consumers' product opinions.
Research director Tony Boyte said: "New Zealanders' engagement with online word of mouth communication is going to increase in coming years as social media plays an increasingly important role in consumer decision making."
Social media can initiate contact but, crucially, must point back to an informative website and a person to interact with. Online interaction should not replace traditional customer relationship management, it should extend it.
The show home is still important, just as shops are important for people who want to see an item after viewing it on the web. But visitors are now more likely to have already have taken a virtual tour before they arrive at a show home.
It takes time and commitment from the sales team to maintain an online presence, but the investment is essential for the company to do business with consumers in the way they are increasingly choosing.
Good sales processes have to be in place and rigid quality assurance principles have to be followed, so any customer service challenges can be fixed before a problem develops.
We get satisfied customers involved in our business through the use of networks, including Facebook, Twitter and our blog. It fits with our value of creating communities.
We believe that the more we can open up to feedback, the faster we can advance our business.
- Paul Marshall is the Rotorua director of Generation Homes