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Customer Satisfaction Matters

Studies, surveys, industry leaders and consultants all agree:

"Almost 50 percent of the homeowner's willingness to refer a friend to the builder is directly related to the homeowner's experience with the builder's service process and personnel, according to Eliant's survey findings. Quality is not forgotten, but the manner in which a builder responds to warranty and service requests can literally make or break the buyer's impression of that builder's firm."
-Big Builder Online



The average builder loses almost 25 percent of their homeowner's willingness to refer during the warranty period, according to Woodland, O'Brien & Scott, a building industry research and management consulting firm.







How well production builders handle warranty service seems to be the dominant factor in customer satisfaction, according to Avid Ratings, an industry customer loyalty management firm.



"This should come as a wake-up call to home builders who think that their major responsibility after move-in is to simply clear the punch-list and handle the inevitable warranty items. Clearly, the issue is not whether or not the items are cleared but the manner in which this process is conducted."
-Big Builder Online



Kenneth Merchant, a USC professor, conducted a 4 year, independent study and concluded that an 8% increase in customer satisfaction can yield:
8-19% increase in revenue
17-24% reduction in warranty costs
13-28% increase in profits



"Increasingly, builders are grappling with the fact that it is no longer so much about the quality of the home but more about the quality of the home buying and homeownership experience that drives customer satisfaction and referrals."
-Big Builder Online