Tuesday, October 30, 2007

Learning From Retail: Engaging and Entertaining the New Home Consumer


The recent International Retail Design Conference highlighted the trend of 'shopping for entertainment', and engaging the minds and senses of the purchasing public. Think about your last trip to the mall: chances are, there was some event scheduled, be it a boat show, or an in-store appearance of the latest Disney band (the Jonas Brothers were at Mall of America last Monday, and thousands of kids and parents showed up!)

If retailers were doing their jobs, all of your senses were engaged: Bright lights and great looking displays, the smell of cinnamon rolls or baking chocolate chip cookies, the sound of music in the stores, the temperature was purposely cool enough so you didn't overheat. Build a Bear Work shop might have engaged your child's imagination with creating and personalizing their own new stuffed friend, or they may have gotten a mini make-over at LibbyLu. Did you know that Abercrombie and Fitch sprays their signature scent through out the store regularly throughout the day? It isn't available for sale - it is the scent of the Abercrombie experience! Bath and Body changes out their main focal scent and front displays and windows 13 times a year!

How does all of this relate to your design center? New home sales are down. Getting new prospects to walk in the door could turn into a qualified lead. Engaging the customers you already have with a great experience will lead to higher upgrade and option sales.

"Dressed for Success", a recent article by Sherrie Giewald in Housing Giants Magazine highlights techniques successful design centers are using to engage their customers and to get more prospects through the door. The article highlights design centers who are adding 10 to 20 percent of the home's selling price in options. These design centers are relating to their consumers like retailers. Stuart Wahrenbrock, director of the John Laing Design Studio in Irvine, California said this: "In terms of service and expectations, we want the studio to operate more like Nordstrom or a high-end Mercedes-Benz dealer."

Estridge Homes, in Indianapolis, actually opened their design center in an upscale lifestyle mall. Open for shopping and browsing during mall hours, they offer home furnishings and accessories for sale to the general public, as well as offering new home purchasers 6,000 square feet of new home selections. Linda Kirby, Masco Design Solutions says "Builders need to change the way they go to market, and we believe that is to go to the consumer." The studio also educates the public about the builder, it's neighborhoods and floorplans.

Food for thought: What events could you create to drive additional visitors to your design center? We want them to think of you first when they are ready to purchase their next new home. Cooking demonstrations, celebrity appearances, book signings, and how-to workshops might bring in the interested consumer. Tap into your major manufacturers for workshops and training they can offer to educate the public. Presenting workshops about trends in interiors, flooring solutions, adapting your home for the aging consumer, and energy saving solutions are a few ideas.

How can we entertain the customer while they are experiencing the home purchasing process at your design studio? Bake cookies (the smell alone will lower consumer resistance!), offer lattes, get the kids engaged in the playroom with fun learning toys or a movie. Demonstrate appliances, have the consumer turn on and off the faucets, showers, even a bubble bath filled jacuzzi tub. Engage them in the experience of personalizing their home!

At Hearth and Home, we know that the consumer will more often choose a fireplace upgrade when we leverage the experience. Get the consumer seated in front of the fire: experiencing the warmth, crackle and flame, flat screen above playing a movie, and even hand them a small bag of popcorn. Who wouldn't want to take that experience home to their friends and family?

Make your next trip to the mall a study of engagement and entertainment. What selling ideas can you bring home to your design center?