CUSTOMER SATISFACTION

Satisfying the New Cohort of Home Buyers

By Tim Bailey


There is a tsunami of home buyers poised to make landfall in Canada. Home builders will either ride the wave or be tossed in stormy seas depending on how well they understand the unique wants and needs of the "Millennial Generation."

Biggest Since The Boomers
The birth years that define Millennials vary from author to author and study to study, however, Millennials in Canada can typically be defined as those born between the early 1980s and early 2000s-or Canadians that are currently about 15 to 35 years old. This is by far the largest cohort in Canada after the Baby Boomers with over 12 million Millennials making up more than one-third of Canada's population. The Millennials have been stereotyped with labels of laziness, entitlement and narcissism. American sociologist Kathleen Shaputis even coined the phrase the "Peter Pan Generation,: to describe a trend towards Millennials living with parents longer and delaying adulthood more than previous generations.

Reality Check
The reality is, regardless of stereotypes, labels, or theories, the Millennials are the most educated and diverse generation in Canadian history. Higher levels of unemployment and underemployment are certainly challenging this generation, as many have needed to navigate a global financial crisis and the Great Recession upon entering the workforce. As economic opportunities improve and Baby Boomers begin to exit the workforce en masse, the Millennials will continue to gain traction as the next consumer powerhouse in Canada. This also creates a powerhouse of home buyers which have wants and needs unique from generations before them. It is not possible to address those detailed wants, needs, habits or behaviors in a single article but there are some key things that builders should keep in of mind.

The Wired World
Millennials are the first cohort in Canada to come of age in a "wired world." This age group has grown up with home computers and the Internet, while smart-phones and tablets have created a fully mobile generation. The notions of "entitlement" and "impatience" understandably stem from the fact that this generation has grown up in an era where things are available "everywhere" and "immediately." That accessibility and immediacy has created new considerations for delivering an engaging customer experience with Millennial consumers.

Self-Serve to Rapid Response
The Millennials have grown-up in a world of ATMs, drive-throughs and Google searches. When typical Millennials encounter an issue with a product, they are more likely to search keywords online or look for a fix on YouTube than to call for customer support as the first action. Having said that, if a self-serve solution cannot be found, then companies that are multi-channeled and responsive are the clear loyalty winners with Millennials.
Multi-channeled means communicating in the specific channel preferred by the individual. Depending on each individual, these channels may include texts, email, Facebook messaging or other social media platforms. Like it or not, social media must be part of every company's customer service channels.
Responsiveness has always been subjective and continues to be among Millennials. A "next generation" homeowner who sends an email to a builder's service department to inform them of a squeak in the hardwood floor is typically expecting an emailed acknowledgement back the same day. In contrast, a text message to a service manager from that same homeowner stating that there is water leaking from a finished drywall ceiling possesses an expectation of an immediate response. The severity of a service issue and the communication channel utilized bear different levels of expectations when it comes to responsiveness. Regardless, in all cases there is the expectation that a builder's representative tending to the issue is fully empowered to solve the problem. Dismissing an issue by quoting company policy can quickly place a builder's reputation in the same category of businesses that this generation views as laggards for customer service, such as banks and telecom companies.

Brand Promoters and Brand Shamers
As a "wired generation," Millennials rely on their online world when making purchasing decisions. With a few mouse clicks or finger swipes, this group is able to seek opinions from social networks before buying; comparison-shop between vendors for the best price; and read reviews and ratings from past purchasers. Laggard brands will have nowhere left to hide as these Millennial consumers readily shame companies via powerful online channels. Fortunately, leading brands can leverage the support from this cohort, as these consumers openly share positive comments and provide "word-of-mouse" referrals in their smart-wired world.

Tim Bailey is Division President of Avid Ratings Canada, a leading provider of customer loyalty research and consulting to the home building industry. Through the Avid system, industry-leading clients improve referrals, reduce warranty costs, and strengthen their brand. He can be reached at tim.bailey@avidratings.ca.

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