2013-14 Home Buyer Conversion Report

2013-14 HOME BUYER CONVERSION REPORT

Produced by the Bokka Group Conducted by the NAHB Research Center

©2012 THE BOKKA GROUP ©2014 THE BOKKA CONDUCTED

BY THEGROUP NAHB RESEARCH CENTER CONDUCTED

BY THE NAHB FIELDED SEPTEMBER 2012 RESEARCH CENTER, ALSO KNOWN AS HOME INNOVATION RESEARCH LABS

TABLE OF CONTENTS Sales Funnel Conversions 4 Demographics 6 Tools for Attracting Buyers 8 Tools for Engaging Buyers 24 Preferred Method of Contact 42 Tools for Nurturing Buyers 50 Tools for Closing the Sale 58 Technology’s Effect on the Buying Experience 74 Background & Methodology 76 Index of Charts and Figures 78

3

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

PROSPECTS

Attract

SEARCH ENGINES

PRINT/OUTDOOR ADVERTISING SOCIAL MEDIA MARKETING

Engage

PHOTOS & VIDEOS SOCIAL MEDIA

Nurture Close

VIRTUAL TOURS

SLIDESHOWS

ONLINE CONCIERGE

KIOSKS/ VIDEOS

LIVE CHAT

EMAIL MKTG

IPAD/TABLET APPS

VIRTUAL DESIGN CENTER

ANALYTICS

INTERACTIVE FLOORPLANS

PHONE CALLS

CONVERSIONS:

INBOUND MARKETING

PUBLIC RELATIONS

DIRECT MAIL

FAVORITE PLANS VIEWER

Impressions Visitors

WEB SITE FOLLOW UP

APPOINTMENTS

AUGMENTED REALITY

Visitors Leads Leads Appts Appts Sales

SALES SALES FUNNEL CONVERSIONS: The conversion funnel for new home sales and marketing, as

well as sample methods for converting new home prospects into sales.

The aim of this study is to focus on the digital tools and technologies used to facilitate conversions in four distinct areas of the new home marketing and sales process: Attraction phase - Inbound marketing strategy needs to produce a high number of visitor impressions that are analyzed and tracked.

Engagement phase - Visitors to the builder’s web site are intrigued by compelling visuals, videos and rich content.

Nurturing phase - Buying is about relationship cultivation.

Phone conversations, email correspondence, online concierge and chat services all reach out to assure prospective purchasers that customer satisfaction is the builder’s highest goal.

Closing phase - At the sales center, online perception meets reality. Visitors may use community videos, interactive kiosks and virtual design centers to verify their interest.

INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

4

SALES FUNNEL CONVERSIONS “Fifty percent of all marketing works, the problem is that nobody knows which fifty percent.”

––UNKNOWN

building on the 2012-13 bokka group home buyer conversion study, this year’s report underscores the importance of marketing that is designed to intentionally guide prospects through the Sales Funnel. By positioning the web site and analytics software at the core of the funnel (fig. 1), it’s possible to determine which marketing and sales tactics are effective, and which are not. The Home Buyer Conversion Study specifically relates to the use of these tools to convert prospects to buyers.

the purpose of the research: • •

Provide home buyer data to new home builders that does not currently exist regarding digital tools and their influence on lead conversions.

Improve sales efficiencies and effectiveness through the use of the most effective digital tools.

the study answers the following questions: 1. What attracts visitors to a particular builder’s web site?

2. What tools and web site components influence buyers’ decisions to provide their personal information to builders?

3. What tools and web site components influence buyers’ decisions to visit builders’ sales centers/model homes?

4. What tools and digital components (as well as content) within a sales center influence prospects’ decisions to buy?

5

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

96.8%

AUDIENCE DEMOGRAPHICS the study focused on recent new home buyers throughout the United States. The largest number (36%) of respondents were from the South, as indicated in Fig. 1 below.

%

Most of the respondents were between 25 and 64 years old. The majority of respondents (83.9%) stated they were married when the study was fielded in January, 2014.

Purpose

Gender 58%

96.8%

Primary Residence

Female

42% Male

2.0%

Rental Property

1.2%

Home type

Home price (in thousands)

FIG 1:

96.8%

Vacation Home

62.0%

91.2%

25.5%

22%

3625%

25%

From the Midwest

17%

From the Northeast

36%

36%

r he

en pa rtm

ho wn

Ot

x

1.0%

t

1.0%

us

le rip

Fa m

nd

o

To Co

/T

le

ex

ng

pl Du

Si

3.0% e

ily

+ 00 $5

-$

3.8%

00 $2

17%

25%

%

50

20 -$

25%

First-time / Repeat buyer

From the Midwest

17%

From the Northeast62

22%

0

0

Geography

$0

r he Ot

pa rtm

en

t

1.0%

/A

12.5% 1.0%

38%

38%

First-time buyers

62%

%

36%

Repeat buyers

From the South

22%

22%

From the South

17%

25%

From the West 36%

22%

17

From the West

Age

Marital Status

18-24 YEARS OLD

84%

3.8%

25-44 YEARS OLD

18-24 YEARS25.3% OLD

45-64 YEARS OLD 65+ YEARS OLD

8.8%

25-44 YEARS OLD

12%

SINGLE

62.3%

3.8%DOMESTIC PARTNER

18-24 YEA

84%

MARRIED

1%

OTHER

25-44 YEA

3%

45-64 YEA

65+ YEARS

62.3%

25.3%

45-64 YEARS OLD

FIG 1: Since such a small percentage of participants (3.8%) were in the 18-24 years of age

range, those respondents were excluded from the demographic breakdowns for each section of this report, yet were included in the overall statistics throughout.

65+ YEARS OLD

INDEX

8.8%

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

6

FIG 2:

Purpose

Gender 58%

Primary Residence

Female

42% Male

96.8%

Vacation Home

2.0%

Rental Property

1.2%

Home type

Home price (in thousands) 62.0%

91.2%

25.5%

er Ot h

en /A pa rtm

wn h

ou

do Co n

To

1.0%

t

1.0%

se

x le ip Tr x/ le

e gl Si n

$2

3.0%

Du p

$5

Fa m

00

il y

+

3.8%

00

$0

-$

-$

50

20

0

0

12.5%

First-time / Repeat buyer 38%

38%

First-time buyers

62%

62%

Repeat buyers

Audience highlights: • • • •

62% were repeat buyers, 38% first-time buyers, 84% were married 91% purchased single family homes 58% female, 42% male respondents

87.5% purchased homes under $500,000

• All respondents were qualified 12% as being involved in the SINGLE decision-making process of the home purchase.

MARRIED

DOMESTIC PARTNER 7

OTHER

84%

3% 1%

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

3

1·

Tools for attracting buyers

THE TOP OF THE FUNNEL PROSPECTS

Attract

SEARCH ENGINES

PRINT/OUTDOOR ADVERTISING SOCIAL MEDIA MARKETING

Engage

PHOTOS & VIDEOS SOCIAL MEDIA

SLIDESHOWS

PUBLIC RELATIONS

VIRTUAL TOURS

CONVERSIONS:

INBOUND MARKETING

ANALYTICS

Impressions Visitors

INTERACTIVE FLOORPLANS

WEB SITE Visitors THE ATTRACT PHASE OF THE NEW HOME SALES FUNNEL is often where most builders’ Leads marketing budgets are spent especially as it pertains to offl ine advertising (print, outdoor, tv, Nurture ONLINE LIVE EMAIL PHONE DIRECT CONCIERGE MKTG CALLS MAIL etc.). The goal of this stage CHAT of the funnel should be to convertFOLLOW brand UP impressions into actual Leads web site visitors. This study identifies what the top tools are for achieving these impression-toAppts visitor conversions.KIOSKS/ IPAD/TABLET FAVORITE Close VIDEOS APPS PLANS VIEWER APPOINTMENTS VIRTUAL DESIGN CENTER

Appts Sales

AUGMENTED REALITY

SALES INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

8

FIG 3:

Marketing Channel Inuence in Attracting Marketing Channel Influence in Attracting BuyersBuyers to to Home Builder Web Sites: Home Builder Web Sites: (Percent ofofbuyers thatthat were influenced) (Percent buyers were influenced)

Previous Year 80.0% 70.0%

80.3%

77.7% 72.6%

72.8%

66.9%

62.9%

61.9%

60.0% 50.0%

46.9%

60.9% 46.9%

40.0% 30.0%

Organic Search Results

Independent Listing Sites

Paid Search Results

Banner Ads

Offline Advertising*

FIG 3: The influence of different marketing channels and their effectiveness in drawing buyers

to builder web sites. These are primarily digital methods which are commonly used by home builders. *Offline advertising (such as print, TV, radio, etc.) is very broad and not a good apples-to-apples comparison with each of the other specific channels, but was included in the study for comparison of offline/online as a whole.

In this survey, we wanted to identify how home builders can achieve a higher return on their marketing investment by narrowing their focus to attracting web site visitors that are most likely to make a purchase decision within the next 90 days.

This required moving beyond a conversation simply about monthly web site traffic numbers to a more focused understanding of the two types of home builder web site visitors and their online engagement patterns.

9

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

ORGANIC SEARCH RESULTS

ORGANIC SEARCH: Organic search results display web sites served by search engines such as

Google and Bing based on the relevancy of their content to the search criteria entered.

FIG 4:

Influence of Organic Search Results in Attracting Buyers to Builder Web Sites: (Percent of buyers that were influenced) Segmented by Purchase Price 92.1%

Previous Year

Segmented by 1st-Time / Repeat Buyer 86.8%

79.3% 66.2% 67.8%

71.4%

70.7%

68.8%

66.2%

55.6%

$0 - $200k

$200k -$500k

$500k and up

Segmented by US Region 84.7%

83.1%

First-time Buyer

Repeat Buyer

Segmented by Age of Buyer 82.1% 81.8%

82.6%

80.4% 73.9%

66.7%

66.7%

65.4%

60.9% 59.5%

Midwest

60.0%

Northeast

South

West

25-44

45-64

63.9%

65+

Influence of Independent Listing Web Sites in Attracting Buyers to Builder Web Sites: (Percent buyers thatGROUP’S were influenced) INDEX ofTHE BOKKA 2013-14 HOME BUYER CONVERSION STUDY Segmented by Purchase Price

89.5%

10

Previous Year

Segmented by 1st-Time / Repeat Buyer 86.8%

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 5:

Influence of Independent Listing Web Sites in Influence of Independent Listing Web Sites in Attracting Attracting Buyers to Builder Web Sites: Buyers to Builder Web Sites: (Percent of buyers that were influenced) (Percent of buyers that were influenced)

Segmented by Purchase Price 75.7%

89.5%

Segmented by 1st-Time / Repeat Buyer 86.8%

72.2% 65.9%

65.3% 53.2%

Previous Year

61.1% 62.6%

57.8%

$0 - $200k

$200k -$500k

$500k and up

Segmented by US Region 79.8%

76.9%

85.7% 83.1%

Repeat Buyer

Segmented by Age of Buyer 74.9% 61.5%

56.7%

54.7%

73.9%

72.2%

63.1%

60.6%

60.4%

First-time Buyer

48.8%

Midwest

Northeast

South

West

25-44

45-64

65+

Influence of Paid Search Results in Attracting Buyers

INDEPENDENT LISTING WEB SITES to Builder Web Sites: (Percent of buyers that were influenced) Segmented by Purchase Price

Previous Year

Segmented by 1st-Time / Repeat Buyer 79.2% 71.1%

63.5%

57.8% 42.9%

$0 - $200k

58.5% 51.5%

50.0%

48.6%

$200k -$500k

44.4%

$500k and up

Segmented by US Region 66.2%

First-time Buyer

Repeat Buyer

Segmented by Age of Buyer 70.2%

71.4% 71.4%

67.7%

LISTING WEB SITES such as Zillow, Trulia, Move.com, etc. 55.0% aggregate new home listings for 50.0%

52.8%

50.0% display online.

Some are paid subscription sites that charge builders to list homes. Visitors 43.5% 42.2% 41.7% 41.4% can view pricing, model information, elevations, floor plans, community information, etc.

33.3% Listing web sites are portals through which visitors are introduced to builders and their homes.

Midwest

Northeast

South

West

25-44

45-64

Influence of Banner Advertisements in Attracting THEto BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY 11 Buyers Builder Web Sites: (Percent of buyers that were influenced) Segmented by Purchase Price

65+

INDEX Previous Year

Segmented by 1st-Time / Repeat Buyer

Influence of Independent Listing Web Sites in Attracting Buyers to Builder Web Sites:

PAID SEARCH ENGINE RESULTS

(Percent of buyers that were influenced)

Previous Year

Segmented by Purchase Price 75.7%

89.5%

86.8%

72.2% 65.9%

65.3% 53.2%

Segmented by 1st-Time / Repeat Buyer

61.1% 62.6%

57.8%

$0 - $200k

$200k -$500k

$500k and up

Segmented by US Region 79.8%

76.9%

85.7% 83.1%

First-time Buyer

Repeat Buyer

Segmented by Age of Buyer 74.9%

73.9%

72.2%

PAID SEARCH ENGINE RESULTS: Paid search includes ads and column advertising that are 63.1% 61.5%

60.6% 60.4% based on keyword targeting and pay-per-click (PPC) advertising campaigns targeting search 56.7% 54.7% words 48.8% and phrases entered in various search engines such as Google and Bing.

Midwest

FIG 6:

Northeast

South

West

25-44

45-64

65+

Influence of Paid Search Results in Attracting Buyers to Builder Web Sites: (Percent of buyers that were influenced) Segmented by Purchase Price

Previous Year

Segmented by 1st-Time / Repeat Buyer 79.2% 71.1%

63.5%

57.8% 42.9%

58.5%

$0 - $200k

51.5%

50.0%

48.6%

$200k -$500k

44.4%

$500k and up

Segmented by US Region

Repeat Buyer

Segmented by Age of Buyer 70.2%

66.2%

71.4% 71.4%

67.7% 55.0%

50.0% 42.2% 41.7%

First-time Buyer

50.0%

52.8% 43.5%

41.4% 33.3%

Midwest

Northeast

South

West

25-44

45-64

Influence of Banner Advertisements in Attracting INDEX THE GROUP’S 2013-14 HOME BUYER CONVERSION STUDY Buyers toBOKKA Builder Web Sites: (Percent of buyers that were influenced) Segmented by Purchase Price

65+

12 Previous Year

Segmented by 1st-Time / Repeat Buyer

33.3% Midwest

Northeast

South

West

25-44

65+

45-64

FIG 7:

Influence of Banner Advertisements in Attracting Buyers to Builder Web Sites: (Percent of buyers that were influenced) Segmented by Purchase Price

Previous Year

Segmented by 1st-Time / Repeat Buyer 81.9% 65.8%

64.9%

55.8% 48.9%

44.4%

42.4%

$0 - $200k

63.4%

$200k -$500k

43.4% 46.1%

$500k and up

Segmented by US Region

First-time Buyer

Repeat Buyer

Segmented by Age of Buyer 68.5%

66.2%

64.3%

74.0%

68.5% 56.8%

52.1%

47.2%

43.4%

40.6%

34.4%

33.3% Midwest

Northeast

South

West

25-44

41.0%

45-64

39.1%

65+

BANNER ADVERTISEMENTS

BANNER ADS: Online advertising can include both text banners and attractive graphic ads to

entice prospective home buyers to seek more information. As one of the starting points in the Attraction Phase, engaging and nurturing those who click through to a builder’s web site is of critical importance.

13

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

DIGITAL TOOLS THAT INFLUENCE BUYERS DURING THE RESEARCH PHASE It is estimated that between 1-3% of web site visitors engage on a home builder web site by subscribing to a newsletter, requesting more information, scheduling an appointment, or other form of opt-in. That means that for every 1,000 people who visit your site, as many as 990 leave the web site without any opportunity for a sales person to engage, qualify, and nurture that lead.

Online tools that engage buyers and provide high-quality information valuable to a potential home buyer’s research process increases the amount of time a visitor spends on a builder web site, as well as the likelihood that a buyer will register for more information.

So which tools do buyers most rely on when researching a home builder’s web site, and how do we create engaging online experiences that move buyers through the sales funnel?

We asked recent home buyers to review seven of the most popular home builder web site tools and tell us which one(s) they considered important during their new home research.

The seven tools included: •

Photo galleries

•

Interactive floor plans

• • • • •

Videos

Virtual tours

Reviews/testimonials

Social media presence

Mobile-friendly web site

INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

14

ar

r

FIG 8:

Items Considered Important when Researching Home Builder Web Sites (Percent of buyers that considered item important) 100.0%

92.1% 94.6%

84.1% 86.6%

80.0%

Previous Year

84.1% 85.1%

72.0%

80.9% 64.9%

59.7%

55.6%

60.0%

38.9%

40.0%

45.6%

15.9%

20.0% 0.0%

Photo Galleries

%

Videos

Interactive Floorplans

Virtual Tours

Social Media Mobile-friendly Reviews/ Presence Testimonials Web Site

FIG 8: Buyers responded overwhelmingly in favor of Photo Galleries, Interactive Floor Plans

and Virtual Tours when researching the competition of home builders. They also indicated the importance of Reviews/Testimonials of other recent buyers.

ar

r

The survey results that follow indicate that these seven tools provide significant influence over buyers in all categories, and supports the inclusion of them on builder web sites to influence buyers in the research phase of the home buying process.

However, the data also suggests nuances within each category based on geography, age, price point and product type. By understanding these nuances, home builders can tailor the web site user experience to increase engagement and opt-in.

%

ng

ar

r

15

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

PHOTO GALLERIES: Not surprisingly, photography attracts attention, especially among 45-64

year-old buyers. It is essential that builder photography be plentiful, detailed, and of the highest quality.

FIG 9:

Ite Ho

Importance of Photo Galleries when Researching Home Builder Web Sites: (Percent of buyers that considered them important)

(Pe

Previous Year

Segmented by Purchase Price 96.7% 88.3%

94.4% 93.7%

Segmented by 1st-Time / Repeat Buyer 88.9%

94.7%

87.8%

93.1%

92.9%

100.

95.6%

80.

60.

40. $0 - $200k

$200k -$500k

$500k and up

First-time Buyer

Segmented by US Region 92.2%

96.4%

Midwest

91.7%

89.2%

Northeast

Repeat Buyer

20.

Segmented by Age of Buyer

93.9%

97.6% 85.7%

South

92.2%

West

95.5%

0.

100.0% 93.2%

25-44

91.1%

86.1%

45-64

91.3%

65+

Importance of Videos when Researching Home BuilderTHEWeb Sites: INDEX BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY (Percent of buyers that considered them important) Segmented by Purchase Price

Previous Year

Segmented by 1st-Time / Repeat Buyer 81.3%

16

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 10:

Importance of Virtual Tours when Researching Home Builder Web Sites: (Percent of buyers that considered them important) Segmented by Purchase Price

Previous Year

Segmented by 1st-Time / Repeat Buyer 94.7%

84.4% 85.6%

87.5%

84.7% 83.3%

$0 - $200k

80.5%

77.8%

$200k -$500k

$500k and up

First-time Buyer

Segmented by US Region 90.8%

85.9% 84.5%

Midwest

Northeast

Repeat Buyer

Segmented by Age of Buyer

86.9%

77.1%

84.8% 83.5%

82.3%

South

82.1%

85.7%

West

80.2%

83.8%

25-44

91.0%

87.8%

86.1%

45-64

82.6%

65+

Importance of Reviews and Testimonials when VIRTUAL TOURS Researching Home Builder Web Sites: (Percent of buyers that considered them important) Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer

86.8%

80.2%

80.0%

85.4% 78.0%

77.7%

70.1% 62.5%

$0 - $200k

62.1%

61.1%

$200k -$500k

$500k and up

First-time Buyer

Segmented by US Region 76.6%

83.1%

82.1%

Repeat Buyer

Segmented by Age of Buyer

66.7%

84.3%

81.8%

78.2%

73.0%

76.9%

64.3%

60.0% Model Center,60.9% VIRTUAL TOUR: Another56.6% opportunity to give visual presence to the Online 55.6%

increasing prospect engagement. The largest increase in influence over 2012 data was for buyers of homes over $500k in the Northeast.

Midwest

Northeast

South

West

25-44

45-64

65+

Importance of Social Media Presence when THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY 17 Researching Home Builder Web Sites: (Percent of buyers that considered it important)

INDEX

Previous Year

Midwest

Northeast

South

West

25-44

45-64

65+

Importance of Videos Researching Home INTERACTIVE FLOORwhen PLANS Builder Web Sites:

(Percent of buyers that considered them important) Segmented by Purchase Price

Previous Year

Segmented by 1st-Time / Repeat Buyer 81.3%

73.4%

68.9% 58.4%

71.1%

56.3%

65.5% 56.6%

51.2% 38.9%

$0 - $200k

$200k -$500k

$500k and up

Segmented by US Region 60.9%

84.4%

Repeat Buyer

Segmented by Age of Buyer 72.8%

70.2%

67.7%

66.7%

First-time Buyer

65.6%

60.6%

71.8%

66.7%

65.2%

INTERACTIVE FLOOR PLANS: Home buyers value these online tools that allow them to visualize 45.8% 44.1% and customize floor plans they are42.9% considering. Increases in influence from last year were uniform for purchase prices above $200k for every demographic.

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 11:

Importance of Interactive Floorplans when Researching Home Builder Web Sites: (Percent of buyers that considered them important) Previous Year

Segmented by Purchase Price 88.3% 87.8%

82.6%

$0 - $200k

Segmented by 1st-Time / Repeat Buyer 86.8%

86.0% 77.8%

$200k -$500k

$500k and up

Segmented by US Region 89.1%

Midwest

84.6%

Northeast

85.4%

First-time Buyer

84.3%

87.4%

Repeat Buyer

Segmented by Age of Buyer

92.9% 81.3%

82.9%

81.8% 83.1%

South

85.7% 87.0%

West

84.7% 85.1%

25-44

85.6%

88.5%

83.3%

45-64

87.0%

65+

Importance of Virtual Tours when Researching

INDEX BOKKA Web GROUP’S 2013-14 HOME BUYER CONVERSION STUDY Home THE Builder Sites: (Percent of buyers that considered them important) Segmented by Purchase Price

Previous Year

Segmented by 1st-Time / Repeat Buyer

18

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 12:

Importance of Reviews and Testimonials when Researching Home Builder Web Sites: (Percent of buyers that considered them important) Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer

86.8%

80.2%

80.0%

85.4% 78.0%

77.7%

70.1% 62.5%

$0 - $200k

62.1%

61.1%

$200k -$500k

$500k and up

First-time Buyer

Segmented by US Region 76.6%

Segmented by Age of Buyer

83.1%

82.1%

84.3%

81.8%

78.2%

66.7%

76.9%

73.0% 64.3%

60.0%

56.6%

Midwest

Northeast

Repeat Buyer

South

West

25-44

60.9%

55.6%

45-64

65+

Importance of Social Media Presence when REVIEWS AND TESTIMONIALS Researching Home Builder Web Sites: (Percent of buyers that considered it important) Segmented by Purchase Price

Previous Year

Segmented by 1st-Time / Repeat Buyer 61.1% 47.4%

43.3% 20.8%

$0 - $200k

35.6% 16.7%

13.2% $200k -$500k

$500k and up

Segmented by US Region

First-time Buyer

21.9%

40.0%

23.3%

Repeat Buyer

Segmented by Age of Buyer 50.6%

31.0%

16.2%

14.6%

47.2%

36.3% 15.2%

21.4%

11.7%

20.0%

20.5%

16.7%

6.3% 4.3% REVIEWS AND TESTIMONIALS: Notable increases were seen from 2012 to 2013 for reviews

andMidwest testimonials, indicating that buyers the stories of past clients.65+Buyer 25-44 45-64 Northeast South Westfind value in reading research includes online builder reviews in addition to the anecdotal accounts found on builder web sites.

Importance of a Mobile-Friendly Web Site when Researching WebBUYER Sites: THE BOKKAHome GROUP’SBuilder 2013-14 HOME CONVERSION STUDY 19

INDEX

(Percent of buyers that considered it important)

Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer

Ite Ho

Importance of Photo Galleries when Researching VIDEOS Home Builder Web Sites: (Percent of buyers that considered them important) Previous Year

Segmented by Purchase Price 96.7% 88.3%

94.4% 93.7%

Segmented by 1st-Time / Repeat Buyer 88.9%

94.7%

87.8%

93.1%

92.9%

(Pe

100.0

95.6%

80.0

60.0

40.0 $0 - $200k

$200k -$500k

$500k and up

First-time Buyer

Segmented by US Region 92.2%

96.4%

20.0

Segmented by Age of Buyer

93.9%

91.7%

Repeat Buyer

97.6%

92.2%

95.5%

0.0

100.0% 93.2%

91.1%

89.2%increases were VIDEOS: Significant seen in the influence of videos among first-time home 86.1% 85.7%

91.3%

buyers and in the Western region. Video importance shot up from 44% to 73% for 25-44 year olds, and for homes $500k and up - (39% to 71%).

FIG 13: Midwest

Northeast

South

West

25-44

45-64

65+

Importance of Videos when Researching Home Builder Web Sites: (Percent of buyers that considered them important) Segmented by Purchase Price

Previous Year

Segmented by 1st-Time / Repeat Buyer 81.3%

73.4%

68.9% 58.4%

71.1%

56.3%

65.5% 56.6%

51.2% 38.9%

$0 - $200k

$200k -$500k

$500k and up

Segmented by US Region 60.9%

84.4%

72.8% 65.6%

60.6% 45.8%

Midwest

42.9%

Northeast

South

Repeat Buyer

Segmented by Age of Buyer

70.2%

67.7%

66.7%

First-time Buyer

West

71.8%

66.7%

65.2%

44.1%

25-44

45-64

65+

Importance of Interactive Floorplans when Researching Home Builder Web Sites: (Percent of buyers that considered them important)

INDEX

Previous Year 20 THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

Segmented by Purchase Price 88.3% 87.8%

82.6%

Segmented by 1st-Time / Repeat Buyer

86.8%

86.0% 77.8%

82.9%

85.4%

84.3%

87.4%

FIG 14:

Importance of a Mobile-Friendly Web Site when Researching Home Builder Web Sites: (Percent of buyers that considered it important) Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer 69.4%

60.0% 49.4%

59.9%

57.9%

$0 - $200k

First-time Buyer

$500k and up

Segmented by US Region

Repeat Buyer

Segmented by Age of Buyer

63.1% 41.7%

44.9%

38.9%

$200k -$500k

53.1% 51.2%

52.9%

48.8%

44.4%

66.0%

63.6%

61.3%

47.7%

46.5%

44.4%

50.0% 41.7%

32.1%

Midwest

Northeast

South

West

30.4% 25-44

45-64

65+

MOBILE-FRIENDLY WEB SITE

MOBILE FRIENDLY WEB SITE: Prospective home buyers’ use of mobile friendly web sites mirrors

the growth in tablets and smart phones. Mobile site influence doubled in the West, climbing from 32% in 2012 to 64% in 2013. First-time home buyers indicated an increase in influence from 49% to 69%. By ensuring that they have either a mobile site or a responsive (adaptive) web site, home builders can position themselves to provide the user experience today’s home buyers expect.

21

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

77.1%

Midwest

Northeast

South

West

SOCIAL MEDIA PRESENCE

25-44

45-64

65+

Importance of Reviews and Testimonials when Researching Home Builder Web Sites: (Percent of buyers that considered them important) Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer

86.8%

80.2%

80.0%

85.4% 78.0%

77.7%

70.1% 62.5%

$0 - $200k

62.1%

61.1%

$200k -$500k

$500k and up

First-time Buyer

Repeat Buyer

Segmented

by US Region One of the largest increases Segmented by within Age of this Buyer SOCIAL MEDIA PRESENCE: in influence year’s study

84.3% 83.1% 81.8% came82.1% among first-time home buyers for the importance of Social Media Presence. Influence 78.2% 76.9% 76.6% 73.0% skyrocketed66.7% from 15% in 2012 to 61% in 2013. Importance of this medium for high-end 64.3% 60.9% 60.0% home-buyers jumped from age 56.6% 17% to 47%. By age, there was huge growth in the 25-44 55.6% bracket, no growth for 45-64 year olds and a decline of 12.4% for those 65 and older.

Midwest FIG 15:

Northeast

South

West

25-44

45-64

65+

Importance of Social Media Presence when Researching Home Builder Web Sites: (Percent of buyers that considered it important) Segmented by Purchase Price

Previous Year

Segmented by 1st-Time / Repeat Buyer 61.1% 47.4%

43.3%

35.6%

20.8%

16.7%

13.2%

$0 - $200k

$200k -$500k

$500k and up

Segmented by US Region

First-time Buyer

21.9%

40.0%

6.3% Midwest

Northeast

23.3%

Repeat Buyer

Segmented by Age of Buyer 50.6%

31.0%

16.2%

14.6%

47.2%

36.3% 15.2%

South

21.4%

West

11.7% 25-44

20.0%

20.5%

16.7% 4.3%

45-64

65+

Importance of GROUP’S a Mobile-Friendly WebCONVERSION Site when INDEX THE BOKKA 2013-14 HOME BUYER STUDY Researching Home Builder Web Sites: (Percent of buyers that considered it important) Previous Year

22

23

2·

Tools for engaging buyers

ENGAGING AND ANALYZING In the first section we looked at the sales funnel and the tools used for attracting potential home buyers. In this section, the report explores how builders can engage web site visitors and lead them into a relationship based on providing valuable, targeted content in ways that suit today’s buyers.

INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

24

PROSPECTS

Attract

SEARCH ENGINES

PRINT/OUTDOOR ADVERTISING SOCIAL MEDIA MARKETING

Engage

PHOTOS & VIDEOS SOCIAL MEDIA

Nurture

VIRTUAL TOURS

SLIDESHOWS

ONLINE CONCIERGE

LIVE CHAT

EMAIL MKTG

ANALYTICS

INTERACTIVE FLOORPLANS

PHONE CALLS

CONVERSIONS:

INBOUND MARKETING

PUBLIC RELATIONS

Impressions Visitors

WEB SITE

DIRECT MAIL

Visitors Leads

FOLLOW UP Leads When positioned as the hub of a builder’s funnel, the web site becomes the most valuable tool Appts for engaging prospects and converting them to leads. This method is extremely accountable in KIOSKS/ IPAD/TABLET FAVORITE Close VIDEOS APPS and optimizing PLANS VIEWER the conversion terms of tracking the sources of leads rate.

APPOINTMENTS VIRTUAL DESIGN CENTER

Appts Sales

AUGMENTED REALITY

SALES

Just as different prospective buyers who visit your sales office are at different stages of the buying process, prospects who visit your home builder web site are also at different stages of the process. The tools that attract them to your web site (SEO, listing sites, paid search) and initial engagement tools (photo galleries, interactive floor plans) may be the same, but that is where the similarity ends.

Buyers will opt-in and engage on a home builder web site for very different reasons based on where they are in their own decision making process. Different buyers need different types of information, different methods of contact, and different forms of lead nurturing after they register.

Because of this, it is essential for builders to be aware of the Sales Funnel and where their prospects are within it. Once this is done, they can select the appropriate tools to build a lasting customer experience for prospective buyers, wherever they are in the process, whether online or on-site.

What things influence potential buyers to risk their anonymity and provide all-important contact information? Let’s find out...

25

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

FIG 16:

s’

Items that Influence Buyers to Provide Their Contact Information to Home Builders

us Year

(Percent of buyers that are influenced)

Previous Year

uyer

92.9% 94.3%

100.0%

83.7%

88.6%

93.7% 96.9%

89.1% 77.0%

80.0%

85.7%

90.4%

95.1%

74.5%

82.0%

89.1%

60.0% 40.0% 20.0% 0.0%

"We Won't Share Your Info" Statement

87.0%

# Questions Required to Answer

Overall Tone of Web Site

Link to Privacy Policy

Link to Email Samples & Frequency

Access to Restricted Features

Creating Account for Personalized Content

65+

re

us Year

The seven tools that make buyers comfortable enough to provide their personal information and become a sales lead:

uyer

•

Overall tone of web site

•

The ability to gain instant access to restricted areas

•

• • 69.6%

• •

Statement that personal information will not be shared with third parties The length of the opt-in form

The ability to create an account to save personal preferences A link to a privacy policy

A link to email samples and frequency information

65+

are

us Year

uyer

INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

26

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 17:

Influence of Web Site Tone on Buyers’ Decision to Share Contact Info with Home Builders (Percent of buyers that are influenced) Segmented by Purchase Price 93.5%

95.6%

94.4%

$0 - $200k

Segmented by 1st-Time / Repeat Buyer 100.0%

96.8%

$200k -$500k

97.9%

Midwest

95.4%

97.6%

98.6%

88.9%

First-time Buyer

$500k and up

Segmented by US Region 96.9% 96.4%

Previous Year

95.6%

Repeat Buyer

Segmented by Age of Buyer

89.9%

Northeast

92.9%

96.8%

South

92.9%

98.7%

99.1%

97.9%

96.2%

91.7%

87.8%

West

25-44

45-64

87.0%

65+

Influence of Prominent Privacy Policy Link on Buyers’

OVERALL TONE OF WEB SITE Decision to Share Contact Info with Home Builders (Percent of buyers that are influenced) Segmented by Purchase Price 77.9%

76.4%

$0 - $200k

95.1%

94.7%

89.2%

86.7%

Previous Year

Segmented by 1st-Time / Repeat Buyer 77.8%

$200k -$500k

75.6%

First-time Buyer

$500k and up

Segmented by US Region

77.3%

85.0%

Repeat Buyer

Segmented by Age of Buyer 91.9%

92.2%

89.4% OVERALL in terms 88.5% 87.0% 84.4% 86.9%TONE OF WEB SITE: This consistently ranks at or near the 90th percentile 83.1%

80.0%

of importance to home75.8% buyers across all demographics.77.5% Clearly builders need to benchmark 72.9% 71.4% 69.4% their online presence by this important element as a means of establishing trust.

Midwest

27

Northeast

South

West

25-44

45-64

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

65+

INDEX

Influence of Link to Email Samples/Frequency on Buyers’ Decision to Share Contact Info with Home Builders (Percent of buyers that are influenced)

“WE WON’T SHARE...” STATEMENT

“WE WONT SHARE”: Whenever 9 out of 10 home buyers rate a category as influential, builders

should take note. A builder’s commitment to data privacy continues to be very influential in a prospect’s decision whether or not to share contact information on a builder’s web site.

FIG 18:

Ite Inf

Influence of “We Won’t Share...” Statement on Buyers’ Decision to Share Personal Info with Home Builders (Percent of buyers that are influenced) Segmented by Purchase Price 94.8% 94.4%

Segmented by 1st-Time / Repeat Buyer 94.4%

91.7% 93.7%

(Per

Previous Year

97.4%

92.7%

99.3%

100.0%

92.9% 90.8%

80.0%

60.0%

40.0% $0 - $200k

$200k -$500k

$500k and up

First-time Buyer

Repeat Buyer

20.0%

Segmented by US Region

Segmented by Age of Buyer

100.0% 92.9%

89.6%

Midwest

92.3%

90.9%

Northeast

95.2%

South

89.3%

96.1%

West

96.4% 94.9%

25-44

90.0%

93.6%

45-64

0.0% 88.9% 87.0%

65+

Influence of Form Length on Buyers’ Decision to Share Contact Info with Home Builders (Percent of buyers that are influenced)

INDEX

Previous Year

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

Segmented by Purchase Price 85.7% 86.7%

82.6%

89.2%

Segmented by 1st-Time / Repeat Buyer

83.3%

89.5%

95.8% 87.8%

82.8% 83.5%

28

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 19:

Influence of Restricted Features Access on Buyers’ Decision to Share Contact Info with Home Builders (Percent of buyers that are influenced) Segmented by Purchase Price 94.8% 95.6%

88.2%

$0 - $200k

Segmented by 1st-Time / Repeat Buyer 100.0%

94.1%

95.1%

88.9%

$200k -$500k

95.2%

Midwest

95.8%

92.3%

89.4%

92.7%

Repeat Buyer

Segmented by Age of Buyer 97.4%

95.2% 87.9%

Northeast

98.6%

First-time Buyer

$500k and up

Segmented by US Region 92.2%

Previous Year

94.6% 95.7%

85.7%

South

94.9%

91.7%

84.4%

West

25-44

45-64

87.0%

65+

Influence of Personalized Content on Buyers’ Decision to ACCESS TO RESTRICTED CONTENT Share Contact Info with Home Builders (Percent of buyers that are influenced) Previous Year

Segmented by Purchase Price 83.1%

87.8%

83.3%

Segmented by 1st-Time / Repeat Buyer 92.7%

92.1%

89.2%

95.8% 79.8%

84.5%

66.7%

$0 - $200k

$200k -$500k

First-time Buyer

$500k and up

Repeat Buyer

This marketing tool is valued highly by home buyers across all age, geography, price and Segmented by US RegionThe perceived importance of Segmented

by Age of Buyeror restricted experience categories. having access to private content is reflected in the consistently high ranking year over year.

90.6% 89.3%

83.3%

89.2%

90.9%

87.9%

76.8%

78.6%

88.3% 90.6%

87.2% 76.7%

77.8%

South West 25-44 45-64 BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY 29Midwest THE Northeast

73.9%

65+

INDEX

Influence of “We Won’t Share...” Statement on Buyers’ Decision to Share Personal Info with Home Builders (Percent of buyers that are influenced)

LENGTH OF OPT-IN FORM Segmented by Purchase Price 94.8% 94.4%

94.4%

91.7% 93.7%

97.4%

Previous Year

Ite Inf

(Per

Segmented by 1st-Time / Repeat Buyer 92.7%

99.3%

100.0%

92.9% 90.8%

80.0%

60.0%

40.0% $0 - $200k

$200k -$500k

$500k and up

First-time Buyer

Repeat Buyer

20.0%

Segmented by US Region

Segmented by Age of Buyer

100.0% 92.9%

89.6%

92.3%

90.9%

95.2%

89.3%

96.1%

96.4% 94.9%

90.0%

93.6%

0.0% 88.9% 87.0%

Approximately 8 of 10 home buyers rated this influential in their decision to provide contact information. Builders would be well advised to create easy-to-read, easy-to-navigate forms that are designed to be as brief as possible.

Midwest

Northeast

FIG 20:

South

West

25-44

45-64

65+

Influence of Form Length on Buyers’ Decision to Share Contact Info with Home Builders (Percent of buyers that are influenced) Segmented by Purchase Price 85.7% 86.7%

82.6%

$0 - $200k

89.2%

83.3%

$200k -$500k

95.8%

89.5%

87.8%

87.5%

Midwest

82.8%

Northeast

Repeat Buyer

Segmented by Age of Buyer 92.2%

91.1% 81.5%

82.8% 83.5%

First-time Buyer

$500k and up

Segmented by US Region 84.4% 86.9%

Previous Year

Segmented by 1st-Time / Repeat Buyer

88.3% 90.6%

78.6%

South

West

82.2%

85.9% 72.2% 69.6%

25-44

45-64

65+

Influence of Web Site Tone on Buyers’ Decision to Share Contact Info with Home Builders THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY Previous Year 30

(Percent of buyers that are influenced)

INDEX

Segmented by Purchase Price 93.5%

95.6%

94.4%

Segmented by 1st-Time / Repeat Buyer 100.0%

96.8% 88.9%

97.6%

98.6%

92.9%

95.6%

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 21:

Influence of Personalized Content on Buyers’ Decision to Share Contact Info with Home Builders (Percent of buyers that are influenced) Previous Year

Segmented by Purchase Price 83.1%

87.8%

83.3%

Segmented by 1st-Time / Repeat Buyer 92.7%

92.1%

89.2%

95.8% 79.8%

84.5%

66.7%

$0 - $200k

$200k -$500k

First-time Buyer

$500k and up

Segmented by US Region 90.6% 89.3%

Midwest

83.3%

Segmented by Age of Buyer

89.2%

Northeast

Repeat Buyer

90.9%

87.9% 76.8%

South

88.3% 90.6%

78.6%

West

87.2% 76.7%

25-44

77.8%

45-64

73.9%

65+

ACCESS TO PERSONALIZED CONTENT

ACCESS TO PERSONALIZED CONTENT: Data shows that prospects are extremely likely to give

contact information in order to create an account to store personalized info (i.e. favorite plans, options or amenities). The highest growth in this category came for homes $500k and above, rising from 67% to 92% from 2012 to 2013.

31

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

Influence of Web Site Tone on Buyers’ Decision to Share Contact Info with Home Builders

LINK TO PRIVACY POLICY

(Percent of buyers that are influenced) Segmented by Purchase Price 93.5%

95.6%

94.4%

$0 - $200k

Segmented by 1st-Time / Repeat Buyer 100.0%

96.8%

$200k -$500k

97.9%

95.4%

97.6%

98.6%

88.9%

First-time Buyer

$500k and up

Segmented by US Region 96.9% 96.4%

Previous Year

92.9%

95.6%

Repeat Buyer

Segmented by Age of Buyer

89.9%

96.8%

92.9%

98.7%

99.1%

97.9%

96.2% 87.8%

91.7%

87.0%

LINK TO PRIVACY POLICY: The influence of a prominently placed privacy policy link grew in

every category from last year’s Home Buyer Conversion Report. It was particularly important for first-time home buyers in 2013, registering a 19% increase from 2012.

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 22:

Influence of Prominent Privacy Policy Link on Buyers’ Decision to Share Contact Info with Home Builders (Percent of buyers that are influenced) Segmented by Purchase Price 77.9%

77.8%

76.4%

$0 - $200k

$200k -$500k

First-time Buyer

$500k and up

83.1%

Midwest

75.8%

Northeast

Repeat Buyer

Segmented by Age of Buyer 92.2%

91.9% 72.9%

85.0%

77.3%

75.6%

Segmented by US Region 84.4% 86.9%

95.1%

94.7%

89.2%

86.7%

Previous Year

Segmented by 1st-Time / Repeat Buyer

South

71.4%

West

89.4% 80.0%

77.5%

88.5%

87.0% 69.4%

25-44

45-64

65+

Influence of Link to Email Samples/Frequency on Buyers’ Decision to Share Contact Info with Home Builders INDEX ofTHE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY (Percent buyers that are influenced)

Previous Year

Segmented by Purchase Price 86.7%

Segmented by 1st-Time / Repeat Buyer 92.1%

84.2%

95.8%

32

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 23:

Influence of Link to Email Samples/Frequency on Buyers’ Decision to Share Contact Info with Home Builders (Percent of buyers that are influenced) Segmented by Purchase Price 84.2%

82.9%

73.6%

$0 - $200k

72.7%

66.7%

$200k -$500k

93.5%

87.7% 76.2%

Midwest

72.9%

First-time Buyer

$500k and up

Segmented by US Region 79.7%

95.8%

92.1%

86.7% 77.9%

Previous Year

Segmented by 1st-Time / Repeat Buyer

86.3%

82.1%

South

West

Repeat Buyer

Segmented by Age of Buyer 88.9% 78.4%

72.2%

69.7%

Northeast

78.6%

25-44

78.2% 69.4% 69.6%

45-64

65+

LINK TO of EMAIL SAMPLES AND FREQUENCY Influence Restricted Features Access on Buyers’ Decision to Share Contact Info with Home Builders (Percent of buyers that are influenced) Segmented by Purchase Price 94.8% 95.6%

$0 - $200k

88.2%

Segmented by 1st-Time / Repeat Buyer 100.0%

94.1%

88.9%

$200k -$500k

Previous Year

$500k and up

95.1%

98.6%

First-time Buyer

89.4%

92.7%

Repeat Buyer

Home buyers rated links to email samples and disclosures about frequency more highly this year than last, with purchasers of homes $500k and higher increasing their rating from 67% to Segmented

by USand Region Segmented Age of Buyerof how they will 92%.

Engaging nurturing prospects is dependent upon theirbyacceptance be contacted, and how frequently that97.4% is likely to occur.94.6% 95.7% 95.8% 95.2% 95.2% 94.9% 92.3% 92.2% 87.9%

33

Midwest

Northeast

South

91.7%

85.7%

West

84.4%

25-44

45-64

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

87.0%

65+

INDEX

REASONS TO REGISTER ONLINE Beyond the seven trust building tools that represent best practice standards for home builder web sites, buyers also indicated that the ability to immediately access high value information was very influential in determining whether or not to register on a home builder web site.

Unlike the home builder best practice tools in the previous section, buyers’ definitions of high quality information will vary significantly based on the type of home they are purchasing, their own level of home buying experience, and the market in which they are purchasing.

To help us better understand how each of these factors can help builders target their lead conversion and lead nurturing strategies, we asked buyers in all categories to rate five different types of information for which they would be willing to share a name and email address to access.

These include: •

Email updates about current promotions or offers

•

Immediate access to a high-resolution, interactive brochure

• • •

Email updates about current pricing and availability

Follow up from a Sales Agent with more information Email invitations to exclusive VIP events

INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

34

r

r

FIG 24:

Items for Which Buyers are likely to Provide Their Contact Information to Builders (Percent of buyers that are likely)

Previous Year

100.0%

80.0%

92.3%

88.6%

90.0%

90.0%

82.0%

81.6% 75.3%

90.9%

88.9%

74.5%

74.1%

70.0% 60.0%

50.0%

Access To Interactive Brochure

%

Email Updates w/Pricing & Plan Changes

Email Updates w/Exclusive Event Invitations

Email Updates w/Current Offers & Promotions

Personalized Follow-Up w/More Information

Growth from 2012 to 2013 occurred for all value added content offered in exchange for contact information. The value of personalized follow-up grew by 25%.

n Overwhelmingly, buyers who participated in our survey (in all categories) demonstrated a willingness to register online in exchange for high quality information that is relevant to the new home research they are conducting.

r

r

The data also suggests that strategies for converting web site visitors to web site leads may vary from one new home community to the next, even those offered by the same builder, based on product type, price point, and audience.

6%

n

r

r

35

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

Likelihood that Buyers Will Provide Their Contact Info in Exchange for Email Updates with Event Invitations (Percent of buyers that are likely)

EMAIL UPDATES ABOUT CURRENT OFFERS Segmented by Purchase Price Segmented by 1st-Time / Repeat Buyer OR PROMOTIONS

Previous Year

97.4%

87.8%

87.8% 77.9%

87.8%

83.3%

94.4%

85.0%

70.8%

$0 - $200k

71.2%

$200k -$500k

Segmented by US Region

96.1%

89.5%

84.6%

84.5%

First-time Buyer

$500k and up

82.1%

77.1%

Repeat Buyer

Segmented by Age of Buyer 90.6%

84.6%

78.3%

77.5%

73.4% was consistent growth in the value of receiving email updates about current 72.2% There offers and 71.1% 70.7% promotions among home buyers. This trend is consistent with the desire of consumers to have access to the most up-to-date information. Fulfilling this desire requires a major commitment from builders who are interested in cultivating today’s home shoppers into satisfied clients.

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 25:

Likelihood that Buyers Will Provide Their Contact Info in Exchange for Email Updates with Current Offers/Promotions (Percent of buyers that are likely)

Previous Year

Segmented by Purchase Price 88.3%

91.1%

90.5%

Segmented by 1st-Time / Repeat Buyer 88.9%

97.2%

92.1%

87.8%

80.8%

77.8%

$0 - $200k

$200k -$500k

$500k and up

Segmented by US Region 84.4%

86.9%

85.4%

First-time Buyer

92.7%

89.2%

Northeast

Repeat Buyer

Segmented by Age of Buyer 89.3%

93.5%

88.3%

94.0% 76.7%

76.8%

Midwest

86.4%

South

West

25-44

82.6%

82.1% 75.0%

45-64

65+

Likelihood that Buyers Will Provide Their Contact Details in Exchange for Personalized Follow-up w/More Information (Percent buyers that are likely) 2013-14 HOME BUYER CONVERSION STUDY INDEX ofTHE BOKKA GROUP’S Previous Year

Segmented by Purchase Price 88.9%

89.2%

97.4%

Segmented by 1st-Time / Repeat Buyer 95.8% 85.4%

85.9%

36

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 26:

Likelihood that Buyers Will Provide Their Contact Info in Exchange for Email Updates with Pricing/Plan Changes (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price 93.3% 85.7%

91.4%

Segmented by 1st-Time / Repeat Buyer 94.7%

88.9%

90.2%

96.5% 89.3% 79.8%

78.5%

$0 - $200k

$200k -$500k

First-time Buyer

$500k and up

Segmented by US Region 88.1% 82.8%

Segmented by Age of Buyer 93.5%

90.8% 83.3%

Repeat Buyer

96.1% 89.3%

87.4%

93.6%

89.7% 82.6%

78.9%

77.8%

69.4%

Midwest

Northeast

South

West

25-44

45-64

65+

EMAIL UPDATES ABOUT CURRENT PRICING

Likelihood that Buyers Will Provide Their Contact Info in OR AVAILABILITY Exchange for Email Updates with Event Invitations (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer 97.4%

87.8%

87.8% 77.9%

87.8%

83.3%

94.4%

70.8%

$0 - $200k

85.0% 71.2%

$200k -$500k

$500k and up

First-time Buyer

Repeat Buyer

Segmented by buyers US Region

by Age of Buyer Repeat home and buyers over 96.1% 65 scored this Segmented category higher than last year’s report by 89.5% As with other email updates, 90.6% 9.7%84.5% and 13.2%84.6% respectively. builder’s need to be intentional 84.6% 82.1% 78.3% about offering information from prospective buyers.

77.5% 77.1%valuable content in exchange for contact 73.4%

Midwest

37

71.1%

70.7%

Northeast

South

West

25-44

72.2%

45-64

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

65+

INDEX

Likelihood that Buyers Will Provide Their Contact Info in Exchange for Email Updates with Current Offers/Promotions

ACCESS TO INTERACTIVE BROCHURE

Home buyers indicated that they were more willing to provide contact information in exchange for access to an Interactive Brochure than in 2012. Significant increases in likelihood were seen in first-time and repeat buyers (12% and 10% respectively). Home buyers purchasing homes from $200k to $500k increased their likelihood by 17%, buyers in the $500k+ category responded that they were 20% more likely to provide contact information than last year.

FIG 27:

Ite Co

Likelihood that Buyers Will Provide Their Contact Info in Exchange for Access to Interactive Brochure (Percent of buyers that are likely) Segmented by Purchase Price 83.1%

Segmented by 1st-Time / Repeat Buyer 82.9%

84.0%

90.0%

73.7%

72.2%

71.5%

100.0

95.1%

92.1%

88.3%

87.8%

(Per

Previous Year

80.0%

70.0% $0 - $200k

$200k -$500k

$500k and up

First-time Buyer

Repeat Buyer

60.0%

Segmented by US Region 88.1% 75.0%

72.9%

92.2%

88.7%

84.6% 75.8%

78.6%

Segmented by Age of Buyer 89.8% 75.7%

78.9%

50.0%

85.9% 78.3% 63.9%

Midwest

Northeast

South

West

25-44

45-64

65+

Likelihood that Buyers Will Provide Their Contact Info in Exchange for Email Updates with Pricing/Plan Changes INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

(Percent of buyers that are likely)

Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer

38

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 28:

Likelihood that Buyers Will Provide Their Contact Details in Exchange for Personalized Follow-up w/More Information (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price 77.9%

97.4%

89.2%

88.9%

Segmented by 1st-Time / Repeat Buyer 95.8% 85.9%

85.4%

73.6%

72.2% 66.7%

$0 - $200k

$200k -$500k

$500k and up

Segmented by US Region 86.9%

85.4% 86.2%

91.5%

Northeast

South

West

88.5%

78.4% 71.1%

69.7%

71.9%

Repeat Buyer

Segmented by Age of Buyer 93.5%

91.9% 78.6%

Midwest

First-time Buyer

25-44

69.4%

45-64

73.9%

65+

PERSONALIZED FOLLOW UP FROM A SALES AGENT WITH MORE INFORMATION

Of all the inducements designed to capture buyer contact information, personalized follow up increased the most for home buyers from 2012 (a 25% gain). Builders will need a robust CRM system in place, along with responsive sales agents in order to provide the personalized follow-up home buyers desire, particularly among first-time home buyers.

39

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

Likelihood that Buyers Will Provide Their Contact Info in Exchange for Email Updates with Pricing/Plan Changes (Percent of buyers that are likely)

EMAIL INVITATIONS TO EXCLUSIVE Segmented by EVENTS 1st-Time / Repeat Buyer

Previous Year

Segmented by Purchase Price 93.3%

91.4%

85.7%

94.7%

88.9%

90.2%

96.5% 89.3% 79.8%

78.5%

$0 - $200k

$200k -$500k

First-time Buyer

$500k and up

Segmented by US Region 88.1% 82.8%

Segmented by Age of Buyer 93.5%

90.8% 83.3%

Repeat Buyer

96.1% 87.4%

89.3%

93.6%

89.7% 82.6%

78.9%

77.8%

69.4%

Overall growth from 2012 indicates that exclusive event invitations are a very effective tool for obtaining contact information from prospective home buyers.

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 29:

Likelihood that Buyers Will Provide Their Contact Info in Exchange for Email Updates with Event Invitations (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer 97.4%

87.8%

87.8% 77.9%

87.8%

83.3%

94.4% 85.0%

70.8%

$0 - $200k

71.2%

$200k -$500k

Segmented by US Region 77.1%

73.4%

Midwest

96.1%

89.5%

84.6%

84.5%

First-time Buyer

$500k and up

82.1% 70.7%

Northeast

South

West

Repeat Buyer

Segmented by Age of Buyer 90.6% 77.5%

84.6% 71.1%

25-44

45-64

78.3% 72.2%

65+

Likelihood that Buyers Will Provide Their Contact Info in Exchange for Email Updates with Current Offers/Promotions (Percent buyers that are likely) 2013-14 HOME BUYER CONVERSION STUDY INDEX ofTHE BOKKA GROUP’S

Previous Year

Segmented by Purchase Price 88.3%

91.1%

90.5%

Segmented by 1st-Time / Repeat Buyer 88.9%

92.1%

97.2%

40

92%

70.0%

89%

60.0% 50.0%

92% of new home shoppers use email to get more info about a builder

40.0%

89% of new home shoppers call to get more info about a builder

30.0%

Benefits for which new home buyers are likely to share their contact information (name & email): 20.0%

FREQUENCY OF EMAIL UPDATES 10.0% 0.0%

(Percent of buyers who are likely) 90.0% 80.0%

75.3%

70.0%

89%

51% 81.6%

Access to HighResolution Interactive Brochure

82.0% 74.1%

Email Updates About Pricing/home

Email Updates About Current Offers & Promos

Email Updates w/Invitations to Exclusive Events

74.5%

51% of new home shoppers live chat to get more info about a builder

60.0% 50.0% 40.0%

89% of new home shoppers call to get more info about a builder

30.0% 20.0% 10.0% 0.0%

Access to HighResolution Interactive Brochure

51%

Email Updates About Pricing/home

Email Updates w/Invitations to Exclusive Events

51% of new home shoppers live chat to get more info about a builder

Don’t care Never 7% Personalized 9% Twice/week Follow-up With More Information 8% Email Updates About Current Offers & Promos

Weekly 22%

FIG 30:

Monthly 41%

Don’t care Never 7% 9% Twice/week 8%

Weekly 22%

Twice/month 13%

How often would you want to receive relevant email updates from a prospective builder?

Monthly 41%

Twice/month 13%

How often would you want to receive relevant prospective builder each month, this approach may turn off the large number that would only email from astill seems to be the ideal send frequency. prefer one email per month.updates Therefore monthly prospective builder?

FIG 30: While it appears that many prospects don’t mind receiving multiple emails from a

41

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

Personalized Follow-up With More Information

PREFERRED METHOD FOR REQUESTING MORE INFORMATION Buyers engage with a home builder through the builder’s web site differently based on where they are in the decision making process. A prospective buyer who is just starting to search for a new home may spend more time viewing photo galleries and join a builder’s social media page. A buyer who is already pre-qualified with a lender may be looking for specific pricing and current availability information.

By understanding online engagement patterns based on where a buyer is in their buying cycle, home builders can better measure the quality of their traffic. By examining how those buyers are most likely to take the next step based on the type of home they are buying and the market they are buying in, builders can improve the online user experience and make it easier for engaged buyers to take the next step.

In this section, we asked survey participants to tell us which methods they would be most likely to use to request more information from a home builder web site. Respondents provided feedback on the following five methods of contact: •

Email

•

A “Contact Us” form

• • •

Map and driving directions to a specific location Telephone Live Chat

INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

42

g

ar

FIG 31:

Home Buyers’ Preferred Methods of Getting More Information when Visiting Builder Web Sites (Percent of buyers that are likely)

Previous Year

r 100.0%

92.1% 94.6%

89.1%

92.6%

80.0%

82.0%

87.4%

88.9% 79.9%

72.6% 53.1%

60.0% 40.0% 20.0% 0.0%

Email

6%

Map/Driving Directions Page

"Contact Us” Form

Telephone

Live Chat

By identifying the preferred methods of contact for each home buyer category including geographical region, age of buyer, purchase price and product type, home builders can optimize the online experience based on their specific audience to achieve a higher conversion of visitors to prospects.

es

ar

r

0%

of es

ar

r

43

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

EMAIL

Home buyers consistently prefer email as a method of getting more information from a builder’s web site. 100% of buyers in the $500k and up category said they were likely to use email, with all other categories in the ninetieth percentile, besides those 65+, where 83% indicated they were likely to use email when visiting builder web sites.

FIG 32:

Buyers that are Likely to Use Email as Method of Getting More Information when Visiting Builder Web Sites (Percent of buyers that are likely)

Previous Year

Segmented by Purchase Price 90.9%

94.4%

92.4%

(Per

Segmented by 1st-Time / Repeat Buyer 94.4%

93.7%

Ho Inf

100.0%

95.1%

98.6% 91.4%

100.0%

91.7%

80.0%

60.0%

$0 - $200k

$200k -$500k

$500k and up

Segmented by US Region 87.5%

92.9%

Midwest

97.9%

93.8%

Northeast

First-time Buyer

40.0%

Repeat Buyer

20.0%

Segmented by Age of Buyer

90.9%

94.4%

South

96.4% 97.4%

West

94.6%

96.2%

25-44

0.0% 90.0% 92.3%

88.9%

45-64

82.6%

65+

Buyers Likely to Use Map/Directions Page as Method of Getting More Information when Visiting Builder Web Sites INDEX ofTHE BOKKA GROUP’S (Percent buyers that are likely) 2013-14 HOME BUYER CONVERSION STUDY

Previous Year

Segmented by Purchase Price 94.4%

Segmented by 1st-Time / Repeat Buyer

100.0% 92.7%

95.8%

44

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 33:

Buyers Likely to Use Map/Directions Page as Method of Getting More Information when Visiting Builder Web Sites (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price 90.9%

100.0%

94.4% 86.8%

$0 - $200k

Segmented by 1st-Time / Repeat Buyer 92.7%

92.1%

91.9%

$200k -$500k

$500k and up

Segmented by US Region 85.9%

92.9%

Midwest

89.6% 87.7%

88.4%

First-time Buyer

90.3%

Repeat Buyer

Segmented by Age of Buyer

89.9%

Northeast

95.8%

92.7%

92.9%

South

96.1%

West

90.1%

93.2%

25-44

87.8%

93.6%

88.9%

45-64

87.0%

65+

Buyers that are Likely to Use a Contact Form as Method of

MAP/DIRECTIONS PAGE Getting More Information when Visiting Builder Web Sites (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price 87.0%

82.2%

$0 - $200k

88.3%

Segmented by 1st-Time / Repeat Buyer 95.8%

94.4% 94.7% 85.4%

81.3%

77.8%

$200k -$500k

$500k and up

First-time Buyer

Segmented by US Region 87.5% 87.7%

81.6%

Repeat Buyer

Segmented by Age of Buyer 88.7%

89.3%

96.1%

91.1%

84.6% MAP/DIRECTIONS PAGE:79.8% Builders need to have clear directions to their communities and 83.3% 82.9% 80.0%

78.1% 77.4%

homes according to the importance our respondents assigned to this category. This becomes increasingly important with the growing base of mobile users.

56.5%

Midwest

45

Northeast

South

West

25-44

45-64

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

65+

INDEX

Buyers that are Likely to Use Telephone as Method of Getting More Information when Visiting Builder Web Sites

Buyers Likely to Use Map/Directions Page as Method of Getting More Information when Visiting Builder Web Sites (Percent of buyers that are likely)

“CONTACT US” FORM

Segmented by Purchase Price 90.9%

100.0%

94.4% 86.8%

$0 - $200k

92.7%

92.1%

91.9%

$200k -$500k

$500k and up

Segmented by US Region 85.9%

Previous Year

Segmented by 1st-Time / Repeat Buyer

92.9%

89.6% 87.7%

95.8% 88.4%

First-time Buyer

90.3%

Repeat Buyer

Segmented by Age of Buyer

89.9%

92.7%

92.9%

96.1%

90.1%

93.2%

87.8%

93.6%

88.9%

87.0%

CONTACT US FORM: 85.4% of home buyers in this year’s study indicated that they were likely

to use a contact form on a builder’s web site. There was a significant drop, however, among buyers in the 65+ age bracket -27% fewer respondents said they were likely to use a builder’s contact form.

Midwest FIG 34:

Northeast

South

West

25-44

45-64

65+

Buyers that are Likely to Use a Contact Form as Method of Getting More Information when Visiting Builder Web Sites (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price 87.0%

82.2%

$0 - $200k

Segmented by 1st-Time / Repeat Buyer 95.8%

94.4% 94.7%

88.3%

85.4%

81.3%

77.8%

$200k -$500k

$500k and up

First-time Buyer

Segmented by US Region

Repeat Buyer

Segmented by Age of Buyer 88.7%

87.5% 87.7%

89.3%

96.1%

79.8%

78.1% 77.4%

81.6%

91.1% 82.9%

80.0%

84.6%

83.3%

56.5%

Midwest

Northeast

South

West

25-44

45-64

65+

Buyers that are Likely to Use Telephone as Method of Getting More Information when Visiting Builder Web Sites INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

(Percent of buyers that are likely)

Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer

46

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 35:

Buyers that are Likely to Use Telephone as Method of Getting More Information when Visiting Builder Web Sites (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price 89.6%

Segmented by 1st-Time / Repeat Buyer

90.5%

86.7%

77.8%

75.0%

$0 - $200k

$200k -$500k

85.4%

84.2%

$500k and up

Segmented by US Region 88.1%

89.6%

First-time Buyer

86.2%

89.3% 89.6%

Northeast

Repeat Buyer

91.1%

85.9%

83.8%

77.8%

75.6%

73.7%

Midwest

86.9% 78.8%

Segmented by Age of Buyer 90.3%

78.1%

91.7%

South

West

25-44

45-64

73.9%

65+

TELEPHONE Buyers that are Likely to Use Live Chat as Method of Getting More Information when Visiting Builder Web Sites (Percent of buyers that are likely)

Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer 92.4%

74.3%

70.0% 61.0%

68.4%

51.4%

63.4%

51.0%

58.7%

33.3%

TELEPHONE: Many people still prefer to simply pick up a phone and call for more information,

and they expect a high level of customer service from companies they do business $0 - $200k $200k -$500k $500k and up First-time Buyer Repeat Buyer with. Trackable, recorded phone numbers are a great tool for tracking these conversion opportunities, while ensuring quality control at the same time.

Segmented by US Region Segmented by Age of Buyer 78.5% 59.4%

65.5%

72.6%

64.6% 40.4%

80.4%

75.3% 64.3%

61.3%

55.1% 44.4%

47.2% 47.8%

BOKKA GROUP’S 2013-14 HOME BUYER25-44 CONVERSION 47Midwest THE Northeast South West 45-64 STUDY

INDEX

65+

(Percent of buyers that are likely) Previous Year

Segmented by Purchase Price 89.6%

86.7%

LIVE CHAT

90.5% 77.8%

75.0%

$0 - $200k

Segmented by 1st-Time / Repeat Buyer

$200k -$500k

85.4%

84.2%

$500k and up

Segmented by US Region 88.1%

89.6%

86.9% 78.8%

First-time Buyer

Repeat Buyer

Segmented by Age of Buyer 90.3%

86.2%

78.1%

91.7%

89.3% 89.6%

91.1%

85.9%

83.8%

77.8%

75.6%

73.7%

73.9%

LIVE CHAT: Home buyers in the $200k-$500k range were 23% more likely to use live chat when visiting builder web sites than in 2012; for homes $500k and up buyers were 35% more likely Midwest Northeast South West 25-44 45-64 65+ to use chat. First-time home buyers registered a 29% increase from last year’s report for live chat usage.

FIG 36:

Buyers that are Likely to Use Live Chat as Method of Getting More Information when Visiting Builder Web Sites (Percent of buyers that are likely)

Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer 92.4%

74.3%

70.0% 61.0%

68.4%

51.4%

63.4%

51.0%

58.7%

33.3%

$0 - $200k

$200k -$500k

$500k and up

Segmented by US Region 65.5%

72.6%

64.6%

80.4%

75.3% 64.3%

61.3%

INDEX

Northeast

South

55.1% 44.4%

40.4%

Midwest

Repeat Buyer

Segmented by Age of Buyer

78.5% 59.4%

First-time Buyer

West

25-44

47.2% 47.8%

45-64

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

65+

48

49

3·

Tools for nurturing buyers

DIGITAL TOOLS FOR NURTURING LEADS PROSPECTS

The highest level of conversion online is a web site visitor that contacts a builder to schedule an on-site tour or appointment.

SEARCH PRINT/OUTDOOR Attractwho schedule ENGINES visit have typically completed ADVERTISING an on-site Buyers the process of narrowing downRELATIONS home builders, neighborhoods, SOCIAL MEDIA PUBLIC INBOUND MARKETING MARKETING plan types, and features.

PHOTOS & VIRTUAL Engage VIDEOS ANALYTICS TOURS SOCIAL MEDIA

Nurture Close

SLIDESHOWS

INTERACTIVE FLOORPLANS

Impressions Visitors

WEB SITE CONVERSIONS:

ONLINE CONCIERGE

LIVE CHAT

EMAIL MKTG

PHONE CALLS

DIRECT MAIL

FOLLOW UP

Leads Appts

APPOINTMENTS

THE NURTURE PHASE: One of the most important components of the sales funnel for building

trust, the nurture phase consists of many tools for converting leads to appointments. This is typically the longest phase of the buying cycle, with many potential interactions.

INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

50

We asked survey participants to provide feedback on which tools they would be most likely to use to schedule an on-site appointment. Respondents selected from six methods of contact: • • • • • •

Map/directions page Telephone Email Online appointment request form General contact form Live Chat

This section had the widest gaps between buyer categories in this year’s survey. In some cases, buyers in one age or price point category chose a method for contacting builders that differed by more than 20% compared to other methods of contact.

FIG 37:

tes

Home Buyers’ Preferred Methods of Scheduling Home Tour when Visiting Builder Web Sites

s Year

(Percent of buyers that are likely)

Previous Year

uyer 100.0%

87.0%

80.0% 60.0%

91.1%

87.9%

93.4%

87.7%

90.8%

91.4%

78.2%

70.9% 50.6%

40.0% 20.0% 0.0%

LIVE CHAT

EMAIL LINK

TELEPHONE NUMBER

“CONTACT US” FORM

MAP/DIRECTIONS PAGE

34.8%

5+

tes

s Year

uyer

51

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 39:

Buyers that are Likely to Use Telephone as Method of Scheduling Home Tour when Visiting Builder Web Sites (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price 100.0%

95.6%

94.8%

Segmented by 1st-Time / Repeat Buyer

93.7%

86.8%

82.6%

$0 - $200k

$200k -$500k

$500k and up

Segmented by US Region 96.4% 96.1%

83.8%

Midwest

Northeast

96.5% 87.4%

First-time Buyer

91.3%

Repeat Buyer

Segmented by Age of Buyer 96.0%

91.7% 92.3%

87.5% 88.1%

90.2%

91.0%

96.2% 82.2%

South

West

25-44

89.7%

91.7% 78.3%

45-64

65+

Buyers that areNUMBER Likely to Use a General Contact Form as TELEPHONE Method of Scheduling Home Tour from Builder Web Site (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price 94.4%

88.7%

84.4%

80.5%

Segmented by 1st-Time / Repeat Buyer 80.5%

75.0%

$0 - $200k

96.5%

89.5%

$200k -$500k

$500k and up

77.8%

First-time Buyer

81.6%

Repeat Buyer

TELEPHONE NUMBER: Home buyer usage of the telephone to schedule a home tour when

visiting builder web sites declined among older buyers (-13.4%) and for homes $500k and Segmented

by US Region

by Ageover of Buyer above (-13.2%) from last year’s report. In the South, aSegmented gain of 12.2% 2012 was reported 96.4% among home buyers for using the telephone to schedule a home tour.

94.8% 76.6%

81.0%

81.3%

91.5%

87.9%

87.7%

82.9%

72.7%

80.8% 73.3%

75.0% 65.2%

Midwest

INDEX

Northeast

South

West

25-44

45-64

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

65+

52

Buyers that are Likely to Use Live Chat as Method of Scheduling a Home Tour when Visiting Builder Web Sites (Percent of buyers that are likely)

Previous Year

EMAIL LINK

Segmented by Purchase Price

90.3% 68.4%

100.0%

63.4%

59.7%

57.3%

49.3%

80.0%

48.0% 22.2%

$0 - $200k

$200k -$500k

60.0% First-time Buyer

$500k and up

Segmented by US Region

Repeat Buyer

40.0%

Segmented by Age of Buyer 80.5%

75.4%

20.0%

79.1%

71.0%

EMAIL LINK:64.6% As one of the top three 64.3%methods for scheduling a home tour, the usage of an 58.6%

57.8% 58.3%

55.1% email link continued to grow in most categories year over year, although likelihood dropped 45.6% in the Northeast by 6.6% from 2012. Interestingly, home buyers in the $500k and38.9% up range 34.8% 35.4% maintained a 100% likelihood of using an email link to schedule a home tour from a builder’s web site.

Midwest Northeast South West 25-44 45-64 65+

FIG 40:

Buyers that are Likely to Use Email Link as Method of Scheduling a Home Tour when Visiting Builder Web Sites (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer

100.0% 100.0% 88.3%

92.2% 84.7%

$0 - $200k

92.7%

89.2%

$200k -$500k

84.4% 83.3%

Midwest

97.2% 85.9%

First-time Buyer

$500k and up

Segmented by US Region 95.8%

92.7%

96.4%

98.7% 91.0%

Repeat Buyer

91.9% 84.4%

81.8%

Northeast

86.9%

Segmented by Age of Buyer

89.2%

South

West

25-44

91.0% 80.6%

45-64

78.3%

65+

Buyers that are Likely to Use Telephone as Method of Scheduling Home Tour when Visiting Builder Web Sites (Percent of buyers that are likely)

53

Previous Year THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY INDEX

Segmented by Purchase Price 94.8%

Segmented by 1st-Time / Repeat Buyer

100.0%

95.6%

93.7% 82.6%

(Percent

Segmented by 1st-Time / Repeat Buyer

72.1%

68.9%

Home when

86.8%

90.2%

96.5% 87.4%

91.3%

0.0%

5

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 41:

Buyers that are Likely to Use a Map/Directions Page as Method of Scheduling Home Tour from Builder Web Site (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price 90.9%

87.8%

$0 - $200k

91.0%

Segmented by 1st-Time / Repeat Buyer 97.4%

91.9%

90.2%

88.9%

$200k -$500k

$500k and up

Segmented by US Region 87.5% 86.9%

93.8% 86.2%

93.8%

First-time Buyer

90.9% 89.8%

Repeat Buyer

Segmented by Age of Buyer

89.9%

93.5%

96.4% 97.4%

92.8% 92.3%

87.8%

92.3%

91.7% 78.3%

Midwest

Northeast

South

West

25-44

45-64

65+

MAP/DIRECTIONS PAGE

MAP/DIRECTIONS PAGE: 9 out of 10 home buyers indicated that they would likely use a

map/directions page to schedule a home tour when visiting builder web sites. This level of preference remained fairly constant from last year, aside from a decrease of 13.4% for buyers 65 and older. Higher priced homes saw an 8.5% increase.

INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

54

Buyers that are Likely to Use Telephone as Method of Scheduling Home Tour when Visiting Builder Web Sites (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price

GENERAL CONTACT FORM 94.8%

100.0%

95.6%

93.7%

86.8%

82.6%

$0 - $200k

$200k -$500k

$500k and up

Segmented by US Region 87.5% 88.1%

Segmented by 1st-Time / Repeat Buyer 90.2%

96.5% 87.4%

First-time Buyer

91.3%

Repeat Buyer

Segmented by Age of Buyer 96.0%

91.7% 92.3%

96.4% 96.1%

83.8%

91.0%

96.2% 82.2%

89.7%

91.7% 78.3%

GENERAL CONTACT FORM: First-time home buyers and home buyers in the $200k-$500k

category were 13.7% and 16% more likely to use this tool to schedule a home tour from a builder web site. There was a 10% decrease in likelihood to use for buyers age 65 and up.

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 42:

Buyers that are Likely to Use a General Contact Form as Method of Scheduling Home Tour from Builder Web Site (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price 80.5%

94.4%

88.7%

84.4%

Segmented by 1st-Time / Repeat Buyer 80.5%

75.0%

$0 - $200k

$200k -$500k

$500k and up

Segmented by US Region

76.6%

81.0%

81.3%

96.5%

89.5%

77.8%

First-time Buyer

81.6%

Repeat Buyer

Segmented by Age of Buyer 87.9%

87.7%

96.4% 94.8%

91.5% 82.9%

72.7%

80.8% 73.3%

75.0% 65.2%

Midwest

Northeast

South

West

25-44

45-64

65+

Buyers that are Likely to Use a Map/Directions Page as THEof BOKKA GROUP’S 2013-14 STUDYSiteINDEX 55 Method Scheduling HomeHOME TourBUYER fromCONVERSION Builder Web (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer

FIG 43:

Buyers that are Likely to Use Live Chat as Method of Scheduling a Home Tour when Visiting Builder Web Sites (Percent of buyers that are likely)

Hom whe

(Perc

Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer 90.3%

72.1%

68.9%

68.4%

100.0%

63.4%

59.7%

57.3%

49.3%

80.0%

48.0% 22.2%

$0 - $200k

$200k -$500k

60.0% First-time Buyer

$500k and up

Segmented by US Region 75.4%

71.0%

0.0%

64.3%

58.6%

55.1% 45.6%

Northeast

South

20.0%

79.1%

38.9%

35.4%

Midwest

40.0%

Segmented by Age of Buyer 80.5%

64.6%

57.8% 58.3%

Repeat Buyer

West

25-44

45-64

34.8%

65+

Buyers that are Likely to Use Email Link as Method of LIVE CHAT Scheduling a Home Tour when Visiting Builder Web Sites (Percent of buyers that are likely) Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer

100.0% 100.0% 88.3%

92.2%

$0 - $200k

84.7%

92.7%

89.2%

$200k -$500k

97.2%

First-time Buyer

$500k and up

Segmented by US Region

85.9%

86.9%

Repeat Buyer

Segmented by Age of Buyer

96.4% Chat can be the most powerful digital tool available for 95.8% used correctly, Live LIVE CHAT: When 92.7% 91.9% 98.7%

91.0%

89.2%

91.0%

84.4% 83.3% with prospects online to convert web traffic to on-site appointments.

84.4% interacting 81.8%

Midwest

INDEX

Northeast

South

West

25-44

80.6%

45-64

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

78.3%

65+

Buyers that are Likely to Use Telephone as Method of Scheduling Home Tour when Visiting Builder Web Sites

56

57

4·

Tools for closing the sale

DIGITAL TOOLS FOR CLOSING THE SALE PROSPECTS

As we’ve seen in the previous sections, digital tools infl uential among buyers in all SEARCH PRINT/OUTDOOR Attractare highly ENGINES ADVERTISING phases of researching a new home purchase, and in all categories.

SOCIAL MEDIA PUBLIC INBOUND MARKETING MARKETING RELATIONS Although preferences may vary between buyers in different geo-Impressions graphical regions, price points and age ranges, the data underVisitors PHOTOS & VIRTUAL Engage VIDEOS ANALYTICS TOURS scores the importance of digital tools in attracting and engaging INTERACTIVE SOCIAL SLIDESHOWS FLOORPLANS MEDIA WEB SITE home buyers online.

Visitors Nurture Close

ONLINE CONCIERGE

KIOSKS/ VIDEOS

LIVE CHAT

EMAIL MKTG

IPAD/TABLET APPS

VIRTUAL DESIGN CENTER

PHONE CALLS

DIRECT MAIL

FAVORITE PLANS VIEWER

Leads

FOLLOW UP

Leads Appts CONVERSIONS:

APPOINTMENTS

AUGMENTED REALITY

Appts Sales

SALES

INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

58

But what about offline?

As the data in this section suggests, technology plays an important role not only in attracting and engaging buyers but in closing the sale as well. On-site Sales Center digital tools and displays have become as important to the sales presentation as well-merchandised model homes and professional, knowledgeable, and skilled Sales Agents.

This changes how Sales Agents interact and build relationships with buyers in the Sales Center, as well as how buyers process information that influences their final decision to purchase.

In the results we’ll see in this section, we’ll discover the importance of Sales Center digital tools in two primary categories: personal Sales Center tools and Sales Center displays.

PERSONAL SALES CENTER TOOLS Personal Sales Center digital tools are touch points that buyers can use to obtain information about floor plans, features, community amenities, site plan and availability, exterior elevation options and more.

The ability for buyers to use personal hands-on tools in the Sales Center was very influential for survey participants in many of the categories that we profiled, but results did vary. For example, 8-9 out of 10 first-time buyers surveyed preferred using tablet devices and kiosks in the Sales Center while only about half of home buyers 65 and over said they considered these tools helpful.

59

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

SALES CENTER TOOLS: THE HANDS-ON HOME BUYER At each stage of the new home purchase, buyers have the information they need at their fingertips. They research builders, neighborhoods, and amenities online. They tour model homes, customize floor plans, and ask questions in real time by Live Chat – all without ever leaving their home or office.

The ability for buyers to easily access this kind of information often makes them feel empowered and in control of their research and decision making process.

As buyers move through each stage of the online sales funnel to transition to an on-site visit, it is just as important for them to feel in control and able to access the information they need.

Whether clicking, swiping, or scrolling, buyers rely on interactive tools to engage with a product, neighborhood and community.

INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

60

ce)

r

FIG 44:

Influence of Digital Tools (Available at a Sales Office) on Decision to Buy from that Particular Home Builder (Percent of buyers that considered it helpful in decision-making process)

r

Previous Year 100.0% 80.0%

66.0%

73.8%

83.6%

90.8%

83.3%

81.8%

66.6%

60.0% 40.0% 20.0% 0.0%

Touch-screen Television Kiosk

Personal Computer

Tablet Device (iPad or Similar)

Smart Phone

6%

So how important is this interactive engagement at the Sales Center? We asked recent home buyers to consider the influence of digital interactive tools during their Sales Center visits.

ce)

ar

r

Participants rated each of three personal interactive tools, including:

r

Personal computer

•

Touch screen television kiosk

•

Tablet

By defining the influence of each of these tools for buyers in specific categories, home builders can invest in the appropriate Sales Center tools and adapt sales presentations to effectively integrate personal technology with personal consultative selling.

3%

ar

•

61

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

Infl on

on Decision to Buy from that Particular Home Builder (Percent of buyers that considered it helpful in decision-making process)

(Per

Previous Year

Segmented by Purchase Price

PERSONAL COMPUTER 76.6%

67.6%

72.0%

68.8%

Segmented by 1st-Time / Repeat Buyer

71.2%

67.7%

65.1%

62.5%

61.8%

100.0

83.6%

80.0

60.0 $0 - $200k

$200k -$500k

First-time Buyer

$500k and up

Segmented by US Region 82.8% 70.8%

70.0% 63.6%

20.0

0.0

81.5% 70.7% 66.4% 62.4%

64.4%

63.5%

40.0

Segmented by Age of Buyer 77.1%

67.9%

Repeat Buyer

55.1%

48.6%

PERSONAL COMPUTER IN SALES OFFICE: Most home buyers own computers and this familiarity Midwest

Northeast

South

West

25-44

45-64

65+

is reflected in the high influence they can have at a builder’s sales office.

FIG 45:

Influence of Personal Computer (Available at Sales Office) on Decision to Buy from that Particular Home Builder (Percent of buyers that considered it helpful in decision-making process) Previous Year

Segmented by Purchase Price 91.5%

89.2% 83.6%

Segmented by 1st-Time / Repeat Buyer

$0 - $200k

94.1%

90.0%

83.9%

88.5%

81.3%

$200k -$500k

First-time Buyer

$500k and up

Segmented by US Region 85.7% 85.9%

Midwest

85.7%

88.6%

Northeast

88.7%

82.7%

Repeat Buyer

Segmented by Age of Buyer 94.3%

93.1% 82.2%

South

81.3%

West

92.8% 86.5%

25-44

90.1% 83.2%

45-64

78.3%

74.3%

65+

Influence of Tablet Device (Available at Sales Office) INDEX THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY on Decision to Buy from that Particular Home Builder (Percent of buyers that considered it helpful in decision-making process) Previous Year

62

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 46:

Influence of Tablet Device (Available at Sales Office) on Decision to Buy from that Particular Home Builder (Percent of buyers that considered it helpful in decision-making process) Previous Year

Segmented by Purchase Price

90.8%

85.1%

79.4% 66.4%

Segmented by 1st-Time / Repeat Buyer 75.0%

82.0%

65.3%

$0 - $200k

64.7%

$200k -$500k

First-time Buyer

$500k and up

Segmented by US Region

67.8%

90.8%

88.5%

85.4%

82.9%

Midwest

Repeat Buyer

Segmented by Age of Buyer

75.8% 66.7%

78.6%

76.9%

70.8%

74.4%

73.3% 65.0%

60.3%

55.1% 51.4%

Northeast

South

West

25-44

45-64

65+

TABLET DEVICE Influence of Smart Phone (Used at Sales Office) on Decision to Buy from that Particular Home Builder (Percent of buyers that considered it helpful in decision-making process) Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer 91.4%

84.3%

80.0%

76.5%

75.8%

TABLET DEVICE: Not surprisingly, tablet devices enjoyed significant growth as helpful decision First-time Buyer increasing Repeat Buyer $0 - $200k $200k -$500k and upand first-time home making tools among younger$500k buyers buyers, 16.4% and 14% respectively. Builders utilizing tablet devices, computers and television kiosks in their sales centers need to ensure that sales associates are helpful in assisting others with these tools.

Segmented by US Region Segmented by Age of Buyer

82.9% 72.7%

84.7%

86.2%

88.4% 75.2%

45.7%

BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION 63Midwest THE Northeast South West 25-44 45-64 STUDY

65+

INDEX

TOUCH SCREEN TELEVISION KIOSK

TOUCH SCREEN TELEVISION KIOSKS had the lowest influence on buying decisions among sales

center tools, however, nearly 75% of all home buyers said they were influential, compared with 66% in 2012.

FIG 47:

Influence of Touch Screen Kiosk (Available at Sales Office) on Decision to Buy from that Particular Home Builder (Percent of buyers that considered it helpful in decision-making process) Previous Year

Segmented by Purchase Price

100.0

83.6% 67.6%

(Per

Segmented by 1st-Time / Repeat Buyer

76.6%

72.0%

68.8%

71.2%

65.1%

62.5%

61.8%

Infl on

67.7%

80.0

60.0 $0 - $200k

$200k -$500k

First-time Buyer

$500k and up

Segmented by US Region 82.8% 70.8%

70.0% 63.6%

63.5%

40.0

20.0

Segmented by Age of Buyer 77.1%

67.9%

Repeat Buyer

0.0

81.5% 70.7% 66.4% 62.4%

64.4%

55.1%

Midwest

Northeast

South

West

25-44

45-64

48.6%

65+

INDEX THE of BOKKA GROUP’S Computer 2013-14 HOME BUYER CONVERSION STUDY Influence Personal (Available at Sales Office)64 on Decision to Buy from that Particular Home Builder (Percent of buyers that considered it helpful in decision-making process)

SALES CENTER DISPLAYS: INTERACTIVE OR INTERACTION? In the last several years, technology in Sales Centers has advanced from static floor plan and builder story displays to videos, interactive floor plans, and other advanced selling tools.

Until now, there has been no data available about how effective these tools are among buyers nationally, from the home buyer’s point of view. Do these digital tools influence a prospect’s decision to buy? If so, which digital tools are most likely to assist a buyer in getting the information they need to make a confident buying decision?

65

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

We surveyed recent new home buyers and asked them to identify which digital Sales Center displays were most valuable when touring a model home complex.

We asked participants to respond based on seven popular Sales Center digital displays: • • • • • • •

Customizable floor plans Interactive virtual tour Virtual design center Photo galleries of homes and amenities Videos about the builder, community and amenities Video testimonials from recent buyers Community fly-throughs

FIG 48:

Influence of Digital Content (Available at a Sales Office) on Decision to Buy from that Particular Home Builder

us Year

(Percent of buyers that considered it likely to influence)

Previous Year

uyer 100.0% 90.0%

88.9%

97.3% 96.0% 93.3% 93.0% 92.7% 95.8% 95.3% 78.3%

80.0%

93.3%

88.0% 77.1%

97.0%

82.8%

70.0% 60.0% 50.0% 40.0% 30.0%

Sales Video of Homes & Communities

82.9%

Photo Gallery of Homes & Communities

Interactive Floorplans

Interactive Virtual Tours

Video Testimonials

Community Fly-throughs

Virtual Design Center

65+

r

us Year

uyer

INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

66

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 49:

Influence of Interactive Floorplans (Displayed at Sales Office) on Decision to Buy from that Particular Builder (Percent of buyers that considered it likely to influence) Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer

92.7% 95.1%

96.0% 97.6%

100.0% 100.0%

98.1% 97.4%

94.8% 97.2%

$0 - $200k

$200k -$500k

$500k and up

First-time Buyer

Repeat Buyer

Segmented by US Region 95.2% 97.0%

Midwest

98.4%

95.7%

Segmented by Age of Buyer

93.2%

Northeast

96.5%

97.9% 100.0%

97.7% 97.6%

97.1% 99.0% 87.0% 88.6%

South

West

25-44

45-64

65+

Influence of Virtual Tours (Displayed at Sales Office) on INTERACTIVE FLOOR Decision to Buy from thatPLANS Particular Home Builder (Percent of buyers that considered it likely to influence) Previous Year

Segmented by Purchase Price 89.1%

93.1%

$0 - $200k

95.0% 96.4%

$200k -$500k

Segmented by 1st-Time / Repeat Buyer 96.9%

100.0%

$500k and up

96.2% 96.7%

First-time Buyer

92.7%

95.6%

Repeat Buyer

INTERACTIVE FLOOR PLANS have become very popular among new home buyers. Our study

this year validates this, with 100% of home buyers in Segmented the West and in the Segmented

by US Region

by Age of $500k Buyer and up categories describing them as influential in their buying decision. In fact, this tool scored an 100.0% 99.0% 97.9% 96.8% influence rating 96.4% 95.6% 95.1% across all home buyer 95.5% impressive 97% demographics.

94.9% 94.3% 91.7% 91.1% 82.6%

South West 25-44 45-64 STUDY BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION 67Midwest THE Northeast

88.6%

65+

INDEX

Influence of Interactive Floorplans (Displayed at Sales Office) on Decision to Buy from that Particular Builder (Percent of buyers that considered it likely to influence) Previous Year

VIRTUAL HOME TOURS Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer

92.7% 95.1%

96.0% 97.6%

100.0% 100.0%

98.1% 97.4%

94.8% 97.2%

$0 - $200k

$200k -$500k

$500k and up

First-time Buyer

Repeat Buyer

Segmented by US Region 95.2% 97.0%

98.4%

95.7%

Segmented by Age of Buyer

93.2%

96.5%

97.9% 100.0%

97.7% 97.6%

97.1% 99.0% 87.0% 88.6%

VIRTUAL HOME TOURS: The influence of virtual tours used in sales centers is huge. With

visual impact, this tool increased in influence from last year in all but one category (Northeast).

Offering high quality virtual tours can not only lead to purchase decisions but refine a buyer’s search and save time determining which features, plans and elevations are preferred.

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 50:

Influence of Virtual Tours (Displayed at Sales Office) on Decision to Buy from that Particular Home Builder (Percent of buyers that considered it likely to influence) Previous Year

Segmented by Purchase Price 89.1%

93.1%

96.9%

95.0% 96.4%

$0 - $200k

Segmented by 1st-Time / Repeat Buyer

$200k -$500k

100.0%

$500k and up

Segmented by US Region 91.7%

94.9%

96.8%

94.3%

96.2% 96.7%

First-time Buyer

92.7%

95.6%

Repeat Buyer

Segmented by Age of Buyer

91.1%

95.1%

97.9%100.0%

95.5% 95.6%

96.4%

99.0% 82.6%

Midwest

Northeast

South

West

25-44

45-64

88.6%

65+

Influence of Video Testimonials (Displayed at Sales Office) INDEX THE BOKKA GROUP’S 2013-14 BUYER CONVERSION STUDY 68 on Decision to Buy from that HOME Particular Home Builder (Percent of buyers that considered it likely to influence) Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 51:

Influence of Virtual Design Center (Available at Sales Office) on Decision to Buy from that Particular Builder (Percent of buyers that considered it likely to influence) Previous Year

Segmented by Purchase Price 91.8% 94.1%

$0 - $200k

93.5%

97.6%

Segmented by 1st-Time / Repeat Buyer 96.9%

$200k -$500k

100.0%

$500k and up

Segmented by US Region 94.0%

97.0%

96.8% 95.7%

96.2% 96.7%

First-time Buyer

92.7%

97.2%

Repeat Buyer

Segmented by Age of Buyer

91.1%

95.8%

93.8%

100.0%

95.5% 97.2%

95.6%

99.0% 84.1%

Midwest

Northeast

South

West

25-44

45-64

88.6%

65+

VIRTUAL DESIGN CENTER

VIRTUAL DESIGN CENTER acceptance among buyers visiting a sales center is on par with virtual

tour influence on buying decisions. Correlated with visual appeal, virtual design centers also scored 100% ranking among home buyers in the West, and for home $500k and up. Since usability and influence are high, builders must strive for best-in-class technology to provide excellent user experiences.

69

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

Influence of Sales Video (Displayed at Sales Office) on Decision to Buy from that Particular Home Builder (Percent of buyers that considered it likely to influence)

DIGITAL PHOTO Segmented by Purchase Price GALLERIES 84.5%

90.5%

89.2%

93.8%

93.5%

98.0%

Infl on

(Per

Previous Year

Segmented by 1st-Time / Repeat Buyer 92.3% 94.1%

88.2%

100.0%

92.3%

90.0%

80.0%

70.0%

60.0% $0 - $200k

$200k -$500k

$500k and up

Segmented by US Region 86.9% 87.9%

Repeat Buyer

50.0%

40.0%

Segmented by Age of Buyer

94.3%

90.5%

First-time Buyer

87.0%

93.1%

95.8% 97.7% 88.0%

94.0%

30.0%

92.7% 93.1% 84.1% 82.9%

PHOTO GALLERIES represent another visually-oriented sales tool that has a high degree of

influence over home buying decisions. Closely associated with video and virtual tours, high quality photo galleries have the ability to connect buyers emotionally with homes, especially those not yet constructed.

Midwest

Northeast

South

25-44

West

45-64

65+

FIG 52:

Influence of Digital Photo Gallery (Displayed at Sales Office) on Decision to Buy from that Particular Builder (Percent of buyers that considered it likely to influence) Previous Year

Segmented by Purchase Price 90.0% 91.2%

94.0%

$0 - $200k

96.8%

Segmented by 1st-Time / Repeat Buyer 93.8%

$200k -$500k

100.0%

$500k and up

Segmented by US Region 92.9% 92.9%

96.8%

94.3%

98.1%

95.4%

First-time Buyer

91.7%

96.0%

Repeat Buyer

Segmented by Age of Buyer

90.4%

95.8%

93.8%

100.0%

96.2% 96.0%

94.9%

98.0% 85.7%

81.2%

Midwest

Northeast

South

West

25-44

45-64

65+

Influence of Interactive Floorplans (Displayed at Sales Office) on Decision to Buy from that Particular Builder INDEX THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY (Percent of buyers that considered it likely to influence)

Previous Year

Segmented by Purchase Price

Segmented by 1st-Time / Repeat Buyer

70

FIG 53:

Influence of Sales Video (Displayed at Sales Office) on Decision to Buy from that Particular Home Builder (Percent of buyers that considered it likely to influence) Segmented by Purchase Price 84.5%

90.5%

89.2%

Previous Year

(Perce

Segmented by 1st-Time / Repeat Buyer 93.8%

93.5%

Influ on D

98.0%

92.3% 94.1%

88.2%

100.0%

92.3%

90.0% 80.0% 70.0% 60.0%

$0 - $200k

$200k -$500k

$500k and up

Segmented by US Region 86.9% 87.9%

Midwest

90.5%

Repeat Buyer

50.0% 40.0%

Segmented by Age of Buyer

94.3% 87.0%

Northeast

First-time Buyer

93.1%

South

95.8% 97.7% 88.0%

94.0%

84.1% 82.9%

25-44

West

30.0%

92.7% 93.1%

45-64

65+

Influence of Digital Photo Gallery (Displayed at Sales SALESonVIDEOS AMENITIES Office) DecisionOF to HOMES Buy fromAND that Particular Builder (Percent of buyers that considered it likely to influence) Previous Year

Segmented by Purchase Price 90.0% 91.2%

$0 - $200k

94.0%

96.8%

Segmented by 1st-Time / Repeat Buyer 93.8%

$200k -$500k

100.0%

$500k and up

98.1%

95.4%

First-time Buyer

91.7%

96.0%

Repeat Buyer

Segmented

by US Region are of significant value in persuading Segmented Ageto of purchase Buyer SALES VIDEOS OF HOMES a by buyer from

a particular 96.8% builder. Growth from 2012100.0% was modest but consistent and substantiates the 98.0% 96.2% 96.0% 95.8% 94.9% 94.3% 93.8% 92.9% 92.9% 90.4% tools that instill confidence in a chosen home, a particular builder importance of having visual 85.7% 81.2% and amenities provided by that builder.

Midwest

71

Northeast

South

West

25-44

45-64

65+

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

Influence of Interactive Floorplans (Displayed at Sales

INDEX

Influence of Virtual Tours (Displayed at Sales Office) on Decision to Buy from that Particular Home Builder (Percent of buyers that considered it likely to influence) Previous Year

VIDEO TESTIMONIALS FROM RECENT BUYERS Segmented by Purchase Price 89.1%

93.1%

96.9%

95.0% 96.4%

$0 - $200k

Segmented by 1st-Time / Repeat Buyer

$200k -$500k

100.0%

First-time Buyer

$500k and up

Segmented by US Region 91.7%

94.9%

96.8%

94.3%

96.2% 96.7%

92.7%

95.6%

Repeat Buyer

Segmented by Age of Buyer

91.1%

95.1%

97.9%100.0%

95.5% 95.6%

99.0%

96.4%

82.6%

88.6%

VIDEO TESTIMONIALS FROM RECENT BUYERS: Influence of these presentations rose most over

last year among first-time buyers, for higher end homes, for younger buyers and buyers in the Western region. This is an often-overlooked tool for building trust within a sales center.

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 54:

Influence of Video Testimonials (Displayed at Sales Office) on Decision to Buy from that Particular Home Builder (Percent of buyers that considered it likely to influence) Previous Year

Segmented by Purchase Price 78.2%

84.3%

Segmented by 1st-Time / Repeat Buyer

$0 - $200k

94.7%

94.0%

88.3%

82.7%

78.9%

$200k -$500k

First-time Buyer

$500k and up

Segmented by US Region

77.4%

83.8%

Midwest

Northeast

83.9%

Repeat Buyer

Segmented by Age of Buyer 94.3%

90.0% 77.8%

77.5%

75.0%

86.1% 78.1%

81.3%

91.2% 78.2%

82.5%

86.1% 71.0%

South

West

25-44

45-64

65.7%

65+

Influence of Community Fly-Throughs (Displayed at Sales INDEX THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY Office) on Decision to Buy from that Particular Builder 72 (Percent of buyers that considered it likely to influence) Previous Year

Midwest

Northeast

South

West

25-44

45-64

65+

FIG 55:

Influence of Community Fly-Throughs (Displayed at Sales Office) on Decision to Buy from that Particular Builder (Percent of buyers that considered it likely to influence) Previous Year

Segmented by Purchase Price 72.7%

77.5%

79.4%

$0 - $200k

Segmented by 1st-Time / Repeat Buyer 90.0%

83.5%

90.1% 80.8%

78.1%

$200k -$500k

First-time Buyer

$500k and up

Segmented by US Region 79.4%

85.7%

76.5% 78.2%

Repeat Buyer

Segmented by Age of Buyer 86.1%

78.8%

90.0%

89.7% 81.3%

70.2% 69.7%

77.4%

81.0%

75.2% 68.1% 57.1%

Midwest

Northeast

South

West

25-44

45-64

65+

Influence of Virtual Design Center (Available at Sales Office) on Decision to Buy from that Particular Builder COMMUNITY FLY-THROUGHS (Percent of buyers that considered it likely to influence)

Previous Year

Segmented by Purchase Price 91.8% 94.1%

$0 - $200k

93.5%

97.6%

Segmented by 1st-Time / Repeat Buyer 96.9%

$200k -$500k

100.0%

$500k and up

Segmented by US Region

96.2% 96.7%

First-time Buyer

92.7%

97.2%

Repeat Buyer

Segmented by Age of Buyer

COMMUNITY FLY-THROUGHS were rated as influential for 81% of this year’s99.0% study participants in 100.0% 94.0%

97.0%

96.8% 95.7%

95.5% 97.2%

95.8%

95.6%

93.8% 91.1% from a particular builder. Declines of 5.8% and 11% influence were their decision to purchase 88.6% 84.1% reported in the 45-64 and 65+ age groups compared with 2012 survey results.

Midwest

73

Northeast

South

West

25-44

45-64

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

65+

INDEX

TECHNOLOGY AND ITS EFFECT ON THE HOME BUYING EXPERIENCE Today, technology informs relationships both on and off the web. Often people spend more time texting than talking, more time interacting on Facebook than face-to-face, and more time communicating through devices than body language. Technology is an integral part of how we form and nurture relationships, both personal and professional. As technology continues to become inherent in our relationships, it should come as no surprise that technology plays a vital role in the relationships that sales professionals build with prospective buyers in the sales office.

Today’s buyers have more control over how they access, assimilate, and process information, and all of that has changed the role of the Sales Agent. Once the gatekeeper for information that influences a buying decision (i.e. pricing, availability and upgrades) the Sales Agent today must play a new role. Sales Agents now partner with prospective buyers in the sales office – many of whom have already gathered significant amounts of information before their visit – to create high quality interactions by personalizing the technology and translating it into the buyer’s specific needs and wants.

As the data suggests, technology that specifically enables buyers to personalize their own home with digital tools such as customizable, interactive floor plans and virtual design centers is very influential, and is dramatically changing the way buyers experience the home buying process.

INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

74

75

BACKGROUND & METHODOLOGY The 2013-14 study was designed and written by the Bokka Group.

The National Association of Home Builders Research Center (now Home Innovation Research Labs) fielded the study in January 2014 as a third-party research company and provided tabulated results. This report (including all charts, graphics and descriptions) was produced by the Bokka Group.

The primary objective of this study was to develop a better understanding of the use of online marketing tools by new home buyers. The Bokka Group set out to conduct a survey of recent home buyers to learn more about their use and preferences of online tools in their new home search and buying process. The Bokka Group developed the questionnaire which was fielded as a web-based survey to recent home buyers to obtain statistically reliable and credible data on this topic to share with the industry as a means of improving the home buying process for both buyer and seller.

The Bokka Group provided e-mail addresses of recent new home buyers to the NAHB Research Center, who augmented the list with respondents of their most recent Consumer Practices Survey who indicated they purchased a new home in 2013. The 400 survey respondents were located in the U.S.

BE A PARTICIPANT If you would like to be a part of the 2015 Conversion Study, please visit http://conversion-report.com

INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

76

ABOUT THE BOKKA GROUP The Bokka Group is an Online Marketing Management firm that helps builders increase marketing efficiency and improve the new home buying experience. Specializing in Top 100 home builders in the United States and Canada, The Bokka Group’s proprietary Marketing Effectiveness Evaluation is the industry’s leading comprehensive marketing evaluation tool. The Marketing Effectiveness Evaluation helps builders increase ROI across all marketing channels including online, signage, print, and more.

For more details visit http://bokkagroup.com

77

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

INDEX: CHARTS AND FIGURES fig. 1:

Demographics - Geography, Age, Marital Status

fig. 2:

Demographics - Gender, Purpose, Price, Home Type

fig. 3:

Marketing Channel Influence in Attracting Buyers to Home Builder Web Sites

fig. 4:

Influence of Organic Search Results in Attracting uyers to Builder Web Sites B

fig. 5:

Influence of Independent Listing Web Sites in Attracting Buyers to Builder Web Sites

fig. 6:

Influence of Paid Search Results in Attracting Buyers to Builder Web Sites

fig. 7:

Influence of Banner Advertisements in Attracting Buyers to Builder Web Sites

fig. 8:

Items Considered Important when Researching Home Builder Web Sites

fig. 9:

Importance of Photo Galleries when Researching Home Builder Web Sites

fig. 10: Importance of Virtual Tours when Researching Home Builder Web Sites fig. 11: Importance of Interactive Floorplans when Researching Home Builder Web Sites fig. 12: Importance of Reviews/Testimonials when Researching Home Builder Web Sites fig. 13: Importance of Videos when Researching Home Builder Web Sites fig. 14: Importance of Mobile Friendly Web Site when Researching Home Builder Web Sites

INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

78

fig. 15: Importance of Social Media Presence when Researching Home Builder Web Sites fig. 16: Items that Influence Buyers to Provide Their Contact Information to Home Builders fig. 17: Influence of Web Site Tone on Buyers’ Decision to Share Contact Info with Home Builders fig. 18: Influence of “We Won’tShare...” Statement on Decision to Share Contact Info with Home Builders fig. 19: Influence of Restricted Features Access on Buyers’ Decision to Share Contact Info with Home Builders fig. 20: Influence of Form Length on Buyers’ Decision to Share Contact Info with Home Builders fig. 21: Influence of Personalized Content on Buyers’ Decision to Share Contact Info with Home Builders fig. 22: Influence of Prominant Privacy Policy on Buyers’ Decision to Share Contact Info with Home Builders fig. 23: Influence of Link to Email Samples/Frequency on Decision to Share Contact Info with Home Builders fig. 24: Items for Which Buyers are likely to Provide Their Contact Information to Builders fig. 25: Likelihood that Buyers Will Provide Their Contact Info in Exchange for Email Updates with Current Offers/Promotions fig. 26: Likelihood Buyers Will Provide Their Contact Info in Exchange for Email Updates with Pricing/Plan Changes fig. 27: Likelihood that Buyers Will Provide Their Contact Info in Exchange for Access to Interactive Brochure fig. 28: Likelihood that Buyers Will Provide Their Contact Details in Exchange for Personalized Follow-up

79

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

fig. 29: Likelihood that Buyers Will Provide Their Contact Info in Exchange for Email Event Invitations fig. 30: “How often would you want to receive relevant email updates from a prospective builder?” fig. 31: Home Buyers’ Preferred Methods of Getting More Info when Visiting Builder Web Sites fig. 32: Buyers Likely to Use Email as Method of Getting More Info when Visiting Builder Web Sites fig. 33: Buyers Likely to Use Map/Directions Page as Method of Getting More Info when Visiting Builder Web Sites fig. 34: Buyers Likely to Use a Contact Form as Method of Getting More Info when Visiting Builder Web Sites fig. 35: Buyers Likely to Use Telephone as Method of Getting More Info when Visiting Builder Web Sites fig. 36: Buyers Likely to Use Live Chat as Method of Getting More Info when Visiting Builder Web Sites fig. 37: Home Buyers’ Preferred Methods of Scheduling Home Tour when Visiting Builder Web Sites fig. 39: Buyers Likely to Use Telephone as Method of Scheduling Home Tour fig. 40: Buyers Likely to Use Email Link as Method of Scheduling Home Tour fig. 41: Buyers Likely to Use Map/Directions Page as Method of Scheduling Home Tour fig. 42: Buyers Likely to Use General Contact Form as Method of Scheduling Home Tour fig. 43: Buyers Likely to Use Live Chat as Method of Scheduling Home Tour

INDEX

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

80

fig. 44: Influence of Digital Tools (Available at a Sales Office) on Decision to Buy from that Home Builder fig. 45: Influence of Personal Computer (Available at Sales Office) on Decision to Buy from that Home Builder fig. 46: Influence of Tablet Device (Available at Sales Office) on Decision to Buy from that Home Builder fig. 47: Influence of Touch Screen Kiosk (Available at Sales Office) on Decision to Buy from that Home Builder fig. 48: Influence of Digital Content (Available at a Sales Office) on Decision to Buy from that Home Builder fig. 49: Influence of Interactive Floorplans (Displayed at Sales Office) on Decision to Buy from that Builder fig. 50: Influence of Virtual Tours (Displayed at Sales Office) on Decision to Buy from that Home Builder fig. 51: Influence of Virtual Design Center (Available at Sales Office) on Decision to Buy from that Builder fig. 52: Influence of Digital Photo Gallery (Displayed at Sales Office) on Decision to Buy from that Builder fig. 53: Influence of Sales Video (Displayed at Sales Office) on Decision to Buy from that Home Builder fig. 54: Influence of Video Testimonials (Displayed at Sales Office) on Decision to Buy from that Home Builder fig. 55: Influence of Community Fly-Throughs (Displayed at Sales Office) on Decision to Buy from that Builder

81

THE BOKKA GROUP’S 2013-14 HOME BUYER CONVERSION STUDY

INDEX

http://bokkagroup.com