Data is an essential part of every business. It allows leaders and managers to understand how the company is doing and what needs to be done to improve its standing. As technology has improved, data has become more complex. What used to work a few years ago may not be the best solution today. That’s why it’s important for home builders to be in tune with their data.
Here are three reasons why they need to take their data seriously.
Make better decisions
Data is invaluable to builders when it comes to making better decisions. Instead of relying on ‘hunches’ or ‘best guesses,’ data provides insights that can be used to predict the future, identify trends, and spot areas for improvement. Builders can use data to make decisions about finding new suppliers, land planning, acquisitions, market expansion, predicting sales trends and setting goals, managing marketing efforts, understanding your buyers, improving customer service, and more.
Data can provide evidence on how a builder’s investments and strategies are working. Collecting and reviewing data allows builders to understand if they’re meeting expected goals and make tweaks to improve performance if things are off-target.
On the flip side, data can also reveal inefficient processes that can be detrimental to the bottom line. By tracking and analyzing data from these processes, builders can gain a more accurate view of how things are working and figure out what needs to be fixed, allowing builders to make more efficient use of limited resources.
Understand your home buyers
Homebuyers have an abundance of choices when it comes to home builders. That’s why it’s important to use data to understand your buyers and what they want in their dream homes. The more a builder understands their buyer, the easier it is to reach them. Data can uncover your buyer’s needs, wants, and motivations, allowing builders to design new homes and communities their buyers want to buy. It also helps them to create effective marketing campaigns to reach their target market.
Data can also help builders improve their customer service. A few dissatisfied customers can negatively impact a builder’s reputation. Builders can leverage data to pinpoint trends, concerns, and sticking points buyers face during their buying process and create resources or solutions that improve the process.
As more technology companies are reducing support of third-party cookies (a tracking pixel created by a separate company that is placed on a website), companies are developing new ways to capture data through first-party cookies (tracking pixels created by the website owner). First-party data can be more accurate and timely than those collected from other sources because they’re collected directly from their audience.
Homebuilders that embrace the power of data will position themselves for success in the future. Data is everywhere and learning how to harness and analyze it will help every builder.