Back in 2020, we released our Customer Segmentation Guide comprised of our Target Customer Profiles (TCPs) and have since been collecting buyer information on over 7,000 closings annually as of 2021. We’ve made several refinements to this guide throughout this process, leading to the current framework that we utilize today. This detailed TCP strategy focused on providing detailed insight to our partners and team members is the foundation with which we separate buyers into groups in order to best appeal to their unique preferences.
While no two people are the same, it is virtually impossible for any home builder to build at scale without an effort to divide large groups of people into cohorts that share similar characteristics, wants, and needs. This practice is known as customer segmentation. The basic assumption underlying the idea is that people, while unique in their own ways, are also similar based on common factors. In other words, people are part cohort and part individual.
Previous efforts to establish customer segments have most often been centered on the idea of demographics. However, today, we understand that psychographics, a consideration of the various factors that drive a customer’s emotional priorities, is a far more powerful predictor than basic demographic information. If we understand the various factors that impact the emotional drives to purchase, we can better predict where to buy land, what product to build, what messages to use in our marketing, and how to create a compelling buying experience. All of those things are essential to success in home building. Because of the importance that lies in learning about customers, the TCP framework is a crucial part of New Home Star's marketing approach, which is outlined even further in this comprehensive home builder marketing article.
Along these lines, our real estate customer segmentation model is designed to help answer a simple but complex question: how can we predict the purchasing behavior of our customers? The answer to that question is based on understanding the what, why, and how behind a customer’s prioritization of various factors. We believe the answer is based on the following formula:
These TCPs have been constructed based on extensive research and formatted to provide an in-depth analysis of the customer group’s various emotional considerations. We’ve separated each section of the framework based on customer category, customer life stages, and customer economic conditions. From there, we include 3-4 sub-sections based on each condition. We then pull the term from each condition best representing the buyer, which leads to the creation of each unique profile. Further, we include robust tactical guidance for each TCP to help inform your strategy.
To ensure the continuous growth of this strategy, the New Home Star Customer Intelligence team regularly gathers data to inform our team about any changes or trends seen in regards to the industry itself and customer segments. Detailed reports are compiled and shared with the organization focused on guiding decision-making to best appeal to each customer.
What’s Included for our partners and team members:
- Individual custom introductions and “how-to” guides for builder executives/operators, marketing managers, sales management, and sales professionals.
- A quick overview of the key terms and baseline information you need to know.
- A cumulative summary Quick Reference Guide (QRG) of all TCPs.
- An individual QRG for each of our TCPs.
- A full customer analysis and tactical guide for each of our TCPs.
- Several supplements for unique situations and circumstances.
- New Home Star’s suggestions for potential TCP pairings in a community.
- Nearly 30 new training videos available on New Home Connect™.
- Nearly 30 new training PowerPoints for Sales Managers to help guide training.
- The complete research summary that underlies our model.
For more information on target consumer profiles or to gain access to this comprehensive guide, contact one of our Account Executives today.