Differentiating at the right journey touchpoints is the key to value creation
Pre - leasing
Leasing
Leasing period and renewals
Government regulation, brand image of the builder and location are top customer considerations while assessing property
Q1 - Did the brand offer enough help for me to assess the property?
Voice of Customer insights
Location visit and accessibility are crucial parameters for customers when assessing a property –
- “The location is very important; I need a property connected by a main road and metro“
- “I saw a lot of properties; some were good, but there were problems like it is not near any road or food shops.”
- “If I don't like the location, I don't go for that property.”
Customers cited that they evaluate properties based on zoning and regulations –
- “The government regulations are very strict near schools, petrol pumps, hospitals, and liquor shops, so I avoid leasing property near these places."
Clear communication on payment terms, taxes and revealing any legal compliances ensures customer conversions
Q2 - Did the brand make leasing informative and seamless?
Voice of Customer insights
Customers stated that support on financing increases the ease of leasing the property –
- "If the payment terms are flexible, it becomes easier to lease a property.“
Customisations and fit-outs facilitated by builders are prioritised for leasing commercial properties –
- “I approached the builder for customisation, they provided the contact for another person. I would have preferred full support from them to make the changes.”
Customers value good project management and transparent communication –
- “A few builders don’t reveal the entire information. There is some water issue on the property or there is no power backup. They might also hide penalties or unpaid taxes in order to make the sale.”
Post- leasing, builders must ensure sustainability and timely renovations for renewals
Q3 - Did the brand meet the commitments?
Voice of Customer insights
Post leasing, builders are maintaining a good relationship with the customers –
- Efficient property management and maintenance is another area where customer ratings are high
For continuous engagement with the customer and ensuring regular renewals –
- Buiders should match local competitors in infrastructure upgrades.
- Builders must incorporate energy-efficient systems, like solar panels, LED lighting, and smart thermostats, that can significantly reduce energy consumption.
- Consistently showcasing a history of completed projects can demonstrate the builder's reliability and success.
Striking the right balance between delighting the customer and the cost of servicing them is key to maximising value
Performance of the segment on the prioritised experience attributes
Companies are expanding to tier 2 and tier 3 cities as part of post-pandemic movement of the talent pool
- With rising costs and saturation in tier 1 cities, builders are expanding their portfolio in tier 2 and tier 3 cities.
- With high demand for GCCs in tier 1 and tier 2 cities, selecting a location is increasingly influenced by the availability of the right talent pool.
Rising demand for green energy compliant office spaces
- Tenants recognise the long-term benefits of energy-efficient, eco-friendly buildings and are willing to pay a premium for socially responsible builders.
Renovations and upgrades to address the return-to-office shift
- Flexible workforce has driven businesses seeking cost-effective and adaptable solutions, such as renovation and redevelopment of existing properties versus newer development.
Builders must align their strategy with customer trends for effective short-term investment plans
Customer retention is driven by transparent communication, trusted brand name and reliable customer support
Customer segmentation based on Satisfaction and Loyalty
(percentage share of respondents)
Customer retention is dependent on their satisfaction with the brand and their tendency to explore alternatives. ‘Ambassador’ are highly satisfied customers who will keep contributing to the brand’s success. ‘Switchers’ on the other hand, are always seeking better options. ‘Critics’ as the third segment, actively convey negative feedback about the brand, if not satisfied. Finally, ‘Dependents’ are customers who remain loyal despite low satisfaction due to lack of alternatives in the market.
Perceived overpricing and hidden costs directly impact a developer’s credibility
- 11 percent of customers seek more transparent and cost-effective alternatives when there are unexpected expenses and lower than expected returns
Unresponsive support and post-sales neglect leads to customer churn
- 7 percent of customers value a personalised approach that addresses their specific needs. A generic, one-size-fits-all service can push them away
Negative word-of-mouth or online reviews can significantly impact a developer's credibility. On the other hand,
- A broad portfolio signals that the builder has a wealth of experience and a range of successful projects, which instills confidence and trust
‘Expectation’ and ‘Integrity’ pillars hold high weightage in defining the overall experience, with a need for improvement on ‘Empathy’
Performance across the KPMG Six pillars of Customer Experience
(Weightage of the pillars to the overall experience requirements)
‘Expectation’ (23 percent) is the key pillar in defining the overall experience with any commercial real estate builder, followed by ‘Integrity’ (22 percent)
Builders can meet customer expectations by –
- Keeping the lines of communication open
- Offering virtual tours, 3D renderings, and interactive floor plans can provide a more immersive experience for potential customers
- Being responsive to inquiries and providing prompt customer support
- Offering flexible lease terms and payment plans particularly appealing to startups and small businesses.
Builders are failing to meet customer expectations on ‘Empathy’. Small initiatives can go a long way –
- Take the time to understand the challenges and pain points your customers are facing
- Offer customised solutions that cater to the specific needs and preferences of each customer
- Build a personal connection with customers by showing genuine interest in their success.
Managing customer expectations throughout project management will translate into high rates driven by trusted operations
Top experience attributes influencing the customer’s willingness to pay
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Meeting customer expectations on the range of facilities as well as the look and feel of the property at possession
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Superior quality of construction and maintenance of amenities
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High level of trust between customer and brand
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Transparent communication on all legal compliances, government regulations and contract terms
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High quality service across all interactions with sales staff, in alignment with property cost
An individual’s willingness to pay a premium is driven by immediate needs. As today’s customer evolves, the focal aspects of premiumisation has shifted from functionality to experience. This aspect may translate as personalised convenience, focus on wellbeing or even exclusive amenities.
Ensuring customers’ peace of mind can help builders claim a premium on the property
- 31 percent of customers have a greater propensity to pay if the builder meets their expectations on facilities, construction quality, premise maintenance, etc.
- 28 percent of customers would pay more to the builders they trust and who seem reliable
25 percent of customers will have a greater propensity to pay if the builder –
- Communicates actual timelines
- Encourages customer feedback
- Offers regular updates on renovations and lease terms
Personalised attention from a broker and in-depth knowledge of the market will offer better turnaround on offer negotiations
Our customer experience (CX) insights across sectors
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