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TTI Home Team Launch at Western Building Show
Comes at Critical Time for Builders
Third-party Customer Service Provider Offers Solution for Current
Dilemma
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Homes are selling like hotcakes. Anxious buyers await, with high
expectations. Added to the mix are labor shortages, which are creating
delays in construction as well as in customer callbacks. Home builders
fret about delivering a quality product while also racing to keep
up with demand.
While certainly a dilemma, many builders are using this situation
as an opportunity to rethink how they deliver customer service.
Focusing on that need for solutions is the concept of "third-party"
customer service, such as that launched recently by TTI Home Team
at the Western Building Show.
As the boom continues, builders are searching for ways to ensure
customer satisfaction and provide effective after-sale service,
steps they realize are also critical to maintaining their long-term
competitive edge. Typically, builders operate in-house customer
service departments, which handle the process of delivering the
home to the buyer and any follow-up work that is needed. A buyer's
warranty experience greatly influences a builder's future referrals.
The concern with customer service programs was also reflected in
the results of a recent survey conducted by National Survey Systems
of Irvine.
In interviews of leading California builders, respondents rated
their customer service programs as "fair," with an average score
of 5.5, on a scale of one to ten (one being "poor" and ten being
"excellent"). Builders also noted the need to improve in the areas
of response time, managing the expectations of buyers, clarifying
communications and upgrading training.
"These results are absolutely consistent with our previous research
into customer service,"
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buyer's warranty experience greatly influences a builder's future
referrals! |
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says Bob Mirman, president of the survey firm. "Builders want to
enhance their homebuyers' experience and are looking for ways to
accomplish that goal." The survey results also validate a year-long
field-test conducted by TTI Home Team, a division of Orange, Calif.-based
Trade Temps Inc. (TTI), a 10-year-old construction-staffing firm,
as well as feedback from builder clients. Its experience with supplying
specialists to supplement builders' customer service staff led TTI
to pursue the third-party idea, according to TTI General
Manager, Joe Wiseman.
The need for a third-party customer service program has grown
quickly in the last few years as production has greatly accelerated
to meet robust market demand. As a result, builders' resources are
strained by trying to provide adequate customer service while also
pursuing aggressive construction schedules. In fact, a recent survey
by the National Association of Home Builders (NAHB) listed labor
shortages as builders' top concern.
TTI Home Team's concept is designed to address these concerns by
offering a single source for all customer-service needs. This relieves
the builder of the burden of warranty service while addressing concerns
about preserving control of the process and maintaining a positive
relationship with buyers.
Working as a partner with the builder, the Home Team assumes the
customer service responsibilities for the normal one-year builder
warranty period. Well-trained, professional Home Team personnel
handle pre walk-through preparation and orientation, and schedule
subcontractor call-backs. A 24-hour service request line is provided
to insure prompt response.
A key advantage of the Home Team concept is the incorporation of state-of-the-art
information technology. Builders have available "anywhere, anytime"
accessibility via the Internet of password-protected "Homeowner Status
Reports," as well as a comprehensive database which provides early
warning of potential problems.
Home Team staff, many with previous experience with building companies,
undergo a rigorous recruitment and training program, ensuring reliable,
well-trained personnel.
"By bringing us aboard, the builder can concentrate on its core
business of building quality homes, while knowing its homebuyers
are in good hands," says Wiseman. "And we can generally handle warranty
administration for a fraction of the cost of an in-house operation."
With the launch at hand, Wiseman reports growing interest in the
Home Team. "Builders are excited about the concept. They can receive
the level of customer service they need, when they need it, and
pay only for what they need," Wiseman states.
In addition to its corporate office in Orange, TTI Home Team has offices
serving the San Francisco Bay area, as well as Los Angeles and San Diego. For additional information, call toll-free (877) 488-4669. |
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Builders Say Their Customer Service Programs Rate
'Fair'
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Builders participating in a recent survey
rated their customer service programs about average and acknowledged
the need for improvement in several important areas, according to
National Survey Systems of Irvine. Leading California builders were
asked to rate the overall performance of their own customer service
programs on a scale of one to ten (one being "poor" and ten being
"excellent"). The average rating from respondents was 5.5, or "fair."
When questioned further as to which areas needed improvement, builders
mentioned most frequently: 1) training all personnel to interact
with buyers in a professional manner; 2) clarifying communications
and decision-making; 3) timely response, and 4) managing the expectations
of the buyer.
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IMPACT
ON REFERRALS
(1 = low; 5 = high) |
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ISSUE |
SCORE |
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Speed
of response to walk-through punch list |
4.4 |
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Speed
of responsiveness after move-in |
4.2 |
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The
social skills of Customer Service Representative |
3.6 |
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Customer
Service representative is knowledgeable |
3.5 |
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Number
of items on walk-through punch list |
3.1 |
| It is well-known
by builders that the overall execution of after-sale service
has a tremendous affect on a future referrals; happy homebuyers
tell their friends. When builders were asked which aspects of
customer service delivery had the biggest impacts on future
referrals, they named speed of response and having knowledgeable,
congenial customer service representatives as the two most important
factors. "These results are absolutely consistent with our previous
research into attitudes toward customer service," says Bob Mirman,
president of the survey firm. "Builders want to improve
their homebuyers' experience and are looking for cost-effective,
practical means to accomplish that goal." Queried for their
opinion of utilizing a third-party provider to handle their
warranty service, builders cited the potential to improve the
homebuyer's experience even above cost-savings as a primary
benefit. "The third-party concept is unique and its time has
come. With the pressure on for builders to deliver on their
promises of a quality home with top-notch after-sale service,
it's the ideal time to bring this process on-line. The concept
of being able to depend on consistent, professional, well-trained
personnel whose sole responsibilityis customer service will
no doubt be embraced by many builders, "Mirman adds. In fact,
some survey participants felt that a |
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SURVEY
SAYS |
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OPPORTUNITIES FOR IMPROVING CUSTOMER
SERVICE
Training all personnel to
interact with buyers in a professional manner.
Clarifying communications
and decision making.
Timely resonse.
Managing the expectations
of the buyer.
Improving execution of work.
Continuing the excitement
of the purchase in consumer's mind.
Increase follow-through by
getting the subs to come in and finish the job, especially
during busy times.
Timing of staff. Allocate
right people at right time.
Training managers to be better
problem solvers.
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| third-party customer
service provider would have a higher degree of accountability
and objectivity than a full-time employee. Among the other perceived
advantages are time efficiencies as well as helping to minimize
future litigation. "With the sheer volume of business being
done today, customer service programs can easily be neglected,"
Mirman says. "This concept alleviates that possibility." |
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TTI/TRADE TEMPS EXPANDS:
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WISEMAN RECOGNIZED FOR INDUSTRY, COMMUNITY LEADERSHIP
For his contributions to the building industry,
Wiseman was honored by the Customer Service Builders Council with
the "Volunteer of the Year" Award
in 1995.
He also served as Vice President of Councils for BIA/SC and was
recognized by two BIA/SC presidents, for Leadership on the Executive
Board in 1995 and with the "Outstanding Service"
Award in 1996.
Wiseman has also participated in several projects for CSBC on behalf
of HomeAid®, the building industry's program for the temporarily
homeless."
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A decade of innovation in trade outsourcing leads to newest venture: Third-party customer service.
In 1989 Joe Wiseman spotted an unfilled need in the residential
construction industry: providing skilled tradespeople to supplement
the need of builders in the field, primarily when they are in the
process of delivering the home. Need a finish carpenter? No problem.
Short a couple of painters to help complete homes prior to a buyer
walk-through? They're on their way.
Within just five years of its founding in Orange, Calif., Trade Temps (now TTI) became the premier provider of outsourced skilled tradespeople. TTI opened its first branch in San Diego in 1992, followed in the next five years by offices in Los Angeles and the San Francisco Bay Area. Wiseman's work in the customer service arena provided a close-up view of the changes taking place in the industry, as homebuyers became more demanding and builders realized the need to upgrade their customer service programs to meet those expectations and also to minimize litigation. In view of this evolution, TTI sought to establish industry standards
by researching new construction methods and products, including
a stucco waterproofing system for coating and lathing to help prevent
leaks. A leading associate member of the Building Industry Association
(BIA) since 1989, Wiseman recognized the opportunity to educate
the industry on methods and products that would improve the home
building process, and in 1994 co-founded the Customer Service Builders
Council (CSBC) of the BIA of Southern California (BIA/SC). He served
as president the first two years and was a member of the board of
directors for four years.
A key accomplishment during his tenure as president was the promulgation
of "Standards for Customer Service," a policy which was subsequently
adopted by BIA/SC. He also helped establish the Council's Annual
Wage Survey of the customer service industry.
As a force in CSBC, Wiseman also witnessed the challenges as the
market heated up in the mid-'90s, increasing the pressure on builders
to deliver homes and also provide ever-higher standards of warranty
service (a non-revenue producer). The breadth and depth of his experience
gave Wiseman a unique perspective of this growing dilemma, and led
him to a potential solution: the concept of third-party customer
service. Wiseman then formed TTI Home Team, a division of TTI, which
would build on the extensive existing staff of service personnel
to take over a builder's warranty service administration, and at
a substantial savings over an in-house operation.
In 1997 Wiseman began field-testing the concept with various California
builders, as well as with one in Chicago. Feedback from clients,
such as Ryland Homes and Bayside Construction, further validated
his initial assumptions, confirming that the time was indeed ripe
for such a service. Today, TTI Home Team is poised to partner with
home builders to meet the challenges of a far more demanding business
in the next century.
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'Good Help Is Hard To Find'... |
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Builders turn to TTI Home Team to handle their customer service.
In today's booming housing market, trying to keep pace with the
tremendous demand to build and deliver new homes is putting a serious
strain on their labor capabilities, particularly in the area of
after-sale service.
Recognizing the importance of an effective customer service program
to a builder's future referrals, TTI Home Team, one of the first
providers of third-party customer service, is dedicated to relieving
the builder of the warranty service burden, freeing their resources
to focus on their core business of building quality homes. The key
to its ability to meet the builders' needs is the Home Team's cadre
of highly skilled, professional customer service representatives,
many of whom have previously worked for builders.
Developed and refined over the last 10 years, TTI Home Team utilizes
its proprietary "10-point Recruitment and Orientation Process" to
ensure the recruiting of highly qualified and motivated employees.
Acknowledging that a firm's own employees are often the best source
for new hires, TTI Home Team maintains an incentive bonus program.
Prospective employees must undergo drug-testing, and complete a
screening questionnaire and three-step interview process, rigorous
trade-skill and knowledge testing, and new-employee orientation
process, including education in the builder's own customer service
culture.
According to Joe Wiseman, general manager of TTI, the quality of his employees is continually validated by the fact that builders often hire away his best people. "Our mission is to be the premier source for builder customer service," Wiseman says, "and to accomplish that, we must demand only the best of ourselves and our staff. We're proud that our recruitment and training process leads to the caliber of employees that builders value," he says.
"Customer service is our only business, and we strive for excellence
in every aspect." "And that is why builders can have confidence
in TTI Home Team," Wiseman concludes, "because we make them look
good."
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