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 Process Improvement

Trailblazing the residential construction market

09/14/2022

by Cameron Wilson

Mid-century modern or farmhouse? Stucco white or traditional brick? Marble or granite countertops? Exposed beams or vaulted ceilings? With the current slate of innovative design styles, there’s a multitude of choices that can overwhelm both the homebuyer and the homebuilder.

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We live in an age where the consumer has access to more design and home styles than ever before. Whether they’re scrolling through Instagram Reels or binge-watching the latest home makeover show, consumers are constantly exposed to the capabilities of the residential construction market. So what comes with this newfound exposure of the homebuilder’s potential? Consumer power and preference.

Since consumers have more buying power and are more educated on what they are looking for, homebuilders need to adjust to the market and stay ahead of the trends that have been started by the Joanna Gaineses and Property Brothers of the world. So, how will homebuilders stay ahead of these trends? By ramping up their product development practices.

Adding product development to your toolbelt

Product development starts with research and leads all the way up to launching a new product for an organization. For the residential construction market, the “product” is a house. The most critical elements of the product development process are to evaluate the past, understand the current state of the industry, and anticipate where the market is headed. As the market rapidly shifts, homebuilders need the people and processes in place in order to shift with it. While trends may come and go, the overall purpose of focusing on product development is to better align with consumer preferences. Start by following these tips to enhance your product development in the residential construction market:

1.  Leverage your teams. Consider what your sales, marketing, and architecture team members are hearing directly from your target market.

2. Send surveys to existing homeowners. Continue to follow up with new homeowners on what they wish they could have included in their home.

3. Seek to understand your consumer’s root needs. As designers, it is critical to understand the unmet need homeowners are seeking to satisfy with each request. Once that general need is understood, the new design can be applied to other product lines.

4. Consider socioeconomic shifts. A current example is the shift from in-office to remote work. Homeowners now want more thoughtfully designed home offices – and are willing to pay for it. Additionally, many buyers are looking for multiple home offices so that each spouse has a place to work. Designs that can accommodate this new functional requirement are going to resonate with this segment of the market.

Blazing the trail with a defined role

Once the market data and consumer preferences have been understood, it is time to get to work on applying that acquired knowledge. As we know, the building of a home does not occur overnight, thus it can take extensive time to launch new products. In addition to the extended lead time of launching a new product, new product design can distract the focus of other team members such as architects, sales coordinators, and the marketing team, especially if a defined role is not in place to lead the product development process. Each of these departments plays a critical role in the new product launch and should contribute their own expertise, however, their input should exist in a formalized set of processes within a homebuilder’s defined product development process.

The “trailblazer” that homebuilders need is a product development manager (PDM). A product development manager is the eyes, ears, and driver of all new product design. This individual is responsible for owning and navigating homebuilders through the lifecycle of a new product. A PDM will own or facilitate each phase of the process, but will especially drive research, ideation, design, and launch of a new product. Another key responsibility of this individual is to coordinate all education of new products internally and externally. From an internal perspective, the PDM needs to educate your teams about each new product. Every new product launch should be celebrated by your organization. With this increased awareness around each product, employees across the company, not just the sales team, will be advocates for each new product launch. From an external perspective, a PDM will develop the plan for educating prospective buyers on new product features and the “why” behind each product’s floor plan, elevation, lot layout, and more.

Benefits of a PDM in the residential construction market

Now that we understand who the PDM is and their general responsibilities, here are a few key deliverables and benefits to support implementation:

• Developed business processes and documentation, including:
  • Job Posting and Description
  • Gap Analysis
  • Organization Structure
  • PDM-Focused Process Flows
  • Onboarding Materials
  • Strategic Product Development Roadmap
• Designated individual to focus on new product research
• Defined process and point person for launching all new products
• Increased knowledge of target market’s needs
• Improved collaboration among internal teams
• Increased education of new product design
• Reduced product launch shortcomings

With an established product development manager, residential construction companies can more efficiently and effectively launch new products in their markets thanks to the data and defined processes set by a PDM.

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Looking to enhance your product development process and add a PDM to your organization? Fill out the form below and a Sendero consultant will reach out to you to discuss how an increased focus and defined ownership on product development can propel your organization and better serve your customers.

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