The pandemic resulted in substantial changes in consumer behavior and expectations, causing real estate companies to reconsider how they connect and service customers. The urgency and severity of the pandemic condensed technology adoption that likely would have taken three years at a normal pace into a single year. In order to improve customer experience companies developed unique values for their products and services but only those that invested in building improved tech capabilities succeeded.
Construction and its allied industries have always been tech deficit. Traditionally, transactions have relied on manual methods and in-person interactions. However, with changing consumer lifestyles, rapid urbanisation and rise of dual income families, end user expectations and experience requirements in the housing & construction sector are also evolving rapidly. The widespread adoption of tech in every other sector has also led consumers to expect tech efficiencies in construction business.
Companies that have adopted tech across the entire construction value chain have become a preferred choice as they offer consumers greater access, visibility, options and choice at their fingertips. Consumer preference is undergoing a tectonic shift from local construction providers to tech enabled construction partners. As the shift happens, vendors and construction service providers are also recognizing the importance of technology to meet consumer needs. The introduction of virtual construction methods like ‘Contactless Construction’ ensure customers’ safety through social distancing while simultaneously mapping real time construction progress.
Tracking construction progress has always been a challenge for homebuilders, both in pre pandemic and current times. With ‘Contactless Construction’ customers can approve plans, track real time progress and monitor every aspect of the project virtually. The culture of technology-enabled innovation is becoming a distinctive competitive asset that most companies are looking to gain, but few have achieved.
Furthermore, the construction industry is complicated and suffers from ‘what you see differs from what you get’. The lack of transparency and trust is exacerbated by industry wide standards of advance payments and defaults. Solutions that offer consumers trust, transparency and accountability are the need of the hour. Success from tech construction providers has shown that moving to an escrow payment model instills faith in customers, thereby increasing their confidence. In an escrow arrangement, transactions are facilitated in a manner that no advance payment is made to the contractor during construction stages, and the payment is made only after stage completion. This ensures full ownership of the customer’s money from day one till final project delivery day.
Talking about ownership, home building in India is more than just owning a house made of brick & mortar. Besides having emotional connotations, home building is also a massive financial responsibility. As an industry that thrives on experience, the construction industry has so far overlooked end user satisfaction. The most common sentiment with regards to the real estate and construction sector is the fear of project delays. During the pandemic, project delays were the biggest pain point for customers.
The challenge in combating delays is the historically fragmented nature of construction. Subcontractors report to main contractors and critical project information is typically spread across multiple siloed and disconnected solutions. This, in turn, makes it difficult for contractors to offer a single view of a project’s status to their customers. For homeowners, there is a viable case for using an integrated tech enabled platform that maps end-to-end construction activity. A platform that works as a bridge with other stakeholders and provides real time data tracking, project monitoring and quality assurance.
For construction service providers, this platform can help in automation of the entire construction life cycle and work as an umbrella solution taking care of material, manpower and machinery. Studies have shown a direct link between increased tech adoption and improvement in customer experience. Also, while technology plays a key role, front-line personnel should be given practical ideas on how to put customers' first and be empathetic. Technology will make consumers' lives easier and provide a better customer experience, but project managers and others engaged must have a thorough understanding of each customer's background and offer them personalised experience. Managers and innovation teams should develop abilities in customer experience. Executives should learn how to support, accelerate, and celebrate customer-centricity within companies, by incorporating design thinking into the strategic planning process early on.
