Take a beat and think about this: once upon a time, the idea of getting into cars with strangers or bunking in someone else’s bed while they’re out of town might have seemed like plot points for a quirky sitcom or even a horror movie.
Fast forward, and here we are, living it, courtesy of companies like Uber and Airbnb. We’re navigating through the on-demand economy, where, over the last few years, companies have been extending digital innovation into home buying and selling.
Imagine a world were buying and selling a new home is as easy as scrolling through your Instagram feed. Enter companies like OpenDoor, known as “i-buyers” or “prop-tech” companies.
They use algorithms to analyze data from bedrooms to crime rates to appraise homes and make offers, then turn around and sell it. Historically, they have been able to capture over 4% share in multiple markets.
Here’s where it gets interesting for the home improvement crowd. If people are now becoming more and more comfortable with buying houses sight unseen, powered by nothing but data, what’s stopping them from taking the same leap with their home makeovers?
We’re on the brink of seeing home improvement reimagined as a digital-first experience, where choosing a new kitchen or a bathroom tile or a contractor is as simple as buying something on Amazon.
It’s revolutionary. The home improvement industry is traditionally one of tangible experiences and in-person consultations. But the allure of speed, efficiency, and the joy of instant gratification is changing that.
Implications for marketers in the home improvement industry
The i-buying game hasn’t taken over the world yet, but Opendoor grabbing 4% of a $600 billion+ industry is a solid start. It seems we may be heading for a future were buying a home online is common. What does that mean for marketers in the home improvement industry?
Increased Demand for Digital Solutions:
With the rise of “prop-tech” companies and the shift towards online platforms for real estate transactions, there’s likely to be a corresponding increase in demand for digital solutions in the home improvement space. Homeowners may increasingly prefer to plan, visualize, and even book home improvement services through apps and online platforms, valuing the convenience and efficiency these digital solutions offer.In a Modernize survey of 23,600 homeowners, 57% preferred sending project details digitally over in-person meetings.
Emphasis on Online Presence and Digital Marketing:
Home improvement businesses will need to strengthen their online presence and leverage digital marketing strategies more effectively to communicate with the millennials’ buying decision. This includes optimizing websites for search engines, partnering with third-party marketing partners, utilizing social media to showcase projects, and even tools like virtual reality (VR) and augmented reality (AR) to help customers visualize potential home improvements.
Integration with Prop-Tech Platforms:
As prop-tech companies continue to grow, there may be opportunities for home improvement businesses to integrate their services with these platforms. For example, partnerships with i-buyers could lead to pre-sale renovation services, where home improvement companies provide quick, high-value enhancements to homes before they are listed on i-buying platforms.
Customization and Personalization Through Data:
The use of data analytics in prop-tech mirrors a broader trend that could impact the home improvement industry. Businesses may increasingly use data to understand homeowner preferences and trends, allowing for more personalized and customized home improvement recommendations. As businesses harness data to grasp homeowner preferences and trends, there’s a unique opportunity to weave in our data feedback loop. This approach not only identifies patterns and trends but also generates actionable insights to enhance conversion rates. A dependable partner delves into the data, scrutinizing performance all the way to the keyword level. This analysis enables precise decision-making and optimal allocation of resources, leading to tailored and highly effective home improvement recommendations.
Shift Towards Do-It-For-Me Services:
While the do-it-yourself (DIY) market has traditionally been strong in home improvement, the convenience and speed favored in today’s real estate transactions may lead to a stronger preference for ‘Do-It-For-Me’ services. Homeowners looking for quick, hassle-free improvements to align with the rapid pace of i-buying transactions might opt for professional services over DIY projects. In 2023, Modernize received almost 5.5 million homeowner inquiries, an increase of 37% from 2022.
Growing Importance of Speed and Efficiency:
In line with the fast, streamlined transactions facilitated by i-buyers, there could be an increased emphasis on speed and efficiency in home improvement projects. Homeowners and investors alike may prioritize quick renovations that deliver significant impact with minimal downtime. In this context, our Live Transfer product plays a role by enabling immediate communication with homeowners ready to start their projects. By pairing this with access to contractors’ online reviews, we can shorten the decision-making process, ensuring projects move forward more rapidly and efficiently.
So, what’s the bottom line? A full-on shift to digital, where speed, personalization, and efficiency aren’t just nice-to-haves; they’re the name of the game. As consumers get more hooked on the convenience of the on-demand economy, the industry should continue to pivot before they get left behind. It’s all about getting savvy with digital tools, making things fast, and tailoring every detail to what the homeowner wants.
We encourage you to delve into our recent comprehensive homeowner survey report, which sheds light on these changing trends and offers insights into homeowner behavior and expectations. By aligning with industry experts and staying informed through data and metrics, including our data feedback loop, businesses can make informed decisions that resonate with homeowners’ desires. Stay ahead by understanding the shifts in customer sophistication and adapting your strategies to meet these new expectations head-on.
