The Secret to 3X Greater Business Performance
Do you believe that the housing industry operates under the same business principles as other industries?
While the housing industry has principles in common with other industries, it is a unique business. Its true value has yet to be mined. In fact, I believe impressive opportunities for extracting significant cost savings and adding value exist for those who take the time to understand the industry’s nuances.
My new book, “Housing 2.0: A Disruption Survival Guide,” which comes out early fall, is based on a critical proven innovation that is transforming virtually every other industry: user experience optimization.
Customer experience (CX) leaders outperform the market: 11-year stock performance of CX leaders vs. laggards from 2007 to 2017. Source: Watermark Consulting
Extensive research and data shareholder returns across major industries reveal user experience leaders have dramatically greater business success compared to laggards. This includes a 3X greater return to investors and 3X greater resilience during downturns (see figures below).
Return to investors is based on profit, which I assume is also of interest to builders. And is there any other industry more dependent on shallower troughs and quicker recovery during downturns than housing? I therefore submit, housing user experience optimization is a new housing industry imperative.
Customer experience (CX) leaders are more resilient during recessionary periods outperform the market: based on comparison of total shareholder returns for publicly traded companies in the top ten of Forester’s CX Performance Index from 2007 to 2009. Source: McKinsey & Company
This is particularly true as customers have become exponentially better informed over the past decade about product user experiences (think internet resources, peer reviews, and social media). And housing is no exception.
I realized the importance of user experience in 2009 while leading the ENERGY STAR Certified Home program. It prompted a long journey compiling decades of experience, research, and detailed observations into a user experience optimization framework featured in my first book, “Retooling the U.S. Housing Industry.”
This work was followed by more than five years of vetting with hundreds of high-performance housing executives along with ongoing research and fine-tuning.
The Housing 2.0 user experience optimization framework represents the culmination of extensive industry engagement with near consensus by builders attending two-day workshops. If you’re a high-performance housing professional, the entire Housing 2.0 program team at Green Builder Media is vested in your success.
Please lookout for the release of my new book in early fall, along with the next round of workshops and action groups (which start September 2) based on this book to begin your own user experience journey.
3X greater business performance is too huge a difference to ignore!
I can’t end this blog without a tremendous shout-out to the Housing 2.0 program sponsors: Panasonic, Mitsubishi Electric, ZIP System Building Enclosures, and Schneider Electric. This unique program fills a critical gap in high-performance housing industry engagement in user experience tools for ensuring their success. It is made possible by the vision and commitment to excellence of these outstanding companies. I’m eternally grateful for their support.