In today’s residential construction market, managing your reputation is just as important as managing your builds. With nearly 73% of Americans on social media, sharing opinions and stories about a homebuilder is easier than ever—and can reach thousands of people in a seconds. McKinsey research indicates 79% of consumers trust online reviews as much as personal recommendations. That means one homeowner’s bad experience can quickly spiral into a viral nightmare and a devasting blow to your business.

Fortunately, builders can take steps to protect their brand in the court of public opinion. By understanding the “laws” and doing some “preventative maintenance” to bolster your claims resolution process, builders can withstand reputational prosecution to emerge victorious.

‘Laws’ of the Court of Public Opinion

Sharing opinions publicly has always been a way for consumers to voice their frustrations. The internet now amplifies these voices, making it easier for unhappy customers to bypass traditional dispute resolution methods and take their grievances online. In this arena, perception is reality, and businesses often find themselves at a disadvantage.

• Feelings Vs. Facts: Even unverified claims can spread like wildfire if they resonate with the public. The truth often becomes secondary to the emotions and narratives shared online.
• Public Sympathy Often Favors Consumers: The court of public opinion usually sees consumers as the underdog compared to businesses. That makes it easier to generate support.
• Reputation Is a Commodity: A tarnished reputation can be costly, not just in terms of lost business, but also for the time and resources required to rebuild trust. Research indicates that one negative review can deter up to 30 potential customers.

Why Customers Make Their Grievances Public

Homebuyers have made one of the biggest purchases of their lives. Emotions run high. Taking grievances online is a fast and cheap way to get people’s attention.

• Poor Treatment: Research suggests 70% of the customer’s journey is based on how they feel they’re being treated. Builders failing to prioritize the customer experience risk facing serious backlash.
• Slow Responses: Believing that builders are slow to address issues or unwilling to fix problems is a common trigger for public complaints. Today’s customers don’t want to wait or waste their time. Research from Accenture shows that for 75% of consumers, fast response times are the most important part of the customer experience. Even if a repair will take time, respond quickly to the initial inquiry, and set realistic, upfront expectations for the process.
• Untrusted Processes: Buyers often perceive themselves as David fighting Goliath to get a problem resolved. Plenty of bad experiences with other brands well beyond their builder have conditioned them to think the resolution process is biased against them.

Steps Builders Can Take to Protect Their Reputation

A proactive approach to customer care and reputation management is essential to thrive as a residential builder. The right strategy includes the three E’s: efficiency, empathy, and ease.

1. Communicate Early and Often: Communicate with buyers throughout the entire process—from shopping for a home all the way through years after closing. Frequent, transparent communication helps builders manage homeowner expectations. Educate families on strategies for maintaining the home. Outline your responsibilities for handling common repairs, if necessary, and the claims resolution process. Most importantly, stand by your commitments. A broken promise is a quick way to earn a bad reputation in the court of public opinion.
2. Listen: Listening to homeowners is key for maintaining customer satisfaction and engagement. Active listening makes homeowners feel supported, builds trust, and shows empathy. Plus, a better listening process can help save time and money by getting to the core of the customer’s complaint to expedite a resolution. By identifying and addressing problems, you may be able to prevent them in other homes, stopping a potential issue before it even occurs.
3. Respond Quickly: When legitimate problems arise, address them promptly. A swift response shows customers that they remain a priority and you are committed to making things right. If you made a mistake, own it, and apologize. Showing a total willingness to solve the problem creates more forgiving and loyal customers. A study by Salesforce discovered that even when a company makes a mistake, 78% of consumers will buy from them again if the customer service they received to resolve the problem was excellent.
4. Respond with All Hands: Avoid a limited or insufficient response by utilizing all available resources, including outside partners. Document a plan to address the problem. Educate staff on the response if contacted by additional homeowners or the media to avoid inconsistencies.

PWSC: Confidence You Can Build On

Collaborating with a trusted, independent warranty administrator like PWSC addresses the three E’s. Homeowners receive up to 10 years of protection on their home with a warranty that is easy to understand and use. They get 24/7 access to submit claims, which a team of construction experts will triage and manage. If the warranty does not cover the claim, the homeowner receives education on why and a recommendation to resolve the issue on their own. Should dispute resolution be necessary, the warranty comes with a multi-step mediation and binding arbitration process that helps keep issues out of the court of public opinion (and actual courtrooms too).

After closing on a home, it’s natural to shift focus onto the next project. However, neglecting an existing homeowner could leave you defending your reputation rather than constructing beautiful new homes. Partnering with PWSC means you can build confidently while we build homeowner confidence in the quality of your homes and your care for every customer. Find the warranty best for your business at pwsc.com/builders/.