What are the primary factors that drive customer satisfaction? Why do people choose to buy from one dealership and not another? Is it the best price or does it involve other elements? Let’s answer the question by looking outside our industry for a change and explore the customer’s attitudes toward the single biggest investment they will ever make: A New Home.

According to a study released last week by JD Power and Associates, the number one factor in customer satisfaction with a new home was Customer Service. That was followed by the home being “ready” for move in when promised, and next was the professionalism of the Sales Staff. Here’s how the actual list looked along with the percentage that contributed to overall satisfaction:

Customer Service - 23%
Home Readiness - 18%
Sales Staff - 16%
Quality of Workmanship - 14%
Price - 10%
Design - 7%
Amenities - 4%
Location - 3%

Notice that Price was ranked well down the list. This follows with what automotive shoppers and statistics continue to tell us: Customers are willing to pay more for good service.

So here is the question I pose to manufacturers, dealers and sales professionals:

If customers continue to tell us that price is not the main factor in satisfaction, why do we continue to focus so much on price in advertising and in our sales processes? I would really like a good, well thought out answer, and I’m willing to publish the best response.