ENERGY STAR^® High Performance Home Seminars

Builders committed to developing High Performance Homes can partner with ENERGY STAR and E-Star to increase sales through better marketing. ENERGY STAR High Performance Home seminars are designed to help High Performance Home builders increase buyer satisfaction and thereby stimulate referral rates. The seminars offers a forum through which new and prospective homebuyers can learn about High Performance Homes from an independent expert while enjoying a catered meal in a professional, yet comfortable setting.

Background

The U.S. EPA's ENERGY STAR program and E-Star Colorado have teamed to offer an ongoing series of seminars for consumers. The cost of the seminars is underwritten by participating High Performance Home builders. These builders invite new and prospective homebuyers to the seminars along with sales staff, Realtors, and tradespersons. This page discusses High Performance Homes, the obstacles to selling them, and the marketing solution ENERGY STAR and E-Star offer through the seminars. A schedule of upcoming seminars is available in the Announcements and Events section of the E-Star Web site.

High Performance Homes – A Definition

High Performance Homes score at least 86 points on the E-Star Home Energy Rating scale. They rely upon systems-engineered design, quality-controlled construction, and performance testing. The result is a home that increases comfort for homeowners, features durable construction, has improved moisture control and indoor air quality, is environmentally responsible, and provides savings on utility bills.

Marketing Obstacles

A number of factors lead to under-valuation of High Performance Homes, and undermine marketing efforts to sell and create market momentum for High Performance Homes.

Consumers Unaware of Building Science. Consumers do not understand the link between good building science and higher comfort, durability, long-term ownership costs, and indoor air quality.

Sales Staff Unable to Differentiate High Performance Homes. Sales and marketing staff don’t always understand how to sell “behind the drywall,” or to differentiate the High Performance Home from run-of-the-mill alternatives.

Historically Low Energy Costs. Energy costs have been low, and therefore not front and center with consumers. However, this is changing in Colorado, as seen in recent energy cost increases. These changes are nationwide and expected to be long term due to changes in natural gas distribution out of Colorado, and the depletion of ‘easy-access’ fossil fuels.

Dissatisfied Customers. J.D. Power and Associates reported at the 2002 Energy & Environmental Building Association (EEBA) Conference that “88% of homeowners are less than completely satisfied” with their homes (Measuring Customer Satisfaction in Today’s Highly Competitive Environment, 2002, J.D. Power and Associates) and that callbacks, especially repeat ones, decrease customer satisfaction. Moreover, the Denver metro area ranked 17th out of 17 cities in a J.D. Power and Associates survey of homebuyer customer satisfaction in major metropolitan areas. J.D. Power also indicated that decreases in customer satisfaction dramatically cut word-of-mouth referrals. This dissatisfied group presents a huge marketing opportunity for High Performance Home builders. The following chart shows components of customer satisfaction after purchases of homes have taken place.

The High Performance Home Seminar Solution

Where there are obstacles, there are opportunities. Through the ENERGY STAR High Performance Home seminars, participating builders can easily leverage three of the top four drivers of customer satisfaction (i.e., customer service, sales staff, and workmanship) to beat the competition. Builders invite recent homebuyers and their families, prospective buyers, and sales staff to a seminar. A catered meal with dessert is served, and an independent, charismatic industry expert is the keynote speaker. In a lighthearted but informative manner, the speaker explains some basic principles of building science and how the builder’s homes offer superior moisture management, energy efficiency, and comfort benefits. The following results can be expected as a result of homebuyers attending the seminars:

Increased Homebuyer Awareness of Quality Workmanship. A High Performance Home offers higher quality construction with more attention to detail than one built by the competition. The seminars educate buyers about this advantage and improve their understanding of why the purchase of a High Performance Home is one of the best financial decisions they will ever make.

Builder’s Sales Staff. Almost all builders sell homes based on their appearance and amenities. But High Performance Home builders offer more than just looks because their homes perform well – that is, the homes are energy efficient, durable, and comfortable. Sales staff who attend the seminars are better able to sell the features and benefits of what is “behind the drywall.” By doing so, the sales staff can differentiate a High Performance Home builder’s product and garner a higher selling price for it. Overall, an informed sales staff provides better service and more meaningful information to buyers.

Customer Service. Inviting recent buyers to a High Performance Home seminar demonstrates that the builder cares about the homebuyer even after the sale has been made. People have a natural inclination to “brag” about the wise buying decisions they have made. Homebuyers may purchase a property based on its location or some other factor. However, once they attend a High Performance Home seminar and learn how well a builder’s homes perform, the attendees encourage relatives, friends, and colleagues to buy one for their own based on the performance of the homes.

ENERGY STAR and E-Star host the High Performance Home seminars once every other month. E-Star’s expertise with executing marketing events allows builders to focus on the marketing opportunity at hand, rather than the logistics of organizing the sessions.

Sponsoring the Seminars

Builders who construct High Performance Homes can leverage the benefits of this commitment by sponsoring the seminars. For more information, contact Matt Thornberry (303) 297-7498, Senior Program Officer, for information on sponsoring the seminars.