The past few years have transformed consumer expectations in the homebuilding industry. As demand steadily rises, so do the expectations that homebuilders and contractors must meet to keep their potential and current customers happy throughout the most significant purchasing decisions in their lives. Conversational AI for construction companies can help. How?
While prospective buyers still work with real estate agents, more than half prefer direct contact with a builder. That means increased expectations, increasing the pressure to respond to questions and concerns promptly and accurately. In this environment, conversational AI is beginning to reshape sales and customer service.
An industry as high-touch as this requires a personalized approach at scale. Conversational AI, when applied effectively, ensures that prospective and current buyers get timely, relevant answers throughout months or even years of engagement.
What Is Conversational AI?
Put simply, conversational AI refers to software that can simulate natural, human conversations through digital channels. It is most commonly applied to channels like live chat, SMS texting, and email.
But conversational AI is not just a chatbot that analyzes a question and then draws on a pre-defined database to give a canned answer. Natural Language Processing algorithms make it context-aware. At the same time, automation abilities enable it to draw on data, like CRM software, to make answers more relevant. It also shares information across channels, providing a single experience over time.
Finally, machine learning algorithms allow it to learn from every interaction. As a result, AI tools improve their answers each time someone interacts with them.
These abilities have enabled conversational AI to grow rapidly in recent years. McKinsey estimates that 78% of companies have integrated or are working to integrate it in at least one operational part of their business. It’s why the global market for the technology is expected to nearly quadruple to $40 billion by 2030.
Why Conversational AI Matters in Construction
Residential construction has one of the longest sales cycles consumers will encounter. Over months and years, potential buyers carefully consider their options for a new home. Even after they’ve made their choice, significant time passes during construction before they move in. During that period, they have many questions.
Most homebuilding companies, on the other hand, focus their efforts on the construction and operational parts of the process. They may not have the resources for an extensive sales and support staff ready to answer any question on a moment’s notice. That means fewer leads and frustrated buyers. What’s the result? Lower revenue and missed opportunities.
Conversational AI for construction bridges the gap. It provides an outlet for audiences to ask any questions they might have. AI tools can respond quickly and accurately at a moment’s notice. They can even qualify leads, creating a better picture of how likely potential buyers might be to take that next step. All this is based on their engagement and the nature of their questions.
But most importantly, Conversational AI for construction improves the experience for prospective homebuyers throughout the sales cycle. They’ll feel well-taken care of, even as the majority of your resources are spent on building the home of their dreams.
5 Benefits of Conversational AI for Homebuilders
Understanding how conversational AI for construction fits into the homebuilding journey is just the start. The true impact comes from the tangible benefits it delivers, both for homebuilders looking to grow their business and for buyers looking to be supported throughout their long journey.
- Speed to Lead: Especially when embedded on your website, conversational AI can engage your potential customers earlier in the cycle. Available as soon as they have a question, it can capture their information for future follow-ups, faster than competitors who have to rely on static RFI forms or manual outreach.
- 24/7 Availability: Unlike human staff, your AI assistant is available around the clock, on holidays, and at any other times customers might have questions. Some even offer multi-language support, adding a benefit for homebuilders looking to attract a broader range of audiences.
- Scalability: AI systems can handle multiple conversations at the same time, making them easier to scale as your business and audience grow. No need to hire extra sales or customer support staff to increase capacity when the AI agent can take care of most routine questions and concerns.
- Personalization at Scale: Unlike traditional chatbots, conversational AI is not a one-size-fits-all approach. Even as your audience grows, it offers the opportunity for contextual, responsive engagement that draws on existing information for every user with which it interacts to make conversations more relevant.
- Operational Efficiency: By answering routine questions, conversational AI for construction can reduce manual follow-ups and triage. But it also knows when a question is too complex for the answer to be automated, naturally rerouting these inquiries to human agents and keeping user satisfaction high.
In an industry where timelines are long and expectations are high, these benefits enable builders to better engage with prospective and current homebuyers. AI solutions increase the speed of response without compromising quality or consistency. Even as your audience grows, you can enhance customer experiences throughout the construction lifecycle.
4 Use Cases for Conversational AI in New Home Construction
Given these benefits, conversational AI for construction can apply across multiple stages of the homebuyer journey. These use cases illustrate how homebuilders and contractors use the technology to improve efficiency, responsiveness, and customer satisfaction.
1. Lead Capture and Qualification
Every homebuying journey begins with research. In that process, potential buyers will browse builder websites to better understand their options, pricing, and more. Conversational AI can proactively engage these website visitors, answering initial questions but also asking follow-ups to gather contact information.
During and after the initial conversation, some conversational AI solutions also evaluate the relevance of each conversation and determine potential buying intent. Warm leads can be rerouted into communication flows that nurture them more actively to the next stage of the sales cycle.
2. Customer Service and Pre-Sale Support
As the buying decision becomes more urgent and clear, many potential buyers will have the same questions. They’ll wonder about floor plan models, pricing, and construction timelines. They’ll also start wondering about financing options and other questions directly related to the eventual sale.
Answers to these questions are vital to converting leads into customers, but they also take up significant time. Conversational AI for construction, such as Atlas, our digital assistant for builders, that can answer them easily can free up sales teams for more high-value interactions. These tools ensure a consistent and positive customer service experience that leaves buyers feeling supported and ready for the purchase.
3. Project Updates and Construction Milestones
In the homebuilding industry, the buying decision is only one milestone on a long journey to the new homestead. It’s when construction planning begins, and then the actual construction. The right AI solution can help to keep existing buyers informed during these long build cycles.
For example, it can share updates on construction dynamically via SMS and email. It can continue to answer questions about anything from updated construction timelines to opportunities for home decor planning. On a broader level, it can reduce anxiety on the part of the homebuyer, which also reduces inbound calls that might lead to capacity concerns operationally.
4. Post-Construction Service and Warranty Support
Even after the home is complete and the homeowner has moved in, AI can play a supporting role to ensure high satisfaction rates. For example, your conversational AI can function as an intake system for support requests. Ensure that every request is catalogued and categorized appropriately.
At the same time, AI systems will still be able to escalate support as needed. As a result, more complex warranty or post-construction questions get addressed appropriately and in a timely fashion. That keeps homeowners informed while maintaining high customer satisfaction in an industry where word of mouth and referrals can play a significant role in new business development.
Choosing the Right Approach to Conversational AI
An industry as broad as AI cannot support a one-size-fits-all approach for construction and homebuilder companies looking to find a solution that fits their needs. Instead, finding the right platform requires keeping a few key considerations in mind:
- Some conversational AI tools are DIY tools, requiring a custom setup with little onboarding. Fully managed platforms provide more in-depth support, which might make more sense for an industry as complex as homebuilding.
- Industry-specific tools are especially relevant in this field, where nuances like the need to support long sales and construction cycles may mean features and capabilities specifically designed for homebuilding.
- Integrations are key. Solutions that integrate with your CRM enable more nuance in how customer questions and concerns are addressed using AI capabilities.
- Keep your key channels in mind. Lead-generating systems may be most effective when integrated into your website. Lead qualification and nurturing solutions, such as Verse, work well via SMS, email, and other direct outreach channels.
Above all, avoid systems that simply try to capture the current hype of AI. Instead, evaluate tools based on how they solve the current questions, concerns, and problems for users in your buyer journey.
Looking Ahead: Scaling the Homebuyer Journey With Conversational AI for Construction
Buyer expectations will continue to rise. Homebuilders that invest in AI-driven communication strategies will be better positioned to compete and meet those rising expectations. Used in this way, conversational AI for construction becomes a framework for delivering consistent, high-quality engagement throughout the entire homebuying journey.
From initial research to post-sale support, AI ensures no question goes unanswered and no lead goes unqualified. In the process, it builds relationships, all while increasing operational efficiencies and improving customer satisfaction. It’s time to explore how the technology can support your sales and service strategy to capture more leads, serve buyers faster, and increase your revenue.
