Want happy customers? Then start by fixing the quality of your product or service suppliers. One Victorian builder has done that - and boomed.
| Entrepreneur |
Barry Suckling, Managing Director |
| Company |
National Builders Group |
| Business type |
Home construction |
| Founded |
1999 |
| Employees |
80 |
| Head office |
South Melbourne |
| Contact details |
+61 3 9686 1777 |
Key Learning Points |
|
Customer satisfaction
If you want happy customers, find out who is making them happiest - and bring everyone else up to their level.
Staff retention
Let staff be themselves - it helps improve performance, job satisfaction and energy levels.
|
The National Builders Group Story
Barry Suckling faced some difficult health and professional choices in 1989. His doctor had ordered him to quit the hard physical labour of his work on building sites or face the consequences. It was a tough call for Barry, a family man with a wife and six children to feed.
Fast forward 18 years and Barry now owns National Builders Group (NBG), a home-building company. It has 80 staff, 40 building contractors and turned over $160 million last financial year. How did Barry do it?
Barry took his doctor's advice, dropped his tools, and tried to find a sales job with various large building companies. They all said no because he lacked sales experience. Barry's wife, Joanne, went back to work as a nurse while Barry completed a marketing degree. That enabled him to get work and eventually he became general manager of Hotondo Homes.
In 1999, Barry took the leap and started his own business at home. Eight years later, NBG has plush headquarters in South Melbourne, overlooking Albert Park Lake. There is a 600-square-metre showroom - "Colour World" - where interior designers help customers to select materials, fittings and finishes for their new homes.
The Challenge
By 2003, the stresses of rapid growth meant that NBG was only achieving an 81% customer satisfaction rate, which was below Barry's desired benchmark of 100%. He says: "Our customer relations officers were being badgered by customers with complaints." Barry took action on two fronts: to keep more customers happier and to do the same for his staff and builders in a tightening employment market.
The Solution
Barry got tough on the source of customer complaints. He spent about three months compiling a "serial offenders report" on all NBG's builder members. They were scored into four categories - gold, silver, bronze and rusty tin - according to a range of key performance indicators (KPIs) including customer satisfaction.
Only two earned a gold rating; 18 rated silver; 12 bronze and six rusty tin. The rusty tins were immediately let go; the 12 bronze builders were told that they would get no more work if they rated bronze more than twice; the 18 silvers were told which areas to improve if they wanted regular NBG work. Gold builders were to get as much work as they could handle. Barry says: "It was tough but it worked." NBG now has 22 gold builders; eight silvers and two bronzes.
The ratings are rigorously checked, with twice yearly performance reviews plus on-site visits. To retain a gold rating, a builder must score well on all the main KPIs including: purchasing NBG-specified products, achieving high standards of construction and customer service, and completing projects on time with zero customer complaints. NBG also holds an annual training and motivational conference.
NBG buys its construction materials in large quantities from specific suppliers, preferably those that offer extended warranties. For example, NBG supplies Kleenmaid products because Kleenmaid has an unconditional five-year warranty. Bulk ordering helps cut costs and enables NBG to fix set prices for a contracted term. Big orders have also made NBG a preferred customer for many suppliers, ensuring prompt delivery and service.
But NBG's reputation is made - or unmade - by its customer relations. Customers at the Colour World display are treated to lunch and refreshments in the comfortable lounge and dining area. Clients from regional Victoria are lodged at a five-star hotel while they finalise plans, finishes and paperwork. Kids can relax with toys, TV and pinball machines while their parents make important decisions.
NBG employs two marketing cadets each year. Rowan Keilar - a second-year cadet - loves the company. He says: "Barry is a fantastic boss. He's extremely knowledgeable about personal growth and really helps to bring out the best in people."
Barry fosters a tolerant, fun workplace environment in which people can be themselves. "If they do their jobs well, I'm not worried about their sexual, religious and lifestyle preferences." He expects all staff to be similarly tolerant. "If you have to be at work with a false persona, you'll be exhausted by the time you get home. I want people to walk in here and make work an extension of home. It leads to lower stress levels."
The Result
In recent years, NBG has achieved 20% annual growth. It builds about 800 homes a year in Victoria and has three display homes in Queensland. NBG is one of the top five builders by volume in Victoria.
In 2007, NBG won an Australian Achievers Award for customer service and satisfaction.