Empowering Our Customers Put Our Company Back on Track

By Bruce Case, President, Case Design/Remodeling, Inc., Bethesda, Md.
It goes without saying that the remodeling business has suffered in the last few years. The same goes for us at Case Design/Remodeling, a full-service residential remodeler. At our peak in 2006, our revenues were about $47 million. At the depth of the downturn, we were probably down 40 percent from that.

During the go-go times of the housing boom, the power shifted from homeowners to contractors. As a result, our industry started selling a product rather than a service, and many clients had very little flexibility in the transaction.

We've tried to shift the power back to homeowners. We empower our customers by educating them and providing them with options. It's a pretty rare move in this industry, and it's helped us regain our financial footing.

Identifying our core concepts
We've been in business since 1961, so we've made it through recessions before. We expected this recession to be both long-lasting and hard-hitting, so we started cost-cutting moves right away, including layoffs and budget cutbacks. But more importantly, we took the recession as an opportunity to listen to our customers and pay attention to what they really wanted from us.

We identified three concepts critical to strengthening our relationship with our clients: Value, empowerment, and transparency.

Putting ideas into action
We outsourced or got rid of anything that we felt didn't bring value to the homeowner, such as hosting our own e-mail system and payroll services. We also overhauled some of our systems, including how we handled cabinet orders, in order to minimize delays, damage, and misorders. These efforts allowed us to provide clients with a more consistent and uniform experience, and streamline our processes and trim our budget.

To empower our clients, we decided to focus on helping them make good decisions. We realized that to make good decisions, clients need options. So we worked to give them four choices in how the remodeling process takes place.

Where once we assigned one of our 20 staff designers to a project, we now let clients choose who they want to work with. We let our clients choose their payment terms: hourly, fixed price, or a design contract. We let them choose their level of involvement, from having nothing to do with a project to doing everything but the major construction and code-related work. And finally, we made sure the clients understood that we were willing to tackle all levels of projects, from a minor cosmetic touch-up to a wholesale renovation. With each choice, we tried to be as transparent as possible -- we wanted the client to choose whatever was in his or her best interest, and not necessarily ours.

What we're doing is pretty radical, given that most traditional remodelers are seeking to control all of the variables, rather than give more options to their clients. Over the past year, we've worked through some details and processes, as well as developing checklists so that our clients really understand their options and can make good decisions.

Proving our worth
Being able to choose the designer empowers the client, but it also means the designers must work harder for business. So if you're a designer, we're essentially creating an environment of true capitalism -- you need to work to get the accreditation and the portfolio that will attract clients. Though there was some apprehension on staff initially, the designers have proven they're up to the challenge. They've worked hard to develop their bios and credentials on our website -- we give each of them a space on the site -- and it's done a good job of keeping them on their toes.

It's too early to tell for sure how our clients will respond, but so far the feedback has been positive. Some of the people at our seminars have approached us about working with a specific designer and have been really excited that we actually encourage that kind of input. Personally, I'm very optimistic. My goal is to get people thinking about Case Remodeling, whether they call us today or in a year. And I think we're achieving that.

Our revenues were up just slightly this past year, to $24 million and we're projecting revenues of $26 million for 2010. Giving our clients a choice might mean they choose someone else for a job, or they might choose a set of options that means less money for us. But I'm confident that we'll gain in the long run because we aren't just remodeling their homes -- we're giving them the homes they want.
Bruce has lived in Arlington, Va. with his wife and daughter for more than 14 years. Aside from spending time with his family, Bruce's passions include cycling and playing "MacGyver" with projects around his house
-- As told to Peter McDougall

Resources:

• Check out Innovation: Create an Idea. Redefine Your Business. Grow Your Profits by Tom Gorman.
• Learn how to treat your customers like lifetime investments.