Real Estate Builders Resort to Social Media to Salvage Reputation
Real estate builders are increasingly using social media to safeguard their reputation as home buyers voice their grievances online. This trend has prompted developers to hastily appoint online reputation managers to mitigate negative comments.
Home Buyers Voicing Concerns
Many home buyers are yet to receive their homes, even two years after the expected delivery date. Frustrated, these buyers have taken to social media platforms like Facebook and Twitter to express their dissatisfaction. This outpouring of negative feedback is significantly impacting the reputation of real estate developers.
Delayed Project Deliveries
According to a report by real estate research firm Liases Foras, approximately 323,000 homes are slated for delivery in 2013. However, only about half of these are expected to be delivered on time, with the rest facing delays extending into 2015.
Developers Turning to Reputation Management
In response to these delays and the resulting negative comments, real estate firms such as Lodha, Unitech, Supertech, and Puravankara have started employing reputation management systems. For instance, Tata Housing has engaged Social Wavelength to monitor and manage comments about them on social media.
Expert Views
Rajeeb Kumar Dash, Head of Marketing Services at Tata Housing, explained that social media is used to clarify the reasons behind project delays, noting that many negative comments arise from miscommunication.
Jack Bastian Nazareth, COO of Puravankara Projects, views online reputation management as a way to enhance customer relationships by setting the right expectations.
Hareesh Tibrewala, Joint CEO of Social Wavelength, believes that customers often just want to be heard. By responding to their concerns, developers can reduce the amount of negative feedback.
Mumbai-based Lodha Group's Approach
The Lodha Group in Mumbai is using online reputation management to gather feedback from customers and understand their issues. While they prefer offline interactions for resolving issues, they find that online systems help in addressing misinformed complaints.
R Karthik of the Lodha Group notes that many problems arise from a lack of information, and direct communication helps in resolving these issues.