In a Down Market, There’s Always Opportunity

Home Warranty of America forges ahead with innovation and customer service

By Stephanie Andre

RISMEDIA, Dec. 9, 2008-Do you like the instant feedback and customer service you are able to get on a number of consumer websites? So does Home Warranty of America (HWA). Realizing the need to connect more with its clients and customers, the company has pushed ahead on technology and innovation, making it more convenient for those who need help to get it. From video to a new website, it’s easy to see why so many brokerages-and their buyers and sellers-are signing on with the home warranty provider. Here, David Sobel, vice president of sales for HWA, explains the company’s expansion through 2008 and its passion for 2009.

Real Estate magazine: Can you talk about the U.S. expansion of the HWA sales staff? What are some of the new markets you’re now in?

David Sobel: We have grown this year-we’re pretty pleased about our growth. This year, we’ve moved into a number of new markets, including Virginia, Idaho, Louisiana, Oklahoma, Ohio and Oregon. We’ve also grown our sales staff by about 25%. We believe in managed growth-not borrowing money to grow. We take our time to find the best salespeople, and just try to offer the best product with the best service behind it.

RE: In the down real estate market, why is it a smart move for you to grow your business?

DS: There’s always opportunity in a down market. The value of our product has increased across the country. When the market is slower, and homes are on market longer, sellers are more willing to offer warranties. It adds incentive to buy their home. When homes were selling in a day, our product value was decreased because sellers could do whatever they wanted to do. Now, as it’s tougher to sell a home, sellers are more willing to take a look at something like a home warranty-this increases our value.

RE: Earlier this year, you added GreenPlus (a “green” program) to your offerings. What’s been the reaction thus far?

DS: We listened to our customers-the end user and the real estate professional who sells and markets the product. We asked them what they wanted and needed. Our customers helped create these products by giving us their opinions. GreenPlus has had tremendous success because so many people now are becoming more environmentally conscious. We thought that the program was a no-brainer. People have taken to it and it truly differentiates us from our competitors. Plus, it really gives our customers what they want. In home warranty, you really have to go outside the box and let customers steer you in the right direction. We believe we’ve done that.

RE: HWA has also added online administrative functions for transaction coordinators. Please explain.

DS: What real estate professionals want more than anything is to just be able to sell, and have other people, such as escrow officers, handle the other things. What we’ve done to help with that is create an online toolbox for those people to order warranties, get instant confirmations and deal with invoices; agents love it. Transaction coordinators really appreciate it. It’s time they don’t have to spend on the phone or faxing. Now, it’s quick and easy for them to order warranties for the entire agent team. Plus, it’s easier to keep track of and get confirmations and sales reports-all without having to set up and manage multiple users.

RE: What else are you doing for your real estate professional customers?

DS: We have recently launched a series of videos for real estate professionals that educates them about our programs. Sales meetings are generally not as well attended, nor are training sessions. These videos, which are available on-demand, teach practitioners about offering warranties and all that entails. The videos are interactive and fun; agents love it.

We’ve also created a video for consumers. They can watch it at any time, and it’s even available on YouTube. Agents are now showing the video to their buyer and seller clients. The video works to reeducate them on our home warranties and increases their awareness. We’re getting a lot of hits per day on YouTube.

RE: In addition to those new online functions, can you talk about HWA’s new website?

DS: We realized that we needed to take our website into the future. To do this, we again reached out to brokers and agents to help create it. The new website has more information, more materials and more access. Agents want to see things like claims paid and warranty production. Now they can see that.

We’ve also added a media section to the site. A lot of agents today want to brand themselves in their local media, but it’s difficult to do that on your own. So, we’ve created a media library that has tons of great information.

RE: Can you talk about some of the new agreements HWA has with its broker partners?

DS: We’ve partnered with a lot of companies over the past year. We have a great partnership with Prudential Gardner in New Orleans. We helped solve the problems they had. We’re also an approved supplier for EXIT Realty. We look at each relationship; it has to be a win for the broker, the agent and us. We all have to find common ground in that. Some relationships are not that way.

We tailor each program to each business to meet their needs. Our size gives us the flexibility to do this and we have the expertise to fill their strategic needs and ours.

RE: Moving into 2009, what will you be focusing on as a company?

DS: We’re going to be unveiling more educational videos for agents and consumers. They’ll be more detailed: how do I order a warranty; how to get things done faster with your company. It will be more about the process.

We’re also going to be enhancing our client follow-up program. We always want to communicate with the actual contract holder. We will offer them more tools, such as maintenance tips and educating them on why it’s so important.

In addition, we’ll be looking at new warranty programs. Technology lets us be an innovator on the claims process and resolution online. Other providers offer an online process, but it is very one-sided-”Tell us what’s wrong and someone will be in touch with you.” We’re going to make it a full system where we will instantly get back to you with information. It works well for everyone: from the business traveler to the housewife or someone on a lunch break.

For more information, please visit www.hwahomewarranty.com.