Customer Servces
A Customer Bill Of Rights: The Start Of A New Relationshipby Jeremy Conaway
With the May release of the Murray Consulting/Harris Interactive report, organized real estate once again came face-to-face with what may be the most influential new factor in the industry today -- the contemporary real estate consumer.
This latest research reflects one of the most ambitious efforts yet to understand individuals who are most clearly “not their parents’ type of consumer.”
Understanding where this consumer is “coming from”, what demands they will place on the system, and the best way to convert their desires into a consistent purchase decision represents one of the top challenges facing today’s brokerage managers.
The profile of this very powerful consumer is becoming increasingly clear, emerging through studies and survey over the past eighteen months. For example, we now know that many spend six to nine months researching the Internet for information about transactions, brokerage firm options and specific property inventories.
During this time, they will read or view eight to ten published or electronic articles about the pitfalls and dangers of the current real estate marketing system. This initial research prompts them to be very willing to abandon preconceptions about what the real estate experience should be in favor of options they learn about in their reading.
They are very quick to build their service “wish list” from a wide variety of features and options uncovered in their Internet travels.
When this consumer finally decides to “engage” the real estate marketing system, they are highly confident in their knowledge and have a very clear idea of the services they want.
However, at the same time, and generally unbeknownst to them, there are other critical areas of the transaction of which they know little or nothing. Mortgage fees and costs are an excellent example of items falling in this “information void”.
Interestingly, this consumer’s overall sophistication goes far beyond the real estate transaction. They are generally much more knowledgeable about today’s general business customer service norms and product quality than their predecessors.
Most have routinely purchased at least two other products or services based on their unique personal interests or requirements and on their advanced knowledge about both quality and experience.
They understand the lexicon of quality marketing efforts and are not influenced or swayed by classic marketing intimidation ploys such as “You get what you pay for!” or “There are others looking at this property.”
Once this consumer does decide to engage our real estate marketing system, they are looking to create a real estate “experience” that is unique to their own set of expectations and demands.
They are very sensitive and resistant to “one size fits all”, pre-programmed service packages, and especially resistant to those techniques employed by many top agents who seek to standardize their personal sales “system” and maximize their efficiency and production.
They are equally wary of service providers who appear to be listening in initial interviews, but in the end go on “automatic pilot” when it comes to demonstrating inventory or actually servicing the client.
They are much quicker to pull the plug on an experience that is clearly not working for them. While they are aware that the typical agent is also working with other clients, their test of perfection is not the relative “importance” and ”busyness” of the agent, but rather how important and special the agent makes them feel.
In short, they see themselves as the center of the transaction and expect to be treated accordingly.
They are much slower to form loyalties to agents and brokerages that fail to meet their needs. This also applies to situations where the agent or company was recommended by a third party.
Such recommendations carry little weight if the provider fails to meet their expectations within a short time. However, if a provider does meet their standards, they can be very loyal and not hesitate to recommend them to friends and family.
Not surprisingly, 82% percent of these consumers are interested in one stop shopping.
As these new consumers’ knowledge grows, they are slowly but measurably moving away from the traditional real estate service provider. The Murray/Harris data suggests that currently 86% of buyers and 59% of sellers are incorporating agents into their real estate experience in some form or fashion.
The single most important piece of information now available to brokerage firms is that this consumer values service above price and is willing to pay for value.
The majority seeks to gain more services from the agent, not less. The Murray/Harris data suggests that at least 63% are willing to pay a fair commission for a service package that meets their needs and expectations.
Only 37% expressed a preference for discount or limited service packages. In fact, it’s now become abundantly clear that this consumer will pay a premium price to achieve the unique experience they seek.
This runs counter to the belief by most service providers that price is the primary driver in the consumer’s decision-making process.
Unfortunately, this misunderstanding has service providers introducing discounting incentives way too soon in the marketing process, and many times when they are not even necessary, except to compensate for service and experiential shortfalls.
It is in this environment that many brokerage firms are now attempting to create customer service and customer relationship management programs. These efforts have not been without significant challenge.
“Customer relations” has not been an indigenous concept for most brokerage firms over the past 30 years. After all, until recently many brokers would have admitted (albeit privately) that their customer was actually the agent, not the consumer.
Today many firms are initiating customer relationship management programs designed to build, maintain and harvest long term relationships. Some start at the purchase agreement stage, while others self-activate with the listing agreement. Key to this effort is balancing the interests of agents, consumers and, of course, the firm itself.
As an industry, real estate has much to learn about perfecting and institutionalizing the ability to work with this new consumer. However, there is an obvious starting point.
If setting up a client relations program is on your firm’s agenda, an excellent place to start is looking at the real estate transaction from this new consumer’s perspective.
Begin by creating a unique company customer Bill of Rights. This effort should involve asking these kinds of questions about clients.
1. Do they have a right to a real estate experience that is unique to their expectations rather than being processed as part of a production system?
2. Do they have a right to design their experience from a full range of real estate services?
3. Do they have a right to work with an agent who is trained to listen and help them create a service experience based upon their needs?
4. Do they have a right to work with an agent who appreciates that they might know everything about some parts of the transaction and little about other critical elements, but who nevertheless will assume the role of coach and transactional partner rather than supervisor?
5. Do they have a right to confidentiality in this transactional experience?
6. Do they have a right to be advised of all legal and financial obligations and to be protected against undisclosed fees from all parts of the transaction, including the mortgage?
7. Do they have the right to have every aspect of the transaction explained to them?
8. Do they have a right to a transaction free of unnecessary or artificial stress?
9. Do they have a right to complete information and communications regarding the status of their transaction of a 24/7 basis?
10. Do they have a right to experience satisfaction and a sense of control over their transaction?
Once you have it, use your new Customer Bill of Rights as the central blueprint from which to communicate to your customers and to build the specific elements and components of a quality service delivery system.
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Jeremy Conaway. All right reserved. For information contact Frog Pond at 800.704.FROG(3764) or email susie@frogpond.com.
