Customer service is one of the most important factors in real estate. All too often it is neglected, under-prioritized, and poorly delivered on. So why is service so vital for real estate professionals and companies? How can the reality of the service being delivered be measured? How can it be improved?
Customer service in the real estate industry can get really bad in busy phases of the market. Don’t make this mistake. Sometimes this is just because of the volume of business being transacted. Other times, it simply isn’t prioritized. Whatever the excuse is, it isn’t a good one. Ultimately, it will cost the individual or company far more than they imagine.
Most recognize the impact of customer service while bringing in deals and conversions. Perhaps more are aware of its potential to impact reputation (especially online reputation), repeat business and of course highly prized referrals. Still, this often doesn’t mean it is invested in enough. More importantly than the surface value or top line effects of customer interaction, service and satisfaction is the bottom line impact. This is where the real top from the flop is separated. Kicking service and customers to the curb may have yielded superior short term results and money for many in the short term.
At a minimum, it definitely impacts profitability and ROI. Why be in business unless you are in to maximize ROI and to survive for the long run, or at least to keep what you win?
The better the service, the more business and the better the profit margins. However, there is another element here that many real estate agents, investors and executives completely overlook. All of these parties invariably end up looking for more working capital, investment or to partner up. VC firms, angel investors and private lenders, as well as other strategic partners, are all getting much wiser about checking out a company or professional’s customer service and record before getting involved, recommending them or investing in them. Neglecting service can render all of these efforts useless. Poor service means you don’t care, and probably don’t care about shareholders or partners either. Even more so than money, this is about their reputation, which is far more valuable.
So how can executives, real estate business owners, agents and investors accurately assess where they are at? Watching the numbers is a great start – the really important numbers. Moreover, try mystery shopping yourself, and have others report back. It will be well worth the investment.
Once you identify what’s good and what’s not, how do you improve and fix it?
Recognize what you can do well and where you can excel. Conversely, take not of your weaknesses. Consider what options to eliminate altogether or improve on. Hire better staff. Systemize and automate to remove guesswork and room for error. Instill your vision and the vital importance of service throughout the organization and empower team members to live up to it. Keep measuring. Remember, volume now shouldn’t be at the expense of service and long term success. Know when to dial back and focus on quality.
