LOYAL TEAM LOYAL CUSTOMER

By
Education & Training with Performance Development Strategies

The loyalty of customers is very important in Real Estate as in every business.  That is why a 5 star review means more than recognition.  It means future business.  A loyal team is just as important.  Some brokers miss this fact.  What I am about to say about customers applies to retention and loyalty of team members as well.

Peter Ducker said that the purpose of business is to create and keep a customer. It is really that simple. Creating a customer is done through a clear message and marketing but keeping a customer is based on performance. Every business must focus on what works to retain a customer or retain an employee.

A business that says it separates itself from others by service usually does not even know what that means. For example, it seems that the majority of businesses are focusing on customer satisfaction to determine their customer service measurements. This measurement is flawed and often falls short of actionable expectations.

These businesses also make a mistake in the method of measuring the voice of their customer. Asking people to write a rating on social media is MARKETING not measurement. Measurement is consistent, private, and asks for the good, the bad, and the ugly. This gives management a dashboard for continuous improvement.

Satisfaction surveys are unable to predict customer behaviors because they are built on faulty foundations. Many businesses assume that high levels of satisfaction translate into customer loyalty when, in fact, customer satisfaction ratings are more closely linked to your customers’ perceptions of your products or service attributes rather than to the value gained by those products or services or your product or service compared to competition.   It is all about the perceived value proposition.

Satisfaction is a measurement of, “I expected it and I got it; therefore, I’m satisfied.” If this were translated into a grading system, satisfaction could easily translate into a grade of “C” on any report card. The desired score is obviously an “A” and A’s always equate to loyal customers. A’s imply that customers got more than they expected and their expectations were exceeded in some way. Based on what is truly important to customers, they received more value from you than from your competitors.

Perceived value as defined by customers (as opposed to being satisfied) creates loyal customer relationships, and customer loyalty is the best predictor of your future strength and growth potential. The value you provide to your customers is always compared to the value your competitors provide; therefore, value is your customers’ perception relative to similar products or services in the marketplace—your competitors!

The best way to create perceived value in the eyes of your customer is to always exceed their expectations.

Generations in the workplace

In summary, create a system to survey every customer on each transaction or service. Do the same with your team.  You will know if you are continuing to exceed expectations and if the measurement starts to fall you can immediately adjust. Loyal customers are your least expensive form of advertising and it can best be summed with the survey question, “How likely are you to recommend or product or service to your friends?”  “How likely are you to recommend friends to come to work for you?”  For a similar post on our site see WHAT IS THE DIFFERENCE BETWEEN LOYALTY AND SATISFACTION?

Need help in creating a culture and retains employees and customers?

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or call 914-953-4458.

 

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Real Estate Best Practices
Location:
New York Westchester County
Groups:
Coaching and Mentoring
Tags:
customer loyalty
employee engagement surveys
customer loyalty surveys
employee engagement in armonk ny

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Rainmaker
4,949,667
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Grant Schneider this is the bottom line for us... and the two agents always aim for that and 99% of the time, they hit it.

The best way to create perceived value in the eyes of your customer is to always exceed their expectations.

Aug 12, 2019 03:16 AM #1
Rainmaker
3,054,013
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Create and keep a customer... the substance of a good and lasting business. In just about any business generating a new client/customer costs multiples of what keeping an existing client or cusomter costs. 

Aug 12, 2019 04:34 AM #2
Rainmaker
1,895,973
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Barbara - you have both parts of this very fine tuned and running great.

Nina - your five star reviews give you a loyal customer marketing team.

Aug 12, 2019 05:32 AM #3
Rainmaker
3,237,520
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Grant. Barbara and Nina have it nailed. Enjoy your day 

Aug 12, 2019 05:46 AM #4
Rainer
33,463
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
Relocation to NW AZ with elbow room & more freedom

Grant Schneider Being considered sometimes a disrupter, the "how likely" question bothers me because it is about an opinion not an action. I believe the question would show much better results if the question is "Did you recommend our business to your friends and family?" or better yet "How often in the last 6 months have you recommended our business to friends and family. The "how likely" gives businesses a false sense of security and worse yet complancey.

Aug 12, 2019 06:40 AM #5
Rainmaker
3,301,745
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Good morning, Grant - an interesting topic.  Customer service and behavior fascinate me.  What is most important?  It depends on the experience desired which can vary by each person.  Even for a different situation.   Clearly identifying those factors makes a difference.   What do your customers want?  Thinking is not necessarily knowing/understanding. Thought-provoking post. 

Aug 12, 2019 06:41 AM #6
Rainmaker
2,513,871
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Loyalty is huge in my book and I always stay loyal to those that have done a good job for me.  It drives me crazy that loyalty doesn't seem to be as important to the masses as it should be though.

Aug 12, 2019 07:43 AM #7
Rainmaker
1,199,097
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Grant Schneider - Great post!

Employee turnover costs a company so much more than exceeding their expectations. 

Aug 12, 2019 08:07 AM #8
Rainmaker
4,401,304
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Grant,

What a great post, and the concept of loyalty is important to understand and keep in mind if that is a value one treasures.  I have seen team deteriorate when loyalty was breached.  A

Aug 12, 2019 09:30 AM #9
Ambassador
3,781,001
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Grant a loyal customer is a customer for life, and we need to do everything possible to create and keep them.

Aug 12, 2019 09:37 AM #10
Rainmaker
4,064,340
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Grant, when I get a review back from a client that was raving about my service, it makes me smile for a week!

Aug 12, 2019 10:23 AM #11
Rainmaker
1,895,973
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Leanne - I guess that could still be a variation of the net promoter score.

Michael - yes, and in a restaurant people want food but their perception is the great guest experience.

Brian - maybe it is because they have been dissappointed too many times.

Sheri - it costs in more ways than one and it tends to cost customers too.

Ron and Alexandra - that is right and it is about their perceptions.

George - yes, and emphasize keeping them.

Joan - and even longer than a week when you get referrals from that client.

 

Aug 12, 2019 11:00 AM #12
Rainmaker
1,895,973
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Wayne - yes, they do indeed.

Aug 12, 2019 11:06 AM #13
Rainmaker
2,883,238
James Dray
Fathom Realty - Rogers, AR
Exceptional Agents, Outstanding Results

Morning Grant.

I believe the true value, like you wrote, is to exceed client expectations and deliver.  It keeps them coming back, great read

Aug 13, 2019 02:10 AM #14
Rainmaker
1,895,973
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

James - it keeps them coming back and bringing their friends. 

Aug 13, 2019 11:34 AM #15
Ambassador
3,276,491
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Actionable surveys are so very important, Grant. These, 'judge me on these 4 items on a 1-5 scale' surveys are for the birds!

I see agents post reviews once a week and you wonder how on earth they got 52 customers to give them a revew in a year when they've only sold 10 or 12 homes in that time! Oh, they beat their chests about those (fake) reviews but, what are they doing for their businesses? They only care about the public's perception of them - not 'real' reviews or customer retention/referral business.

The reviews are great for Z-buyers but, not for referral customers who trust their friend's recommendation!

Aug 13, 2019 10:08 PM #16
Rainmaker
1,895,973
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Debe - right you are.  Those people are trying to market but if you want to get your customer's voice you do ask the actionable questions.

Aug 15, 2019 03:18 AM #17
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