HOW CAN YOU PREDICT FUTURE SUCCESS IN YOUR REAL ESTATE BUSINESS?

By
Education & Training with Performance Development Strategies

If you have had been doing great in your real estate group in the past that alone does not guarantee that it will continue in the future. To quote investment company advertisements, “past performance is no guarantee of future results.” You need to have a leading indicator. A leading indicator would show current business conditions which would lead to continued success. Two very important measurements are team engagement and customer loyalty. While sales and profits are very important measurements, they tell you what has happened. Team engagement and customer loyalty tells you what will happen.

When you have engaged members of the team they will do their best work which will result in loyal customers. You should measure this team engagement at least once per year. The ultimate question is, “How likely are you to recommend our group as a great place to work?” When you have highly engaged team members you have promoters of your workplace. A measurement called The Net Promoter Score (NPS) has been developed to measure this.

When you exceed the customer's expectations and create an emotional bond with your customer they too become your promoter. They will recommend your group or your team to friends. According Fred Reichheld, pioneer in customer loyalty, the most important question is, "How likely are you to recommend our product or service to a friend?"

Fred Reichheld's 2006 book, The Ultimate Question, challenged the conventional wisdom of customer satisfaction programs. It coined the terms bad profits and good profits and pointed to a faster, much more effective way of gauging customers' real loyalty to a company, introducing the quantitative measure (The Net Promoter Score) for establishing a baseline and effectively tracking changes in customer loyalty. This is true also of team member engagement or team member loyalty.

NPS is based on the fundamental perspective that every company's customers can be divided into three categories: Promoters, Passives, and Detractors. By asking one simple question - How likely is it that you would recommend [Company X] to a friend or colleague? - Reichheld states that you can track these groups and get a clear measure of your company's performance through its customers' eyes. Customers respond on a 0-to-10 point rating scale and are categorized as follows:

  •  Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
  •  Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
  •  Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

To calculate your group's Net Promoter Score (NPS), take the percentage of customers who are Promoters and subtract the percentage who are Detractors.

Accountable Team

Make sure you do not only react to customers who complain. Depending on the size of your business set up some type of system to measure the opinions of the buyers of your products or services. You can do this anonymously but give a customer the option of identifying themselves to management.   Then call that customer immediately and ask that customer what you need to do to exceed their expectations. By listening to your customers and employees and acting in their favor you should be building the most important metric—team engagement and customer loyalty. If these metrics are rising, then rising sales and profits will follow.  For a similar post on our web site see USE THIS LEADING MEASUREMENT TO IMPROVE YOUR SALES AND PROFITS.

We can help you use the Net Promoter Score to improve customer loyalty and employee engagement.

Contact us to learn more

or call 914-953-4458.

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Brian England 10/30/2019 10:34 AM
Topic:
Real Estate Best Practices
Location:
New York Westchester County
Groups:
Coaching and Mentoring
Tags:
net promoter score nps

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Rainmaker
4,136,223
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Grant, my past clients are my best resource, and staying in touch with them ensures good business.  Then, adding new clients from my web site also helps.

Oct 28, 2019 03:22 PM #18
Rainmaker
2,975,720
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Grant.

I clicked on the link, if I get time I'll come back and take the test.

Oct 29, 2019 12:32 AM #19
Rainmaker
1,969,679
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Joan - the key is to get them coming back and giving referrals.

James - thanks.

Oct 29, 2019 03:22 AM #20
Rainmaker
5,467,165
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much, Grant, for sharing your experience and your advice.

Oct 29, 2019 08:00 AM #21
Ambassador
1,886,434
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

I will echoe Alexandra's comment. Customer service is the best way to ensure future success. Those word of mouth clients in our industry provide much of the steam that keeps the engine running. 

Oct 29, 2019 08:36 AM #22
Rainmaker
1,969,679
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Roy - and thank you as always for your reading.

Debb and Bernie - is certainly is the best way to ensure success.

Oct 29, 2019 12:56 PM #23
Ambassador
3,934,962
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Grant- I see many of the How likely are you to use our service again type questions on websites. It's not enough to look at your bottom line if you want your business to grow. 

Oct 29, 2019 02:33 PM #24
Ambassador
4,049,481
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Grant:

Excellent advice and counsel here. Customer loyalty plays such a key role, but we have to stay in touch! We know that based on multiple polls a large percentage of homeowners say they would use their agents again, but only small percentage actually do. There's a reason for that!

Jeff

Oct 30, 2019 05:40 PM #25
Rainmaker
1,969,679
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Kathy - looking at the leading indicators predicts that bottom line.

Jeff - that is true.  That actually goes to what Leanne Smith has said.

Oct 31, 2019 03:17 AM #26
Rainmaker
727,756
Andrea Bedard
Thompson Company, REALTORS® - Silver Spring, MD
M.A.; REALTOR® Silver Spring, MD and beyond

Thank you for this informative blog post Grant! 75% of my business thus far this year were repeat clients. I'll take that as a great sign for the future. While I do know where my business is coming from, I need to do much better in nurturing the top groups..

Oct 31, 2019 06:28 AM #27
Rainmaker
1,969,679
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Andrea - That 75% are doing a great job of advertsing for you.

Oct 31, 2019 07:00 AM #28
Rainmaker
1,347,462
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Grant,
I've found that how you respond to complaints can be very powerful... for good or bad.  People remember when you make an effort to "fix" a problem and they usually reward you for it with future business.  If you don't fix it you can be sure they're going to tell people and that never turns out good.  Thanks for the post.

Nov 02, 2019 08:40 AM #29
Ambassador
3,403,174
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

My first two quarters this year were 100% repeat & referrals. By the end of Q3, I had hit my 2019 goals - all of them! For those who like the one-and-done deals, I will say, they can have that! I love the familiarity, volunteering with my sphere, working with like-minded clients and loving on my clients year-round. It's far less expensive than the cost of new clients - and far more fun!

I think we all want those 9 to 10's but, then we have to maintain and build on not only the relationships but, the customer service with each and every sale.

Hope you're having a great weekend, Grant!

Nov 02, 2019 10:59 AM #30
Rainmaker
740,934
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

I think multiple repeat and referral clients tell the tale! 
And like the top RE defense attorney in AZ says, CLIENT SELECTION at the onset helps keep your brand shiny. 
As Lenn H used to say, we don't get them all but we don't want them all. Just the best ones! 

Nov 02, 2019 01:00 PM #33
Rainmaker
562,808
Gwen Fowler-CRS- 864-638-3599 SC Mountains & Lakes--
Gwen Fowler Real Estate, Inc - Salem, SC
Gwen Fowler Real Estate, Inc.

Referral business is good but I am seeing less as the ones doing the referring are no longer in the "real estate owning business".  I think if we are to continue with referrals we are going to have to cultivate the next generation.

Nov 02, 2019 01:52 PM #34
Rainmaker
3,840,515
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Hi Grant,

As usual excellent advice ..staying in touch and continuing the "Customer Experience" is essential for customer loyalty!

Nov 02, 2019 06:33 PM #37
Rainmaker
2,782,729
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

There are certain things that only experience can teac in this world, And you definitely have that part down. :)

Nov 02, 2019 10:36 PM #38
Rainmaker
194,244
John Henry, Florida Architect
John Henry Masterworks Design International, Inc. - Orlando, FL
Residential Architect, Luxury Custom Home Design

Interesting breakdown of those who may or may not be happy to recommend your services.  Thank you~!

Nov 03, 2019 08:07 AM #43
Rainmaker
811,969
Kevin Mackessy
Blue Olive Properties, LLC - Highlands Ranch, CO
Dedicated. Qualified. Local.

The user feedback loop is certainly important, especially when put against your best clients and the people who you can do better for, if given the chance. 

Nov 07, 2019 10:51 AM #46
Rainmaker
1,969,679
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Carol - yes, responding to those complaints will turn things around.

Debe - isn't that wonderful.  Total referrals.

Candice - those are very wise decisions.

Gwen - always in the cultivation and farming  business.

Dorie - a loyal customer is a wonderful form of advertising.

Laura - thank you.

John - the NPS is a great mesure

Kevin - that is absolutely right.

Nov 10, 2019 06:40 AM #47
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