– Author Unknown
Having recently experienced a rather painful transaction and participated in the development of a course on buyer representation, I am not at all suprised by a study earlier this year that revealed that “Buyer Satisfaction with Real Estate Brokerage Companies Hits All-time Low.” You can read some highlights on the Real Estate Economy Watch website.
One of the things I found interesting about the analysis of the latest data (based on national data involving large companies) is the rationalization that this is somehow due to the difficult market. Although I must say, to J. D. Powers credit they note that the companies with the highest ratings are inclined to be more skilled at managing the customer’s expectations.
While the article obviously doesn’t report all the data, the analysis yields some interesting conclusions. “Notably, although the agent/salesperson has the largest impact on overall customer satisfaction among both home buyers and sellers, customer loyalty is stronger toward the real estate company than toward the agent. Less than 20 percent of customers say they ‘definitely will’ switch real estate companies if their agent moves to another company.”
If I owned a company, I’m not sure that I would sleep well at night as a result of that. This could be as much about inertia as loyalty. Let’s not miss the import of viewing these numbers from a slightly different angle. The data is suggesting that only one in five (20%) of customers see enough value in their agent to stick with him or her if that agent moves to a different company. Something doesn’t add up.
Note that the same analysis suggests “the agent/salesperson has the largest impact on overall customer satisfaction among both home buyers and sellers.” That’s a statement that’s hard to disagree with. So help me understand how an agent who couldn’t create value and loyalty on an individual level creates a high level of customer satisfaction for (and loyalty to) the company, please.
I’m the first to admit that the current market situation is causing a crisis for many agents and companies. In plain language, it’s darn tough to make a living in real estate–especially in rural Maine. But agents and companies should not be making that the customer’s problem. Managing expectations ought to be about the market, not about the level of service we are willing and able to provide.
Unfortunately, when satisfaction decreases, so do expectations. Some years ago Tom Peters had a lot of fun with a ficticious company who’s slogan was “We’re no worse than anybody else.” Unfortunately, that might well be what the survey is identifying as loyalty. Buyer satisfaction is at an all-time low. Seller satisfaction is decreasing. So the tempting conclusion for customers is “might as well stick with company x, they’re no worse than anybody else.”
Blaming the market doesn’t work, really. What about customers? Do they contribute? If customers do have a role in the state of affairs it is in the acceptance of mediocrity. (The survey notes that 60% of the respondents were repeat buyers and sellers–not limited to one experience.)
Customers: Raise the bar, increase your expectations. You are probably entitled to a lot more than you think. You can change these numbers.
If you are dissatisfied or having issues with your agent or company, check out this article What’s the Number for the Real Estate Police? As one who loves platitudes, I would close with “if you are not part of the solution you are part of the problem.”