Repeat and Referral Business

Let me offer you a little perspective on the power of repeat and referral business. Those of you who work in a sales oriented business are probably already aware of what it means to have others use your services time and again, as well as refer others to you. For those of you who don’t, I just want to provide you with a little more information about how your referrals not only benefit the person(s) you’re referring, but also benefit you.

Now I don’t want you to take this wrong. I’m not whining, I’m just offering some perspective that you may not otherwise had. I’m going to use my work as a real estate broker as the example. I’ve worked as a broker for about sixteen years. Over that time I’ve developed a client base. I’m one of the lucky few; I receive enough repeat and referral business that over 95% of my work is from that source. The other 5% comes from advertising and internet searches.

It sounds pretty good. And it is. I’m not complaining. However, here’s what happens every year. From my database of contacts, there are two to three people that end up buying and/or selling a home and I never even had the opportunity to help them. The only reason I end up knowing is that I either receive mail back as the forwarding order expires, or from the occasional search against county records.

I’m not saying it should be guaranteed that I receive all that business. I understand that some people have relationships with more than one broker. Sometimes. But most of the time that’s not the case. And, if so, again, that’s okay, but to not give each an opportunity to make their pitch seems to be as much a disservice to the client as it is the agent (more on that in a minute). I’d have to say that I can account for about $20k per year in potential commission losses.

If I had not provided good service and results, I would fully expect that I wouldn’t be getting a call. But, when I get my clients every last dollar out of every last transaction, provide them with great advice and guidance and continually stay up to date on the perpetual changes in the industry, I might like to think I’ve earned at lease an opportunity for the next piece of business, let alone them thinking of me when they hear of others in need of such a service.

So, how does it negatively affect the client or customer? You haven’t shopped and compared. You may be missing out on a better opportunity for yourself, both in level of stress and financially. You shop and compare before buying that flat panel television, why wouldn’t you do the same with your service providers? Sometimes the bottom line isn’t as simple as just the advertised rate. Other factors play into value. The only way to really assess your options is to let a professional make their pitch for your specific situation.

With that said, I obviously believe I provide the best value for the services I provide. I understand others may have a different perspective or opinion. However, how are they to know if they haven’t made a meaningful comparison?

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SO YOU WANT BETTER CUSTOMER SERVICE?

And so it goes, another post about customer service. I was thinking the other day. Why is it that we all seem to get poor customer service more often then we’d like? From what I can tell, there are three main reasons.

First. When most of us receive service that is less than what we deserve, we tend not to say anything about it. I’m not saying that you need to ream out the person at the KFC counter or always ask to “see your manager.” Mostly we just take it and move on instead of constructively letting the person right in front of you know what it is they could improve upon.

Second. Let’s say you have received less than stellar service. And you, unlike many, let it be known what was or wasn’t done. And, the response is poorly handled and/or nothing is done. But, you keep going back to that store or one of its other locations.

Third. You don’t receive good service and you don’t tell anyone. You go back again and you receive the same poor service and you don’t tell anyone. You go back again and you ... You see the cycle. The problem is you keep going back.

The only way business owners, executives, managers and line employees are really going to know that something needs to be done is when we as consumers stop spending our hard earned money at places that seem to be less than appreciative. Only then will they know how important it is.

Another and final thought; we also tend not to reward those businesses that do well, nor do we let them know when they’re doing well. So, the next time you receive great service, let that person know. Even better, let someone else know about it. Tell a friend. That’s how we will continue to receive great service from those places so far and few between. Refer them to others.

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The Days of Summer

I’m sure you feel much like I do. When the days are long and finally warm, I just don’t feel like sitting in the office working. Actually, I don’t feel like working at all. I do, but I don’t want to! I want to be outside, riding my mountain bike, hiking, riding motocross, playing tennis or mowing the lawn.

Just about anything really, just as long as I’m outside. I sometimes find myself gazing out the window getting lost in a daydream. Maybe I should plant some flowers there... I quickly snap back to reality and get to it. Have there been any studies on worker productivity during the summer months? I’d bet it would show a significant decrease.

Do people who live in warmer climates have similar issues? Are Floridians as a whole, less productive than people from Montana? Does it have something to do with having summers off as a school age child? Did the pattern of those years perpetually doom us to long for days of no responsibility where the biggest decision was what fun thing were we going to do next?

As I’ve now prompted you to think about it, I most likely have now decreased your motivation to work. Is it like a cold in the winter months where we all pass it around? With a big dose of vitamin C and some rest will I get over it? It’s a pretty strong but and might take some time to get over. I might be cured some time in October. I think I’ll go outside and pull some weeds.

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More on Customer Service

It would seem that the topic of customer service has been beaten to death. I mean, everyone has great customer service, don’t they. You’d think so with all that advertisements asking to choose a business because they have better customer service. The problem is that I don’t think most companies, businesses, organizations or people in general really understand what good if not great customer service means.

My strong opinion is that in order to provide good customer service you must have good systems and processes in place. And, those systems and processes must be engineered to a specific business. Then, once you have your systems and processes properly engineered and in place, you must ensure that they are consistently followed. That is the big component that often gets overlooked – consistency.

Now when I talk about systems and processes I’m not just talking about the people who have direct contact with the customers, these must also include every aspect of the business. The best example of this are franchised businesses. Now I prefer to patronize the local places when I can, but these locally owned businesses could learn a lot from how the franchises operate.

Everything that is required to run the franchised business is documented; everything from how to cook the hamburger to how to assemble it and wrap it. This is all in addition to how and when to greet customers. Although there are many companies that do this reasonable well, there are many more that just don’t get it. Some of them once got it, but forgot to take a step back and look at how consumers have evolved and their systems are no longer effective.

What brings this up today? It all comes back to something as simple as take-out pizza. There’s a place here in Colorado Springs that I thought was going to a great new local business where I could get a good pizza pie. The first time I went there it was great. It was a great pizza and there were great people. The second time wasn’t as good, as there was a discrepancy in the price and how the pizza turned out. The third time there was a “problem with the oven” and they had to remake my pie. It was inconvenient but I was given the pizza for no charge. Huge gesture and it maintained my loyalty.

Over the next three weeks I ordered a pizza a week. Each time the pizza came out different. It either had too much cheese or the crust was too thick or it was too thin. It wasn’t the same way twice. I took a few weeks off in hopes that they were having a bad patch. So a few days ago I went in again. There were new faces. Not as friendly as before, and when I returned home, the pizza wasn’t that great. Again, not the same as the first time I went in.

Inconsistent is all I can say about the place now. So, will I go back? I’m not sure. There’s something to be said about a franchise pizza. It’s not the best, but at least I always know what to expect. I get the same product each and every time. And that is a big part of good customer service.

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Brokers Who Only Represent Buyers

I see advertisements from time to time for real estate brokers who only represent buyers. In these ads, the advertiser claims that this is a great deal for the buyer. Now I’m all for setting yourself apart as a professional and even developing a specific niche. However, I believe this particular approach isn’t “better” for the buyer and it might actually be bad for the buyer.

This is going to a short post because the answer to this is very simple. It comes down to negotiation. In order to effectively and successfully negotiate anything, you must have a full understanding of your opponent(s). In this case, the seller of the property and the listing broker. As a buyer’s agent, wouldn’t it make sense that in order to fully understand the mindset, motivations and approach of your opposition, you have a good deal of experience working as a seller’s agent?

I certainly believe so. So, if you’re in need of a representative to help you buy a home, wouldn’t it make sense to hire a broker that consistently represents both buyers AND sellers? Don’t you think you’d have a better advocate negotiating on your behalf and don’t you think you’d end up getting a better deal? Me too!

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The Great Outdoors!

If you don’t already know, I live in Colorado Springs, CO. It’s a great place to live. There are great parks, good schools, usually a good climate, although this winter wouldn’t have been your best example and lots of opportunities for outdoor recreation. We’re a pretty good sized city, but with a fifteen minute drive from just about anywhere in town you can lose yourself in nature. Whether you’re going to one of our nationally renown areas like Garden of the Gods, or just a drive into national or state parkland, it doesn’t take long to get there.

So, this past weekend, with the weather finally reflecting what it normally does, my family; that being myself, my wife, our six year old daughter and my one year old son loaded up our gas guzzling SUV to take a drive and have a picnic on some of this vast public land. This time we decided to go a little further, so it took us considerably longer, about 25 minutes of total drive time before we reached the end of paved roads and our temporary escape from civilization.

What a beautiful day. It was clear skies and warm. There’s been just enough moisture that the trees were green and the flowers were blooming. The road was just rough enough to flex the suspension on our vehicle and bounce the kids around like a roller coaster. So we drive into the woods for about forty-five minutes until we rarely see anyone aside from the occasional motorcycle and well pull down a side road to what looks like a very nice camp site. This will be a great place to get out, have some lunch and let the kids run around.

Within two minutes of unloading everyone and our chairs and cooler I hear something off in the distance. Not distant enough I have to say. It’s some yahoos shooting their guns. I do live in Colorado, the wild west you know. So, I’m pretty open to the idea of guns. I even had my own with me. The problem is that I’m sure we were in an area that was clearly not designated for hunting or shooting.

So, as I’m trying to shrug off the gunfire, I start to look around the ground. At this point my one year old is off and running. And although he’s pretty good, he does face plant quite a bit. Anyhow. There’s broken glass all over the ground. Not just one accidental and they missed a few pieces. There’s multiple bottles worth. Hoping to find some ground space that’s reasonably child friendly I walk over to the other side of the site. There I only find composite roofing shingles. I suppose he can’t cut himself on those. I am wondering what they’re doing there.

All right. I know it’s a long story. But, what’s my point? Come on. It’s not that hard to clean up after yourself. You brought a bottle with you. Bring it back and properly dispose of it. If you pack it in, you pack it out. I understand that we might not always tread as lightly as we could, but you can at least not leave your trash lying around. I wonder if those same jerks who left those broken bottles there ever went back to that spot? Probably not, they might cut themselves on the glass.

An old icon is bygone!

I just read a report that a long-time Colorado Springs business has closed its doors. Michelle’s was one of those locally owned and operated businesses that lasted for four generations. It was a place where those of us who grew up here remember visiting as a child, took dates to as a teenager and treated the kids to a sundae as an adult.

While I reminisce and get all wrapped up in nostalgia I’m also frustrated and appalled. In the news report I read the owner of the shop stated “When we opened up there were a few restaurants downtown, but now there are hundreds and coping was hard." I have no other response than what a poor excuse.

I can tell you exactly what happened. Poor management. Unfortunately we’re experiencing this just about everywhere, whether at a local establishment or a chain. Management is just not taking the time to properly train and supervise its staff. What happened to Michelle’s is a prime example of this problem.

Over the years, the level of service and the customer service at Michelle’s severely degraded. The past few years it became so bad that my family and I just stopped going. When you have such a large and loyal customer base and they can’t even take it any more, there’s a big problem. It’s an internal problem, not an external one.

I don’t know when it started but when did it not become customary to train and supervise front-line staff? These are the people that have direct contact with your customer base. Just because they’re not paid well doesn’t mean that their position is not important. In fact, at a restaurant, the positions of host or waitress or bus-person are the most important.

So, who’s to blame? You can’t blame the staff because they’re usually doing what they’re told. They need leadership, guidance, systems, processes and constant monitoring. If you had a ship you wouldn’t just point it toward where you wanted to go and forget about it. You probably wouldn’t end up where you wanted and the ship would most likely run aground. You need a good captain to navigate and steer. Unfortunately it seems that Michelle’s had its very own Joseph Hazelwood.

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