Throughout history we can trace changes in society, brought on by cause and effects of certain events. Our country went from agrarian, to industrial to the information age. Each transformation of society brought with it new practices and ways of living and going about our daily lives.
The progression of real estate practices has been effected by societal and economic changes too. For those of us that have been in the business for 20 years or more, we have personally witnessed and experienced these industry changes. Let's explore these changes.
What Centric are you working in?
If you were trained in the owner centric model, you may be finding the changes in real estate very difficult to take. We tend to stick with the ways we were taught, deeming them to be the "only way." Sales techniques have evolved since the period when the Owner Centric model was popular. At that time, agents were taught to "overcome objections" with popular retorts and standard comments that often times had little to do with the customer and more to do with "strong arming" them into a sale. Today, techniques like this are very transparent and work against most agents. People withdraw when they feel pressure. High pressure sales techniques are not what the consumer wants.
Agent Centric times were very interesting. Agents became so enamored with themselves, believing that they had to convince others of their value by putting out marketing materials focused on themselves. High glossy four color personal brochures were all the rage. We had our own logos with slogans and pictures of our luxury cars and pets all because we were trying to affiliate with the consumer. Success breeds success was the message. But this has come back to haunt us. We so successfully created the image that real estate was an easy way to success. Consumers now believe we are all rich and now they want some of the action. Little do they know how much it costs to stay in this business.
Customer Centric is the next phase of real estate. The Consumer now has information at their fingertips. They know what is for sale and how to get financing. They have zero patience for high pressure or egotistical sales people. They want choices, validation and consultative real estate services. They don't care about anything but themselves and their goals. What they want are agents who can get them to where they want to be, on time and without drama and stress. They just don't have time for anything else.
Avoiding the Disconnect
As Realtors we need to be relevant to the needs of the consumer. Despite all the rumors about our demise, the consumer still needs us. What they want is relevance, they don't want to be squished into our pre-made box of how we do business. They want real estate their way...blame it Burger King, Starbucks or who ever...the customer Centric Model is here. Those agents who recognize this fact and can speak to the consumer on the consumer's terms will find opportunity.
Those agents who are still wrapped up in themselves will find the end is near.
Specializing in relocation to the Denver metro area, including Littleton, Englewood, Greenwood Village, Highlands Ranch, Parker, Castle Rock, Douglas County, Arapahoe County, Denver County and more.
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Excellent blog and very timely. I hear the word facilitator more and more. Does that make us Transaction Brokers? Paper pushers? I haven't been in the business long. But when I work with someone who claims to know everything I do I worry - for both of us. Customer Centric is great, knowledge is power. But it is what you do or don't do with that 'power' that matters.
What an incredibly timely post. The ego Agent centric model has always really bothered me. I am so glad we're moving more and more towards where we need to be - passionately and relentlessly representing our clients best interests. Great post, KK!
We have found the enemy and it is us.
You now there is a saying "The Customer is Always Right" It's Called Customer service. Serve your customer whether they are the buyer or seller. In the old model it seemed as though the customer worked for the broker. Now we work for the Customer.
I'll say changes are always good as long as it is for the better. Providing top level customer service is key in my book. I enjoyed reading the comparisons that you made to then & now.
Great post. Today, more than ever we have to be promoting our value to the consumer.
Consumer centric for me!
I left my brokerage yesterday because I felt like I was getting surrounded by an owner centric mode (not that my broker was owner centric, just the team that I belonged to was).
They have to overcome objections with negativity because a) they don't know anything else and b) they lack the knowledge to "hang" and c) they make it personal so you are guilt stricken or peer pressured to make a decision you don't want to make.
Those types are going to be run out of the field when they don't evolve with the market.
Real estate is the easiest thing I have ever done once you get started. I have been in the business for 10 years and enjoy working for myself. Its my sole source of income. I still work 50/50 buyers and sellers to stay up with the market. The internet has changed my business model. I have taken on a partner and do not mind sharing so I can become better and keep up with new ideas. Katrina was a great test. I view a slowdown as a time to work on some new ideas. Its fun to go against the grain.
Kristal - a great historical overview. I always enjoy your thinking! I am fairly new to RE (4 years) but have been on the consumer sife for 27 years so I have been part of the transitions on the consumer side vis-a-vis the REALTOR. It has been fasctinating how it has changed - not just the way the RE is conducted but also the dynamices between agent and buyer/seller. Bravo!!
Kristal, Many excellent points. If we look at other consumer-type businesses such as restaurants and retail stores we see the successful ones are consumer-oriented and focused on customer satisfaction. It has always struck me that our real estate training its focused on selling, prospecting and marketing. In otherwords, are we telling the clients why they should use us or buy this home. Shouldn't we be focused on what they want and need? Where are the training classes on customer satisfaction? The Nordstrom's model may be the answer.
I love the focus on the consumer, all my prior jobs involved the needs of the consumer. I embrace the new technology and welcome the informed consumer, it make my job easy. My slogan has been "Customer Satisfaction all the way"
Great outline of the progression of the models.
I remember when I my parents worked for a firm that was eventualy bought out by Weichert Realtors. My mother worried about the old owner but my father talked about how wonderful Jim Weichert was ...then
they joined REMAX of Cherry Hill, NJ and raved about how they could spend half of the commission dollares they found on advertising. I call that their "me" period.
Now they're retired, I wonder if they would adapt as quickly as they did 20 years ago.
KK,
Great post ...I'd like to print this out to use as hand out for a class I'm teaching on REALTOR professionalism. Excellent points.
Good Points. The great thing about being customer centric is it makes your day much more interesting and alive.
Kristal, your insights are right on target. This change is a big change and I'm afraid many who've practiced the agent centric model for too long will not be able to adapt. I don't know how you feel about the loss of some of those, but here in CA it feels like there are way too many real estate agents. This kind of change is destined to thin out the herd.
KK - Great post!
In any market if the customer does not perceive that you bring value he will not use you. His idea of value has changed with time.
Thanks for clarifying that for me.
It is interesting to read from your persective; I know which type I'll be looking for from now on.
You know you should do a blog that is a guideline for questions potential buyers should ask a buyers agent when interviewing them (if you haven't already). If you have, I would love to see it!
Well - to a cetain extent it is about the REALTOR. If a client needs an expert - they need a REALTOR - and a road map to help them find a "good fit".
Bravo Kristal! It's funny how you can go to a Realtor Association function and pick out the "stereotypes" so easily.
I will add, not only will we need to be more involved in customer service, we'll also need to spend more time on customer education. Even with the internet and all the information that is out there, buyers will be turning to us for advice on how to navigate a wise course.
Because prices have risen so much beyond average incomes, we're seeing more and more first time homebuyers entering the arena at an older age. They want more education on the process and are generally more cautious.
Excellent post. The focus should always be on the consumer. After all, without them none of us would be in business.
Kristal, You gotta quit feeding the “Codgers” so much “Red Meat Comment Food (RMCF™),”—the cholesterol, y’understand (if you serve it—we will eat it!). Listen—do you hear the air rushing out of deflated egos? But based upon the comments already made, we suspect that the real estate industry, as represented here on AR, is indeed in good hands!
Med & Jay
Kristal, Thanks for the post. My business model has always been consumer driven. It is a concept that I share with my sellers. When the market was riding high, in the final analysis who determined what that price point would be? Likewise that same entity sits in control now that the market has taken a downward swing.....the consumer (the buyer). My sellers understand that we are in a partnership, to sell a commodity at the best price. Consequently, we need to be on the same page with regard to strategy.
Wonderful thoughtful ideas.
The Consumer Centric era was brought about by, YOU KNOW WHAT, the Internet.
You just have to view the process through the consumer's eyes. If you were the consumer, what would you want? Then just do it. Don't let the standard ways of doing business blind you to what consumers really would like.
I hate having to register to use things on the Internet. I promote "search the MLS, no registration" on my site and you wouldn't believe how many people tell me how much they appreciated that and that is the reason they stuck with my site and eventually ended up using me. Don't complicate things.
Instead of us against them, get on the consumer's side. Think and act like a consumer advocate instead of trying to protect our sacred industry by trying to keep things all in our favor.
Yes, client service is my platform and always will be. Some are into the numbers games and the service gets lost but others of us, put the client first and foremost. What was old is new again...what matters is the person and the service that they provide. I am not a salesperson and never have been. Didn't want to learn and memorize those sheets of objections and regurgitate answers. It wasn't me and I didn't want to stand on that platform...I've been a consultant from the beginning and that's the way I like it. It has served my clients and myself, for many years.
Loved what you said about the cost of doing business. Outsiders have no clue. Not for the faint of heart. What's sad is when you see all these new poor souls getting licenses in this market and with so many agents already...with no knowledge of all the ordinary costs much less the cost it takes to actually produce and stay in business. It's not as easy as some have managed to profess in our profession and not to be taken lightly. Sorry to rant on...good blog, Kristal!
"Agents became so enamored with themselves, believing that they had to convince others of their value by putting out marketing materials focused on themselves. High glossy four color personal brochures were all the rage. We had our own logos with slogans and pictures of our luxury cars and pets all because we were trying to affiliate with the consumer."
Mike Ferry has been questioning and criticising the age of self promotion for the last 30 years. What other industry abounds with photos on business cards?
Darn - and just as we were getting ready to fork over the big bucks to Hobbs Herder - it seems like we don't need to do that after all! :-)
We've been about customer service for a long time. I think the future that you point to is more than that, it's having it your way. See what the customer wants and how they want it. Then meet and exceed those expectations.
Nice job that is 2 in a row for you. I have often wonderd why agent web sites are so agent centric and wondered if consumers do visit web sites to see all about a real estate agent. It is easy to stay focused on the consumer, it is the marketing end of the equation that gets tough. Our real estate companies and the vendors we but marketing materials from still encourage the "I am all that" approach. I think as an industry we live in interesting times . . .
Kristal, Thanks for this expert overview! When I first signed on with with AR, I attempted to come up with a public image strategy that I have stated as "It's all about You!" and focusing on the customers needs. You have reassured me that this is the right approach.
Ancient proverb say... He who think of self before client, will get plenty of time to do so without clients.
I like the historic perspective. One thing to keep in mind, however is that the brokerage models shifted to accomodate a shift in their target customer base. Not all customers want the same thing. That is why I think there will always be a place for each of the business models (-centrics, as you called them) in the marketplace. Customer service is the key. Here are a few things I often consider:
The Golden Rule: Treat others as you would want to be treated. Following this rule leads to profesionalism, and quality service, that is appreciated by most consumers.
The Platinum Rule: Treat others as they want to be treated. This is the ultimate level of service. Achieve this, and consumers will flock to you.
No mater what buisiness model your company follows (Full-Service, Discount, Fee-for-service, etc.) if you provide outstanding customer service, you will have success.
If we get in the habit of always thinking feature/benefit, the customer centric model comes naturally ... but that's much easier said than done!
Hi Kristal - so refreshing to hear these terms put into perspective from a real estate angle. Love the It's not about you. Okay so I've been running around my house with a coffee cup that says "It's all about me". But that's only on the home front, and really it's just so my family doesn't forget I need some attention from time to time too.
It IS all about the customer. If you serve your customers and serve them well, life is good.
How true. If we all don't look at dollar signs and look at the clients best interest, then the dollar signs comes anyways as a bi-product.
Keep it real!
Phillip Lanier