In today’s on demand world, sustainability and growth is dependent on customer service experiences that keep clients and potential clients engaged.
Customer acquisition is timely and costly, especially in the commercial real estate industry. Real estate companies with large, embedded client bases that improve customer retention may increase margins by hundreds of millions of dollars. How? By improving customer service.
While several real estate companies have begun to acknowledge the profit potential associated with churn reduction, also know as cancelation reduction, few have mastered the art of customer service. In the digital age, lease execution and commissions are no longer the singular point of victory. Customers are won long before the transaction. Retention is impacted by the experiences they have and the knowledge presented to the client while evaluating potential offices spaces, term negotiation, and other services.
A Game of Musical Chairs in Brokerage
In the digital age, technology has helped with presenting better information with more robust data, but customer acquisition and retention has remained a white gloved service that requires the commodity of time.
Based on RE:Tech research, 80 percent of tech startups in New York seeking 5,000 sq.ft. (minimum) of office space switched brokers at least once due to poor service in 2016. The estimated value of what RE:Tech calls the “broker neglect” is $4.2 billion.
The service experiences most likely to frustrate clients:
- Inaccurate claims
- Under-delivered performance
- Unresponsive to emails and phone calls
- Impolite and/or unprofessional service