Given the lack of value and support in our industry, do we deserve bad press we get? Probably, given that:
We generally have a bad reputation;
We have not kept up with innovation;
The real estate bubble was real after all;
And the internet has put information and power in the hands of the consumer.
I recently read an article in USA Today that opens with this statement, “To hear President Obama tell it, traditional travel agents have died at the hands of the internet.” With the continued lack of value and support we provide to both our clients and our agents, I could not help but think when a similar statement might be made about traditional real estate brokerages given all the challenges we are faced with and the glee so many take in slamming our industry.
Without providing value and support, are we as vulnerable as travel agents?
Probably not. However, if we are not careful, we might suffer the same plight. The article points out there are almost half as many travel agencies today as there were in 2002. It also quotes the American Society of Travel Agents, stating, “U.S. travel agencies still handle more than 50% of all travel sold annually.”
Can you envision a day where NAR justifies our existence by saying that we still sell half of all homes sold nationally? By no means is the article an indictment of the travel industry. What it tells us — and what we need to internalize — is that our world could look much different in coming years if we don’t address the gap between consumer expectations and industry innovation. A huge disconnect exists between what our clients want from us, and what we actually deliver as an industry. And it’s costing us both our reputation AND our bottom line.
Another quote is from an Orbitz spokesperson who talks about how travel agents will exist as long as they provide value and support. In the travel industry value and support means, “…Finding the best airfares, the best hotel recommendations, support in an emergency, and/or the back-office support to properly manage travel costs.”
I often look outside of real estate for inspiration and ideas of what we should do differently. Although booking a vacation or business trip is certainly not the expensive and complex transaction our industry deals with, the lessons are the same.
You must deliver value and support or risk losing your market position to someone that will!
It may be Trulia or Zillow, some virtual company, or a traditional broker who has bridged the gaps you are still struggling with. Read the article and others like it to see what has happened in other industries. Study proven deliverers of awesome consumer experiences such as Apple, Nordstrom’s, Starbucks, and Zappos. Look outside your industry and your comfort zone — you won’t regret it!
Good article Jose. We all know it to be true. The harder part is actually executing on the changes required to deliver that value. If a Broker could identify the three most
important “value points” that would cause a consumer to see/experience real value, what would those be?
The three most important value points, in my opinion, are:
* Being that 87% of consumers start their search online, their experience with you MUST begin with your online presence. This means that you have to have a solid social media strategy and an engaging and easy to use website that gives consumers the information they want in an entertaining and informative way.
* Again, because so many of your consumers are going to start their search online, you MUSTrespond to their requests for information IMMEDIATELY! Internet consumers expect a response in under 15 minutes so if you don’t respond right away in a courteous and consistent manner, you are potentially delivering a negative experience that will hurt your brand.
* Finally, during the home buying/selling process, you MUST be able to be transparent and make sure the consumer knows what is going on and can get to that information without necessarily having to hear from you directly, although that part is also important. They need to feel like their transaction is the most important transaction you are working on.
There is a lot of truth in this. If we aren’t delivering the “Value or Support” it’s because we aren’t listening to the consumers. Because they have already told us what’s important to them. If you receive a text message or an e-mail, they have just told you how they like to be communicated with. They always tell us, we just have to start listening more.
I agree with you Jose, we have to add value or there is no reason for buyers or sellers to engage our services. Part of that value I feel, is knowledge. Not just about Real Estate, but about the economy, taxes, government, etc., and to be able to look ahead and let them know what the trends are for the future so that they can be proactive instead of reactive. I think that if you continue to underwhelm your customers you will soon be out of business. Social media is critical to buyers and sellers finding you, but you must be outstanding and give them good information once they do find you. We used to have to be good, now we have to be outstanding. It is time to step it up and play full out. Our buyers and sellers need us more than ever in this market!
I couldn’t agree with you more Jose with more and more perspective clients starting their searches on the internet it is critical for today’s agents to have a online presence. Today there are so many opportunities to learn the different social media sites and which ones pertain to real estate industry that it makes it much easier to get active then say two years ago. I usually suggest to the agents I know to start with one or two sites, typically facebook and active rain. Once you feel comfortable working within those sites start to branch out slowly adding Twitter and other industry specific sites. Thanks so much for sharing the information.
As an industry real estate professionals must band together and do as you say “add value”. Unfortunately without appropriate oversight there are too many agents who are only about the money and the client is an after thought. Our industry needs regulation and accountability as well as good intentions.
What types of regulations would you propose?