About five years ago, I was working with a buyer who was considering building in a prestigious golf course community in west Austin. My business partners and I had already taken a number of people to the community, as it is pretty unique. In fact, here is a photo of a home we recently sold in the same area ------------------->
My buyer was a high-risk obstetrician looking to retire from the Omaha area after only 10 years in business. He came to look at some golf course lots and made a choice with the sales rep. We did a "hold" on the lots (two lots which were side-by-side next to one of the greens).
A couple of days later, I received a promotional email from the developer and the agent specifying that they were going to pay 6% (rather than 3%) on any lots "sold by August 31st". Needless to say, I was excited, because ours would close during that timeframe. I later spoke with the developer (who was also the proposed builder for the home thanks to my strong referral) and he said that the lots we sold would not qualify for the bonus. In other words, we were PUNISHED for selling them 48 hours earlier than the email promo. At a cost of $360,000, this was a $10,800 slap in the face. Even though our buyer was later forced to choose two different lots because of an easement issue, they wouldn't honor the bonus for us.
During our conversation, he also told us that the buyer was planning to build a smaller home, which was true at the time. He said, "If they build a bigger home, I will pay you a bonus on the construction of the house itself." Well, they built a VERY large home after all - it turned out to be around 5500 s.f. or so, yet he paid NO bonus.
I later told his salesperson that I thought the builder was a good businessman until that happened. I also told him that I thought he was a better long-term thinker than that, as we would have the opportunity to bring many millions of dollars in sales to him, yet he treated us badly and disreputably. I have forgiven the man, but I have also never taken another buyer to him, nor will I. And as I told his rep in 2002, we have directed many custom home buyers to better places to conduct business. It just doesn't seem like I am being a good steward of my time and effort to work with him again.
The last time I bought a new phone (TREO 650) was about 2.5 years ago, when they were very new on the market. I thought about upgrading to a 700, or perhaps to a different model. I had seen an ad about the low pricing offered by Sprint, which has been my carrier for about 10 years now. When I called, they explained that the low price was ONLY for new customers, not for those with existing Sprint accounts.
So, let me get this straight - I have paid thousands upon thousands of dollars already to you guys, but I must pay three times the cost that Joe Off-the-Street will pay? How does that help with customer retention and loyalty? That strikes me as the equivalent of telling a past real estate client that they must pay the going rate, even though I am charging any new clients 1/3 of my normal rate. Take that, Loyal Client!
I guess my point in writing this is to consider what loyalty is worth, and what you are willing to sacrifice for the promise of future business. Many times, I have given up a bit of money to help make a deal work (repairs, etc.) because MY CLIENTS ARE IMPORTANT TO ME. I also know that after the closing, each past client represents the potential for several future deals. Treat people well and they will return to you. It works!
Copyright 2007 Austin Real Estate
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Jason -- Oh this is long overdue. You certainly ran with that conversation we had...good for you! I have been in the service industry for over 25 years in my professions. I just don't understand why this is such a tough concept to understand. Service and Loyalty is key no matter what business you offer. I know you can't control a lot of your co-workers or company policies but there is something to say about repeat, referral and satisfied customers!! Now--we all seem to think we need a cell phone in this generation, myself included and these big cell company providers know this and I personally think they take advantage of their customers!! I for one would cherish my client for their loyalty, returning back for the customer service I gave them!! It seems that these cell phone providers figure there is another client around the corner...I can't run my business like that and would not want to mimic that model!! I'm a huge quote person and a few come to mind I would like to share ----
Do what you do so well that they will want to see it again and bring their friends. -- WALT DISNEY
If we don’t take care of our customers, someone else will. -- UNKNOWN
SARDI (please, call me Crouch, or Couch, or just "Loveseat") - That sounds exactly like the type of thing that I would say to the phone company. My wife had to calm me down once when I was talking to Bank of America because I got so irate over a fee that they charged me. I am loyal to a fault with friends, family, acquaintances, and even with companies IF they treat me well. I will email you about the group.
Dear Loveseat... (and you too Sardi),... this happened to me recently when I asked about the price of upgrading my cell phone. Turns out it will be cheaper to cancel my service and begin again as a new customer in order to get the advertised price. I'm of the Nordstrom school of customer service and this felt like a real slap in the face.
Loyalty may be the greatest commodity in the modern era. How is it that so few get this?
I'm thinking of starting my own phone company!
OH yes...here is the continuation of my cell phone provider story..I had a family plan for my daughter and I, she rarely used her plan as it was for emergencies only (teenage abuse was not allowed on cell phones at our house). I had completed my contract and was considering buying my TREO when this all started. Now during several times with my contract I had contacted the provider and changed my minutes up and most recently this year down some since I was not needing 2100 minutes as much. It didn't cost me anything, they were happy to help me. When I called them again to inquire about my possibilities of a new phone and looking into Wifi etc, I then learned that if I changed my plan of course, I would have to sign a new contract and the 'month to month' would go away!! After sharing my disappointment with the poor rep on the phone, I said I would get back to them. I wasn't sure if I was going to put my daughter on her own account and take her off my business line all together, she deserved it after all. The rep proceeded to tell me that, "since I was changing from a family plan, they had no choice but to change my plan and I would not be penalized, that they were forced to change my plan if I dropped to one line." Imagine that? I called them back a few weeks later and did just that and my daughters dad found her a plan so I dropped down to a lower minute package and didn't have to sign a new contract...this will work for now until I have the time to research perhaps another provider. I don't think however finding loyalty in this industry for repeat customers is an option. Supply and demand... I have yet found another provider or looked into a better plan for me just yet...but I probably will soon. I will gladly take suggestions. I really,, really think the TREO will be a great device to have...
Hey, "the Loveseat" I look forward to this new group and what it will be all about... I will keep an eye out!! By the way, thank you for a nice plug. I appreciate it.
I just re-read this Jason, and it occurred to me that the true test of your gracious nature (and I KNOW this about you) would be if you could go in to your local cell phone provider's storefront and convert one of their lackeys into a buyer or seller. I did this with Wells Fargo when I went in to throw a little tantrum about an inappropriate fee. I ended up selling a condo to the vice president because she admired my negotiating skills.
So the challenge is on .... Go Jason!
Jennifer... that's awesome. I know another guy who was going to be sued by the company of a famous sales trainer. Instead, he negotiated a deal to do more business!
Jason: If I wanted to treat my customers like the phone company then I would have a 30 minute waiting time before they were transferred to my call center in Asia. Please hold.
CANDACE - This is the type of garbage that phone companies seem to specialize in these days. I guess they just figure that the industry and its customers are one big revolving door, so who cares about the individual consumer? I simply can't imagine handling my business like this, but I am not dealing in billions either, so what do I know, right?
As I mentioned above to Jennifer, the "Loveseat" nickname seems to be catching on quickly. Did you see the source for that?
Hopefully, you have received an email from me about the new group by now. Talk to you soon -
CHRISSY - I did the same thing with DirecTV about two years ago. I ended up bugging them (nicely) so many times, that they gave me a ton of free stuff. That being said, I have been a loyal customer for many years, and they were afraid of losing me, or at least it seemed that way.
Honestly, my clients are very loyal to me. In fact, that was something I addressed on a tangent with my post about buyer's rep agreements:
How to Present and Use Buyer's Representation Agreements
Thanks so much for your kind compliments! I sincerely appreciate them.
JENNIFER - You sound like me! I have done stuff like that as well, but I accept your challenge. I will try to do this the next time I deal with a phone company or bank. I will pretty much hit up anybody for business, but I always do it so subtly that they don't see it coming. I am the master of turning an innocuous conversation into a discussion about real estate. I did this recently with someone calling to sell me something over the phone, and yesterday I think I converted a guy who called for a reference into a buyer. Cleaning ladies, exterminators, painters, you name it. If they are speaking to me for any amount of time, they are fair game in my book.
You might be interested to know that one of the best telemarketing people I ever encountered is in the process of getting her license right now so that she can join our team next month. Also, one of my fellow Rainers (whom I invited here), Alan Kirkpatrick, now works with me as a result of me meeting his wife while she was managing the Nautica outlet store.
You know me too well!
ADAM - I have heard other bad stories about Vonage, so this doesn't surprise me much. I'm glad you were able to win your battle, and I am also glad to hear that they are getting some "comeuppance", if you will. That is terrible and ironic to hear of their lousy phone system. Thanks for your comments. I guess changing the post title helped?
Hi Jason: Regarding the "bonus" from the builder, and losing out on it because you wrote the contract 48 hours too soon... I would be surprised if the builder budged. I have seen this happen with myself being the Realtor on THIS side of the desk, and I have seen it happen when I was the New Home Sales Consultant on the OTHER side of the desk. In both cases... the builder would not budge.
I am sorry to say this... but with my fifteen years as a new home sales consultant sandwiched between being a Realtor both before and after... it hurts... I have been there.
KAREN-ANNE - I understand your point here, and I realize that he wasn't obligated to do anything differently. The things that bugged me were:
I am certainly not trying to imply that we had any legal basis to claim this extra money, but the right business move on his part under these circumstances would have been to just pay it, don't you think?
Jason: There are times when a smart builder would know just how much it costs to attract a Realtor to his new home subdivision. But this dumbie-do has no clue just how expensive it will be for him because of all the ill will that will be created every time you tell this story to Realtors in your Realtor-Sphere.
And, just the reverse... he would have gained so much "mileage" by including you in on the bonus, and then having you tell everyone you knew how great this builder was... that he didn't have to give you the bonus... but he did it... as the word "bonus" implies. Really dumb move on his part. Karen Anne
KAREN ANNE - That was my logic as well. He could have gained a partner for 30 years. Instead, he chose the low road, and we have never forgotten it. It didn't help that this occurred during an especially slow time for our team, and he would have been our hero! As always, thanks for your comments. I look forward to seeing those photos of the new stadium if you have a chance to take some!
Jason-Ahhh, customer service, any type, seems to be getting less and less. Our "I want it now" mentality has somehow replaced this. In other countries they have a slower life style, and sometimes I wish we could go backward :)
Now, what is this group you are thinking of starting......tell all.
I started a group called "Family Ties" tonight. You can check it out here and I will be posting a blog soon to promote it further:
http://activerain.com/groups/familyties
Adam and I like to write about stuff that relates to our families, so we wanted another place to do this. Come take a look and post anything you feel is relevant. Thanks for your interest!
Jason, this is a double edged sword. It would be nice if everyone was as smart as we are BUT it is really great that they are NOT. Some people lose because of their stupidity, but look how much easier it is for us if we do give Nordstrom type service?
Bill Roberts
Yeah....always do for your past clients and the referrals they bring as well. I just had a repeat (and during the transaction she referred another to me) so what did I do? I bought screen doors, repaired some stuff and in all spent 1500 dollars (500 was to another agent for showing them property one day when I could not)
P.S. and I think I'd change phone companies....just keep your same number. I have t-mobile now..the family plan allows three of us to talk to each other and other t-mobile customers free. I like that.
Jason, the builder obviously did not see the big picture, talk about shooting oneself in the foot! You were very kind and did not use their name but you could have been on here plugging them for Localism. Those types of things tend to come back around to bite you in the rear; you would think they would have figured that out.
Unfortunately we may not always remember the good service we get but we ALWAYS remember those places that give bad service!!
GITA - Thanks for your comments. You are exactly right. The builder/developer that I dealt with treated me as if he had a lock on the area as well. With phone companies, there are so many options these days, so it couldn't be further from the truth in their case, but they don't seem to "get it".
Jason:
How about those COWBOYS!!! Great game.
Hey, I could use some advice on how to move my listing. We have had traffic but not much. We lost a couple of buyers to the builder. The good news is thay are out of our product and they are nearly if not all out of standing inventory for the moment.