The Power of Customer Experience in Real Estate

How customer experience drives growth and loyalty.

In real estate, where transactions are often once-in-a-lifetime, Customer Experience (CX) becomes a real driver of growth. CX encompasses how customers perceive all their interactions with our company, from first contact to post-sales. In 2020, the consultancy Walker predicted that CX will overtake price and product as the main differentiator for brands. However, while most business owners recognise its importance, few have effective strategies in place to improve it.

Customer experience figures at a glance

• 75% of brands do not really understand what "engagement" means, although they claim to measure it (Direct Marketing).

• 60% of consumers have higher expectations of customer service now than they did a year ago (Global State of Customer Service).

• Loyal customers are 5 times more likely to repurchase and 4 times more likely to recommend a brand (Temkin Group).

What is customer experience and how is it evolving?

The customer experience encompasses every interaction with our company. This journey, defined by Don Peppers and Martha Rogers in the 1990s as "the customer lifecycle", has evolved significantly with digitalisation. In real estate, the goal is to ensure a quality CX that encourages referrals, because as we explained here, the customer journey is one-way. As Simon Sinek points out: "People don't buy what you do; they buy why you do it and how you make them feel."

"A positive experience at every interaction and touch point not only creates loyalty, but turns customers into advocates who spread the word about our brand. Don Peppers

How does the customer experience affect the real estate sector?

The influence of reviews

According to Inmuebles2495% of people say that reviews directly influence their purchasing decisions for products and services. This is even more relevant in the real estate context, where transactions have a high emotional and economic impact. 

Google in particular - which accounts for 98% of traffic - places a great deal of importance on customer feedback as it prioritises in its search results to show those businesses where people show high satisfaction ratings. Building reputation is costly work, which requires persistence and, of course, doing things right. But ultimately, asking satisfied customers to leave a review is building a high-impact strategy, as positive reviews have immense value, adding credibility and strengthening our brand's reputation.

Willingness to spend

Investing in CX not only improves satisfaction, but also revenue. According to Forrester, satisfied customers generate 2.4 times more revenue than dissatisfied customers.

Retention and recommendation

A study by ResearchGate concludes that satisfied customers are not only more likely to repeat, but also to recommend, which broadens the potential customer base. In a market where transactions are not recurring, referrals are key!

Y in the real estate sector, the key lies in the after-sales protocol. Here are 4 key ideas on the importance of leaving your mark with every step of the process:

In 2024, 2% of households will sell a home. Thus, depending on the size of the agency's database, it will have a higher or lower sales potential. For example, with a database of 200 homeowners, the potential will be 4 homes.

Throughout our history as estate agents, we have built up a very valuable pool of goodwill. Our former clients (buyers and sellers) are families to whom we have access and can become prescribers.

Acquiring a new customer costs 5 times more than retaining an existing one. The existing customer is also 4 times more likely to refer us. Likewise, the success rate for selling to an existing customer is 60-70% while for a new one it is 5-20%.

After-sales is one of the 3 leadgen strategies common to any agent in the world: after-sales-loyalty, circle of influence management and capitalisation of ongoing sales.

Key trends in customer experience

1. Every interaction counts

Each point of contact creates an emotional reaction. Every whatsapp, email, call, meeting, visit, deliverable, website, landing page, network publication... everything has an impact and builds the customer's perception.

It is a long process full of small interactions. It is not a question of intensity but of quality, intention and coherence along the way, of sedimenting at each point of contact. So, for example, it is not the same to present ourselves to the client as cheerful, positive, positive and with solutions, as it is to be distant, rude, serious and without information. Obvious, isn't it?

2. Personalisation and exclusive attention

People are unconsciously self-centred and we should not interpret this in a negative way. Clients (remember, we are clients too!) want to feel valued, especially in a transaction as personal as the sale of their home. This means actively listening, taking the time and showing commitment. Simon Sinek stresses: "People buy for the personal reasons that matter to them". which means we must create an experience aligned with their values and expectations. This is especially important in the new post-pandemic consumer habits, where there is a considerable increase in preference for brands with a positive impact on society.

3. Customer insight and team alignment

Shared customer knowledge ensures that the whole team is aligned and can deliver a consistent and efficient service. Tools such as CRM are crucial, allowing important customer information to be recorded and updated which can then be shared with the team, working with the same data and approach.

4. Committed employees generate committed customers

Team commitment is the foundation of a good CX. In the words of Richard Branson, "Take care of your employees, and they will take care of your customers". This is especially important in service companies. All people who have a direct relationship with the customer (from the front office at back office) influence the customer experience and all must be committed to generating and adding to it. The team members in a real estate agency are our internal clients.And if they are motivated they will create positive experiences, otherwise they will hinder the process enormously and erode the customer's otherwise good taste in the mouth. Yes, we will have value leakage.

How can we motivate our teams? In general, they do what is measured, incentivised and celebrated. Can we for example offer incentives to employees who get the most reviews? Do we have a culture of active listening in our agency?

5. Authenticity is key

For the customer experience to be effective, it must be authentic. "Intentions without actions are only dreams..." goes an old saying. Many companies have good intentions, but without solid execution, without specific protocols, those intentions do not translate into positive experiences. Having clear processes and dedicating specific resources to CX is crucial to maintaining customer focus.

Anything goes. The consumer has lost confidence and, according to the experts, we live in the age of cynicism. The report Meaningful Brand 2021 evidence of how the brands' 75% could disappear and consumers wouldn't care. 

Key dimensions of customer experience

The brand promise

Customer experience starts with the promise of value. Every company needs to be clear about what it stands for and how it differentiates itself from the competition, and a clear and resonant brand promise allows the agency to stand out. Just as brands like Volvo, known for safety, or Coca-Cola, which promises happiness, do, a real estate agency must define a unique value promise that resonates with its clients.

According to the study Meaningful Brands by Havas Group which unveils the keys to being a relevant brand in an era of uncertainty, states that in Spain 71% of consumers are tired of brands' empty promises and 82% expect brands to show support for people; thus, wellbeing, enjoyment and safety already account for 32% in the construction of the brand. brand equity of brands. And it is not so much an individualistic vision as 75% thinks that brands must act now for the good of society and the planet.

Knowing this, why is it so common - and tiresome - to see that the vast majority of the messages that real estate agencies disseminate are aimed strictly at attracting clients ("we sell fast", "free valuation", "leader in sales")?

The product or service

Some products, such as Apple's iPod, revolutionised entire industries. In real estate, the service is the experience itself and personalising the experience by paying special attention to the details of the service can make all the difference.making customers feel cared for and safe at all times. But it is especially difficult because the service is very scripted and will be very similar from one agency to another, which is why the next factor comes into play, the third dimension of CX and one of the most relevant in our field. 

Customer interactions

As we discussed earlier, every touch point is an opportunity to reinforce the relationship with the customer, s-e-d-i-m-e-n-t-a. This sector, although it has much less repetition and is beyond our control to incentivise it - unlike the FMCG sector, for example - has the advantage of being able to create memorable interactions. The key is to make the customer feel understood, safe and accompanied, and thus foster the bond of trust. It is key to moving from transactional to experiential. 

Investing in customer experience improves satisfaction and generates revenue. In a highly emotional sector such as real estate, taking care of every interaction and strengthening the relationship with the customer will allow us to connect emotionally, stand out in the market and, ultimately, grow in a sustained way.