Should Customer Service have a price?

I read an article very recently that was posted to Linked In about estate agency. The article proposed that the great debate about the ‘Hybrid v High-Street Agent’ was becoming tiresome asking that on whichever side of the debate you sat, could the focus not be one of an acknowledgement, perhaps even agreement, that change has happened and continues to do so? The article questioned why that was a bad thing but more importantly why the industry was even debating it. It was time to move on, time for estate agencies to focus on how their businesses can ride the wave of this evolution. To adapt, to change, or to be left behind.  

In my opinion the author is quite correct when he uses examples of positive change in our everyday lives be it technology, citing examples such as Netflix/On Demand, music downloads or shopping where Amazon’s dominance of the on-line retail world has shown almost colossal growth almost overnight. Granted where one industry embraces change and adapts its model it can be to the detriment of more traditional businesses, but sitting back and ignoring it is not an excuse. Next and John Lewis are two superb examples in the retail world where the internet & technology was embraced, creating a vastly improved on-line experience for the user to ensure a more complete customer experience in partnership with their high-street stores nationwide and the footfall they generate. On the contrary, Marks & Spencer’s seemed to be slower on the uptake, slower to adapt their on-line retail model relying, perhaps too heavily, on a stalwart reputation and on an assumed customer loyalty base in terms of visits into store. Now they seem to be playing catch up.

Change has materially altered the way we, as consumers, behave when making the decision to either watch the television, buy music or carry out a little retail therapy. Going back to the article I read for a minute then, the author makes a significant observation asking ‘why shouldn't the sale of property in this country (UK) be any different and be immune to change?’

How does the author therefore propose estate agencies differentiate themselves?

Give the consumer ‘choice’.

Choice in terms of the ‘services’ an estate agency provides or choice in terms of the price they want to pay and the level of service they receive for a specific fee? I’m not so sure because I don’t think it’s quite as simple as that in spite of the many agencies offering these ‘choices’ to the wider market.

As an industry, would our customers expect to receive a lesser standard of service for a lower fee or would they expect to pay a sensible, reasonable fee in return for the best possible service an estate agency can give?

Our focus has to be on our customers, our clients – you, the consumer. Yes, our customers all have differing preferences, varying needs, differing degrees of knowledge, understanding and expertise in the property market. But they ALL value an agent’s time, effort and participation in the buying and selling process. The reassurance that the person to whom you've entrusted the sale of your home to is available, will take your call, answer your email, do his/her best to help you through what is still (probably) one of the most emotive times in life is, to my mind, customer service. Those that don’t want this will always find an alternative means of securing a sale of their property.

Some estate agencies advocate a menu-based pricing approach. Others charge what they think they can get away with. But what is the right approach given the consumer, the customer (our clients) are our primary focus?

I advocate consistency. In everything that we do. We try. Sometime we don’t get it right; but hopefully only sometimes. I believe that if you are consistent in your approach, treat every client as an equal, and put in as much effort to each and every instruction success for our clients consistently over the long term should show. This extends into everything we, as an industry, do in the business of estate agency.

We could all list our services on our website and social feeds using a menu format and allow the market to choose what they want from us and, at what fee they pay under a tiered approach to service. I believe that this somewhat pigeon holes a businesses standards; it draws clear lines between the level of service the client will receive based solely on price. Don’t forget that in doing so, the client/customer hasn't chosen anything bespoke to them or to their needs, they've simply chosen a pre-determined package of services that we (the estate agent) think they’ll accept. An edited set of service standards. How is this progress, evolution, and change for the better?

Perhaps this works where you don’t have overheads, the whole ‘rent versus presence’ argument but it only gets a business so far. Some are successful with this model, others tread water, a number fail sadly. But arguably, those that are successful soon have to increase their overhead to maintain the standard of service they provide evolving them from 'Hybrids' into 'High Street'. We've seen this here in our own market very recently.

So, is this putting the customer’s needs first or is it another way an estate agent can simply try to manage its own time and cost base accordingly? I’ll tell you what I don’t think it is; putting the customer first. On the outside, it is a flexible approach granted, but if a client does opt for the cheap fee option but isn't happy with the service received it is unlikely that they will ask the agent for a better ‘package’ or the next option on the scale until such time as they secure a buyer for their home. And why should they!? In my humble opinion, they are more likely to change agents and fight for a competitive fee (but with better service) with the next one rather than consider that the fee they pay should be proportionate to the standard or level of service they receive.

I believe that an estate agency should look after its own business first and not get too wound up about what every other competing business is doing. It’s right and proper to keep an eye on the competition, to adapt, to change where required but to me the key to maintaining an established position in a local market is consistency and customer service. Customers, whatever the business is that they’re looking to purchase from or utilise the services of, should not be treated any differently. They have the right to expect a high standard of service whatever price they’re paying and not be dictated to by a business or agency that is trying to manage them by giving them cheaper alternatives.

We must embrace technological change, make our on-line user experience better, faster, more informative. This is the other constant in our approach as an industry. Consumers, customers or clients should always feel like they have a choice but customer service shouldn't have a price. Consistency, knowledge and experience count in what is still, and will always be, a results driven business that embraces change.