Consumer Centric or Customer Friendly?

An often-heard criticism of traditional brokerage firms is that they are not inclined to be consumer centric. Given the fact that consumer centricity is not a traditional business policy, or even a recognized value factor, this may well be true. But one cannot help but wonder if this suggested lack of consumer centricity or sensitivity is a product of traditionalism or merely a cultural shortfall.

We recently had an opportunity to work with a brokerage whose new management team wanted to experiment with the whole issue of consumer centricity with an eye towards moving the firm gently towards a more productive consumer perspective. As a starting point, we conducted a series of surveys and interviews with management executives, administrative staff and top agents. Our objective was to determine a residual attitude with respect to the idea of consumer centricity. While we would not suggest that our research methods met the requirements of a PhD dissertation, it was sufficient to arrive at some management quality conclusions. What we discovered was an atmosphere of consumer neutrality.

The research failed to disclose any overt anti-consumer sentiment. But neither did it discover any overwhelming urge within the firm to cozy up to the consumer. What we did find interesting was the fact that those whom we surveyed or interviewed did not really think about consumers at all. Rather they focused their attention on their customers instead. Most interesting of all was the discovery that most of the individuals who participated in the research had a very strong sense of customer service but no impressions regarding appropriate consumer interactions. Moreover, while their respect for their customers was quite high, there was no corresponding cultural or professional respect for consumers.

Intrigued by these findings, we followed up with a secondary research effort that undertook to explore how the group felt relative to how their respect for their customers should be played out in their day-to-day interactions. This effort was really enlightening. We were able to determine that a significant number of individuals within the groups held common beliefs with respect to how customers were to be "handled." Consider the following.

• A clear majority of the group felt that customer respect meant being respectful during direct interactions.
• A majority felt that a customer's needs and expectations should be taken into consideration whenever possible
• Less than half of the test group felt that their customers really understood or appreciated their own transaction.
• A significant majority of the group felt that the decisions recommended by, and knowledge of, the agent should control the transactional decision-making process and that the agent really did know what was best for the customer.
• Slightly over half felt that occasional casual and/or convenient "interpretations" of the facts at hand were both necessary and convenient to make deals come together and transactions close.

It seems as though a case can be made for the fact that these folks are guided by a sense that "the doctor knows best." Under this approach it is completely appropriate that an agent or manager do what is necessary to close a transaction so long as the gross best interests of the customer are not violated.

This laissez-faire style of practice (professionals should allow matters to proceed naturally unless a clear danger is poised for their clients or patients) was, for many generations, a staple practice methodology within the legal, medical, accounting and other professions. Today, most of these professions have had to convert to a much more objective practice style because of one single factor--the arrival of today's transparency and accountability seeking consumer. One by one, professions and businesses across the American economy have to migrate from their traditional caring and protective approach to customer service to the much stricter and demanding standard required by consumer centricity.

Are today's consumers any better off than yesterday's customers? Perhaps not. Marcus Welby's patients seemed to recover nicely and Perry Mason's clients seemed to relish their experience. Most of those harmed by this approach to practice never even knew it. In contrast, today's enlightened and empowered consumer launches themselves into a jungle of research, bravado, fear, distrust and mistrust at every turn. While it is true that they have a world of information and "data' at their beck and call, the fact appears to be that seldom are they competent to take advantage of these benefits. In fact, younger consumers today appear to have abandoned even the fantasy of enlightenment in favor of collegiality, eagerly seeking information about those who have gone before them through various service provider rating programs and apparently never considering the fact that these "pioneers" may not have been anymore knowledgeable than they.

All of which brings us back to our discussion of consumer centricity. Brokerages and real estate professionals need not feel guilty or inadequate because they are not "consumer centric." The vast majority of those customers that they have served over the years are alive and well. Many still live in the very properties they purchased through that death defying transaction in which so many were, apparently, marred for life. Our real estate industry has provided a safe and satisfying real estate experience for millions of American families.

Yet there is one word of caution. Firms and agents who follow the traditional paths of customer service and respect must exercise great caution as they go about the day-to-day efforts of their traditional practice. A new creature is increasingly populating today's market. A creature who is driven by a fear of the unknown and an abiding almost crippling lack of trust for any firm or professionals who has not professed total consumer centricity. A creature for whom information, accountability, and absolute transparency is accorded an almost religious faith.

It is no longer "buyer beware" in today's digital and social media driven society. The former prey has become today's electronic predator. Having convinced themselves that most real estate service providers are dishonest, they have made an interesting choice. While one would think that the purist decision would be to "do it yourself," they have apparently decided to bear their burden by demanding a discount. Go figure! If you are a traditionalist and hope to survive in today's increasingly combative world, you would do well to sport a nametag that identifies you to that world as "Not Consumer Centric but Customer Friendly." By the way, our client is now reconsidering the benefits of being consumer centric.

To view the original article, visit the RECON Intelligence Services blog.