Customer Service - Always The Most Essential Component of Marketing & Sales

Many businesses find themselves facing the choice of taking alternative approaches or following certain approaches to marketing and/ or selling their products and/ or services. While it is often possible to make a particular one - time sale based on offering a low - ball price, this approach rarely creates any long - term allegiance. When one observes a variety of business models, there are numerous examples of different levels of customer service or support, as well as different levels of training that businesses offer to their customer service representatives. What those who fail to prioritize or pay sufficient attention to this process may still enjoy some degree of success, invariably it is the quality and consistently of their customer service representatives that dictates their longer term sustainability and acceptance. For example, every real estate professional must balance his promises with reality, as well as paying attention to the fact that most parties to a real estate transaction need to have their hands held.

1. It is certainly true that a business or sales representative can make a sale by offering a lower price, that behavior rarely develops a committed customer, and certainly never leads to the very desirable client relationship. However, we often observe companies that initially react to down periods by diminishing and reducing customer service and the related expenses. Nothing could be more counter - productive, because in the bigger picture, customers remember how they were treated far beyond the period that they recall the price they paid. Consider how you personally feel when you go into any store, or make a call to a company, and how the initial treatment irreversibly impacts your perception and opinion of that business. Effective service means a real and concerted effort to make the buying experience a far more positive one for customers and clients, and differentiating yourself from the competition. Isn't it funny that so many businesses spend so much money and time doing post - process interviews, while often ignoring or certainly not paying enough attention to how they treat their customers or potential customers, in the first place? How often do you observe companies offering some sort of promotion to attract new customers, while not offering these to existing customers to retain them, even though the cost of acquisition is invariably greater than the cost of retaining existing customers?

2. There are many essential components to assure that a quality procedure is consistently followed. It begins, as so many things in business, management and leadership do, with a prioritized commitment to everything that makes the buying and/ or shopping experience a better one! It must begin with not simply acting like you care, but actually doing something. When businesses spend more effort on serving their customers than simply thinking about selling, their sales are enhanced rather than diminished. Successful organizations always understand that exceptional service creates a positive word of mouth, which is the most powerful and meaningful form of marketing.

After more than three decades of extensive consulting to hundreds of businesses and organizations, it has become obvious that the most sustainable behavior is professional, quality and consistent service. Whether the business sells a product, a service (such as doctors, etc) or some combination (the real estate transaction business), they must prioritize how they serve their customers and/ or clients, throughout the process.  Businesses must come to understand that it is not the sales you make today that count the most, but rather how you are perceived and appreciated by future potential customers and clients. Ask yourself why would your existing customers/ clients refer your services?

Customer Service : A Cautionary Tale of Two Airlines, & What Every Business Should Learn From It

It's both a fact and a reality of airline travel that from time to time, a traveler will encounter some unpleasurable occurrence. For a number of reasons, and even at times for no fully recognizable reason, we face delays. However, in the last month, I have seen first - hand the behaviors, attitudes and perhaps training and personnel involved, often determines whether a customer comes out of the experience with either better or worse opinions of the airlines involved. Precisely how two airlines reacted when their customers were adversely impacted should serve as a valuable primer in customer service, both the to do's and the do not's! This story may be about how two airlines behaved and responded, and trained their employees, but it is relevant for anyone who wishes to succeed, whether in a product - based business (selling a product), or a service - business (such as real estate, investments, etc.)

1. A couple of years ago, my wife, eldest son, his girlfriend and I were scheduled on a Jet Blue flight to Nassau, Bahamas. Boarding and taxiing seemed normal, but then we got the dreaded announcement from the pilot that there was a computer issue, and we had to return to the gate, in order to remedy the circumstance. While initially the crew could only offer us an idea of how long the delay would be, the airline decided that if anyone wished to disembark, he could, and could then reboard when the issue was resolved. While we experienced a two hour delay, and certainly no one was pleased, this airline immediately decided to behave proactively, and even before we departed, issued a credit to every passenger's travel account. Obviously, this was a token gesture, but merely the attitude of making it up to the passengers, indicated why this company has been consistently rated extremely highly in customer service analyses, etc.

2. About a month later, my 24 year old son was traveling from Philadelphia, to meet us in Fort Lauderdale. He boarded his US Airways flight as scheduled, they began to taxi, and then about 90 minutes later, returned to the terminal because of a mechanical issue. Obviously, this will happen, but what this airline then did may offer a glimpse into the other aspect of customer service (or perhaps it should be referred to as disservice). The airline determined that the plane issue could not be remedied immediately and brought another plane around to replace it. However, since this plane was both narrower and shorter, approximately 30 passengers became further disenfranchised because they needed to wait, were then told to move to the side, and then were told they would not be able to go on this flight. Needless to say, hours passed, and as time ensued, passengers became more and more irate. They were given little information, and there was no immediate attempt to get them on another flight. In my son's case, rather than taking a flight that should have arrived in Fort Lauderdale at approximately one in the afternoon, after much ado, was placed on a flight that departed Philadelphia and approximately 7 PM, and flew to Miami International Airport (slightly over 30 miles away) and arrived at about 10 PM. Of course, his baggage ended up flying separately to Fort Lauderdale, and fortunately arrived there the nest day, and we had to go to airport to pick it up (not even an offer to deliver it, as some sort of customer - service based move to empathize with their customer.. Proactive customer service would have dictated that the airline would have at least offered to deliver the bag to our hotel, but instead, on Christmas Day, we needed to return to Fort Lauderdale Airport to pick it up. Wouldn't you have thought that at the very least, the airline might have offered some sort of food voucher, since my son would be staying there for about eleven hours?

The point of this is not to point figures, but rather to teach every business an essential lesson, which is to leave a customer satisfied. Which airline story would leave you with a better taste in your mouth? Which one would you use the nest time? Now that the offending airline has merged with another, would you now hesitate to use their merger partner in the future? True and quality customer service means empathizing, caring, addressing and fulfilling your promise, to each and every individual that does business with you. In other industries, this would mean being proactive in fulfilling actual or implied promises. For example, which real estate agent would you rather do business with, one that explained everything fully to you, figuratively held your hand throughout the process, and under - promised and over - delivered, and exceeded your best expectations throughout the process.

Why Savvy Homeowner Price Their Home Realistically, From The Start?

People come up to me all the time and ask, "How's the real estate market doing?" Although I would really enjoy giving a simple answer to this question, the real answer is far more complex. In certain parts of the country, the housing market has been stronger than in many other areas, although, prices often fluctuate, even within the same area. However, many homeowners who list their homes have listed them at unrealistically high prices, and then been inflexible in terms of reducing their price. I have observed homeowners list their houses at prices higher than homes sold for at the peak of the market, and then becoming disappointed when their homes don't sell. Some homeowners explain their asking price by explaining how much money they have put into their homes, or how beautiful and exceptional their house is. Often, these same homeowners have owned their houses for many years, and they seem to conveniently forget how little they originally paid for their houses. Yet, the reality is that the price one receives for one's house is not related directly to how much one may have paid, or how much one may have put into the property. In the end, houses generally sell based on what buyers are willing to spend for the house, and that is generally related to the real estate market at that time.

It is also important to understand that the listing price is often far different from the selling price, and that neither the homeowner nor the real estate agent actually determine the eventual selling price. This is only determined by the marketplace itself, as well as by an individual buyer. In addition, even if we assume that someone might be willing to over - pay, since the vast majority of buyers do so via mortgages, lending institutions base how much they will lend, on what their appraiser values that home at. That is where the familiar expression, Comp - Out, is often heard.

These homeowners are generally hurting their own chances of selling their homes by listing their homes at unrealistically high prices. Houses that are "priced right to sell" from the start have a far better chance of selling than those priced too high. Today's buyers study the internet, and many realize what comparable houses are realistically selling for. A basic reality of real estate is that in most cases, the best offer a homeowner will receive for his house is received in the first few weeks after it goes on the market. New listings are "hot" to potential buyers, while houses that remain unsold often elicit questions from buyers as to what was wrong with the property - why it hasn't sold?
Many owners interested in selling their homes interview several real estate agents and brokers, and ask for recommendations as to pricing, as well as many other questions. Many owners want to believe the agent that tells them their house is worth the highest amount, as if saying it will automatically bring forth a higher price. Instead, owners should demand a professionally prepared Comparative Market Analysis, including pricing and a marketing plan from their realtor. In most cases, a homeowner will do best going with an agent that acts professionally, markets professionally, and justifies both the pricing, and how the marketing plan will work.

In addition, even if a "stranger from another planet" decided to pay an unrealistically high price for a house, most buyers need to get a mortgage to finalize the funding for the purchase. Lending institutions, for a number of reasons including some unwise lending decisions during the height of the real estate "bubble," are doing far more complete and conservative comparative market analysis of their own, and if this comparison (known as "Comps") do not justify the price being offered, the lending institution will deny that amount of funding because it does not "comp out."
Since for most individuals, their home is their most valuable asset, doesn't it make sense to objectively ask the same questions as an owner that potential buyers will ask? The main question should be, "How does this house compare with comparable homes in comparable areas in comparable condition? Owners should also ask, "If I were buying a home, would I pay that much for this house?"

Why A Professionally Prepared CMA and Marketing Plan Are Priorities To Sell A House?

We often hear people discuss the need for a CMA (comparative/ comparable market analysis) to best determine approximately what a house is worth. Unfortunately, this process is far from being an exact science, and real estate professionals might come up with sometimes considerably different numbers and suggestions. Both a quality, realistic CMA, combined with a well - defined marketing plan, will generally best bring forth the best result to someone who wants to sell his home. Shouldn't the objective of the process be to obtain the best possible price (available in the present market conditions) in the shortest period of time, with the least degree of hassle?

Seek and put more credibility in looking at comparables that pay more attention to the most recent transactions, and focus on other homes in a like - priced (with equal appeal) neighborhood/ area, that have recently sold, as well as those that have not, and the competition on the market (at present). Homeowners must be able, and willing, to avoid and overlook their emotional attachment to their home, and view their house as potential buyers might. Avoid pricing your house at the top of the market, and pay attention to how best to price it, to attract the buyers your home will predominantly appeal to.

Only when the CMA is used in synergy with a fully - developed and well - considered Marketing Plan, will the best results be achieved. Marketing is not merely about how much is spent, but which vehicles are used, and how well they are. Marketing should focus on the niche market that is best attracted to your home, because of a combination of price, neighborhood, size of house itself (as well as the overall property), etc.

No degree of marketing will work as it should unless the homeowner and the real estate professional are on the same page throughout the process. It is a good idea to put this plan into writing and for both the agent and the homeowner to sign off on it!

After all, isn't the purpose of this effort, not merely to over - price, because listing price and selling price as far different entities. You can list at any price, but your home will sell at a price determined by the marketplace, not by either the homeowner or agent! You will best sell your home at the highest possible price in the shortest period of time, with the least amount of hassle, when you synergistically use your CMA and your Marketing Plan!

The Better You Understand Mortgages, The Better Off You Are!

The vast majority of houses sold in the United States require the buyer to secure a mortgage for a large portion of the home's price. Very few home buyers are either willing or able to purchase a house without getting a mortgage. One would think, therefore, that since so many people either presently pay a mortgage, have previously paid a mortgage, or require a mortgage to purchase a house, that there would be more knowledge and understanding by the public about the subject of mortgages, how they work, what the options are, etc.
During the "housing bubble," many lenders were often indiscriminately approving people for mortgages. These lenders were granting mortgages at some times for even more than the value of the home. They were also rather lenient about credit, and very liberal in terms of valuations. Probably in large part due to the housing crisis in the last few years, lenders have taken a far more conservative approach.
Most lenders today require excellent credit to be approved for a mortgage. The lowest mortgage rates are generally approved only for individuals with credit scores approaching 750, and, in most cases, lenders will not even consider an individual with a credit score lower than 650. Obviously, this has tightened the mortgage market, and has indirectly been another factor in bringing down home prices.
Years ago, many lenders would require far lower down payments than they presently do. Many buyers were then even able to purchase houses with no out of pocket expenditure, and some lending institutions even loaned over 100% of the houses selling price. Today, the vast majority of lenders expect home buyers to pay approximately 20% of the price of the house, and will only loan up to about 80% of the price that the lender values the house at.
Many home buyers are confused by what they will be paying for the loan. There are many factors involved, and the rates fluctuate. Some institutions will, however, lock in a loan rate for a certain short time period (generally ranging from 30 to 90 days). In addition, some loan rates are quoted with no points, and some require points. Home buyers should understand what a "point" represents. In the mortgage industry, a "point" represents a percentage. Therefore, if a loan is quoted with one point, it means that the home buyer must prepay to the lending institution one percent of the amount of the loan. Therefore, for example, if the amount of the mortgage is $500,000, one point means that the buyer must prepay $5,000 to the lending institution.
In the last few years, mortgage interest rates have been close to the lowest levels (and at points at the actual historical lows) ever! Indications are that these rates will begin to creep up in the not so distant future, based on what most experts believe based on the evaluations of statements made by the Federal Reserve (in terms of raising interest rates as the U.S. economy improves). For most people, their home is their single biggest asset, and since the vast majority of individuals carry some sort of mortgage, doesn't it make sense for each of us to better understand more about them (and their usage, etc.).

A mortgage may be either a fixed rate or an adjustable rate loan. A fixed rate means that the buyer will be paying the same interest rate during the term of the loan. An adjustable rate, or variable rate loan, will lock in a rate for only a specified time, and then will change. Variable rate loans are generally "pegged" to some official index, such as the Treasury Bill, Treasury Note, or Treasury Bond index, or some other index that the lending institution specifies. Lending institutions have often offered low introductory rates for a short period, and then those rates rose when the term for readjustment arrived. Adjustable rate loans may lock in the initial rate for any specified term, but is generally anywhere from six months to five years. Therefore, if an individual plans on only living in the house purchased for a relatively short period, and, for example, a five-year (or 10 - year) adjustable mortgage had a significantly lower interest rate, it might make sense for the buyer to opt for that type of loan. I strongly recommend that buyers carefully discuss their options with a trusted financial professional, such as a Certified Public Account, or Certified Financial Professional, as well as with a mortgage professional that has been recommended highly to them (and that you have faith in). Those considering getting a mortgage must pay particular attention to maintaining the highest possible, best credit rating.

Both buyers and sellers must agree to a realistic price based on comparative market values, or the lending institution will not "comp" the house, and the buyer will have to come up with significantly more personal funds to purchase a house. Other areas that need to be considered are securing a professionally examined and prepared Home Inspection, prior to agreeing to purchase any house.
These items are only a brief and cursory view of the many factors impacting mortgages. Home buyers should study and fully understand mortgages, their ramifications and their options, prior to purchase. A home buyer should always ask himself, "Do I feel comfortable with a monthly payment, which includes mortgage (interest, principal, escrow), taxes, utilities and maintenance (including a reserve for contingencies). Unfortunately, many buyers purchase emotionally rather than logically!

The more you know and understand mortgages, the better off you'll be! Be prepared!

Why It's Important to Create A Personal Financial Plan?

Many people speak about the need for personal financial planning, but very few realistically understand what this entails. Financial planning is important to do, not merely as an exercise but to optimize one's financial security and independence. If financial planning is done properly, it is an important and helpful tool, but when done improperly, can often cause more harm than help.
There are several ingredients in properly creating a financial plan. The first step is to understand one's goals and needs. This means an exhaustive, honest and thorough examination of what the goals are of the planning. Goals are needed on a short- term, intermediate- term, and long- term basis. An individual must address first what those goals are, and then attempt to project and place a price-tag on those needs. Once one identifies goals in all three categories and identifies the costs, an attempt must be made to ascertain how to begin to fund those needs. Some individuals are in a financial position where they can invest a lump sum and put it away as a reserve for that need. However, it is far more common that one must create a periodic (or installment payment) plan to strategically gather sufficient funds. If the periodic method is used, the individual must commit to strict discipline in terms of fulfilling those payments, or the plan is doomed to failure!

Identifying the goals leads one to the identification of multiple aims. Most commonly, individuals have multiple needs. Perhaps there is a specific need for an educational fund, while there is also a need for maintaining an adequate family "emergency reserve" fund. There is also a simultaneous need for planning for eventually funding one's retirement. Most individuals possess a goal to own their own home, but few prepare adequately for that. As part of one's overall plan, he must also pay attention to maintain as close to a pristine credit history/ record, as possible, because one's credit often determines not only the ability (or rate one will pay) to get a mortgage, but also, in many cases, whether one will get a better job (because many employers use the credit rating as one component of their overall hiring process review).  The longer an individual waits to begin the implementation of his plan, the more difficult it will be to achieve the goals and aims of the plan.

Once alternative strategies are discussed, a specific strategy must be decided upon, and worked on. Strategies may include lump sum investing, periodic savings/ investing, loans and loan repayment, insurance and annuities, or some combination of these and other strategies. Whatever strategy is decided upon, however, must be strictly adhered to, or there is little usefulness to financial planning.
Any time of financial planning requires strategic discipline for it to have any chance of success. All too often, people procrastinate, and by the time they start considering creating a financial plan and strategy, it is a case of "too little, too late." If an individual begins planning for a child's education when the child is young, it is a straight- forward, direct method of installment savings which is usually achievable, using a specific discipline. When one waits until there are only a few years remaining before college, it is a far more difficult task. When one begins to save for the downpayment for s future home far in advance, the greater the chance of getting to the objective/ need. Financial planning is quite important, but it requires following a step-by-step procedure, creating a plan, and then working that plan.

The 5 Steps For Answering/ Addressing Any Objection or Concern

In nearly every situation, when people get into a discussion, there are bound to be certain questions or objections. How one handles the situation, and responds to objections, often determines whether one accomplishes his desired results. It is important to understand that all objections fall into two categories, either (1) technical; or (2) emotional. If the initial presentation has been properly presented, the vast majority of objections are emotional. The main technical objection is usually financial, while it takes a finer "ear" to properly understand what each emotional objection might be.
The same five steps are used in all situations. The finesse comes with being comfortable with the concept, listening, and believing in these steps. All major sales and marketing organization teaches this to some degree. The five steps are:

(1) Restate the objection--- This is essential so that you are answering the true objection, and not opening up a Pandora's Box by addressing something that is not the objector's concern. An easy way to do this is to say something like, "So you're concerned about... " (Understand the concern may be about a guarantee, reliability, time commitment, ability, etc., but it is essential that you ask, and get a response and acknowledgment from the objector). Also remember the very important "ZTL" rule - - - "zip the lip." Do not speak until the other person answers your question, and if you are not sure of the meaning of the answer, ask again until you are! The ZTL rule says that the first person to answer "loses."

(2) Empathize (Don't sympathize). This can be simply done by saying something similar to, "I can perfectly understand how you feel, in fact I felt the same way, until I realized and understood a few things..." (Be sure you mean it, and actually are empathetic!)

(3) Answer the objection-- Calmly, conversationally, fully answer the objection... Do this to the satisfaction of the individual with the concern, and do this patiently, calmly and in - detail. You probably know and understand why you care or believe as you do, but others may not be nearly as certain or convinced. Whether this is related to investments, some product, real estate, or anything else of significance, know what you believe and articulate your reasoning in such a way to motivate someone else.

(4) Restate the proposal - - - "So in light of this information, and in light of the fact that you've told me that you... " Thus is an essential step, because it refocuses on what you are trying to achieve in the first place.

(5) Re-close - - - "Doesn't it make sense to...?" Then ZTL (zip the lip)!  I repeat, under no circumstances speak. You must let the other person, agree, say maybe, or give another objection. If they now give another objection, repeat the 5 steps! Keep doing this!

Then, if you believe you have done this long enough--- and after a minimum of 3 times using the 5 steps, there is one more "fall-back" position - - - Say, "May I make a suggestion?" Then, again, zip the lip. Wait-- force yourself --- it almost never occurs that someone will say NO to making a suggestion while they may say "No," eventually to the suggestion, however. It is very important that you get the other person into that "nodding--yessing" mode, because this can be a great lead in (or "trial close") to eventually overcoming the objection, and acquiring a commitment.

I want to stress that this works. I have used it hundreds and hundreds of times in numerous industries, organizations, charities, and personal situations. I have taught thousands how to effectively use these techniques. It initially takes some coaching, and then some practice, but once someone has perfected this technique, their "closing ratio" improves incredibly! This is NOT a trick nor should you ever proceed with anything less than absolute integrity! Rather, it best positions you to fully and capably explain why your proposal is a good one, and is hopefully compelling to them, as well!