How to approach NPS in Real Estate
Let’s start off by stating the obvious. As a real estate business owner, customer satisfaction and loyalty go hand-in-hand with success.
But first it’s important to define success, as it can take different forms. Success not only means growing your business with new clients, but also not losing existing clients.
Implementing a Net Promoter Score (NPS) is a powerful tool that can help you achieve success in both these regards.
If you don’t know what NPS is, it’s really quite simple. NPS is all about giving you feedback from your customers. It does this by asking them one simple question—”On a scale of 0-10, how likely are you to recommend our agency to a friend or colleague?”
While this sounds simple, it is surprising how many businesses we see who approach NPS with the wrong mindset, or do not take actions based on the feedback they receive.
So let’s explore how NPS scores can drive targeted actions, lead generation, and informed decision-making.
We’ll also ask the question: what is the right mindset for leveraging NPS to improve the customer experience and achieve sustainable growth?
1. Driving Actions Based on NPS Scores:
NPS scores serve as catalysts for action within your real estate business. The best businesses don’t just collect the feedback, they use it to drive how they interact with their clients.
For instance, when clients who happen to be landlords give you scores of 9 or 10 out of 10, these become valuable leads for your Business Development Manager (BDM).
The high satisfaction levels indicate a potential for more business, prompting your team to prioritise engaging with these clients and fostering deeper relationships.
We have seen businesses really use the NPS in Real Estate to create lead lists for the BDMs and drive growth. This is not just cold calls, these are conversations with advocates.
Conversely, receiving scores of 0-6 triggers urgent conversations with clients. These low scores highlight potential dissatisfaction and the risk of losing their business.
By proactively addressing concerns and working to resolve issues, you can salvage the relationship and prevent client attrition.
The type of engagement and conversations you are having with your clients is massively different based on their satisfaction level. You wouldn’t invite someone who gave you a 2/10 to leave you a public review, for example, but you might if they consistently scored you 10/10.
2. Informed Decision-Making:
NPS feedback plays a vital role in making informed decisions, such as adjusting management fees or implementing changes that affect customer experience.
For example, consider two property management departments with owners who both want to raise management fees.
The first owner does not use NPS. Without understanding the current level of client satisfaction, this decision would carry significant risks. What if his current level of client satisfaction was low? Good luck with that price rise!
Conversely, the second owner who wants to raise their management fees uses NPS to accurately gauge customer satisfaction. In his case, the NPS scores reveal a general sense of satisfaction with his service.
Armed with this knowledge, they confidently raise management fees, knowing they have a solid understanding of their clients’ sentiments. This ensures that decisions align with customer expectations and minimises the risk of losing clients.
3. The Right Way to Approach NPS:
When it comes to NPS in Real Estate, you need to adopt the right mindset. There are two common wrong ways of thinking: “I don’t need to do it” and “I’m only doing it because everyone else is.” However, the right way is to genuinely strive to improve the customer experience.
By embracing NPS as a means to better understand and meet customer needs, you position your real estate business for long-term success. NPS becomes a valuable tool for continuous improvement, fostering strong customer relationships, and differentiating yourself from competitors.
To really hammer home the the point – NPS in Real Estate is MUCH more than just a metric for measuring customer satisfaction—it is a catalyst for action, informed decision-making, and improving the customer experience in the real estate industry.
Not only that, by actively leveraging NPS feedback, you can identify opportunities to generate leads, address customer concerns, and make strategic decisions that align with client expectations.
Embrace NPS with the mindset of genuinely wanting to enhance the customer experience, and you’ll pave the way for sustained growth, customer loyalty, and business success in the dynamic real estate landscape.
Some of the businesses that we work with have adopted this approach to NPS in Real Estate, and have been consistently recognised for their levels of customer service.