Spending more time focused on counting new customers rather than serving and keeping existing customers is neither a new practice nor is it unique to real estate. It just grows increasingly less common in other industries.

Historically, most real estate organizations have focused virtually their entire resources on maximizing: new customer acquisition, sales production, market share and volume. Their banner was, "Make the sale, do the deal, everyone wins!"

However, organizations increasingly recognize the high cost associated with acquiring new customers. Even in the real estate industry, there is acknowledgement that the total cost of new client acquisition (advertising, promotion, a portion of sales commission) can exceed 30% of revenue. Realizing the clear economic benefits of repeat sales and referrals, organizations have allocated an increasingly larger portion of resources to "satisfying and keeping" existing clients.

It is a common industry practice to measure, analyze and manage: revenue, expenses, productivity, volume, listings taken and listings sold.

What's being done to manage service quality and retain customer satisfaction?

While most real estate organizations talk about and brag about service quality, unfortunately, it remains more talk than reality.

Today's real estate client expects more than the sale or "the deal." A recent study by Properties Online, Inc. shows where agents, according to consumers, get their business. The study shows, on the buyer's side, agents receive 50% of their business from repeat clients and their own personal network. For sellers this increases to 64%. Properly managing expectations and the service experience can ensure an agent keeps this large portion of their business. A little work goes a long way.

Failing to capture repeat or referral business means clients' expectations were most frequently not met in the following areas:

• Communication - Absence of quality, quantity and timeliness
• Advocacy - Lack of, or unclear
• Attention to Details - Inadequate or none at all
• Contact After Closing Service Follow-up - None by agent or self-serving

There is considerable evidence of increasing consumer dissatisfaction with service in general and real estate services specifically. As dissatisfaction with the quality of the service experience grows, consumers will increasingly question the value proposition and also increasingly pursue legitimate agent ratings as a means of offsetting inconsistency and the uncertainty of quality.

Employing serious service management principles and systems at the agent, office or company level can have a profound impact on retaining these customers long term. This increases revenues and reduces acquisition costs resulting in a healthier bottom line and more satisfied customers. Data provided by Leading Research Corporation (LRC), the exclusive research partner for QSC's agent ratings platform and the NAR sponsored Realtor® Excellence Program, shows that when systems for measuring and managing customer service are utilize, repeat and personal referral business increases by 17.74% for buyers and 12.48% for sellers.

It should be no surprise that providing a better service experience results in serving more buyers and sellers. The consumer is often overlooked as the most qualified person to provide feedback on the transaction experience. If you aren't measuring customer feedback with real third party research, then you are only guessing... or worse.

What about attracting New Clients – The Remaining Percentage of Business

While as an industry we accept that acquisition costs of a new client far exceed those of repeat and referral clients, due to the "lifecycle" of repeat business – a distant promise of a future deal – much of our time, effort and budget remain focused on attracting new business.

How then, can a serious service management system supplement or reduce time, effort, and expense of our prospecting and lead generation efforts?

Honesty and trust! The most recent NAR consumer study shows honesty and trust as the number one reason for selecting an agent. Yes, the leading cause for repeat business is also the most important for attracting new clients. For new clients, trust is believing the promise of great service (and anything else you promised). Consumers return because you delivered on your promises, validating their decision to trust you.

Use results of a robust third party service management solution as the only reliable source of honest, un-manipulated, and unbiased service feedback from actual past clients. This is what consumers are demanding; but it is proving difficult to find in a world of Yelpers and marketing spinsters. Philip Kotler, the marketing guru of our generation said, "Those who understand what consumers want and deliver it, win! Whether a neighborhood strategy or a global one, the stakes may change, but the rules are the same."

What are the other industries doing to manage service?

In one form or another they passionately embrace:

• Systems/Processes
• Standards
• Accountability
• Measurements
• Benchmarking/Comparative Results
• Visibility of Consequences
• Incentives for Measurable Results

The standards for customer care and service are being set by other industries. It's time we learn from "others" while there is still time. Taking a business in a new direction generally requires outside perspective. The use of good ideas is more important than where they came from.

For today's real estate client, 100% satisfaction means going beyond "the deal." Total satisfaction, resulting in loyal customers and repeat business, is the "new deal." We either get serious about service and serve our clients better, or someone else will.

Kevin C. Romito is senior VP and COO of Quality Service Certification, Inc., which focuses on quality service management solutions for the real estate industry. For more information, visit www.QualityCertified.org.