Businesses have a simple strategy – MORE! If you are brokerage, you want more revenue. To get more revenue you need more transactions. If you want more transactions, you need more productivity per agent, or more agents. If you are an MLS or a technology company, you want more subscribers. More, More, More.
The problem with more is that it typically does not involve listening to your current customers. In real estate, that means listening to customers. WAV Group is always astounded at the lack of focus groups and customer surveys in our industry. To our knowledge, we are the only consulting firm that specializes in customer research. On any given month, we are running about 10 research projects. That seems like a lot, but given that there are hundreds of MLSs, hundreds of technology vendors, and hundreds of brokers – we arrive at the consensus that the real estate industry is not listening to its customers very well.
The McDonald’s Filet-o-Fish
A classic business story comes from McDonalds. They are a huge research company. They never guess and do not make decisions without asking customers and testing their food. Makes sense right? They are an example of how to listen. Back in the 1960s, McDonalds noticed sales numbers went down on Fridays. They talked to their customers and quickly learned that Catholics eat fish on Fridays – so McDonalds was a hook with no bait on Fridays. They decided to sell the Filet-o-Fish on Fridays and as you know – it remains on the menu today as a result of the success.
Survey and Focus Group Research
Survey and focus group research should be part of your annual budget. It is something that you can do yourself, but if you do not have the skills to know how to build surveys, test surveys, and build survey reports – you may have less success than you expect. The same is true of Focus Groups. These disciplines are sciences. A number of companies will hire a firm like WAV Group to do the work the first time, and rinse and repeat in successive years to benchmark improvements. The important thing here is that you know your limitations and seek support if research is not your people’s strength. Incidentally, be mindful that your customers will tell independent researchers things that they do not want to tell you directly.
Truly great leaders are great listeners. Do you research and you will quickly find options that define how you will grow your “MORE” in 2017.3