Customer Before CompanyRevolutionizing Your Business the Nordstrom Way

Maura Neill, CRS, ABR, CDPE, e-PRO, REALTOR®about.me/mauraneill

WHAT IT MEANSCustomer Before Company

“The only thing we have going for us is the way we take care of our

customers.”

~ John Nordstrom,on what sets Nordstrom

apart from the competition

The Best Policy Ever!

The Best Policy Ever!

Nordstrom Employees: In Their Words

“I’m a customer-oriented service person. You’re looking for something, and I’m determined I’m going to find it.”

Nordstrom Employees: In Their Words

“If it’s not nailed down, I’ll find it for a customer. I don’t make commission on [everything], but it’s part of the service I provide.”

Nordstrom Employees: In Their Words

“Never judge a book by its cover. If you treat the kid who is buying a $19.95 belt the same as a businessman buying a $1,995 Oxford suit, you will be successful. That kid might become a customer for life.”

WHEN YOU’RE THE CUSTOMER

Consider This:

Flying the Friendly Skies?

“My goal is to make you happy.”

Photo credit: “Lady with Luggage” by digitalart on freedigitalphotos.net

Would you like being your own client?

{GROUP ACTION ITEM}

Be the client.

Be Your Own Client What would be important to you if you

were on the other side of the client relationship?

When is attention to your personal needs/personality most important to you?

What expectations would you have at every step in the process?

Do you fulfill those items for your own clients, every transaction, every time?

{ACTION ITEM}

Your last transaction.

HEROICS

Nordstrom: Heroics Weekly V.I.P. Club and Employee of the Month –

recognizes sales AND going above and beyond Examples:

warming up a customer’s car in winter taking an order over the phone and bringing

merchandise to the curb when customer arrives driving a customer’s airline tickets to them at the

airport when they left them behind at the store

Employees encouraged to “report” the heroics of others – circulated in a weekly printed heroics list

Photo credit: “Rubber Stamp with VIP Word” by Stuart Miles on freedigitalphotos.net

Leigh Brown, CRS

“I took an IOU on a commission on a house last year to keep the deal together and to keep my client from having to short sell. Strikingly enough, she paid me 11 months later. The other agent was flabbergasted.”

Dawn Thomas, CRS

“Last month, one of our buyers brought in their own lender. Needless to say, a pretty straight-forward transaction on a jumbo loan went sideways and several delays, to the point the husband had to cancel his trip to Europe even though his wife was going to spend Christmas with family. I hate the idea of anyone being alone during the holidays, so I invited him to our house for a crab feast on Christmas Eve and movies the next day.”

Shannon Williams King

“We flew a client from Australia on our dime prior to closing to make sure she liked the home - and was in person to sign her closing docs.”

Note: this price point was $400,000.

Sasha Farmer, CRS

“For the past 4 years I have kept a “sunshine fund” – at the end of each month I take 1% of my commission checks and put them into a separate small checking account. Inevitably, one of my clients will call a month or two after closing asking for a recommendation for a plumber because they have a sink leaking, or an electrician because they've blown a fuse, or HVAC because suddenly the AC isn't kicking in, or something unexpected has popped up. I have that extra little cushion of account that I can use at my discretion to offer some towards helping.”

Nobu Hata

“I drove five hours for four signatures on a $125K relo deal for the nicest couple in the world. Incidentally, that same couple sent me a $15million commercial buyer.”

Note: Nobu had to give away that $15million commercial buyer – referral fee-free – because he had already taken his new position at NAR.

Julie Beall, CRS

“The house of a client burned down. They had just moved. They called me from the emergency room. They were new in town and knew no one. They only knew their REALTOR®. I offered them a place to stay. They lived with us for four months. I remember laying in bed the first night they were there thinking what the hell had I done to myself and my family. These people are now special friends in our lives.”

Jeremy Hart

“Next time I'm feeling like real estate is full of arrogant a**holes, I'm coming back to read this post again. Full of awesome stuff.”

SMALL GESTURES

Some Examples of Small Gestures Creating playlists that match your clients’ music

preferences for a day of househunting in the car Research restaurants that fit an out-of-town

client’s favorites while in town (especially for clients with special dietary needs!)

Make your closing gifts personal, instead of “one-size-fits-all”

Creating video previews of homes at the top of your out-of-town clients’ lists – OR – visiting a property to FaceTime with a client on their lunchbreak

Some Examples of Small Gestures Creating a private Facebook group for each

transaction to share updates/reminders with that client

“Giving away the milk for free” – giving consumers the information they want to build trust and credibility

Simply being flexible

CREATING THE EXPERIENCE

The Nordstrom Experience Carefully choreographed customer

experience Ease of navigation Improved comfort and familiarity One-stop shopping Local feeling

In short: They listened to the customer.

The “We” Experience

“The more information I have…the better I can serve the customer…This isn’t just my deal. It’s not an “I” experience; it’s a “we” experience.

Photo credit: “Multi Ethnic Team Indoors” by ambro on freedigitalphotos.net

~ Patrick McCarthy – top Nordstrom sales associate, 15 consecutive years

{GROUP ACTION ITEM}

Create the experience.

Buyer/Seller Questionnaires

GOAL SETTINGClient-centric

What Do Your Goals Look Like?

What does your business plan measure?TransactionsVolumeCommissionsListings taken/listings sold

Where is the client here?

Incorporate Client-centric Goals

Happily Closed Clients Incoming Testimonials Referrals from Past Clients

*Doesn’t have to be warm & fuzzy, but focusing on these things can help you stay focused more on your clients and less on yourself.

{ACTION ITEM}

Measurement.

Customer service redefinedSocial Media

The Personal Contract-to-Closing Facebook Group

Secret Facebook group for you and your client

Post video messages and reminders every step of the way

Better than a phone call because they can replay

Great with more than one person in the transaction – they each get the same message

The Personal Contract-to-ClosingFacebook Group

Video: Face-to-Face Redefined

Image courtesy of Ambro at FreeDigitalPhotos.net

• How are you already using video?• Where can you use video?• How can you make it personal?

Consumers and Video

Increase length of time they’re on your site

Increase your likelihood of being found Build trust and credibility Help potential clients feel like they know

you

Consumers and Video

Increase length of time they’re on your site

Increase your likelihood of being found Build trust and credibility Help potential clients feel like they know

you

What Do These Messages Say?

“I’m out of listings! Who wants to sell?” “I’m in LOVE with my new listing!” “Just wrote contracts today for 3 lucky

buyers!”

How can your blog give better customer service?

Can Social Media = better customer service?

EARNING YOUR WORTHCommission

Proving the Difference Nordstrom considers its culture to be the

key element that separates them from the competition:

Employee autonomy Customer first mentality Lack of rules limiting employees’ ability to serve

Salespeople take a true interest in the customer

Money-back guarantee/return policy – truly sets them apart

You vs. Them What’s your value proposition? Do you even

know? What’s your “money-back guarantee”?

Easy-exit listing agreement Easy-exit buyer brokerage agreement How else do you offer a guarantee?

What sets you apart?

HOSPITALITY INDUSTRYTaking a Page From the

Hospitality vs. Service“Service is the technical delivery of a product. Hospitality is how the delivery of that product makes its recipient feel. Service is a monologue – we decide how we want to do things and set our own standards for service. Hospitality, on the other hand, is a dialogue. [It] requires thoughtful listening to the other person, and follow-up with a thoughtful, gracious, appropriate response. It takes both great service and great hospitality to rise to the top.”

~ Danny Meyer, restaurantuer

Turning Over the Rocks

Photo credit: “Fly Fisherman Casting” by joe1642 on Flickr.com

Turning Over the Rocks Think like a fly fisherman Look for the story behind the story Collect the dots

Give your clients a feeling of “shared ownership”

What Do You Know About Your Clients?Raziel Ungar, CRSCreate space in your CRM -OR- a spreadsheet where you can file information/jot notes about your clientsWhere can you find information/details?

Facebook Your questionnaires Your notes

Notes, articles of interest, birthday/anniversary cards, phone calls, conversation starters

Keeping Client Records Expand your database – vertically not

horizontally Add details about your current/past clients

instead of cold leads Depth and details instead of volume

Take notes – after meetings, during phone calls, as you think of them

Facebook Graph Search

Facebook Graph Search

More about Graph Search:http://facebook.com/about/graphsearch

What are they saying?

Your most unhappy customers are your greatest source of learning.

~ Bill Gates

Client Reviews and Testimonials Thank You Note: “Even if it’s the tenth time

I’ve waited on that customer, I don’t thank him for his business; I thank him for his loyalty.”

Nordstrom provides its employees with free thank you notes – plus address labels, postage, etc. – and encourages them to use them daily!

Follow-Up Call: “Ninety percent of the time, they’re so stunned that you called, they remember you.”

Third-Party Review Sites

INSPIRING LOYALTY

Follow-Through Thank You Note: “Even if it’s the tenth time

I’ve waited on that customer, I don’t thank him for his business; I thank him for his loyalty.”

Nordstrom provides its employees with free thank you notes – plus address labels, postage, etc. – and encourages them to use them daily!

Follow-Up Call: “Ninety percent of the time, they’re so stunned that you called, they remember you.”

Spend a lot of time talking to customers face to face. You’d be amazed how many companies don’t listen to their customers.

~ Ross Perot

NAR’s 2012 Profile Said…

87% of clients were satisfied with their REALTOR® and would refer them again

BUT

Only 10% did. Why?

CO-OP(ERATION)

Is It Cooperation or Competition?

DO make it a win-win – you’re in this for the same reasons

DON’T make it personal DO return calls, answer feedback requests,

be available to answer questions, DON’T be condescending, rude or otherwise

embarrass yourself DO remember that the way you interact

with other agents can affect your clients’ outcome

Impact on the transaction?

...And future transactions?

WHY IT ALL MATTERS

Why Does It Matter? We’re in the business of helping people

The “depressed market” didn’t weed out the bad agents, it just forced them into hibernation.

It’s about more than just commissions

People.

Final Thought:

“If We Sell You Well, Tell Others.If Not, Tell Us.”

The Nordstrom WayThe Inside Story of America’s #1 Customer Service Company

By Robert Spector and Patrick D. McCarthy

Recommended Reading

Setting the TableThe Transforming Power of Hospitality in Business

By Danny Meyer

Recommended Reading

Four SeasonsThe Story of a Business Philosophy

By Isadore Sharp

Recommended Reading

The New Gold StandardThe Ritz-Carlton Hotel Company

By Joseph A. Michelli

Recommended Reading

www.mauraneill.com/nordstrom-blackhills

Photo credit: “Computer mouse, mousepad, hand” by Si1veryon Flickr.com

Find This Presentation Online

Connect With Me

about.me/MauraNeill