Frequently in this column, I have argued that REALTORS have a lot to learn about selling and customer service from “professional” sales organizations. A common reference has been Zappos.com who puts at least seven photos of every pair of shoes online. Zappos proves that just because you have a large database of “inventory” there’s no excuse for not having lots of clear, informative information and images for your products. Zappos even raises the bar on “descriptions” on inventory: their writers describe shoes in terms of customer desires and needs – like “sexy, comfy, classy, etc.” This is totally unlike REALTOR home marketing, which mostly consists of “it has bedrooms, it has baths, it has a kitchen.” Zappos markets the product based upon how the buyer wants to buy it – desires and emotions – while most REALTORS market property as if they were giving a description of a car accident to a policeman.
Now someone else has upped the ante for professional sales standards: Lord and Taylor. On a recent pass through their store, I watched a Lord and Taylor saleswoman in action. My girlfriend was looking at a pair of shoes, and Ellen, the saleswoman, immediately offered to help. Pulling a PDA from her belt, Ellen flipped the shoes over and scanned a barcode on the bottom. The PDA wirelessly checked the store’s inventory, and displayed a list of sizes and colors available in that shoe model. It took four seconds, and the customer was enthralled. In fact, I had just caught this out of the corner of my eye, so I went over to ask some questions.
Ellen explained to me that their entire inventory database was accessible to her via the PDA. She could scan any garment or shoe tag and immediately see the availability and options for that item. Rather than going back to “check” and then possibly coming back with bad news for the customer, Ellen could “manage the sale” by checking inventory, and then confirming its availability or offering an alternative shoe if necessary.
Lord and Taylor had trained Ellen to integrate her technology into the sales process. Using the PDA was seamless: Ellen didn’t struggle with the device, blame it for beeping or malfunctioning and made it look completely normal. The technology was used in “just the right amount” – not too big or bulky or beeping to distract the customer, but enough to give Ellen real-time information necessary to continue the conversation with the customer.
And the customer loved it. Time was saved, rather than waiting for the salesperson to go back into the inventory room, then come out empty-handed. Instant gratification was made “more instant” – and in a bricks-and-mortar environment. Who says real stores can’t compete with online stores?
Of course, I had to take a picture. It was a perfect example of technology-empowered sales. At no time did the technology become the center of the discussion: Ellen continued to build rapport, identify the needs of the customer and create a safe atmosphere for her to describe her desires. Every time the customer suggested an option – another color, another style – Ellen immediately provided information.
Imagine if this was the experience consumers had when they talked to REALTORS by phone? Or while they were touring a few homes, and their agent had a wireless laptop with them to suggest more properties or local town information as they went along? Imagine if REALTORS actually took their laptops to work, the way Lord and Taylor trained its salespeople to integrate into the everyday practice of selling shoes?
Ultimately, the shoe had to be tried on and experienced. That’s sort of like an “open house” in real estate terms. The customer had been “enticed” by the advertising (a model shoe on a shelf) then inquired for more information (asked the sales person) who instantly replied with information (responded to the lead in real time, then provided data base to the customer immediately) while they applied sales skills to build a rapport.
Oh, yes, one more technology was applied: A credit card reader was used to purchase the shoes. Total sale: $100 in 10 minutes. Customer very happy. Salesperson very happy. At $10/minute that’s not a bad pay rate.
All because the sales person took her technology to work.
Good job, Ellen!
Filed under: Marketing, REALTORS, Sales, real estate technology | Tagged: laptop, lord and taylor, Marketing, open house, PDA, real estate, realtor, Sales, technology, zappos
Some interesting thoughts here. But this old Realtor can tell you never did, or haven’t in a long time, sold real estate. Saying that Realtors don’t know the inventory – derogatory. I’m not going to say not true for some, but buyer agents do. In fact, that is what the internet is for; helping the buyer client see what is out there before hitting the street. And yes, that does shorten the time it takes some of them to look, but here in New England there aren’t many places where one home is just like the other. My opinion: Realtor.com is a listing tool, not a selling tool (it becomes the latter when you pay). But, cripes, Matt there’s an awful lot of Cinderellas out there looking for that elusive “glass shoe.”
Hi Muffie:
Thanks for your email, but I can’t say I agree with a word you write. First, let’s stop thinking that buyers agents are some sort of superhuman hero of real estate. Most consumers don’t use one, and those that do aren’t assured that the buyer’s agent knows anything more about a particular listing than the local postman. Why? Because they’re the “buyer’s” agent – and only a listing agent has spent the time learning bout all of the features and benefits of the home. Buyer’s agents (and subagents) may have stopped by on “broker caravan” for a tour and a doughnut, but there’s no way they really know anything other than a) what’s on the listing sheet and b) what their training in recoghnizing heating systems or counter tops could tell them.
But put all that aside for a moment: it’s ALL IRRELEVANT because getting a buyer into a home isn’t about the roof or heating system or back yard. It’s about the “deal” potential that the sellers have for accepting certain offers, conditions and finances. That’s why listing agents need to be there.
Additionally, this particular blog posting was suggesting that agents helping buyers might want to bring along some technology – like their PDAs and smartphones with internet access, so they can provide more information and more listing options to their buyers. I can’t see why you wouldn’t agree with that “future model” of real estate, and see how Lord and Taylor is showing REALTORS the way to satisfy consumers. REALTOR.com is not only a listing tool – it’s the absolute best selling tool because CONSUMERS are finding the homes they buy online, THEMSELVES 30% of the time. And only “through a REALTOR” 30% of the time. Consumers don’t need the buyer’s agent to show them homes more than 70% of the time – they are finding the home they purchase all by themselves, then just calling the agent in to process the offer and paperwork. Read the NAR Research on Home Buyers and Sellers and you’ll see that “showings” is not a service proposition for consumers most of the time. There are a few who still need it but 2 out of 3 consumers can are perfectlyfine without their agent taking them around in their cars.
So real-time access to REALTOR.COM (or any relevant inventory site) is as important to selling homes to buyers as it is to getting sellers to list with you. When you finally get a buyer in a car, or they come to your open house, you better be prepared with internet access to the inventory, neighborhood and finance information – just like Lord and Taylor salespeople are prepared to look up your shoe request, suggest alternatives and process your credit card all from their PDAs.
As for Cinderellas, I couldn’t agree with you more: But I wouldn’t say that the consumer was the Cinderalla. It’s the REALTORS who are still running around looking for silver bullets and glass shoes to help them become “sales princesses” without having to keep up with the times and get a Smartphone. That’s the real fairy tale – and unlike Lord and Taylor’s sales force – most REALTORS story doesn’t have a happy ending.