Short Term Gain...Long Term Sacrifice

It’s a Catch 22 – you need to reduce expenses at the same time today’s consumer is skittish, demanding and expecting better quality and value for their money. Morale is low, your team is expected to do more with less, and job cuts have placed a strain on operational capabilities. Tough call, but you’re saving money, right? Not so much.

According to Business Week, the Internal Customer Management Institute, a call center consultant, has done studies that show cutting just four reps at a call center of three dozen can send the number of customers put on hold for four minutes from zero to 80. That’s right, 80. It makes sense to reason that if there are less people in the office, there is a greater likelihood that a client, or potential client will be missed, or will need to wait a greater length of time to see product or resolve a challenge.

The immediate reaction to tough times is to tighten the wallet and squeak every dime available out of it. Think about the airline “charge for a checked bag” policy. I cannot think of one person that isn’t highly offended, or at least greatly irritated by this policy. A trip requiring more than two nights will require a checked bag. The consumer knows they have to eat it and have no option. Makes me fester just thinking about it. Unless, of course, they elect to fly Southwest, an airline that promotes the fact that they do not charge baggage fees. Think a customer might be tempted to switch?

So what’s a property management professional to do?

First, consider the impact of cuts on service delivery and excellence. You can’t afford to miss a potential client or risk the reputation your brand will suffer if clients don’t feel taken care of.

Get flexible with policy, and think about ways to stay in front of the customer that don’t necessarily involve face-to-face interaction. Rethink lease break fees, admin fees and rules and regulations that may have seen their day, but are no longer OK. Cross train, not just at your community, but cross-town as well. If your community is small, consider letting another community handle leasing during slower days/hours. The goal is to make sure the client does not feel turned away or that you are unavailable. Technology can help. Touch screen panels installed in the leasing center can be an invaluable assistant and allow the customer to review availability and lease, provide virtual concierge options for residents, and keep the client that has to wait busy and informed.

Focus on service. Rather than focusing on the lack of traffic in the market, focus on delivering the best service possible. Over the top, incredible, “I can’t believe they did that!” kind of service. Beat the market as well as move in concessions on renewals. Let your clients know that you know they have choices. Deliver excellence.

Last, be realistic. Before mandating closing percentage expectations, expected email response time, etc., work with the team to clear up and clear out operational duties that are not critical and take the focus off the consumer. Explore job duties and help the team transition to an “All customer all the time” philosophy. Every member of the team must understand that their mission is first and foremost to deliver to client expectations. Don’t forget to reward them and take care of them. Happy, engaged team members can be likened to a magnet, attracting clients and residents alike.