Monday, March 8, 2010

The Agony of Defeat

This weekend, I volunteered to be the high school Lacrosse team parent representative for their coupon card fundraiser. It’s a good deal really - $20 and you get a whole lot of “buy one get one” free dinners and golfing opportunities. I figured, with my sales expertise, we would at least sell our quota. What I didn’t count on was a little girl in pink pigtails named Lexie.

Due to a scheduling oversight, we were double booked for front-of-store space with none other than the Girls Scouts. It was their last weekend for cookie sales and they were out in full force. Five little girls, all uniformed and ponytailed up, ribbons matching their outfits, ready to do their part or earn their badge or whatever their motivation was. They were supposed to stay across the entrance from us, and their parents did. But the little girls...

Sales were brisk at first. (I believe the Girl Scouts were still setting up at this point). Members of the Lacrosse team would politely ask exiting shoppers to support the team and purchase a coupon card. People would wander up, they would talk a little bit, I would offer a testimonial about the card’s usefulness and that it would pay for itself, and 70% of the time the deal would be closed. Then we were hit with the giant cannonball and before we could recoup, Lexie and her team had taken over.

Two little girls carrying posters, one that said, “Help the Children”, and the other, “Last Weekend this Year”, planted themselves in the middle of the store exit and started yelling, “Help the children!” and “Last chance to get your Girl Scout cookies!” at the top of their lungs. Only it was even worse than that. Not only were they adorable looking, Lexie, their ringleader, had the most irresistible lisp, so it sounded more like this - “Help the childwen! Last chance to get your Girl Scout cookies foweverrrrrrrr”. Lexie got in front of every single person that walked out that door and with her cute smile, would say, “Would you like to buy some Giwl Scout cookies?” People veered left toward the table in droves, leaving my teenagers in the dust. Her accomplice had very large brown eyes, and when people would ask, “Are you selling lots of cookies, girls?”, she would shake her head, look distressed, and say, “Well, we’re not selling very many...” and off to the table their carts would turn. Near the end of her shift, Lexie incorporated a sense of urgency into her pitch. “5 mow minutes to get your Girl Scout cookies this yeawwww”. One of the boys muttered under his breath, “liars”. I thought, “5 more minutes and Lexie goes away. She most definitely has a promising future in sales.”

Then came the second assault. The second shift didn’t have Lexie, but they obviously had a parent with a marketing mind. They picked the two most adorable, and planted them in the middle of the exit with a tray of free samples. “Free cookies!”, they yelled in their sweet little girl voices. You don’t even have to guess what happened. My boys were suffering a complete and total defeat.

What’s a savvy marketing mom to do when faced with such odds?

I quickly reviewed my 4 P’s - people, product, price, promotion.
People - Gangly teenagers, that tend to avoid eye contact, and would rather be sleeping in than standing at the grocery store were no match for adorable and innocent little girls in pigtails and pink bows willing to talk to anyone, and spend an hour shouting a consistent message over and over. On this front, they had us, hands down. Plus, they had Lexie.

Product - Immediate and tasty gratification with an outstanding brand reputation and awareness factor versus a piece of cardboard that may or may not benefit the buyer - whether or not is up to them. They had us here, as well.

Price - $3.50 versus $20. Since we were essentially a point of purchase display, point goes to the Girl Scouts.

Promotion - We had a sign, (that the boys made, so you can imagine its marketing impact), and the boys wore their team attire. They had banners, (that one of the mothers obviously created), free samples, a sense of urgency message, and uniforms & accessories designed to maximize “little girl appeal”. A total and complete annihilation of the Lacrosse team. “Little girl appeal” trumps teenage boys every time. My son even admitted they had gotten to him earlier in the week - he couldn’t say no and bought 2 boxes.

I had to admit, it was a complete and total defeat. We simply could not compete for the same customer. But where to find a different customer? We tried approaching people as they walked in before the girls could get to them, but that didn’t work real well. And then it hit me. Every one of those Girl Scouts had a parent there. And every one of those parents was witnessing the slaughter. The next time one of the mothers wandered by, I stopped her, complimented her on her daughter, and asked if she had seen the coupon card. Next thing I know, I had sold the card. I instructed one of the boys to visit the Girl Scout table, buy a box of cookies and then ask if they would like to buy a coupon card. Guess who came back with a few sales? I told the next guy in line for my shift to hit up the next group of Girl Scout parents. We didn’t need to sell volumes, we just needed to hit the right target.

When your competition is walloping you hands down, (and let’s face facts, sometimes this does happen), stop competing for the same audience and find a different one. Look around you - who is the competition not serving? It is my bet that Girl Scout parents have no desire to eat even one more Girl Scout cookie this year, and that they are really ready to be done standing in front of grocery stores hawking cookies. It’s time they went out for dinner, and I have a fabulous card that offers 2 for 1’s at some really nice restaurants...

Friday, March 5, 2010

Do the Customer Math

Jeanne Bliss, author of I Love You More Than My Dog, (one of my new favorites), blogged this week about getting the CEO’s attention by working with your CFO and the customer database keeper to create a simple way to look at the flow of customers in and out of your company. She calls it the customer math:

Net Customers = Incoming Customers - Outgoing Customers

Jeanne recommends having every big meeting start with doing the math and discussing the reasons for why your customer asset is growing or shrinking as a way to start managing the asset that is the business of the business.

In other words, if you’re like me - a touchy feely, highly creative type, start presenting what you know to company leaders in their language to help demonstrate the significance of service to success, as well as create an easy formula to inspire relevant conversation and maintain focus among team members.

I like it because anybody can remember it. I would love to hear other formulas if you have them. Share here.

Monday, March 1, 2010

Intent vs Reality - What are You Saying?

I always learn something when shopping properties.
Sometimes I discover a new technique or have the opportunity to see an expert in action.
This week, I learned there is a big disparity between intent and reality.

Visit 1 - Leasing professional shows me a lovely property, but keeps telling me to “Go visit the website” for the daily prices. This is said repeatedly, even though I have indicated that I am looking for my mother, she has just put her home on the market, and isn’t even convinced she wants an apartment. There is no attempt to have Mom come in, experience the place, etc.. (although when I suggest it, they say, “Sure! We’d love to show her around”. No “I will take care of you, and make sure your mother is happy” moment. Just, “Go visit the website for further information. Your quote will be good for 72 hours”. Why would I rent an apartment online at this point? My mom hasn’t even seen it.

Intent: “I am being helpful and giving you resources.”
Reality: “In this market, all anybody cares about is the price, and I know that. So make sure you see the prices and are OK with them before you waste my time again. Come on back when you really ready to buy.”


Visit 2 - While in the golf cart, the bubbly leasing professional says, “I need to tell you about four things, because “they” will be emailing you to make sure I covered them”. She then goes on to tell me about her guarantees and that part of Mom’s rent will be put aside for a home down payment. (Mom is selling her house, remember. She doesn’t want to own anymore.) When I ask, “What do you get for telling me about all this?” she replies, “I get to keep my job.”
It gets better. As we leave the apartment, she says, “I know you’re not ready yet, but I have to ask, would you like to leave a deposit?” I just look at her.

Intent: I might get shopped and will get in big trouble if I don’t hit all the bases, so I am going to say things that you and I know are completely irrelevant to your buying experience and I will cushion the blow by removing myself from the equation. This way everybody is happy.”
Reality: I just threw my company under the bus because they have made ridiculous mandates that you and I both know are irrelevant to your needs. Frankly, I resent it. I will do it, but I will let the client know it’s really not me that is talking, it’s the corporate heads. After all, I need to keep my job, but I also need to lease apartments.”

Visit 3 - I dub her the “speed talker” because I only understand every 3rd word. (Remember, Mom has just put her house on the market, and isn’t with me), yet I am told about how I can’t use the double doors in the fitness center because they didn’t work, that I am to come in and out a specific door, and pretty much hear every rule and regulation as part of the sales presentation. And this is relevant to me, how?

Intent: I am funny and witty and keep the tour going nicely.
Reality: I have been here a long time and have my shtick is just right and it ensures somebody is talking. It also ensures I do not have to think.

You know I can’t finish there...

If you are a corporate executive, or anyone that creates policy and guideline, understand the more you force people to “follow the script”, the greater the chance an irrelevant presentation will be delivered. Seth Godin wrote in his blog last week about compliance and innovation. The more we demand people comply, “i.e., You will tell each client about each of our corporate programs”, the less innovative they will become. There is nothing wrong with mentioning company and the quality professed. Nor is there anything wrong with talking about company programs - as long as the client listening cares. Start placing more focus on the result rather than the process. Rather than mandating, focus on hiring the right talent, and teach technique in building trust, listening skills and following through.

Leasing professionals - you know how much I think of and value your talents and profession. You are my peeps. That said, it is time you wake up and step up to a higher level game. First, never throw your company under the bus. It makes you look bad. Start listening to what your clients are telling you and be responsible to help them get what they want. Be accountable to always, always, seeing it through. Think about what you are saying - does it matter? Is it relevant? If you find yourself saying the same exact thing at the same exact crack in the sidewalk during every presentation, change it up! Take a different path, try a new technique, have more fun. Understand the pitfalls and consciously work to avoid them. If you have a challenge with the criteria for shopping reports, then take the initiative! Create one that you think is fair, and be able to validate your reasoning. Then get it in front of somebody that can influence the decision. Stop sitting on your hands and work to control your destiny, if you value innovation in your presentations.

Monday, February 15, 2010

Design vs. Creativity

Multifamily marketers often use the terms "design" and "creativity" interchangeably, when in fact, they are very different. Complementary certainly, but different.

Good design is taught, studied and consistently implemented. Creativity is inherently maverick.

Design is about flow, alignment, spacing and relevance. Print design considers readability and font choice, web design is measured by usability and flatness, and interior design is grounded in the science of environment and space. It's a competency.

Creativity on the other hand is ultimately subjective. When you see an ad or a T.V. commercial and think, "I wish I would have thought of that," your envy is rooted in creativity. Creativity is how well you solve a specific problem for a specific person using specific parameters.

So should your marketing be creative or well designed? Differentiate your community by flexing your creativity muscle when given the opportunity, but don't expect all of your outreach will be creative. Stock photography is not creative. Neither are metaphor concepts or balloons on monument signs. Creativity is an effective resident retention program, and unique move-in promotion and flexing your policies to allow for customized rent payments.

Good design is mandatory, and should be evident in everything you produce, both online and offline. Design should speak to your target resident, and should carry the tone of your community or company. For example, 3D floor plans may seem creative, but they borderline on poor design because they're often difficult to understand. (apartment renters look at floor plans once a year vs. those of us in the industry who see them everyday) Most locator magazines and web sites are void of creativity, but their design allows for efficient consumption of large amounts of data that whether you like it or not, needs to be compared.

Most importantly, design allow people interact with it; and is neither creative nor effective if it doesn't sell.



Illustration Via Illustrator and Graphic Designer Frank Chimero

Friday, February 12, 2010

A Groundskeeper Named Lincoln

I toured a community with a a client recently, and as we pulled up, commented on how impeccably clean the grounds were. (Not a small task, given the age and size of the community.) My client said, “That’s because Lincoln works here. He is amazing. There he is now”. As we approached, Lincoln waved his shovel in the air in greeting. He came up to the car with a big smile and an enthusiastic “Hello! How’s it going?” My client commented on how good things looked, and he said, “Oh, thanks. They could look better - I’m working on that nasty pile of snow in the corner now.”

A thankless job, grounds. Many think it an easy position that anyone with a modicum of responsibility can do, and others think it a terrible job that anyone (including groundskeepers) would hate to do. Both assumptions are wrong.

Groundskeepers clean up after people, pets and the elements all day long knowing the next day they will return and start all over again. It makes me weary thinking about it. Funny, the really good groundskeepers I have had the opportunity to work with never seemed to get weary. They see in their position the opportunity to be creative, accountable and do tangible work every day, and understand the impact their efforts have on value creation and resident retention efforts. Making the community just right brings them strength and satisfaction. Lincoln has the kind of attitude that makes you smile, and think, “Why can’t everyone be like him? I want some of that sunny disposition!” He may not aspire to be president of the company, or even the manager. Yet, Lincoln is the kind of employee in the kind of job that should be revered and respected in our organizations.

If you have a great groundskeeper, stand up right now, find them and tell them how much you appreciate them, and how much their efforts mean to the community’s, (and your), success.

Thursday, February 4, 2010

Are You Invisible?

The time and effort individuals are spending on sites like Apartmentratings.com detailing their experience, (most of which involves trashing the community and management staff in explicit detail) is appalling, and threatens the integrity of the site.

Yet, on almost every on every page I review, the only people talking are the disgruntled residents, (or family members of disgruntled residents), and occasionally a prospective resident whose observation of the horrific commentary has spurred them to speak on the lack of useable information provided, and proclaim the residents a bunch of whiny babies. The result is a whole lot of screaming and trash-talking and very little relevant information. The resident spends an hour creating an in-depth dissertation on why they hate the community they live at, then proclaims it to the world, and the management company says nothing. They are completely invisible and therefore not part of any conversation. Why not? Why are we ignoring these sites? They’re not going away, and they certainly aren’t doing the consumer any good given their current scope. In fact, they are turning the consumer off all together by making our industry appear pretty pathetic.

What’s a savvy property manager to do?

Reality Bites.
Perception is 99% reality, and the disgruntled resident has an outlet to proclaim their reality. Instead of being defensive, try to look at it from the resident’s perspective. Why are they so mad? Why are they willing to spend extensive time and energy proclaiming how incompetent you are?
It’s simple - some don’t feel heard, and some don’t like what they heard. If they don’t feel heard, why not? Is communication breakdown at your community commonplace? Do residents ever feel like they have been left “hanging” ? If they received an answer they did not want to hear, how was it delivered? Are residents expecting a level of service that is impossible to deliver, given variables at the community? Why do so many refer to the office staff as “rude and uncaring?” Take a hard look at your operation and the way you deliver. Where is the missing link causing the negative perception? Even if most of it is slander, try to find the real issue that is sometimes lurking below the surface. Stay away from being defensive, and acknowledge that they have a right to their feelings, exaggerated as you might believe them to be.

Say It To My Face
Gossip, rumors, did you ever notice the most outlandish claims against someone usually develop when they are not there to defend themselves? It’s easy to talk about somebody behind their back. But say it to their face...now that is another story. If residents that vent on these sites know you are there and present are they as likely to be as vicious? Probably not, and they may think twice before making broad, exaggerated statements. You are not there to call them out, but you are there, and they know it because you regularly respond, acknowledge their feelings and work to find solutions.

Who’s the Bigger Person?
When an individual trashes you and your integrity, your first reaction might be to get the boxing gloves on, yell “Oh no you did not!” and run at them swinging. Not a good idea as you have just stooped to their level. It will make you feel better for a moment until they punch back and suddenly all you have accomplished is your own version of a VH1 reality show. Lots of clawing, screaming and finger pointing and in the end, you lose. A better move would be to acknowledge the commentary, i.e.
“I am sorry you have had parking issues and can understand your frustration at not being able to find a parking space. As you have posted anonymously, I don’t know where your apartment is, and in order to best help you, may I contact you off line at your convenience? Or, if you prefer, we are open every day from 9 until 6 pm and our phone number is .......... . We will do whatever we can to help you.”
Stay calm, cool and collected and be the bigger person.

No Sniping When There is Nowhere to Hide
One of the attractions to individuals hell-bent on destroying you is that the review sites offer the cover of anonymity. They can say whatever they want, because nobody knows who they are. Until the FTC develops rules on testimonials and disclosure to force individuals to clarify who’s behind the recommendation or conversation sans ambiguity, your goal will be to draw the Sniper out of cover.
“I understand your frustration over the water leak that forced us to strip your floor bare of carpet and leave you like that for 8 days, and have reviewed all of my service requests in an attempt to determine who you are and why we would have erred this enormously, but I have not found any record of such action. We definitely want to speak to you about this and get it solved. Please contact us at your earliest convenience at.............”
Your writing should contain a neutral tone and an innocent look. Your goal is simply to understand and help.

At this point, you may receive additional sniper fire. Again, simply seek to understand, and suggest a civil future.
“Again, I understand your frustration and promise to hear you out one-on-one. Please contact us at your earliest convenience.”

What this says to others viewing the site, is “Maybe this person is a lunatic. The management company seems to be trying to work with them. Hmmm.”

Educate and Communicate
Many of the “complainers” at these sites seem to have an unrealistic expectation regarding apartment life. Complaints regarding noise, crime and the behavior of others can stem from a misunderstanding regarding expectations. If you have, for example, a parking issue at your community, teach the leasing team to define the expectation without damaging the benefit. Try something like this -
“How is the parking?”
“For this building, parking during the day will most likely not ever be a challenge. One of the wonderful things about this apartment is that it has a fabulous golf course view. That means there is only parking on one side of the building, limiting close-in access. You may find in the evening hours you may need to park in the lot one building over. I know a view is important to you - are you willing to make the accommodation for the peace, quiet and environment or should we consider other options where more parking is available?”

Teach your people to share the benefit in not having parking close-by. There are many scenarios that might be played out on this topic alone, dependent on community, amenities, etc.. Find what is good and build on that, rather than skirting the issue or making broad statements that don’t answer the question like this:
“There is one space designated for every apartment and you probably won’t have any issues, but it is first-come, first-serve. There is additional parking in front of the clubhouse if you should ever need it.”

Sharing in this regard requires a high degree of emotional intelligence and extensive training, but the time investment will be worth the reward.

Make sure your leasing professionals clearly understand and can explain the lease and the expectation regarding it. There is nothing wrong with stating, “Since this is a legal document between you and XYZ Apartments, we both have obligations to fulfilling it. Let’s review them. “

Explain the consequences for lease break, etc. I used to give my clients a brief quiz at the end, by saying, “OK, time for a lease quiz. If you decide to give notice at the end of your lease, what do you need to do? Why is it important to have renter’s insurance?” etc. Every good teacher knows to reinforce learning. Don’t assume they understand. Make sure they do.

Don’t spend all your time at these sites, but stop being invisible. Focus most of your attention on defining the expectation and treating your residents really, really well. Remember that the complainers, justified or not, are the minority. Let the happy people know they can go there and comment when they have a positive experience. Get a stamp that says, “Pleased with the service, pleased with us? Let the world know at apartmentratings.com.” Focus on service, consistency in delivery and communication training. Understand that while you want everything to be perfect, sometimes it just isn’t. We will not be able to live up to every expectation. Don’t beat yourself up, but be accountable for service delivery. Watch your scores rise.

Monday, February 1, 2010

What Size is Your Service?

My first job was at the Dairy Queen. I worked in a little building that had an outdoor walk-up counter and we would slide the window open to take an order. Needless to say, I can still impress my kids at any soft serve machine in town by, through the flick of my wrist, creating the perfect curl on the top of a cone. This craft was perfected through practice and cone size training. On the wall at the Dairy Queen, a small, medium and large cone were drawn to detail and we were expected to deliver the correct size cone to every customer. A small cone was to be 3.5 ounces and needed to have a specific shape, not too skinny, and not to short and stout. If we made a cone, held it up to the diagram, and it was too big, or too short, we needed to make note of that and try harder. If it weighed under or over the 3.5 ounces, by half an ounce or more, we were to scrape it off and make another. My naive teenage mind assumed this was to maximize profits and eliminate waste. What it really was all about was delivering consistently.

On a recent trip to our local Dairy Queen, the gentleman in front of me ordered a small cone. He got what appeared to be a very substantial small cone. As a matter of fact, it was quite large. I ordered the same thing for my son, yet, what we got was not at all the same. Though the curl was perfect, the size was about half of the other guy’s. My son took the cone and said, “Crud. We got jipped”. I knew someone was not following good cone protocol.

Did we get cheated or did the other guy get too much? Chances are good we got the perfect cone, but how would we know?

Make sure you can deliver consistently and predictably each and every time before you try to delivery extraordinarily. Consistently delivering what you promised, i.e. a clean apartment, timely service, functional amenities, etc. will result in long term residents and the trust in service that generates referrals.