Archive pour le mot-clef ‘service’

Real-estate agencies in Brussels: the results of a study to evaluate professionalism

Monday 29 November 2010

A few weeks ago I announced on this blog that I started a small-scale study on real estate agencies in Brussels. One week after the launch the results were already catastrophic, the response rate being very low.

The method of the study was the following. I sent a detailed inquiry to the first 58 agencies (in terms of goods for sale) of Brussels, requiring that they send me their offers. I chose to inquire on purpose for an upper-tier priced building (priced at €1m), assuming that a higher sale price would be an incentive for real estate agents to answer more rapidly (their fee being a percentage of the price).

On the graphic below you can see the evolution of the response rate.

Out of the 58 inquiries I sent on day 1, I received a cumulative response rate of 12%.

I received 4 answers the first week, 2 of them being unqualified (meaning that the building proposed were not matching with my criteria), 1 was qualified, and 1 was a message to apologize that no building was available at that time which matched my criteria.

I received 2 more qualified answers on week 2, and surprisingly a answer on week 4. The latter was probably the most unusual of all since I didn’t include even a note, just an attached pdf file depicting a building which was at the complete opposite of what I was looking for.

My take:

Real-estate agencies in Brussels are far from being professional and depict practices which are very amateur-tainted. My little study revealed a response rate of 12%, which means that 88% of real-estate agencies didn’t even make the effort to answer (remember here what the criteria to judge service quality are).

Not only do they fail to answer enquiries but they also fail to return calls or even answer the phone. Real-estate agents seems to completely misunderstand how best practices could enhance their credibility and financial results and browsing a catalogue of real-estate ads gives another look into their amateurism. The vast majority of pictures depicted in the ads are taken without any understanding of how to hook the customer which results most of the time in poor view or even unsharp pictures.

Real estate agencies in Brussels: first results of survey show terrible results

Friday 15 October 2010

I reported already a while ago about the lack of professionalism of real estate agents in Belgium’s main city.

I decided to look more factually at the situation and prepared a little experiment which I launched last Sunday. The experiment consists in sending the same request to the 50 main real estate agencies in Brussels and study the reaction. To trigger a reaction in a market where the average transaction price for houses is around 300,000€, I send on purpose requests for a house priced at 1m€ and defined precisely which qualities the house should possess (MUST HAVE’s) and which characteristics should be avoided (NO GO’s).

I can already report that the results will be catastrophic and will prove the complete amateurism of the profession. Five working days after the requests were sent, the return rate (including description not matching the requests and apologies that no house matching the description was currently on sale), is less than 10%.

My take:

I had long thought that lack of response by real estate agents in Brussels (and it seems also in Belgium) was a consequence of their focusing on the goods priced the highest in order to increase their sales. My experiment seems to confirm the contrary, namely that the lack of response is not dependent on the type of request received. More expensive goods also fail to trigger the attention and the response of real estate agents.

In spite of 25 years of marketing research proving the importance of customer service in the overall customer satisfaction, real estate agents seem not to have understood its importance. In their business quality of service is shaped in first instance (as in many other businesses) by the first contact. Unfortunately, in my experiment, 90% of real estate agents don’t even take the time to set up this first contact.

A great example of bad service

Friday 3 September 2010

I’m usually very much focused on the Big Picture (those who know me will tell you I also love details sometimes), still I can overlook details when they are so obvious that they give a negative feeling.

When I was looking for a house in Brussels I had already the opportunity to see how unprofessional some real estate agents might be. I had an interesting meeting at that time with Patrick Menache , the founder of the MacNash network. It was clear to me that real estate agencies which behaved professionally would eventually be ahead of the competition. I’m not saying that professionalism alone is a differentiation criteria. Price remains, in my opinion, the ain decision criteria and buyers are likely to accept a lot of non-professionalism if the final price is right. However professionalism remains important for the upcoming relationship between the agency and the buyer. Let  me explain. A buyer will usually not find the good he is looking for at the first attempt . The relationship with the agencies he has gotten in touch with will therefore continue for several months until, eventually, the good will be found and purchased. My opinion is therefore that agencies should pay extreme attention to the first contacts since the probability may be higher that buyers will be in touch with them again during their purchasing process. This experience has to be managed the right way.

My story:

I found an interesting good I was interested in and visited the website of the agency which was proposing it. I sent an email and asked for an appointment. After a few days I re-sent an email since I hadn’t received any answer. A week after I still had no answer. I decided to call. The answer was amazing : « yes we got your emails. But we already received an offer for the good and have stopped organizing visits ». Thank you for not having informed me.

My take:

Proactivity is an evidence of professionalism. Even if a project doesn’t go ahead, even if you can’t answer positively a customer’s request, inform your customer. Not informing is the worst think you can do.

When your customers retaliate … here’s what happened to United Airlines

Monday 28 June 2010

There are two kinds of companies: those which listen to customers and those which don’t. The most difficult part of it, when you’re listening, is to listen to your unsatisfied customers too. It’s kind of difficult to listen to critics and to accept them respectfully and sincerely.

One company that apparently hasn’t really got this is United Airlines. The story below has received important media coverage in North America but little in Europe. My thanks goes to Björn Asmussen for having let me know how this case.

Dave Carroll Taylor Guitar

David Carroll is a professional musician (a guitarist) who, on the occasion of a trip from Halifax to Nebraska, witnessed the damages caused to his guitar by baggage carriers on the ground. He describes with humour his 6-month journey across the claim procedure of United Airlines to eventually get … nothing. His retaliation took the form of a song which was uploaded to YouTube and seen by millions of people. Traditional media heard about this a later covered Dave’s case on TV. I’m thanking Dave for having authorized me to reproduce his video as well as some of his pictures on my blog.

My take:

Be careful of unsatisfied customers. Not listening to their claims will only make their frustrations growing and their desire to retaliate. Unsatisfaction generates highly emotional processes which human beings tend to relieve by spreading negative word-of-mouth.

However, when you think about it, there’s no reason NOT to listen to angry customers. Actually you should even thank them for complaining why unsatisfied customers give you the incredible –and rare- opportunity to improve.

Henry Ford and Cesar Ritz

Monday 21 June 2010

Is the customer always King as Cesar Ritz, the founder of the eponym palace, once said? In other words, should we always obey customers wishes? Well, I’m not so sure about it. Remember what Hery Ford said «If I had asked to my clients what they needed they would have told me a faster horse».

How should we interpret such opposed statements? At fist sight they don’t seem to be to be incompatible.

Both statements can be situated within the relationship customer-firm. On the one hand Cesar Ritz sees it centred on the customer who decides and tells the firm what he / she needs. The firm becomes the co-creator of the customer experience (Grönroos, 2008) rather than the creator.

On the other hand Henry Ford views the centre of gravity on the firm’s side. The firm innovates and brings to the customers products which fulfil upcoming needs.

My take:

Ritz and Ford’s statements are well compatible. Participative marketing methods (for instance the Lead-User method by Herstatt and Von Hippel) can help detect emerging needs and reduce time-to-market. Moreover customer’s involvement helps reinforce the bonds with the firm. Does it mean that firms should always involve customers? Probably not because as Ford stressed it, breakthrough innovations are sometimes the result of a sole man’s vision.

An increadible experience : visit to the Blancpain manufacture

Friday 11 June 2010

Today’s post will be slightly different and longer than the usual posts; this to provide watch lovers, less interested by marketing aspects, with some more technical information.

For those of you who don’t know Blancpain, this Swiss watches manufacture belongs to the most prestigious brands. To the contrary of brands like Patek Philippe, Jaeger Le Coultre or Audemars Piguet, Blancpain opens its doors easily. I visited the manufacture in Le Brassus, Switzerland, in early August in my quality of passionate amateur of horology.

For this 2.5-hour visit we were welcomed by Mousse Jacquier, Blancpain’s PR assistant. Although I feared that we’d have to stay behind windows to observe the watchmakers, I was positively surprised to be able to get in the most prestigious departments (Tourbillon, Minute Repeater, Finishing, Engraving) and to freely interact with the watchmakers.

Pierre-Nicolas Schwab at Blancpain Brassus

Tourbillon Atelier

Two watchmakers were at work when we went in. After we got introduced, the principle of the Tourbillon was quickly explained. One of the watchmakers then presented his work: the parts necessary for the assembly of the Tourbillon are delivered in batches of 5. Up to two weeks are necessary to assemble 5 sets. A demo movement was put under the binocular microscope to reveal the Tourbillon’s magic.

The watchmaker explains us that the most challenging part of his job is to adjust the Tourbillon. After the deviations have been measured in 6 positions (2 horizontal and 6 vertical ones) during 1 minute per position, the mean value is calculated. The represents approximately the normal use of a wristwatch. Deviations in the different positions compensate each other which explains why a watch deviates more than normal when not worn. Each adjustment requires that the complete tourbillon be disassembled.

The possibility remains however to adjust the watch to the very way of life of the owner.

The adjustment is made possible by little screws placed on the cage of the tourbillon. Screwing more or less modifies the balance. When asked “How do you know which screws to adjust ?” the watchmaker answers with humility “experience”.

Minute Repeater Atelier

After the Tourbillon Atelier we were about to see the Holy Grail, the Minute Repeater atelier. On the day of our visit only one (out of 3) watchmaker was at work. He was in charge not only of Minute Repeater but also of the Equation Marchante and even took over the assembly of a 1735, the most complicated watch ever manufactured by Blancpain when a colleague of him left.

Once again the principle of the minute repeater was explained before a movement was put under the microscope (linked via a camera to a LCD monitor). The movement could then be observed at leisure, especially the upper side which is usually hidden under the dial and which is nonetheless as fascinating as the back side. The watchmaker then activated the mechanism. We saw the hammers hitting the gongs  … a very magical moment. But it all went too fast ! I just couldn’t take my eyes off the screen. This was all so eye-catching but remained mysterious. The watchmaker then manually activated the repeater and slowly went through every single part to show us how each part triggered the next one. Just amazing to see how each part is designed to accomplish a given function and how that function gives the shape of the part.

We learned that the “gong” is made out of a special alloy, a stock of which was purchased by Blancpain 50 years ago. Today the same stock is still being used to produce about 20 repeaters a year. With 10 cm in each repeater you can do the maths by yourself and find out how many meters were used in the last 25 years; very little actually for one forth of a century. Each movement requires about 1 month of work to be assembled … compare this to the time needed for a Tourbillon and you quickly understand the price differences.

There’s also a big safe out there and look at what it’s in it : the very last 1735 sold (the 30th). No need to comment for who likes fine horology. The dream has (or more precisely “had”; it’s sold out) a price : 1,200,000 CHF (about 800,000€). The movement is first assembled, tested, then disassembled and re-assembled again in the case before the whole watch is tested again. It all takes about 1 year to “produce” (I hate this “word” ; in Blancpain’s context only “manufacture” seems to fit) the watch.

the back of the 1735 with blue screws

A little story to finish on the 1735 : sometimes the 1735 was delivered to the lucky owner by the very watchmaker who assembled it. Mousse Jacquier told us that photo alums were sometimes also made by the watchmakers to accompany the birth of the 1735 along the seasons. When you live on the other side of the earth it must be a very particular feeling to get news of your baby and to see how its environment is evolving.

Last but not least, Blancpain also specialized in libertine minute repeaters (which are repeaters with automatons depicting an erotic scene). The production of repeaters is already very limited, that of libertine repeaters is even more confidential and for the first time I’ve able to see one exemplar in person. The automatons are realized in gold by an external craftsman. All watches produced with automatons are unique exemplars as there are no two very same scene produced. The craftsman went very far in the details ; look at the book which is itself engraved with an erotic scene.

On our way from the Minute repeater atelier to the Finition atelier we stopped at a showcase prepared for one of the Basel fairs were all components of the 1735 were on display. No wonder that it takes so long to assemble them.

all parts of the Blancpain 1735 movement

Finishing Atelier

In the finishing atelier all hidden parts of the watch are decorated : Côtes de Genève and other types of decorations are realized by a team of 6 people. This is however reserved to the most prestigious movements : 1735, minute repeaters and some of the tourbillons (not all). For the less prestigious movements finishing is realized by pre-programmed machines.

finishing atelier at Blancpain

For a minute repeater the different steps of the finishing process are realized started from rough parts received from Frederic Piguet SA. It takes 1 month to prepare a set of parts before it is handed over to the Minute Repeater Atelier to get assembled. Finishing is realized using, in many cases, custom-made tools (see also the article by Jeff Kingston in the Lettres du Brassus).

To sum up, the Finishing Atelier adds value to the watch, however it’s a hidden value that only the owner can appreciate through the display back.

Engravings Atelier

This atelier was already dealt with in a thorough article by Didier Schmutz in the Lettres du Brassus. I won’t be able to describe better how this Atelier is working ; I therefore suggest that the reader follow the hyperlink and read the original article.

rotor engraved China special edition Blancpain

all rotors engraved chinese special edition Blancpain

I was fortunate enough to see in person the realizations of the engravers who all graduated from the Ecole Boule in France. In particular I saw a series of 50 rotors in gold for a limited edition dedicated for the Chinese market. In this atelier we were clearly leaving the world of craftsmanship to enter that of Art.

The visit ended up in the meeting room where we were given merchandising articles, the beauty of which perfectly shows Blancpain attention for details and quality

My take :

It doesn’t matter whether you’re a customer or not : the visit of the manufacture in Le Brassus is always possible (after appointment of course). The visit in itself is an extraordinary moment, be it for an amateur or a real passionate collector. Blancpain really shares with you the secrets of the manufacturing process of an high-end time-keeping object. After such a visit you will never dare to ask why such watches are priced so high.

To come back to a more marketing-oriented analysis, welcoming amateurs, potential clients and clients the way Blancpain does it is just a great communication and loyalty tool (believe me, the professionalism of Blancpain employees counts for a large part, especially as far as Mousse Jacquier is concerned) : putting a face, a name, on such a delicate and qualitative object is a rare experience in an industrialized world where banalisation has become the rule. Blancpain definitely sets up a new standard in the way a company can communicate with prospects and clients. The initiatives of the watchmakers (delivering the watch in person for the 1735, taking pictures of the watch birth along the seasons, sharing their passion with the visitors, …) is also crucial as it tends to create a personnal relationship with the owner and / or the visitors. Emotional aspects are here especially important (remember that lifetime loyalty is created through an emotional bond with a brand, which is very well managed by Blancpain).

For those of you who are contemplating the purchase of a watch and who think of the choice of their watch as more an intellectual process than an impulsion, I think Blancpain has developped for you a remarkable solution with is backed by their magazine « Lettres du Brassus ». Actually I’m pretty much convinced that very few brands can propose such a proximity with the very people who are at work ; the added value in terms of branding is enormous and deserves that it be communicated in the not-so-little world of watches aficionados.

Once again my deepest acknowledgments to the Blancpain team and in particulat to Mousse Jacquier for enabling this visit.