What We’ve Learned:

A Quality Control Veteran Reveals Consumer Preferences

By Barlow Herget

RALEIGH, N.C.--In 1996 we introduced you to Ed Willer, who developed a quality control program for his company (''York Brings Quality Control to Real Estate Industry,'' August 1996, page TR2). Since then, he's had time to measure its effect on consumers and his company and tell us what he has learned.

''We've learned a great deal about our customers,'' says Willer, president of York Residential. ''And we've learned as much about ourselves.

''We've learned what price range is selling best. We've learned about salespeople's and our allied vendors' performances. We've learned the importance of tying up loose ends after closing. Moreover, salespeople's morale and pride have improved because they know they provide a superior service.''

York's satisfaction program centers on customer surveys and follow-up polling. Here's what else the company has learned:

• Consumers overwhelmingly want a long-term relationship with their salesperson. Willer believes this is the most important information York's program has uncovered. "The most frequent complaint is the salesperson's lack of contact after the sale," says Willer. "Most salespeople, if left to their own, don't maintain contact." The company now emphasizes the importance of staying in touch, and the ongoing monitoring of York customers lets management measure salespeople's performance on this point.
  
• There's a typical transaction. Through analysis of the data and salespeople's feedback, York has created a picture of a typical transaction, which helps salespeople prepare for bumps in the sales road.
  
  The company has learned that customer satisfaction tracks the stages of the sale. First there's a honeymoon period during the home search. Then there's a not-so-happy stage as the contract is drawn and negotiated. Finally there's a closing and post-closing stage, when the customer decides whether the salesperson did a good job.
  
• Consumers tend to lump all real estate-related services into their overall perception of the transaction. So York asks consumers to rate specific vendor services, such as legal work, mortgage lending, and home inspections. ''We now have an annual awards ceremony to recognize the best vendors,'' Willer says. ''That not only improves our relationship with vendors but also gives them incentive to improve--and to do business with us.”
  
• The company can improve technical performance. ''We find out about technical issues, such as incomplete contracts,'' says Willer. ''We believe that the program reduces legal expenses, because a satisfied customer is less likely to sue.''
  
  York has used its high customer satisfaction ranking in its marketing. But the program's most obvious benefit is its potential to improve customer satisfaction. ''More than 90 percent of our customers tell us they'll use us again,'' Willer says.
  
  Barlow Herget is a Raleigh, N.C.-based writer.
  
  
  A Step-by-Step Guide to Measuring Quality

By Ed Willer

Starting a quality control program in real estate requires leadership from the top down, commitment from the bottom up, and a willingness to follow through. Other than that, it's fairly simple. To get feedback from customers and clients, follow these steps:

1. Compile a list of questions to ask. We wanted to know how customers heard about our company, how they selected their salesperson, and how much their house cost. We asked them to rate the different parts of the sales transaction, from showing to closing. Finally, we wanted to know how we compared with the competition in terms of customer satisfaction.

Remember to keep your salespeople informed from the program's inception. Solicit their viewswhen you compile questions, but be prepared for some resistance; some salespeople may view the survey as second-guessing their performance.

2. Hire a research company to conduct a benchmark survey. Lewis & Clark Research of Raleighasked all the people who'd bought a home in Wake County in the previous six months to rate the various services involved in selling a home. As an incentive to complete the survey, we included a dollar bill in each. More than 50 percent of the people polled returned our survey, an unusually high rate for such surveys.

3. Analyze the data. Where are your company's strengths? Weaknesses? What do consumers want?

4. Explain the data to your salespeople. Most salespeople, especially top performers, realize they can use the feedback to improve their service and increase sales.

5. Continue to survey. You need benchmark surveys only every three or four years. In the meantime, conduct smaller surveys of your own customers. For instance, in subsequent surveys, we conducted polls regarding the quality of various vendors, such as attorneys and mortgage lenders.

Ed Willer, CRB, is president of York Residential, Raleigh, N.C.