The following article is published with thanks to PRSupdate, a magazine for the private rented sector published monthly by the Young Group. http://www.younggroup.co.uk/
By Howard Morgan
Founder and Managing Director of RealService – real estate customer service specialists

It’s New Year and time to reflect on achievements and to plan the future. Three years ago, RealService boldly set out our vision of the property industry of the future.
With encouragement from the Young Group, we have taken each of our ten predictions to see what’s been achieved to date.
1. Property companies will become brands or even ‘super brands’.
A brand is much more than a logo – it is the essence or promise of what will be delivered or experienced. In my view there are 5 things that any property brand needs to get right.
- Tangibles – the quality of the physical facilities that we build, businesses that we house or property management services we deliver
- Reliability – making sure that these developments continue to deliver every time
- Responsiveness – reacting quickly to whatever the customer wants and sorting problems out fast
- Assurance – inspiring trust among customers
- Empathy – demonstrating a true understanding of customers’ changing needs – making customers feel understood as individuals
By obsessively focusing on these 5 areas our industry will deliver increased value for shareholders, occupiers and local communities. Superbrands like Apple and John Lewis understand this. Westfield, CBRE and Land Securities seem to get it too.
2: Property businesses will be better understood and valued for a consistently high level of service.
When I started our business 14 years ago, I was told that I was mad to imagine that the real estate industry would embrace customer service.
Today, many of our clients, including several major listed property owners, call their tenants “customers” and are fully embracing the notion that treating tenants as valued customers makes good business sense in terms of faster leasing, stronger retention and industry recognition.
One of the pioneering ‘early adopters’ of this customer focused approach is British Land which has transformed itself from a brand that’s “difficult to do business with” to “our preferred property partner”. This transition can be measured through occupier audits and industry recognition. For example, 2011 studies by RealService http://www.britishland.com/index.asp?pageid=10 showed that 85% of retail occupiers and 83% of office occupiers rated the service they receive from British Land as “good or excellent” – these being some of the best occupier satisfaction results in the industry. In 2009 they were voted by retailers as “Landlord of the Year” for their aggressive approach to reducing service charges.
The real estate industry still has a long way to go to catch up with the rest of business in its approach to customer. The UK Occupier Satisfaction Survey 2011, published by the Property Industry Alliance and CoreNet Global UK, revealed that the average UK occupier rates their level of satisfaction at just 54%. Just imagine the outcry if our big supermarkets offered such a poor level of service! http://www.occupiersatisfaction.org.uk/
3: The property industry’s customers will be more knowledgeable with information at their finger-tips to help them make informed decisions about which suppliers are best.
Today customer feedback is driving purchasing decisions in all walks of life – whether buying for business or the home – in store or online.
I’ve wondered for a while why it’s easier to find a good place to stay in Timbuktu on TripAdvisor it is to find a good residential landlord in London.
Why is the property sector so poor on transparency, when it has so much to gain? A visit to Washington DC last year brought ApartmentRatings.com http://www.apartmentratings.com/ to my attention and how this site is rewriting the rules for customer feedback.
My idea for a TripAdvisor style website for the UK private rented sector last year won the support of four hard-nosed dragons at the inaugural RESI “Dragons Den”. Moves are now afoot to test the viability of such a website.
4: Service quality and performance will be measured on a consistent basis across the world.
The measurement and reporting of service performance is presently too fragmented and lacks consistency. Without consistent measurement how can a customer or investor take a claim of “95% customer satisfaction” or “80% customer retention” seriously?
At the vanguard of developing consistent measures are the 20 leading owner and property manager members of the RealService Best Practice Group (RSBPG) http://www.rsbpg.com/ – a not for profit benchmarking and best practice group that includes Ashville Asset Management, British Land, Broadgate Estates, Capital Shopping Centres, CityWest Homes Ltd, Cushman & Wakefield, DTZ, EMCOR Facilities Services, Gatwick Airport, GVA, Highcross, Lambert Smith Hampton, Land Securities, MAG Developments, Marchday, PRUPIM, SEGRO, Soho Housing Association, Stow, The Portman Estate and Transport for London.
Backed by the British Property Federation http://www.bpf.org.uk/ and founded in 2004, the group’s mission is to improve customer service to occupiers through benchmarking and the sharing of best practice and in so doing gain a better understanding of the link between improved customer service and performance.
5: The products and services offered by the real estate industry will become more clearly defined and differentiated as opposed to an amorphous mass where one size fits all.
In recent years more property businesses have become sector specific, a move that’s been driven by research and understanding of customer needs.
At London’s Heron Tower office complex http://www.herontower.com/, for example, the offering is totally geared toward those companies that expect a 6* standard of service and facilities – more akin to a luxury hotel than an office block.
Derwent London http://www.derwentlondon.com/#!Home, famous for its architecturally striking buildings, is at the vanguard of the White Collar Factory office, a new architectural/cultural concept that incorporates a number of key, environmentally-friendly design features.
6: Proper relationships between suppliers and customers will prosper in line with other industries i.e. founded on a partnership style of doing business where mutual understanding/symbiotic relationships exist.
It was fascinating to hear the real estate director of a global manufacturing business tell our client why they would like to do more business with them and create a strategic partnership as they do with others in their supply chain.
Partnerships deliver – it was through the strength of their partnership with Land Securities that John Lewis was able to grow its “at Home” chain at such an extraordinary pace with the first store delivered just six months after initial conversations. http://www.landsecurities.com/Media/Press-releases?MediaID=1362
7: The property industry will become more transparent about the way it does business and the costs of doing business.
While the residential industry has had regulation of service charges forced upon it, in the commercial property world it this is still voluntary.
In 2011 the RSBPG published its second benchmarking Index showing the extent to which some of the UK’s leading owners and managers are complying with the requirements of the RICS Service Charge Codes for commercial and residential properties.
The Service Charge Compliance Index (SCCI) results showed that property owners and managers are still finding it challenging to demonstrate true transparency but measurement is driving organisations to develop improved systems and processes.
Click here for 2011 results
http://bpf.contentdaemon.com/preview/en/newsroom/press_release/PR110712_-_RSBPG_PR_RealService_Best_Practice_Group_Service_Charge_Compliance_Index_SCCI_Results_2011.php
Service charge transparency isn’t the only issue. A lot of cloudiness exists around the way rents are quoted to protect headline rents. There are also still surprise charges around approvals and licenses – and people don’t like surprises!
8: The property industry will move from being self-focused to being obsessively customer-focused.
Customer service today is a boardroom issue whereas three years ago it was regarded soft and fluffy – a nice to have extra.
Chief executives understand customer service and analysts are asking questions about operational excellence and customer focus. Service quality is high on the boardroom agenda as is the cost of delivering that service and the financial and reputational benefits it brings.
9: The property industry will play a leading role in demonstrating how industry can minimise its impact on the environment and actively work with its customers to minimise their impact too.
Today the major players like British Land http://www.britishland.com/index.asp?pageid=496 and Land Securities http://www.landsecurities.com/websitefiles/cr_report_2011.pdf take their corporate responsibility programmes very seriously.
Property companies take enormous pride in reducing carbon emissions, conserving natural resources through energy and water efficiency and recycling initiatives. Producing buildings that are sustainable in design and construction is now high on these companies’ and their occupiers’ agendas.
10: The property industry will develop a clearer understanding of the link between adopting customer service strategies and performance.
I hope to be able to award a much higher progress score in three years when the outcome of pioneering PhD research project to help the property industry better understand the link between customer service and property performance will be known.
Sponsorship for the project has recently been secured from the Lord Samuel of Wych Cross Memorial Trust Award, together with industry contributions from RealService Ltd and the RealService Best Practice Group (RSBPG). It will be supervised by the School of Real Estate & Planning at Henley Business School, part of the University of Reading http://blog.real-service.co.uk/~realserv/?p=488
There is currently no easy way for City analysts to measure the impact of customer service investment on financial performance. We hope the project will provide hard objective and quantitative evidence and a clear business case for investing in customer service.
End of term report
As RealService enters our 14th year in business I feel really positive about what’s been achieved and that the progress can only speed up from here.
Customer service it is now a boardroom issue in real estate and that will ensure that it received the attention it deserves. If you don’t currently have a strategy to maximise customer focus and operational excellence in your company, then 2012, Olympic Year, is surely the time to get one.
To view the full article click on the link below
http://www.younggroup.co.uk/downloads/YGUpdate_Current.pdf