It is not enough to have a great system for delivering information and services to your customers, because customers have a personality that is split four ways. Customers pass through four distinct phases characterized by very different informational needs. The "Anonymous Shopper" gets enough information to become a recognized customer who is actively in the market with a Realtor®. That customer then gets a contract working and move on to managing a closing checklist. As the ink dries on the deed and the mortgage they take on the responsibilities of homeownership, and then a whole new set of challenges come into focus. During each of these four phases the Realtor® must deliver a very different set of services and information. This means that you really need to have four distinct ways that information and services are delivered to customers.

A customer does not need to be Internet enabled, but the Realtor® must have access to Internet based information tools. While most systems are designed with the online customer in mind, these customers still represent less than half of all customers. In order to reach the larger, less technically savvy chunk of the market, a Realtor® will have to develop hard copy reports that can be faxed or printed. It is important to recognize that the Realtor® will be functioning in an Internet based system and doing a lot of the things for the customers because they are not really capable of using the newer technology.

The Anonymous Shopper

Many customers want to initiate their shopping/selling experience anonymously. During this phase of the customer’s search they want to get enough information to have a basis for making some initial decisions. This has been a huge factor in the popularity of the Internet. The Internet has provided customers with an easy means to access information without having to worry about the hassle of being interrogated. Web portals like HAR.com are designed to deliver information to these anonymous shoppers. This preliminary anonymous shopping provides the customer with enough information to start forming opinions about where they want to live and who they want to do business with.

As a potential buyer/seller becomes more serious about accomplishing a transaction there comes a point when they must surrender their anonymity and reach out to a Realtor® for more detailed information.

The Customer Who is Actively in the Market

When a customer is serious about buying or selling and they have chosen to place some amount of trust and confidence in a brokerage or agent, then they are willing to come forward and identify themselves. At this point the portal that was satisfactory for an anonymous buyer is no longer adequate. A general-purpose portal has all kinds of information that the customer is not interested in. Once a customer is willing to identify himself in some fashion, then a customized set of information can be delivered to him. By maintaining a customer profile he can receive information relevant to his transaction.

There are several systems being developed that create a personalized web site for every customer, automatically. The broker or agent enrolls a customer into a system (a.k.a. data entry) and the software system then generates a customized, password-protected web page for that customer. These customer pages would then serve as an online "war room" where the Realtor® and the customer correspond and get a contract pending.

Several online Realtor® sites, including e-Realty.com’s site, integrate a customer profile into a customer registration process. This allows the brokerage’s computer system to provide an individualized set of services to that customer. Whenever that customer uses their password to "log into" the site they are provided with updates to market conditions that correspond to their personalized customer profile. These profiles can be pretty basic: 4+ bedrooms; $180-$225,000; ZIP Code = 77024.

Buyers can track the neighborhoods and homes that are of interest to them. As new homes come onto the market and contracts are submitted on the existing inventory, then buyers could receive notifications and become more active participants in the process. Sellers could receive a customized set of information including updates on sales activity in that seller’s specific sub-market.  

The Pre-closing Countdown

Once a contract is pending a customer’s information requirements change dramatically. He should now be focused on making that transaction happen. All of the customized information on market conditions and home inventory should be moved to the background. All of the steps and requirements to accomplish the closing should be moved to the foreground such as getting and evaluating home inspections, obtaining a mortgage, and dealing with any requirements from a lender or the title company. Taking care of these issues presently involves dozens of phone calls per sale, and most of those calls are not necessary or productive. Automated systems are going to take a lot of the mystery and hassle out of this phase of the process.

The customer’s personalized web site that helped the customer manage the shopping experience should now have evolved into a system that gets him to the closing table on time with no surprises.

The Owner

After the closing there is still work to be done and money to be made. Rather than leave the bewildered customer at the title company with a closing gift, why not assist him in owning that house?

The near-term benefit is found in all of the services that a new homeowner needs: a mover, utilities, painting, drapes, and so on. This is an area where brokerages and associations need to provide structured opportunities that the Realtor® can offer to his customers. The same transaction management systems that provided the customers with a personalized shopping and closing system can be used to easily connect the new homeowner with appropriate service providers.

The long-term benefits of assisting a homeowner involve retaining him as a customer so you can sell him another home in five to seven years. During that interval they will be faced with annual opportunities to switch insurance carriers, protest his taxes, or refinance his home. Your system knows a lot about him, not the least of which is his e-mail address. Your information system should be capable of presenting him with some relevant opportunity every few months and thereby maintaining that customer relationship.

Automated systems that can be easily accessed via the Internet which offer the Realtor® all of these capabilities will be available "off-the shelf". Some brokerages have already made a considerable investment in these systems, and they are going to have to keep working to maintain a competitive advantage. For those who have not been as progressive, these new transaction management systems represent an opportunity to catch-up.

Sam Scott is the Director of Information, Houston Association of REALTORS®.  Copyright© 2000, Sam Scott.  All rights reserved.  For additional information about Sam, please contact the Frog Pond Group at 800-704- FROG (3764) or email Susie@frogpondgroup.com; http://www.frogpondgroup.com.