Out with Centralization and In with Frictionless!

I recently expressed my frustration around an experience outside of the industry, (You can check out my LinkedIn Post) and it really got me thinking about the customer experience.

As an industry we should move away from the idea of "centralization" and we should be focused on the term: Frictionless. What does that mean for both onsite and residents as both sides of the business are important.

Let's first break down the term: Customer friction refers to any obstacle hindering customers from completing their journey, such as prolonged wait times, shipping fees, or complex service inquiries. This challenge extends beyond just the service industry and can also affect marketing and sales departments. For instance, if a customer encounters issues downloading an ebook, it can lead to frustration and potential loss to competitors.

According to Gartner, 96% of customers facing significant friction with a company are more likely to lose loyalty, reduce future purchases, and spread negative feedback to deter potential customers. This statistic alone moved me to think about resident renewals and reviews within multifamily. On a positive note, IBM research indicates that satisfied customers sharing their customer experience on social media have a greater impact on brand image than paid advertising. Once again, we as an industry do know that customers that do share their experience can have a domino affect for future prospects.

Satisfied customers not only share their experiences and offer recommendations but are also willing to pay more for excellent service. Companies that deliver seamless customer service can command a price premium of up to 16% on their products and services. Furthermore, 43% of consumers are willing to pay extra for convenience, while 42% are prepared to pay for a warm, welcoming experience.

Friction in customer interactions can lead to dissatisfaction and reduced loyalty. Positive customer service experiences, meeting high expectations, can lead to satisfied customers sharing their experiences positively. Satisfied customers are willing to pay more for excellent service, with companies able to charge a premium of up to 16%. Additionally, customers value convenience and a welcoming experience, being willing to pay extra for these aspects.

Taking this concept back into our industry, Lindsey Martinez from Tourus shared some wonderful feedback, What stands out to her from her own experience "I want to get the information I need and then make my decision on my own based on what you provide me." 100%! We polled teams about why they use a chatbot and 48% said it was to save time answering questions - not scheduling appointments or reducing costs. Answering questions! If we flip it on its head, what % of renters go to the property website to just get the information they need and then make their decision? Probably a similar amount, even that's a challenging experience with so many different CTAs on websites

She further highlights a struggle which I believe is something we have not been successful at implementing which is to meet renters where they are, we MUST build tech that meets the teams where they are. If a renter wants to text, email, call, WhatsApp, the team also needs to be able to accommodate that easily!

If a prospect inquires via email, we should be responding the way they inquiry. For me, personally my voicemail says, I do not check my voicemail, please text or email me. I surely want all the information and questions answered before I talk to someone. I would rather go back and forth 100 times via text or email prior to picking up the phone. This leads to training our teams differently than we have in the past. Allowing them to meet the prospect and even resident on how they want to be communicated with. (Personalization)

Done right, communicating via text and email can be very successful as the journey is not made harder for the prospect. Kristi Fickert from Realync shares something that really resonated with me which is why I think we need to change from Centralization to Frictionless. “The business (and many multifamily orgs) are continuing to do business in a way that is best for them (strategically, logistically or even analytically), not in a way that is best for the actual customer.”

Steven Krutsch shares, “The millennial in me hates to talk on the phone. There are so many times I do business with someone because they have a journey for me to accomplish what I need without ever picking up the phone. Since more millennials and Gen Z are now our target demographic we need to adapt to this way of doing business.”

As leaders we must stop, think about the learning, training and expectations of what we are expecting of the onsite teams. We shouldn’t make them go back to a computer, use their personal phone, call someone and then email them all while trying to tour prospects or assist residents. The key to a seamless customer experience is eliminating these obstacles. By identifying and removing roadblocks, businesses can ensure a smooth customer journey.