brokers

Zillow is a Broker – So What?

by Victor Lund on June 21, 2017

Zillow Logo

“Berkshire Hathaway Home Services, NRT, Redfin – all brokers. Do brokers drop out of IDX because they are selling homes in their market? Brokers share their listings with these large firms everyday. If Zillow joins the list, what’s the diff?” This is the conversation starter that an investment banker had with me today. I appreciate having conversations with people in the capital markets. Bankers see the world differently. They believe that markets shape themselves and that great companies lead markets. Perhaps Zillow Group has its heart in its current service offerings today. The company protests against becoming a brokerage, but everyone got very upset recently when they launched a pilot for Instant Offers that seemed broker-like: it’s a program whereby Zillow helps investors buy property by submitting offer letters directly to homeowners. Brokers don’t like it. Some agents really like it. The pilot is in its early months and restricted to a couple of large cities. Inman News reports that it has not translated into any investor purchasing any homes yet. Perhaps the pilot is a bust. On the other hand, the way the pilot was designed has an added component of delivering leads to Premier Agents. Instant Offers gives the consumer a choice – take the offer from the investor, or connect with an agent to get information about listing your home. News reports indicate that agents are getting listing leads, so the pilot is not all lost. An important thing to keep in mind when companies like Zillow test, is that innovation sometimes goes awry. Innovation sometimes produces different outcomes than expected. Zillow has been masterful at driving consumers to their websites and generating buyer leads. Now they may have stumbled upon a new way to generate seller leads more successfully, and that is their job! The investment banker made a statement that was crystal clear: “If Zillow Group’s Board of Directors believes that it is in the best interest of stockholders for Zillow to open a brokerage, or a mortgage bank, or a title company or whatever…. that is what the company will do. For now, they are doing great with the track that they are on.” P.S. Zillow surged past an $8.5 billion valuation and closed at $46.76 today (a market cap of $8.6 billion). The company is doing very well. Will brokers go nuclear if Zillow does become a broker? The only nuclear option for […]

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How Loyal Are YOUR Customers?

by Marilyn Wilson on June 6, 2017

Hand Holding Small We Love Customer Signage

It is critical for MLSs and Brokers to measure the relationships they have with their customers.  While most MLSs do not have DIRECT competition, they have tons of indirect competition.  MLSs compete against companies that generate leads for agents since that it one of their key roles. They compete against training companies providing CE credit and teaching about technologies. MLSs also compete. MLSs also compete with companies that provide ways to aggregate and distribute real estate listing information for the purposes of monetizes the information flow.  While MLSs have survived well in the real estate ecosystem, some are more well-regarded than others. Brokers, on the other hand have TONS of competition from their fellow brokers.  Understanding customer loyalty is even more critical for them. To really know how well you are doing in building and strengthening customer relationships, it is critical that MLSs measure customer satisfaction. There are two measures that WAV Group recommends for its clients – the Net Promoter Score® or NPS. Second is the Customer Effort Score or CEF®. What is a Net Promoter Score (NPS)? Net Promoter Score, or NPS is a customer experience metric developed by Fred Reichheld, aimed at determining the level of customer loyalty. NPS was introduced by Reichheld in his 2003 Harvard Business Review article “The One Number You Need to Grow“.  Net Promoter Score measures a customer’s willingness to recommend a brand’s product and services to their friends, family and colleagues. NPS is a simple metric, based on a single question that measures customer loyalty: “How likely is it that you would recommend our company’s product and services to a friend or colleague?” Respondents answer by choosing a number from 0-10, with 10 being the most likely to recommend.   While this question can work well for brokerages and technology companies where there are lots of competition in the marketplace, we have seen it not work as well for MLSs, mainly because in most markets REALTORS® do not have a CHOICE of MLSs organizations to work with. Sometimes it angers MLS subscribers and they will say things like “I have no choice so I would have no need to recommend my MLS to anyone. Depending on the score they give, customers are then classified as promoters (score 9-10), passives (score 7-8) and detractors (score 0-6).  The more 9 and 10 scores you receive the higher your Net Promoter Score will be. Those that […]

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