2023 CPPREP5010 Manage customer service in the property industry Learner Notes
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BSBHRM613
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Information Systems
Date
Dec 6, 2023
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Uploaded by LieutenantThunder10414
2023 CPPREP5010 Manage customer service in the
property industry Learner Notes
Site:
Validum Institute Portal
Course:
2023 QLD Real Estate Agent Licence course
Book:
2023 CPPREP5010 Manage customer
service in the property industry Learner
Notes
Printed by:
Moodle Admin
Date:
Tuesday, 22 August 2023, 7:44 AM
Topics
Welcome to CPPREP5010 Manage customer service in the property industry
[1] Achieving customer service excellence in real estate
[2] Who are our clients and customers?
[2.1] What is customer service?
[2.2] What is customer satisfaction?
[3] Compliance and best practice for customer service systems
[3.1] Property Occupations Act 2014 and the Property Occupations Regulation 2014
[3.2] Other Federal and State Legislation
[3.3] Agency policies and procedures
[3.4] Ethical considerations
[4] Customer service delivery risks in real estate
[4.1] Risk assessment
[4.2] How do you identify risks?
[4.3] Examples of risks in real estate practice
[4.4] Analyse risks
[4.5] Develop and implement risk management controls
[5] Requirements of a customer service system for a real estate agency
[5.1] Identify and assess customer needs
[5.2] Customer service charter
[5.3] Implementing a customer service system in a real estate agency
[5.4] Customer relationship management (CRM) systems
[6] Key Performance Indicators (KPIs) and Customer Service Targets
[6.1] KPIs and targets for real estate customer service
[6.2] 6 steps to set the agency’s KPIs
[6.3] Examples of real estate customer service KPIs and targets
[6.4] Examples of agent rating sites
[6.5] Monitoring KPIs and customer service targets
[7] Roles and responsibilities for managing customer service
[7.1] Role of Agency Principal and management
[7.2] Role of agency staff in customer service
[7.3] Offering superior customer service
[8] Delivering good customer service and handling complaints
[8.1] Effective customer service strategies
[8.2] Customer complaints
[9] Coaching, training and mentoring agency staff
[9.1] Induction
[9.2] Coaching and mentoring
[9.3] Training
[10] Manage, monitor, review and adjust agency customer service
[10.1] Effective client and customer follow up
[10.2] Collecting feedback
[10.3] Monitoring customer service
[10.4] Continuous improvement
[10.5] Evaluating customer service
[10.6] Reviewing policies and procedures
[11] References and resources
Important information about your Learner Notes
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Welcome to CPPREP5010 Manage customer service in the property
industry
In this Unit of Competency, you will learn about:
customer service systems;
how to manage the customer service systems;
developing customer service KPI’s and targets;
what legislation and ethical practices apply to consumers; and
how to review and evaluate customer service.
These are important aspects of your real estate training.
These Learner Notes form part of the set of learner resources for this Unit of Competency.
Learner Activity
Learner Activities are denoted by this symbol. The Learner Activities allow you to practice
research and learning skills and assists in the research and learning required by real estate
agents. It is highly recommended that you complete the Learner Activities as the activities will
prepare you for the Assessments you will have to complete for this Unit. These activities also
provide the context for and assist you in completing the other parts of your course.
In this Unit, the Learner Activities will involve accessing and exploring websites and using the
links provided to research and read relevant information which are essential skills for
professional real estate agents.
Please review these Learner Notes and any other resources for this Unit of Competency before attempting the
Assessments for this Unit of Competency.
Background
Managing and monitoring the relationship with customers is a vital part of managing a real estate agency.
Customer service affects an agency’s brand and reputation.
Great customer service leads to referrals, repeat business and a great reputation for the agency and its staff.
Poor customer service leads to loss of business, lack of referrals and a poor reputation.
In real estate, your customers are:
sellers;
buyers;
landlords; and
tenants.
In addition, you also have
potential
sellers, buyers, landlords and tenants who may wish to use the services of
your real estate agency.
While the term “customer” refers to any person who uses your services, you have a unique relationship with
your sellers and landlords under the Property Occupations Act 2014 (Qld). The Act refers to sellers and
landlords as clients and requires that you act in their best interests at all times. It refers to buyers and tenants
as customers and requires you to treat all parties to a transaction honestly and fairly.
In other words, your primary duty is to the seller or landlord, but you must deal with the buyer and tenant fairly
and be open and honest with them.
The legislative framework in which real estate agents work adds another dimension to customer service that
does not apply in unregulated industries.
Every staff member makes a difference when it comes to customer service –
YOU
make a difference. The
difference between agencies and the services they provide comes from their staff. Clients and customers will
evaluate the agency and the service they receive based on their interaction with agents or a member of the
agency team.
In order to analyse, develop, manage, provide and evaluate quality customer service, you have to deal with
people – the client and/or the customer.
The agency must foster a customer service culture. To achieve the required level of customer service in an
agency, there has to be commitment from the agency principal. The principal has to recognise and focus on the
importance of customer service each and every time they interact with a client or customer.
Managing and monitoring customer service requires the agent to understand who their clients or customers
are, and understand the concepts of customer service and customer satisfaction.
[1] Achieving customer service excellence in real estate
In order to achieve customer service excellence for clients and customers, an agency principal must implement,
manage and monitor all customer service activities.
In carrying out this role, the agency principal must look at all the agency’s client and customer touch points and
anything else which might impact on the staff’s ability to deliver excellence in serving the agency’s current and
potential customers and clients.
The following management activities will assist in achieving the desired customer service excellence:
involve all agency staff in the development of customer service strategies and continuous improvement;
systematically check for any gaps in the agency’s customer service strategies and delivery;
develop customer service standards to match the agency’s service promise to both clients and customers;
monitor customer service to ensure consistency across all agency staff;
organise regular and ongoing customer service training for all staff;
empower staff to make decisions when working with clients and customers;
regularly ask for feedback from clients, customers and staff on the agency’s customer service performance;
regularly monitor and measure customer service performance; and
develop a culture of continuous improvement.
Customer service excellence leads to satis±ed clients and customers, which in turn leads to repeat business,
referrals, loyal clients and customers, and an enhanced reputation and brand which equates to a pro±table real
estate business.
Learner Activity
Click
HERE to see some resources provided by the Queensland Government to businesses
relating to customer service.
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[2] Who are our clients and customers?
There are two types of customers/clients for any agency – internal and external clients and customers. Each
category is equally important to a customer service ethos.
A customer or client is the consumer (user) of your agency services.
Internal customers
The internal customer relationship is often overlooked. An internal customer is anyone within the agency who
provides you with an opportunity to provide your services. For example, when a property manager refers a
potential listing to a sales agent, the property manager is the sales agent’s potential customer.
External customers
External clients and customers are the people outside your agency who have a need to use your agency’s
services. They have a budget that determines what they will pay in exchange for a solution that meets their
needs and expectations.
External customers are able to choose where and how they will spend their budget.
The big question is who will receive that money - you or your competitor? That will depend on who has earned
the con±dence and trust of the client or customer.
[2.1] What is customer service?
Customer service relates to the level of service an agency provides to its clients or customers, and is also the
way an agency interacts with a client or customer at all stages of the sales or property management process.
The goal of an agency should always be to ensure the quality of customer service exceeds the expectations of
the client or customer.
[2.2] What is customer satisfaction?
Customer satisfaction refers to how an agency’s services meet, fail to meet or exceed the client or customer’s
expectations.
In customer service, it is important to remember that most clients or customers tend to vote with their money
(that is, they choose to use your services if they are satis±ed) and complain with their feet (that is, they do not
do business with you again if they are not satis±ed with your service).
These concepts and the legal framework in which an agency must offer their services to clients and customers
forms the basis of managing customer service in the property industry.
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[3] Compliance and best practice for customer service systems
In real estate, sellers and landlords are your clients. They pay your fees and commissions, and it is to them you
owe a ±duciary duty.
There are ethical and legal responsibilities that come with working with clients and customers, gathering and
storing information, and providing agency services.
The legislative framework under which an agency principal operates their business (and real estate agents
work) adds another dimension to customer service that does not apply in unregulated industries.
In Queensland, the real estate industry is primarily governed by the:
Property Occupations 2014
(Qld)
Property Occupations Regulation 2014
(Qld)
These pieces of legislation outline how a real estate agency must conduct their business, including their
relationships with clients and customers.
[3.1] Property Occupations Act 2014 and the Property Occupations Regulation 2014
The
Property Occupations Act 2014
(Qld) and the
Property Occupations Regulation 2014
(Qld) govern all
aspects of real estate agency practice. In relation to customers and clients, it requires an agent to disclose to
customers and clients any information that affects the transaction or decision to buy, sell, rent or manage a
property.
The
Property Occupations Regulation 2014
(Qld) accompanies the Act. In particular, the Conduct Standards in
Part 5 of the Regulations impose certain obligations on how real estate agents and resident letting agents
should or should not act in relation to their client. These obligations include:
avoiding con²icts of duty or interest;
±nding out or verifying property ownership and description;
±nding out or verifying facts material to the sale of property; and
acting in accordance with the client’s instructions.
Learner Activity
Click
HERE to access an extract of the Property Occupations Regulation Part 5 Conduct
Standards.
Read through the Conduct Standards – they contain important information on what the law
requires real estate agents to do and how they are required to conduct themselves.
The Property Occupations Act and conditions of sale
In real estate, the real estate agent must explain the listing agreement or managing agency agreement to the
seller or landlord, so they fully understand the agreement before they sign it. Under the Property Occupations
Act and Regulation, all transactions and agreements must be in writing.
When developing customer service systems or analysing risks associated with customer service, a licensee
must have a comprehensive knowledge of the Act and the Regulations so they are making informed choices
and decisions that take into account this legislation.
[3.2] Other Federal and State Legislation
There are numerous pieces of legislation that have an impact on the day to day role of a real estate agent. It is
essential that agents have a working knowledge of relevant legislation in order to manage, deliver and monitor
a quality customer service experience for all clients and customers.
The legislation includes, but is not limited to:
Fair Trading Act 1989 (Qld)
This Act is administered and enforced by Of±ce of Fair Trading. The purpose of the Act is to improve consumer
wellbeing through consumer empowerment and protection, fostering effective competition and enabling the
con±dent participation of consumers in markets in which both consumers and suppliers trade fairly.
Since 1 January 2011, most of the consumer protection requirements in the
Fair Trading Act
were replaced by
the Australian Consumer Law.
See below for more information about the Australian Consumer Law.
Learner Activity
A copy of the to get a copy of the
Fair Trading Act 1989
(Qld) – can be found by clicking the
link
https://www.legislation.qld.gov.au/view/html/inforce/2016-03-04/act-1989-084
Scroll through the contents of the Act on the left hand side of the page. It will provide you with
information about the various consumer protection requirements that real estate agents need to
comply with.
Competition and Consumer Act 2010 (Cth)
This Act is the main piece of Commonwealth consumer protection and competition legislation. It is
administered and enforced by the Australian Competition and Consumer Commission (
ACCC
) and the Of±ce
of Fair Trading.
Learner Activity
The ACCC’s website can be found by clicking the link -
https://www.accc.gov.au/
Access the ACCC website and explore the contents. It provides a practical and wider context of
how consumer protection laws apply to businesses and professions.
The Act is national law. It applies in all States and Territories and it governs how companies deal with their
competitors, suppliers and customers.
The
Australian Consumer Law (ACL)
is the main piece of consumer protection legislation in Australia and
regulates how businesses in Australia deal with consumers (including but not limited to misleading or
deceptive conduct, unconscionable conduct, unfair practices and conditions and warranties).
Amongst other things, the ACL applies to:
services provided by businesses (in a real estate context - listing a property for sale, property management,
and providing an appraisal would all be considered “services” under the ACL);
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the sale of land (agents are prohibited from falsely misrepresenting the characteristics of land. For example,
plot size, number of bedrooms, zoning); and
employment (for example, a real estate agent recruiting personnel must be accurate in informing applicants
about work hours, nature of the role and wages).
Under the ACL, businesses are prohibited from making statements that are incorrect or likely to create a false
impression. This applies to advertising and any information provided to consumers by businesses and their
personnel. It also applies to any statements made by businesses in the media or online, such as testimonials on
their websites or social media pages.
In a real estate context, an example of a false or misleading claim may be a real estate agent misinforming a
consumer about the characteristics of a property by advertising beachfront lots that are not on the beach.
To stay compliant with the Australian Consumer Law, an agent should:
ensure that they describe properties completely and accurately;
make sure all information they provide about a property is accurate, current and veri±able;
make sure that they are fully familiar with the property - understand all aspects of the property, both good
and bad, in precise detail;
con±rm all instructions in writing; and
keep records of meetings and details of what has been said to the parties.
To minimise breaches of the Australian Consumer Law, an agent should
NOT
:
make false, incomplete or inaccurate statements about a property in an attempt to in²uence a party’s
decision;
withhold material information about a property;
fail to disclose or conceal potentially disadvantageous features of a property;
provide predictions or claims about a property (for example, rate of return, capital growth, future zoning
changes) without any reasonable basis for these claims;
make false or unsubstantiated claims about the property market; or
make any claims that cannot be veri±ed. For example, an agent should not state that a property has ducted
air conditioning without ±rst checking the property.
Learner Activity
The ACCC website has a section speci±cally for real estate and deals with how the Australian
Consumer Law applies to real estate services. Click on this link
-
https://www.accc.gov.au/consumers/health-home-travel/real-estate
Click on the above link and read through the information. This information will apply to your day
to day interactions with consumers and customers in real estate. It also shows you how the
ACCC interprets and applies the ACL legislation.
Privacy Act 1988 (Cth)
This Act regulates how companies collect, hold, use and disclose personal information about individuals. The
Privacy Act is administered and enforced by the Of±ce of the Australian Information Commissioner (
OAIC
).
Learner Activity
The OAIC’s website can be found by clicking the link -
https://www.oaic.gov.au/
Go to the OAIC website and explore its contents. It provides useful information on good
practices for collecting and handling personal information.
The
Privacy Act 1988
applies to:
personal information
about an individual. Personal information is any information or an opinion about an
identi±ed individual, or an individual who is reasonably identi±able (whether the information or opinion is
true or not, and whether the information or opinion is recorded in a material form or not); and
private sector businesses with more than $3 million in annual turnover.
Amongst other things, the Act:
regulates how businesses (with more than $3 million in annual turnover) collect, store and manage personal
information of individuals;
gives individuals the rights to access and request correction of their personal information held by an
organisation;
permits an organisation to only collect personal information that is reasonably necessary for one or more of
its functions or activities;
requires an organisation to securely store the personal information it holds;
requires an organisation to keep the personal information it holds up-to-date, accurate and complete;
prohibits an organisation from using or disclosing personal information for certain purposes unless
exceptions apply (for example, the individual has given their consent, or the organisation is required to
disclose the information to law enforcement bodies); and
establishes certain rules for using an individual’s personal information for marketing purposes.
The Act establishes the Australian Privacy Principles (
APP’s
). The APPs set out the Act’s requirements on how
an organisation may collect, use, disclose and store personal information.
Learner Activity
1. Access a copy of the APPs by clicking the link -
https://www.oaic.gov.au/individuals/privacy-
fact-sheets/general/privacy-fact-sheet-17-australian-privacy-principles
2. Read through all the APPS. The information will also assist you in completing your
Assessment.
3. Every real estate agency will have a privacy policy. Check out the website of your local real
estate agent and review their privacy policy. The privacy policy should outline what real
estate agencies expect of their personnel in their day to day role in the agency.
Even if an agency does not have an annual turnover of $3 million or more, it is a good idea to comply with the
Privacy Act to build trust with your clients. Many franchisors will require franchisees to comply with the
Privacy Act even if the franchisee does not meet the turnover threshold.
Spam Act 2003 (Cth)
Spam
is any unwanted email that advertises goods and services
(
https://www.acma.gov.au/what-spam#spam-rules
)
The
Spam Act 2003
(Cth) regulates the sending of unsolicited commercial electronic messages (such as emails,
text messages or instant messages) in Australia.
The Act requires that unsolicited commercial electronic messages must meet the following requirements:
permission
– before it is sent, it must ±rst have the permission of the intended recipient;
identity of sender
– the message must accurately identify your name or business name, and include correct
contact details for you or your business; and
ability to unsubscribe
– the message must make it easy for recipients to unsubscribe from future messages.
In particular, the message is required to include an unsubscribe option that:
presents unsubscribe instructions clearly;
honours a request to unsubscribe within 5 working days;
does not require the payment of a fee;
does not cost more than the usual amount for using the address (such as a standard text charge); and
is functional for at least 30 days after you sent the message.
The Australian Communications and Media Authority (ACMA) is a statutory authority that enforces the Spam
Act 2003.
For more information on ACMA, go to
https://www.acma.gov.au/
Do Not Call Register Act 2006 (Cth)
The Do Not Call Register is a secure database where individuals and organisations can register, check or
remove their Australian telephone, mobile and fax numbers to opt out of receiving most unsolicited
telemarketing calls and faxes.
Once registered, a number will stay on the register inde±nitely unless the number owner or their
representative removes the number.
Telemarketers have 30 days to recognise the registration of a number and to stop contacting that number.
To identify registered numbers, organisations are able to check—or ‘wash’—their calling lists against the
register.
Lists are submitted, checked and returned with all registered numbers identi±ed. To protect the privacy of
registrants, organisations are only given information on the numbers submitted.
Any organisation that either calls or faxes a number listed on the register, or arranges for this to occur, may be
breaking the law and could face penalties.
There are a number of exemptions such as market research calls, charities, and political parties. However, real
estate agents are
not exempt
from the legislation.
The Do Not Call Register scheme is administered by ACMA. For more information, see:
https://www.donotcall.gov.au/about/about-the-do-not-call-register/
https://www.acma.gov.au/protect-yourself-unwanted-calls-and-faxes
Anti-Discrimination
At a Commonwealth level, there are several anti-discrimination Acts:
Age Discrimination Act 2004
Disability Discrimination Act 1992
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Racial Discrimination Act 1975
Sex Discrimination Act 1984
The Commonwealth anti-discrimination legislation is administered by the Australian Human Rights
Commission.
Learner Activity
For more information on the Australian Human Rights Commission – click on
https://www.humanrights.gov.au/ and explore the website.
Queensland has a single piece of anti-discrimination legislation - the
Anti-Discrimination Act 1991
(Qld).
Commonwealth and Queensland anti-discrimination laws generally overlap and prohibit the same type of
discrimination. As both Commonwealth and Queensland laws apply, you must comply with both.
The legislation prohibits discrimination on the basis of sex, relationship status, pregnancy, parental status,
breastfeeding, race, age, impairment, religious belief or religious activity, political belief or activity, trade union
activity, lawful sexual activity, gender identity, sexuality, family responsibilities, and association with or in
relation to a person who has any of the above attributes.
The legislation applies to employment, provision of goods and services, disposal of land, accommodation etc (so
it very much applies to the real estate industry).
[3.3] Agency policies and procedures
A policy is a document that describes what an agency aims to achieve and procedures are individual tasks that
need to be done to achieve the aims of the policy and the agency.
A
policy
is a statement of intent related to an issue or function, such as customer service. A policy should
include:
purpose statement – the context of the policy, why it is required, the desired standard or overall objective;
scope – the application of the policy (particular location, workgroup, etc.);
resources – additional documents, related forms, etc;
roles and responsibilities – who is responsible for which parts of the procedure in the implementation of the
policy; and
references to legislation that the policy speci±cally complies with, where applicable.
Procedures
are developed to support the implementation of the relevant policy. A procedure contains the
complete instructions for carrying out an activity covered by the policy. Procedures should include the
following (as applicable):
step-by-step instructions for carrying out tasks and processes;
training requirements;
the process for monitoring, reviewing and reporting; and
requirements for documentation and record-keeping.
Agencies will have policies and procedures that cover dealing with clients and customers across all areas of the
agency’s practice.
[3.4] Ethical considerations
In dealing with clients and customers, real estate agents also need to consider their ethical responsibilities.
For example, your role as a salesperson may put you in a position where you have access to con±dential
information about your client or customer. You must respect such con±dentiality. Other moral duties include
treating your customers fairly and always telling them the truth.
These ethical responsibilities are also found in the Conduct Standards of the Property Occupations Regulation
2014.
Ethical customer service, when delivered by the agency will:
attract customers
- customers want to work with ethical people. They know the advice and service they
receive will be open, honest and transparent. Ethical practices build trust with clients and customers, which
will result in repeat and referral business for the agent and the agency;
attract talented people
– a reputation as an ethical real estate is an asset in attracting new agents,
salespeople, property managers and administration staff. They want to work for an agency that is seen as
professional and well thought of in the community;
minimise bad reviews
- the rise of review platforms such as Rate My Agent has given dissatis±ed and
disgruntled clients and customers a place to provide reviews and give their agent a rating. These types of
sites provide platforms for upset clients and customers to vent their frustrations. A clear statement of ethical
practices provides a basis for behaviour and a reference which helps reduce the likelihood of bad reviews for
agents and the agency; and
maximise client and customer loyalty
- clients and customers are likely to walk away from you as an agent the
minute they feel they have been treated unethically. Showing the utmost respect and care for your clients
and customers is the easiest way to build client and customer loyalty.
A code of ethics for the real estate agency is also good business sense as it outlines the expected ethical
behaviour of all agency staff.
Learner Activity
Click
HERE to an article on how to encourage ethical behaviour in the workplace.
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[4] Customer service delivery risks in real estate
The ±rst step in understanding the requirements of a customer service system in real estate is to understand
the risks involved in real estate and in the delivery of customer services.
[4.1] Risk assessment
A customer service risk assessment requires a licensee or manager to:
1. Identify customer service-related risks, threats and weaknesses in the agency’s systems and staff;
2. Evaluate identi±ed risks – what would be the impact on the agency if the risks were realised?
3. Control the risk by putting in place measures that reduce the likelihood and consequence of the risks
occurring;
4. Monitor the risks to ensure that the controls put in place are being implemented by staff; and
5. Review the risk controls to ensure they are working as planned.
Learner Activity
Click on the following links and review the information on risk analysis
https://www.youtube.com/watch?v=ku0DvsnsLCA&t=18
https://www.mindtools.com/pages/article/newTMC_07.htm
[4.2] How do you identify risks?
Identifying risks
involves identifying the:
sources of risks (any situation that may give rise to a risk);
events that can occur;
causes of such events; and
potential consequences of such events.
You need to be able to ±nd, recognise and describe the risks faced by the agency, its clients, customers and
other stakeholders.
Example
Source of risk – lack of time to supervise agency staff
Event that can occur – staff don’t follow agency customer service procedures
Causes of such event – employees not were given the proper training in agency procedures
Consequences of such event – agency loses money and client, suffers reputational damage
In identifying risks you are creating a list of risks that are based on events that could prevent or stop an agency
from achieving its objectives, including those relating to the delivery of customer service.
In identifying risks you should consider the following:
tangible and intangible sources of risk;
causes and events;
threats and opportunities;
vulnerabilities and capabilities;
changes in your internal and external context;
indicators of emerging risks;
the nature and value of your assets and resources; and
consequences and their impact on objectives.
There are 2 categories of risks you need to consider:
actual risks
– risks that the agency currently faces. For example, you are new to real estate and still learning
how to apply the legislation and its impact on the delivery of customer service.
potential risks
– risks that do not currently exist but could realistically arise. For example, a competing
agency could open up in your area which will impact the agency.
When identifying risks, it is easy to think only of ±nancial risks (for example, running out of cash²ow) or legal
risks (for example, incorrectly completing a Contract of Sale) but a real estate agency faces many other types of
risks.
In this Unit, the focus is on risks relating to customer service and the staff delivering these services. In this
context, an agency principal would need to consider:
activities
– for example, activities undertaken and services offered in sales, marketing, and property
management;
market
– for example, is the property market strengthening or dropping off? Does the current market impact
of the delivery of service and how?
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technology
– for example, what are the risks associated with CRM’s or record storage when undertaking
customer service activities?
legislation and regulation
– for example, are there legislative changes to the way you deal with clients and
customers (for example, introducing a new disclosure requirement that affect the service you can offer)? Are
your staff trained in all the legislative requirements they need to comply with when delivering customer
service?
NOTE – the above is not a comprehensive list of risks or questions you need to ask, but should outline what is
required when identifying risks to customer service.
PRACTICAL TIP!!
Have a good, hard look at your customer service strategies and delivery by staff from all angles!
Ask yourself – What can possibly happen? How bad will it be? What is the worst thing that can happen to us?
What sources of information should you look at?
To help you to identify risks, consider the information that is available. For example:
Agency documentation
– looking through your agency policies and procedures will help you identify any
potential areas of exposure or gaps which could lead to risks occurring. For example, procedures which are
wrong or outdated could lead to staff doing the wrong thing.
Industry knowledge and experience
– draw on the knowledge and experiences of people in the industry and
your staff to see what kinds of risks they have come across and if those risks would apply to your situation.
This can also include anecdotal accounts about incidents or issues others in the industry have faced.
Industry and business publications
– industry magazines, newsletters and journals are useful sources of
information about emerging issues, risks and trends faced by the industry. Real estate magazines and
newsletters often discuss emerging industry issues, changes or developments, or cover incidents where real
estate agents have been prosecuted by authorities for misconduct. These are often useful reminders for
agencies to examine their internal arrangements to see how they would respond to similar issues.
Market research
– you could also conduct your own research into the issues covered above.
Complaints
– examine the types of complaints and incidents that the agency receives about its customer
service. In this regard, review the agency’s complaints register to identify what types of complaints have
been received, what are the root causes of the complaints, are there any speci±c agency personnel or
department that the complaints relate to, do the complaints occur at speci±c times? This helps you
determine whether or not there are underlying, systemic issues that are giving rise to risks to the agency.
Regulators
– regulators (for example, the Of±ce of Fair Trading, ACCC, OAIC) often publish newsletters
about any upcoming changes to legislation, their regulatory or enforcement focus, compliance tips, current
scams and recent enforcement actions. These are useful sources of information about emerging or potential
risks that you should consider.
Specialists
– the larger insurance companies may have specialists who can help their customers identify the
risks in your industry and provide you with tips on how to manage your risks. It is in the interests of the
insurance company that you manage your risks well – it reduces the likelihood that you will make a claim. So
check if your insurer has any risk specialists who can help you in this regard.
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[4.3] Examples of risks in real estate practice
Learner Activity
See
Appendix A for a list of possible risk areas that are relevant to an agency. Download or print
a copy and take a moment and think about any other risks that may occur or that you know about
that are not included on the list. Add any further risks to the bottom or back of the page.
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[4.4] Analyse risks
Now that you have identi±ed the risks which could affect the agency, the next step is to determine the
seriousness (or impact) of each risk that has been identi±ed.
Remember that risk has 2 dimensions - the
consequences
of an event and the associated
likelihood
of
occurrence. So when risks are analysed, the licensee needs to analyse the consequences and likelihood of the
risk.
Analysing risks
involves a consideration of uncertainties, sources of risks, likelihood, consequences, effect on
objectives, risk controls and their effectiveness.
Risks are analysed to understand what the causes and sources of the risk are, how likely is it that the event will
happen, and the consequences (good or bad) of the event happening. The results from a risk analysis will help a
licensee prioritise and treat the risks.
Quantitative vs qualitative analysis
When analysing risks, a combination of qualitative (subjective, opinion-based) and quantitative (objective,
numerically-based) measures should be used.
An example of a qualitative measure is to rank risks as high, medium or low. An example of a quantitative
measure is to assign risks with a number rating such as 1 to 5.
Sometimes a purely quantitative analysis might look logical on paper but lack an element of common sense. A
purely qualitative analysis might appear to make sense but not be supported by objective indicators. The best
to is adopt a combined approach.
Causes of risks
To analyse any risk, think about what might cause that risk. Common causes of risks could include:
human error or mistakes;
lack of awareness or knowledge;
lack of training;
insuf±cient supervision and management;
acting on inaccurate, false, incomplete or misleading information;
±nancial or commercial pressure; and
events beyond your control (such as natural disasters, changes to government policy, actions taken by third
parties).
Remember that a risk can have multiple causes and consequences and can affect multiple objectives.
Determining likelihood
Determining
likelihood
involves attempting to work out how likely it is that the risk will occur. For example, at
one extreme the risk will de±nitely happen; at the other extreme the risk will never happen. Realistically, the
likelihood for most risks lies somewhere in the middle.
When determining likelihood, factors that should be considered are those that make an event more likely and
factors that make an event less likely.
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Determining likelihood is an inexact science – there is no right or wrong likelihood rating. The likelihood that is
determined for any given risk depends on the information available, Licensees past experiences, and the
controls that are in place. While the aim in analysing risks is to be consistent, two different people can analyse
the same risk and come up two different likelihood ratings.
To promote consistency, your organisation’s Risk Management Policy should include a Likelihood Table which
contains the criteria to be used to determine likelihood.
Figure 1 is an example of a Likelihood Table. It combines both quantitative (numerical) and qualitative (opinion-
based) criteria. The different columns in the Table are different options that you can use to determine
likelihood for a risk.
Example
To illustrate the above, let’s determine the likelihood of incorrectly noting your client’s instructions.
If you are an experienced agent and you know how busy it can get and how easy it is to forget what you
discussed with your clients – you rate the likelihood as a 3 (Possible).
If you are new to the industry and are not aware of how easy it is to get side-tracked and forget what your
clients tell you – you rate the likelihood at a 2 (Unlikely)
Neither of the different likelihood ratings are wrong – what matters is that you can justify the likelihood rating
you come up with.
Determining consequence
After you have worked out the likelihood of a risk occurring, you then need to determine the consequences of
the risk happening.
Determining
consequences
involves describing what consequences are important, why they are important, the
factors you would consider (for example, personal or reputational impact) and thresholds for certain
consequences (for example, ±nancial thresholds).
Determining consequence is also an inexact science – the consequence rating you assign to a risk depends on
the information you have, your risk appetite and your past experiences. Two different people can assign two
different consequence ratings to the same risk.
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To promote consistency, your organisation’s Risk Management Policy should include a Consequence Table
which sets out the criteria to be used to determine consequence.
Figure 2 is an example of a Consequence Table – it sets out the consequence ratings and how that consequence
rating could manifest in a ±nancial, personal and reputational perspective.
Example
To illustrate the above, let’s determine the consequence of not returning the call from a prospect and losing a
listing.
For a new agent who has not yet lost a listing – the consequence rating could be a 2 (Minor)
For an agent who has previously lost listings to a competitor – the consequence rating could be a 3
(Moderate). If it is a big listing, it could even attract a consequence rating of 4 (Major)
Neither of the different consequence ratings are wrong – what matters is that you can justify the consequence
rating you came up with.
Calculating impact
Once you have determined the likelihood and consequence ratings, you can now calculate the
impact
of the
risk.
There are 2 methods that are commonly used to calculate risk impact:
Method 1 - Multiplication
Under Method 1, you use the formula below to calculate a numerical risk impact rating:
Risk impact = Likelihood x Consequence
See Figure 3 for an illustration of the Multiplication method.
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Based on the Likelihood and Consequence Tables in Figures 1 and 2, the lowest possible risk impact rating
would be 1 (1 x 1) and the highest impact rating would be 25 (5 x 5).
Example – if you have a Likelihood rating of 3, and a Consequence rating of 4 – the risk impact is 12. Based on
the table in Figure 31, this would be a Medium to High risk.
Method 2 – Risk Impact Table
Under Method 2, you calculate the risk impact based on a Risk Impact Table that the agency has created.
See Figure 4 for an example of a Risk Impact Table.
Determining the risk impact is based on where your Likelihood rating row and Consequence rating column
intersect on the Risk Impact Table. Under the Risk Impact Table method – risk impacts are usually categorised
as Low, Medium, High and Extreme
Example
If you have a Likelihood of Unlikely, and a Consequence of Major – your impact rating would be High
If you have a Likelihood of Possible, and a Consequence of Minor – your impact rating would be Medium
An organisation’s Risk Impact Table is usually found in its Risk Management Policy.
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[4.5] Develop and implement risk management controls
Once you have decided on the agency’s risk management strategy, it is time to develop and implement risk
management controls.
Risk management controls
are any systems, policies, procedures, work practices, instructions or other
arrangements that the agency develops and agency staff implement to help you manage the risks. The risk
controls that are developed and implemented for the agency depend on the size, scale and complexity of the
business.
A small business (for example, 1 or 2 people operating from a single location and only doing sales), would only
need a few checklists to help keep track of their risk requirements.
On the other hand, if managing a large agency (for example, 20 or more people, multiple of±ces and providing
the full range of real estate services), you would probably need a comprehensive set of policies and procedures,
and a formal training, induction, monitoring and supervision procedure for agency staff.
Additional examples of risk controls are:
Staff recruitment
- selection and screening processes to ensure that you are hiring suitable and competent
staff;
Induction and training program for staff
– to ensure that all staff know the agency’s policies and procedures
and how to apply them to their role. The training program should also include regular updates for staff on any
new developments or changes in legal requirements or agency systems. The training should also develop in
staff a risk-aware culture so that staff are mindful of potential risks and know who to address them with;
Policies, procedures and checklists
which cover the agency’s key functions and legislative requirements –
such as WHS Policy, Staff Code of Conduct, Complaints Handling Policy, Advertising and Marketing
Checklist, Privacy Policy, Customer Service strategies including Custer Service Standards, Trust Accounting
Manual, Property Management Manual, IT Policy, Of±ce Security Policy and Breach Reporting Policy; and
Monitoring, supervising and mentoring procedure for staff
– this is to ensure that staff are performing their
roles in accordance with the agency’s policies and procedures. Monitoring, supervision and mentoring are
especially important for new staff members.
Developing and implementing risk management controls involves:
determining who is responsible for developing and implementing the risk management control;
scheduling regular reviews of the risk management control to determine whether they are being followed
and are still effective; and
documenting your risk management controls.
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[5] Requirements of a customer service system for a real estate agency
Customer service systems are plans or processes that outline the agency’s requirements for the provision of
their services to clients and customers. Customer service systems are different for each agency - no two plans
would be the same as different agencies have different strategies and people involved in delivering the
customer service.
Customer service systems and processes may directly reference (or be informed by) mandatory or voluntary
standards, best practice models and codes of practice. In real estate, the Standards of Conduct in the
Property
Occupations Regulations 2014
(Qld) are an example of mandatory standards.
The customer service system is used by all agency staff to ensure they are delivering the required service at the
required level and in the correct timeframe. As a guide, most customer services systems would contain:
a customer service vision and mission;
service standards (KPIs) - see Part
[6] Key Performance Indicators (KPIs) and customer service targets
;
policies and procedures which cover:
identifying customer needs;
customer feedback;
managing complaints; and
evaluation strategies;
a section on continuous improvement; and
a customer service charter.
Customer service vision and mission
A customer service
vision
is a short statement (or statements) describing how customer service should look
like for the agency.
The way the vision is to be achieved is called the
mission
.
Example of a vision
Best Realty will be considered as a market leader in customer service within 5 years.
Example of a mission
Best Realty will deliver a quality, professional, friendly and innovative service to all internal and external
clients and customers.
A shared vision and mission can be a powerful tool for guiding customer service delivery in any agency.
Service standards
Service standards need to be developed by the licensee in conjunction with their staff for all facets of service
delivery by the agency.
Service standards ensure that all agency staff know exactly what the agency is promising to do for their clients
and customers. Service standards also outline the standard that the client or customer can expect when
dealing with the agency and their staff.
In general, an agency would need service standards for sales, property management and administration staff.
Service standards need to outline what will be done, when it will be done and by whom.
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Property management standards
may cover:
property management marketing materials;
reporting to and communicating with the landlord;
tenant selection;
managing the tenancy agreement;
rent collection;
handling of rent and bond monies;
inspections;
accounting to the landlord; and
tenancy renewals or vacating the premises.
Sales service standards
are often called guarantee of service or “Our Guarantee”. Sales service standards may
cover:
sales marketing and promotion;
buyer contact;
reporting and communicating with the seller;
availability of salespeople; and
service provision.
Agency administration service
standards may cover:
client / customer greetings;
communication with other agency staff;
marketing materials;
correspondence including letters, emails and SMS;
telephone etiquette;
how the of±ce is presented;
meetings; and
complaints handling.
Learner Activity
Do a Google search of the following terms:
Real Estate Service Guarantee Queensland
Real Estate Property Management customer service
Real Estate service promise
Consider how different agencies approach customer service and what they promise their
customers.
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[5.1] Identify and assess customer needs
In order to provide agency services effectively and satisfy customer service needs, agencies need to identify
the needs of their clients and customers.
Agencies need to ask:
1. What do customers and clients want?
2. How do they want it?
3. How will the agency deliver what its customers want?
There are various ways to identify client and customer needs. Internally, the receptionist typing a letter for the
sales manager need only ask a few questions to make sure the manager’s needs are identi±ed.
However, a large commercial real estate agency managing developments across the country would ±nd it
impossible to enter into a simple conversation with all their clients and customers and would need to use other
methods to identify customer needs.
As most agencies are small businesses offering a limited range of real estate services, the following list provides
examples of methods an agency can use to investigate customers needs when a small number of clients or
customers are involved:
informal face-to-face discussions any time a member of staff interacts with a client or customer;
telephone calls can be used to gather information. The receptionist might ask if she can take a couple of extra
minutes to ask why the person called the agency;
paper based surveys, internet surveys or email surveys with a small number of questions about the needs of
the customer and client;
gathering full details of why clients and customers choose to engage the agent and agency and recording
these on the agency database; and
suggestion boxes can be placed in the agency’s reception or used by salespeople and property managers at
open homes. These can generate good ideas on client / customer needs and requirements. However, they
require follow-up and maintenance to make a person feel valued after they make a suggestions.
Less direct methods of identifying customer needs may also be used. For example, recording telephone calls,
observing clients or customers interacting with members of staff or analysing market research undertaken by
industry groups or the Of±ce of Fair Trading.
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[5.2] Customer service charter
A customer service charter is prepared to inform clients and customers of relevant parts of the customer
service plan as it applies to clients and customers.
A customer service charter is an important tool for agencies to manage public relations, set expectations for
clients and customers and to promote the agency as being responsive to client and customer needs.
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[5.3] Implementing a customer service system in a real estate agency
Implementing a customer service system is the ±rst step to ensuring that quality, consistent customer service
is provided to customers and clients of the agency. Happy clients and customers who receive great customer
service will always return or refer others to the agency.
A customer service system should be informed by meetings, surveys and complaints feedback. It should
identify what your clients or customers want and should be updated when required. Communicating and
managing the customer service system is key to an agency’s success.
The following matters will determine how the agency’s customer service system should be developed and
maintained:
1. identi±cation of client or customer needs;
2. client or customer complaints;
3. client or customer feedback, both informal and formal (such as surveys);
4. industry codes of practice or standards;
5. staff feedback, minutes of agency meetings or reporting of client or customer issues they encounter; and
6. the agency’s continuous improvement process and updating of systems.
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[5.4] Customer relationship management (CRM) systems
CRM systems are an integrated database of information about all clients and customers, activity schedulers
and reports. They are a useful tool to identify, track, manage and maximise business relationships.
CRM systems hold all the information and results from agency activities and are designed to establish and
cement strong links with clients and customers. The ultimate goal is to make your clients and customers so
delighted with the service you provide that they will have no need or intention to use any other agency or
agent.
CRMs can provide instant access to all the information held about a particular client or customer. For example,
where they are in the buying or selling cycle, preferred name, family relationships, interests, past sales or
managements, past complaints etc.
This level of information enables all staff who deal with the agency’s clients or customers to be able to talk to
the client or customer with a full history of their dealings with the agency.
CRMs can also schedule calls, meetings, invitations or mail-outs as appropriate for a particular client or
customer.
CRMs can also be a tool for other departments within the agency to gather information about the client or
customer. For example, if a salesperson has a great investment property, the CRM may contain information
about a current landlord who is always looking to buy another investment. This allows the agency to transact a
sale and gain a new management.
The consistent and continual use of a CRM system allows an agency to track all contact they have with clients
and customers, which can prevent incorrect information being used and subsequently lead to fewer complaints
and enhanced customer service.
CRMs
MUST
be kept up to date and all information
MUST
be current to avoid mistakes or embarrassment
when dealing with a client or customer.
Learner Activity
Consider the following examples of CRMs:
Renet:
http://www.renet.com.au/renet-tv
Locked On:
https://www.lockedon.com
Sales Force:
https://www.salesforce.com
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[6] Key Performance Indicators (KPIs) and Customer Service Targets
A
KPI
is a number, percentage, or ratio that serves as a measure of performance. KPIs are directly related to
speci±c targets that have to be achieved by staff.
A
target
should include details on what is to be achieved and in what timeframe. Targets are then used to
measure the actual performance.
KPIs form an integral part of customer service systems.
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[6.1] KPIs and targets for real estate customer service
An agency needs to develop and use client and customer service KPIs and targets so that the agency
management can monitor the performance of staff and their delivery of customer service.
For example, consider a receptionist in an agency. The agency objective could be to ensure customer
satisfaction by timely responses to all enquiries. The associated target could be that all calls are answered
within the ±rst three rings. The performance indicator could be the average number of rings before a call is
answered.
KPIs and targets are typically applied at the role / individual personnel level. The principle for setting targets
and measuring performance remains the same, irrespective of the level of the organisation at which it is
applied.
An individual who does not meet their targets may need to be coached or placed on a performance
improvement plan to help them hit their targets and KPI’s.
KPIs usually include a number of different elements and measurements to track the agent or agency’s
achievement of a customer service objective.
For example, a KPI aligned to customer referrals could be:
Objective:
Increase the number of referrals to 10 per month (an increase of 4 referrals per month)
Reason:
The current referral rate has stalled at 6. To increase the number of listings to meet the agency and
individual agent’s listing targets, the referral rate needs to increase in line with other customer service
initiatives.
Timeframe
: By the end of the next quarter
Reporting frequency
: Weekly sales meeting
Measurement
: Number of referrals each week. Individual agent contribution to the number of referrals.
Responsibility
: Sales Manager
A well-constructed KPI helps agency management translate their vision into customer service strategies and
manage the achievement of the objectives. Management bene±ts through greater insight into the agency and
agent’s performance and regular information and measurements to make informed management decisions.
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[6.2] 6 steps to set the agency’s KPIs
Developing meaningful KPIs that track and clearly articulate performance to staff takes planning.
Each KPI needs to address a speci±c customer service objective, and provide timely, accurate information to
assess progress towards achieving objective.
Developing successful KPIs comes from understanding business goals and objectives, the role of customer
service in achieving those objectives and using a clear, structured process for developing KPIs.
A process for developing the agency’s KPIs and targets is as follows:
1.
Establish a clear goal
- state clearly and in simple terms the purpose of the KPI so that anyone who looks at
the KPI knows what is required;
2.
Outline the criteria for success
- KPIs should be realistic, stretch the staff involved but be ultimately
achievable. KPIs need to be measurable and able to be tracked against the objective. Staff should know
what success looks like;
3.
Collect the data
- investigate the availability and accuracy of the data that will assist in developing KPIs
and targets. Data may be available from existing systems or in reports, documents and the agency
databases. Data needs to be analysed at regular intervals to ensure the achievement of KPIs and targets;
4.
Consult with staff
- staff need to be involved in setting KPIs and targets so they are committed to achieving
the KPIs and own the targets.
5.
Present your KPIs and targets
- for agency management to effectively communicate the KPIs to the
agency as a whole, they will need to present the data to all staff. This will ensure a common understanding
of and a commitment to achieving the targets and meeting the KPIs;
6.
Manage, monitor and evaluate
- the KPIs will need to be monitored for achievement (or otherwise). They
must be evaluated against the speci±ed measurements and agency staff must be acknowledged
(sometimes rewarded) when KPIs and targets are met and held accountable if their KPIs and targets are
not achieved. Part of managing KPIs is also understanding that customer service objectives can change as
business and market factors change, and tweaking, adjusting or updating targets and goals accordingly.
The following is a real estate example of developing KPIs and targets to increase an agency’s customer service
star rating and recommendations on the ratings platform Rate My Agent.
KPI / Goal:
All agents to achieve a 5 star rating.
The
KPI
is for each salesperson to achieve a 5 star rating from all of their client and
customer real estate interactions and/or transactions.
Measurement:
Success is when all salespeople and property managers achieve a 5 star rating from 90%
of the clients and customers they deal with, by the 1 December 20XX.
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Collect data:
Licensee to gather information to determine what KPI’s and targets need to be set.
Sources of information include but are not limited to:
review social media sites for recommendations and offers of referrals;
talk to sales manager and salespeople to determine how they are asking customers
and clients to use the platforms to rate them and for recommendations;
check agency complaint register for common complaints that may be affecting the
agency or agent’s ratings and recommendations;
review number of transactions for each salesperson for volume of transactions to
ensure KPI’s are achievable;
investigate if current customer service policy and procedures are being followed by all
sales staff.
Consultation:
Sales and property management team to set their own targets which will form the basis
of discussions at sales meetings or one on one meetings until the targets are agreed.
Staff will review draft KPI’s and targets, provide feedback to sales manager and senior
property manager to ensure their input into the ±nal decision on the KPI’s and targets.
Draft KPIs:
Licensee and manager organises meetings with all department staff. Staff are provided
with:
the data on which the KPI’s are based;
information and explanations for the development of the KPI’s;
and the draft KPI’s are discussed and reviewed; and
staff given a timeframe in which to provide feedback to the mangers.
Once feedback is received, one on one meetings are held to discuss feedback and seek
agreement from staff on the KPI’s and targets.
Review draft KPI’s based on staff feedback, make any agreed changes or re±nements
and produce the ±nal KPI’s and targets to commence on an agreed implementation date.
Manage and
evaluate:
Licensee and managers are responsible for monitoring and evaluating the KPI’s. This is
done through regularly scheduled one on one performance review meetings for each
staff member.
The number of 5 star ratings should be checked at the conclusion of each transaction to
monitor the progress against the objective outlined in Step 2.
Progressive should be evaluated against the objective and both good and bad results
discussed with staff.
KPI’s should be reviewed and adjusted when any change in the market occurs, for
example, if there is a fall in the number of listings due to a downturn in the market, KPI’s
would be reduced due to a lower number of transactions.
Licensees and managers need to develop the skills required to work with agency staff to establish the customer
service KPIs for the agency, the department within the agency and the staff themselves.
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Learner Activity
Click
HERE to review an article on setting KPIs.
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[6.3] Examples of real estate customer service KPIs and targets
In real estate, customer service KPIs are objective measures of the delivery of agency services. KPIs help to
assess the performance of staff against their customer service targets.
Examples of customer service KPIs and targets in a real estate agency context include some of the following:
time taken to answer telephone calls – within 3 rings;
reduction in the number of complaints per quarter;
percentage of complaints resolved satisfactorily on the same day the complaint is received;
achieving an agreed customer satisfaction score in client and customer feedback survey after each
transaction;
achieving an agreed star rating and number of recommendations on real estate rating platforms;
obtaining an agreed number of client testimonials for the agency website each month;
ensuring an agreed number of client / customer feedback activities are undertaken each week;
achieving a number of shares, likes, comments and responses from social media customer posts each week;
or
number of referrals made to the agent from each transaction or every month.
Where staff are working towards common KPIs, agency management should make the KPIs visible, along with
the actual level of staff performance. Staff can then instantly see how well they are working towards their
customer service goals.
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[6.4] Examples of agent rating sites
Learner Activity
Go to the following agent rating websites:
Rate My Agent -
https://www.ratemyagent.com.au/
Open Agent -
https://www.openagent.com.au/
Word of Mouth -
https://www.wordofmouth.com.au/
Local Agent Finder
https://www.localagent±nder.com.au/compare-real-estate-agents
Look up 2 to 3 agents or property managers in your local area and consider the following:
How well do the agency staff rate?
Are they known for their customer service?
How do they compare to the competitors?
Use the Canstar Blue site and check your local agency’s rating -
https://www.canstarblue.com.au/stores-services/real-estate-home/
How does it compare to competitors?
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[6.5] Monitoring KPIs and customer service targets
When KPI’s and targets have been developed, you need to use these measures to monitor customer service
delivery and staff’s performance.
Monitoring tools include but are not limited to:
client and customer follow up;
mystery shoppers;
informal discussions with clients and customers;
client and customer feedback and surveys; and
visual displays of targets and achievements.
The monitoring, review and evaluation of KPIs, customer service standards and improvements are covered in
detail in Part
[10.3] Monitoring customer service
.
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[7] Roles and responsibilities for managing customer service
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[7.1] Role of Agency Principal and management
Management skills are an integral part of being able to manage quality customer service. An agency principal’s
or manager’s role can be extensive and complex.
In a small agency, the principal or manager needs to produce business plans, prioritise and allocate work, assess
individuals’ performance and provide feedback. The licensee also needs to manage non-human resources such
as producing budgets, attending and chairing meetings, trust accounting functions and managing and
monitoring the implementation of customer service.
Supervision
Supervision involves overseeing the performance of an individual or group regularly. This involves allocating
work, assessing individuals’ performances and providing feedback.
Where there are staff who are not achieving their customer service KPIs, the principal needs to supervise and
monitor them. Supervision also involves following up on feedback with staff to ensure improvement in
performance or terminating staff for non-performance (where warranted).
Feedback for non-performance should commence as soon as the non-performance has been identi±ed.
Initially, this feedback should be informal and encouraging. However, if the non-performance continues, it is
best addressed with the staff member in a review meeting. The performance review meeting should be a two
way, non-confrontational discussion with the staff member.
The purpose of a performance review is to:
review the current KPIs to determine if they are unachievable or whether the person is not committed to
achieving the target;
discuss the informal feedback that has already been given and other actions that have been taken up to this
point;
ensure there is support from the agency and other staff members to assist in achieving the objectives;
discuss if further training or coaching and mentoring is required;
gain commitment from the person to work towards achieving the KPI; and
explain the rami±cations for the staff member should non-performance continue.
NOTE:
There is an extensive and lengthy process involved to terminate a staff member for non-performance.
Further information on this process can be found on the Fair Work Ombudsman web site at
https://www.fairwork.gov.au/employee-entitlements/managing-performance-and-warnings
Managing and monitoring
Managing and monitoring involves the following:
Regularly listening to clients and customers
- regularly seek and act on information from clients and
customers relating to service provision;
Collect quality information
- information that is collected about customer services needs to be able to inform
and guide decisions that allow the agency to modify or improve its service delivery;
Using a range of information/data collection -
the agency needs to have a range of surveys, covering the full
range of services the agency offers and including the full range of clients and customers. Take regular
snapshots of all aspects and all staff involved in the delivery of the agency’s services. If all clients and
customers are not included in the collection of data and it does not cover the full range of services, then the
data collection may be ²awed or skewed and not reliable;
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Knowing which service attributes are the most important
- the agency needs to know what is on offer that
clients and customers want and that these key services are performed exceptionally well and better than the
competition. Accurate data collection ensures that the agency’s knowledge is accurate in this key area of
customer service;
Share all customer service information with the agency
- the information the agency or agent collects needs
to be shared with all agency staff. This will ensure continuous improvement and responsiveness in all staff’s
customer service delivery;
Service improvement
- all customer service surveys and data collection needs to contribute to the
motivation of the staff to continue to provide quality customer service. It needs to capture and convey the
“pay off” to both the staff and the agency of quality customer service;
Collecting and acting upon customer service information
- this ensures that the agency and staff are an
active and valued contributor to the agency’s overall customer service policy and procedures. It will ensure
that the staff feel they can in²uence the decisions made by management in the area of customer service and
ensure that the agency and staff have an enhanced reputation for customer service.
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[7.2] Role of agency staff in customer service
Customer service is every staff member’s responsibility. Everyone has a role in delivering quality customer
service to each current and potential client and customer in their dealings with the agency.
Agencies and staff with quality customer service will typically have the following characteristics:
Have a positive attitude towards customers
(internal and external customers). A positive attitude comes
from:
enjoying helping people;
caring for clients and customers;
listening to clients and customers; and
providing fair and equal treatment to all clients and customers
Be trained in the delivery of customer service
- licensees must ensure that agency staff are trained and
skilled in customer service. To ensure their agency staff have the required skills they should:
know all the technical aspects of their job;
be able to answer a customer’s technical questions;
follow agency policies and procedures;
ensure a consistent method for service delivery;
be able to communicate effectively;
always be courteous;
convey a professional image; and
take every opportunity to educate clients and customers about the agency and the services offered.
Know how to
prevent customer dissatisfaction
by being able to:
identify client and customer needs;
anticipate client and customer needs;
take the initiative with the client and customer and offer that little bit extra;
do the job right the ±rst time, every time;
honour their promises and deliver what was promised to the client or customer in the time it was
promised;
keep the client and customer informed and updated about services, progress of sale or management of the
property and changes that occur or issues that arise;
communicate with and handle people well;
stay cool in a crisis; and
approach complaints with a positive attitude. Approach complaints with the view to being able to help a
client or customer and improve the agency’s customer service.
Contribute to the agency’s culture of exceptional service
. In order to engender a culture of service within the
agency, Licensees need to ensure that all staff who are dealing with clients or customers have the following
skills and knowledge to allow them to contribute to the customer service ethos and culture of the agency:
know the agency well, including a comprehensive understanding of the agency’s policies and procedures in
general and the customer service policy and procedure speci±cally;
understand their authority for their role and the extent and limit of their responsibilities and ability to
make decisions and/or promises;
know how to represent the organisation professionally and ethically;
know how to balance the clients and customers’ needs and wants with and against the agency’s
requirements, particularly legislative requirements;
work effectively with their agency principal to ensure open lines of communication;
be able to accept and welcome feedback on their performance;
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be able to work well with other staff and departments within the agency to provide the required service;
be willing to identify problems with service and to provide feedback to the agency principal, sales manager
or of±ce manager on these problems;
be willing to suggest improvements to the agency’s customer service policy and procedures; and
participate in any evaluation of customer service provided by the agency.
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[7.3] Offering superior customer service
An agency should always be aiming to maintain a superior level of customer service. In order to provide a
superior service, the Licensee and managers need to effectively use customer service policies and procedures
to create a climate that is service orientated and is friendly and courteous.
Quality customer service strategies, if well designed, communicated to staff and effectively managed,
implemented and monitored, will ensure your agency has:
con±dence to handle any situation, whether pleasant or not;
a consistency of performance in the service it delivers to clients and customers across all departments;
ability to avoid problems in the future (either new or recurring problems);
ability to do provide the service right the ±rst time;
ability to avoid costly, embarrassing and time consuming mistakes with its clients and customers;
ability to control all situations and avoid surprises, despite disruptions or distractions; and
skills and knowledge to deal with its clients and customers in any interaction, in any form and at any time.
What skills are needed?
In order to work effectively in addressing customer needs, agents must be able to:
engage with clients and customers;
identify different types of clients and customers;
understand the buying or management process;
listen to clients and customers;
use appropriate questioning techniques;
employ appropriate interpersonal skills; and
demonstrate a professional and ethical commitment to customer service and real estate.
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[8] Delivering good customer service and handling complaints
In order to manage customer service, an agency needs to develop, implement, monitor and manage effective
customer service strategies.
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[8.1] Effective customer service strategies
The following are examples of strategies an agency could develop and put in place to ensure the delivery of
quality customer service.
Create great ±rst impressions
First impressions in²uence decisions to a large degree. As the saying goes
“you never get a second chance to
make a good ±rst impression.”
First impressions are so important. The initial greeting of a client or customer has to be a positive experience. If
a potential client or customer enjoys your welcome greeting, they are more likely to want to use your services
as an agent.
The licensee needs to specify what they expect of staff when dealing with current clients and customers or
potential clients and customers.
What is the required dress code?
What is the required greeting?
What to do after the ±rst meeting e.g. send a personal note of thanks?
What information is provided at a ±rst meeting?
Engage with the client or customer
Engaging with a client or customer is an opportunity for the agent to relate and build rapport and demonstrate
their professionalism. Such rapport must be genuine and honest.
The ±rst encounter allows you to give the client or customer more than they expected. Look for opportunities
to engage with the client or customer, are they wearing something that you can compliment? Is there a child
with the customer that you can smile and say hello to?
Engaging with clients and customers should result in a more rewarding experience for both the client or
customer and the agent in their role of salesperson or property manager. If the client or customer doesn’t ask
about what services you can provide, you can begin a conversation about any real estate topic and, having
started to engage with the client or customer, you can then begin to ask them about their real estate needs.
Follow up with other opportunities to engage and interact with them. Add every contact to the agency data
base. Categorise them into groups with similar interests and hobbies and stay in touch. Examples of activities
that allow an agent to maintain contact with clients and customers or potential clients and customers include:
monthly newsletters;
write blogs on useful real estate information or tips such preparing your home for sale;
send useful information on local events. For example, for all the golfers on the database send information on
the local charity golf day. For cooks, provide recipes or information on local farmer’s markets; or
for special days such as Mother’s Day, Father’s Day, Easter or Christmas - provide activity books to clients
and customers with children.
Identify and de±ne buying needs
In order to deliver the best customer service, agents need to identify the buying needs of a client (seller) or
customer (buyer).
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When initially choosing an agent, the client or customer will often identify by themselves what they believe are
their wants and needs. If you are helping a customer at this stage of the process it is important not to jump
straight to solutions, but to discuss the needs/wants so that you fully understand the customer’s current
situation.
For example, if a customer wants to buy a house, then discussing the local apartment complex because
apartments are more in their price range is not what they want to hear. Instead your discussions should focus
generally on their market knowledge and ask why they prefer a house.
There are occasions when the client or customer is unaware of their needs. The ability to clarify the client’s or
customer’s current situation may uncover unknown needs, such as a requirement for a yard and a house that is
close to schools rather than a need relating to the layout of a property or the number of bedrooms.
Once the need or want is identi±ed, the next stage is to de±ne it in detail. For example, location, type of
property, number of bedrooms, number of bathrooms, garage size, yard size, con±guration of the property,
neighbourhood, amenities, price.
Skills to search and evaluate options
Once the need is de±ned an agent needs to search for options to satisfy the need. This is where research,
market knowledge and agency listings can assist in compiling a list of suitable properties to show your
customer or where a prospective seller will invite a number of agents to outline their services.
Once the details of the suitable properties are available, the customer can begin to inspect and evaluate them
or the prospective seller will compare agents and the services they offer.
Evaluation for a buyer will obviously include the cost of purchasing, but there will also be other considerations
such as prestige, style and/or personal preferences.
Evaluation for a seller will revolve around the professionalism of the agent, the information provided, the
services promised and fees and charges.
In²uence the choice
After completing the above stages, the customer will now be in a position to buy the property or the client will
be in a position to appoint their chosen agent.
Understanding the customer services strategies that will assist in the buying process will help the agent to
identify where their client or customer is in relation to identifying and satisfying their needs and wants. Where
they are in that process will in²uence how you can help them to address their needs and in²uence their
decision.
Build customer loyalty
All these strategies are designed to build customer loyalty to the agent and the agency’s brand.
Loyal customers are active advocates of the agency and will refer potential client and customers to the agency
or particular agents. Loyal customers are interested in helping you improve the agency real estate, are more
forgiving of occasional mistakes and increase pro±tability through repeat and referral business.
They will refer to the agent or agency as “their real estate agent / agency”.
Learner Activity
Click
HERE to read an article on delivering great customer service in a real estate context.
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[8.2] Customer complaints
The other aspect of good customer service is the effective handling of customer complaints.
It is easy to see customer complaints as a negative and become defensive about them. However, if viewed in a
positive light, complaints can be seen as feedback that allows an agency and/or agent to improve their
customer service delivery and strategies.
All complaints should be addressed and taken seriously at the ±rst instance. This is a prime area for identifying
differing customer service needs. Clients and customers have differing needs. Some may seem trivial to you
but if a client or customer has taken the time to complain, then the issue is not trivial to them.
Complaints register
The best way to document complaints is to use a complaints register in which
ALL
complaints
MUST
be
recorded.
All complaints
MUST
be handled according to the agency’s policies and procedures.
Complaints can and do provide valuable feedback to the licensee, managers and agent on how well (or not)
they are delivering their real estate services to the client or customer. Research has shown that 95% of
customers who complain will do business with that agency again if the agency resolves their complaint quickly
and fairly.
Many customers do not complain and instead they just take their business elsewhere. This is not an ideal
situation, as it does not allow you to address the problem or to improve your agency’s service.
So, for every customer who complains, there are likely to be many others who are unhappy but have not
complained. Agencies should welcome those who complain because it gives them the opportunity to retain the
client or customer, learn from the mistake and ±x whatever is causing the problem.
Remember, complaints are an opportunity to retain clients and customers, improve service and identify
training needs for agency staff in customer service delivery. Licensees or individual agents should not be
defensive or embarrassed or afraid of complaints because if they are, it will make the client or customer
defensive and/or aggressive and you will miss the opportunity for feedback. See the complaint as having real
value to you and the agency – it is
an opportunity to improve
.
Handling customer complaints
Handling client and/or customer complaints requires professionalism and effective communication skills to
achieve a positive outcome for the client or customer and the agency.
The three steps to manage a customer client or complaint are:
1.
Listen
The ±rst step is to listen to the client or customer by using active listening techniques. By showing the
person you are listening and they have your full attention demonstrates commitment to resolving the
issues.
2.
Respond
Responding appropriately to complaints will stop the complaint from escalating. Licensees must have a
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procedure in place for their staff to follow when responding to client or customer complaints.
Such policies and procedures should include the following principles:
assume the customer is telling you the truth;
never argue with a customer;
be honest if you don’t know the answer to a question;
acknowledge the customer’s feelings, but concentrate on the facts;
apologise if appropriate but do not admit liability;
use active listening skills;
ask appropriate questions to ±nd out as much information as possible;
ask the client or customer how they would like to see their complaint resolved;
offer what the client or customer wants (if reasonable and within your authority);
if above your authority, explain what you are authorised to offer;
if not accepted, explain you have to refer the complaint and tell them who will contact them and when;
record the complaint in the Complaints Register; and
refer the complaint immediately to the appropriate person and ensure that that person contacts the client
or customer in the agreed timeframe.
3.
Resolve
Listening and following agency procedures to respond to a complaint is likely to resolve the majority of
client or customer complaints.
However, there may be issues which are complex by nature and may require referral to the agency principal
or management. The complaints that may should be referred immediately to the agency principal or
management are those which:
involve an injury or damage requiring the agency’s insurers to be involved;
involve a threat of legal action; or
can be resolved, but at a cost above the authority of the staff member.
In addition to procedures for managing customer complaints, responsibilities should also be assigned to
nominated staff members and all staff must be aware of who is responsible for executing each procedure
and/or resolving each complaint.
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[9] Coaching, training and mentoring agency staff
Coaching, training and mentoring staff is a vital role for any agency principal or manager in a real estate agency.
However, this role is often overlooked or outsourced.
Customer service training, coaching and mentoring of staff should be undertaken by agency management as
they are the people who understand the agency’s policies and procedures, and can ensure that the messages
delivered are the messages the agency wants the staff to hear.
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[9.1] Induction
The best way to ensure new employees understand the agency culture and ethos, their role and the
expectations of the licensee and managers, is through a formal, structured induction program. However, many
licensees overlook the requirement for induction – often at their peril. How can a new staff member be
expected to know what is required of them in the agency if they are not told?
There are a number of reasons that induction is important. For customer service, the key reasons for induction
are:
customer service (and agency) culture
– this ensures an understanding of the mission, values and behaviours
expected by the agency when delivering quality customer service;
ensuring compliance
– induction should outline the legislative framework under which the agency operates
and provides the new staff member training in the agency’s policies and procedures relating to customer
service. This will help to protect the agency by preventing mistakes or breaches of legislation;
improving productivity
– new staff learn the right way of doing things from the beginning. They are ready to
work according to the agency’s policy and procedures faster and without taking the time to ±nd out
themselves, which often leads to them being shown shortcuts or other ways of working that is contrary to
the customer service delivery required by the agency;
saving time and money
– a well-developed induction program can be replicated for each new employee,
which saves the agency time and money in the long run; and
agency reputation
- inductions help to establish a professional impression of the agency, particularly with
regard to the way it delivers quality customer service.
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[9.2] Coaching and mentoring
Mentoring and coaching are great skills for a licensee and manager to have so that can lead, manage, direct and
support all agency staff. It is important to understand the differences between the two terms.
A
mentor
is someone who shares their knowledge, skills and/or experience, to help another to develop and
grow – to become a better agent.
A
coach
is someone who provides guidance and direction on what is required to achieve an objective – to
understand the role of an agent and where things could be improved.
Real estate agents and agency staff work in an ever changing marketplace which impacts on their day to day
job role, including the delivery of customer service.
Coaching and mentoring within the agency will assist agency staff to understand the need for change when it
happens, how the change will impact on their daily roles and how to implement new customer services
requirements as a result of the change.
The reasons why coaching and mentoring is important for licensees and their staff include:
it allows the licensee to communicates expectations and goals;
it creates supportive relationships with staff;
it provides direction on what is required in a role;
it provides constant performance feedback;
it identi±es training needs;
it improves the employee’s understanding, skills, and con±dence which helps them to perform better; and
it provides an opportunity to offers praise and rewards.
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[9.3] Training
Training and professional development are vital for all licensees, professional real estate agents and staff to
ensure that all agency staff keep their skills and knowledge current. Training can be undertaken in-house or
through external providers.
Training should be carried out to:
keep up-to-date with new developments in real estate or technology;
ensure knowledge of legislation is current (or when legislation changes);
extend knowledge in relevant ±elds, such as mortgage broking;
hone in existing skills and develop new ones;
apply your learning and accumulate experience in the workplace; and
understand changes and improvements that impact the delivery of customer service.
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[10] Manage, monitor, review and adjust agency customer service
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[10.1] Effective client and customer follow up
In order to determine staff performance and client/customer satisfaction, the agency needs to have feedback
from their clients and customers.
This feedback should be used to make adjustment to and improve client and customer service delivery.
Information received from clients and customers should be used by the agency to inform future policy making,
develop customer service activities and in the development of KPI’s and training.
This feedback also re²ects whether the customer service delivery and performance by staff meets or exceeds
the current client and customer expectations.
Client and customer follow-up is essential for all agencies. Very few clients and customers will offer unsolicited
feedback, so if an agency doesn’t ask about the client or customer’s level of satisfaction with their service, the
±rst sign of a problem might be that the client lists with another agency or when the customer buys from
another agent.
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[10.2] Collecting feedback
Agencies need to collect relevant client and customer feedback in a systematic way at regular intervals. The
feedback system needs to take “snap shots” of the delivery of customer service at various times for a variety of
services. All agencies, whether they are large or small, should ensure that their clients and customers are
happy with the service delivered by the agency and the individual agent.
This will ensure that the licensee, who is responsible for the management, monitoring and evaluation of
customer service, receives relevant, accurate and timely feedback from the agency’s clients and customers.
Client and customer follow-up procedures will vary based on the size of the agency and the number of clients
and customers using the agency services.
Methods a licensee could use to collect feedback include:
Talking to people
– for example, the receptionist for the agency should ask tenants, landlords or current
sellers and buyers how the sale/management of their property going – are they happy with the service
provided by the agency and their staff? If anyone expresses disappointment, the receptionist should
apologise and advise the person they will inform the licensee or sales or property manager.
Providing an avenue for clients and customers to contact the agenc
y – for example, having a feedback form
and a free (1800) telephone number for any client or customer who wishes to provide feedback. This number
should be displayed in the agency reception area, agency window, website and on all agency documentation
to encourage people to provide you with feedback;
Informal face-to-face discussions
– for example, salespeople asking a successful bidder at auction how they
rated their service or a chat with the agency’s landlords during a business interaction.
Client / customer surveys
– where you ask customers to provide feedback on the type and quality of service
they have received when dealing with the agency and an individual agent. For example, giving a customer
feedback sheet to any prospective buyer who has missed out on purchasing a particular property.
Client/Customer surveys can be taken from new, existing or potential clients and customers.
Market survey
– these are undertaken less often as they can be expensive and time consuming but are used
to determine the perception of the agency’s service in the overall marketplace, not just amongst those who
have used your services. For example, asking people in a shopping complex where the agency is located, what
they think of the agency and why they would or would not use their services when considering selling or
buying a property or renting or managing property. This is a useful management tool if the agency’s business
is declining.
Internet surveys
– which use the agency website and are often displayed as pop-up boxes – for example,
asking people to rate your website or information on your website when they ±rst visit the website.
Mystery shopping
– this is where the agency principal or agency management asks people to visit and use the
services of the agency and then they provide feedback on how they found the customer service they
encountered. Mystery shoppers are those who pose as a potential client or customer in order to “test” the
service. In real estate, this is used mainly by franchise and marketing groups to test if a particular of±ce is
providing their real estate services according to the requirements of the franchise or marketing group.
Service reviews
– are conducted by visiting customers and discuss all facets of their relationship with the
agency. These are in depth interviews usually conducted by experienced market researchers. The reviews
are used to ascertain comprehensive feedback from an identi±ed group/s of customers. These are not widely
used in real estate.
Customer advisory panels
– these panels provide another forum for an agency to listen to its clients and
customers. Advisory panels provide feedback on customer service usually relating to a particular service
over a period of time. Interviews can be carried out in meetings or over the telephone. These are a
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particularly good tool to gather feedback on the performance of particular agents where a problem or issues
is suspected by the licensee.
Focus groups
– are groups that the agency brings together to discuss a particular aspect of their service and
to gain feedback on how effectively they provide the identi±ed service. Focus groups usually “focus” on one
particular part of the service and/or business. For example, a focus group may be convened to discuss the
service provided by the property management department and how it could be improved or to test the
introduction of a new service into the agency.
Staff surveys
– this involves asking the agency staff how they see or perceive the customer/agency
relationship. Staff surveys can provide valuable information and a different slant to the information provided
in client/customer surveys. Staff surveys can reinforce certain themes or re-occurring problems. They allow
staff to report their observations about their and the agency’s interaction with clients and customers. This
can give a more balanced view of the agency’s customer service by including a range of points of view. It
provides an indication of whether the customer service strategies are being implemented by agency staff and
their effectiveness in servicing clients and customers or potential clients and customers.
Employee research
– this involves checking on the internal customer service of the agency. As outlined early
in this manual, each department or team is a customer of the other departments or teams. Internal customer
service is vital to an agency’s growth and pro±tability. Researching staff member’s reactions and perceptions
of internal customer service and ensuring that the service provided inside the agency is the same as that
given to external clients and customers encourages and maintains a culture of exceptional customer service
across the agency. This also helps to ensure that departments, such as sales and property management,
provide a service to each other that ensures all business opportunities from within the agency are explored.
Learner Activity
Click on the link below to watch a video on ways to collect customer feedback.
https://www.youtube.com/watch?v=nHpqGCQfVys
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[10.3] Monitoring customer service
As discussed above, most staff in an agency will have goals and objectives that have been designed to support
the agency in achieving its customer service goals and objectives. These are documented in the agency’s
business, strategic and customer service plans.
An agency will have goals and objectives for customer service, including performance targets. Achievement of
these objectives needs to be managed and monitored in a continuous and systematic way.
Monitoring customer service performance
The following 3 steps will help you set up a simple monitoring plan:
STEP 1 - Decide what you will monitor
What is currently most important to your agency? For example, is it:
customer satisfaction;
repeat or referral business;
quality of service;
number of sales;
productivity; or
employee engagement?
Licensees need to decide which of these factors have the biggest impact on customer service delivery and
monitor them. Monitoring of customer service should concentrate on the three or four items that will have the
greatest impact (positive or negative) on the agency and its reputation for customer service.
STEP 2 – Determine how you will measure performance
Once the licensee has identi±ed what is most important to the agency, they need to measure it. Each KPI has
targets against which the performance must be measured.
For example in an agency context, client or customer care might be important for the agency’s success.
Customer care can be measured by the following KPIs:
time spent with and responding to clients or customers;
quality of the interaction with client or customers; and
customer satisfaction.
To ensure that the agency’s monitoring strategy is effective, agency staff must understand the monitoring
process and how it applies to them. Staff should also understand the monitoring system itself and how the
system ensures that their performance relates to achieving the agency’s goals.
STEP 3 - Analyse results
Analysis of results can only occur once the performance of staff has been monitored and appropriate feedback
received from all sources.
Analysis of results will allow an agency to reduce any identi±ed variations in the agency’s customer service.
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[10.4] Continuous improvement
Continuous improvement means continually looking for small ways to make the agency’s processes and
services better.
There should be a continuous cycle of updating the customer service systems and process, acting on, reviewing
and again updating them.
A customer service system may include a process that the agency will follow to ensure the continuous
improvement of customer service to meet client and customer needs.
After surveying customers, analysing their feedback, identifying problems and producing solutions - the
continuous improvement cycle to begins - by adjusting and making improvements to the customer service plan
to rectify weaknesses or problems.
Continuous improvement will not happen unless systems are in place to make it happen. A customer service
system should schedule improvement activities, documentation reviews and when policy and procedures will
be revised.
Bene±ts of continuous improvement
The advantage of having a continuous improvement strategy is that improvements occur regularly and become
embedded in the agency culture.
The advantages of continuous improvement can be signi±cant, particularly since technology and innovation
continue to progress more quickly than before. Continuous improvement allows the agency to “stay ahead” of
the competition. Adopting a mindset of continuous improvement and implementing a continuous
improvement process and culture will ensure the agency is successful, with an enhanced reputation for
exceptional customer service.
The common bene±ts of continuous improvement for the agency and their clients and customers include:
improved quality of customer service;
increased ef±ciency in the delivery of customer service;
reduction in waste of time and effort for all;
staff satisfaction and teamwork;
client and customer satisfaction; and
increase in pro±tability.
The advantages of continuous improvement can be signi±cant, particularly since technology and innovation
continue to progress more quickly than before. Continuous improvement allows the agency to “stay ahead” of
the competition. Adopting a mindset of continuous improvement and implementing a continuous
improvement process and culture will ensure the agency is successful, with an enhanced reputation for
exceptional customer service.
Learner Activity
Read the following article on customer experience improvement strategies -
https://www.comm100.com/blog/customer-experience-improvement-strategies.html
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[10.5] Evaluating customer service
The voice of the client or customer must always be heard and be the guide to improvements in the agency’s
customer service policy and procedures.
The feedback received on customer service needs to be evaluated so that decisions can be made regarding
improvements and changes to the existing customer service policy and procedures.
There are ±ve main areas to consider when looking to evaluate and improve the agency’s policy on service
delivery. These are:
TANGIBLES
- the appearance of physical facilities, equipment, personnel and communication materials. All
of these areas need to be geared to allow clients and customers to feel comfortable. Clients and customers
need to feel important, respected and valued and not to be treated as an interruption to someone else’s work
schedules.
RELIABILITY
- the ability to perform the promised service dependably, accurately, consistently and in a
timely manner. This is a key area. Clients and customers must be able to depend on the agent and agency to
give accurate information or answers to any questions they may have about real estate. If the agent doesn’t
know they should say so, ±nd out the answer and get back to them promptly and within the agreed
timeframe.
RESPONSIVENESS
- the willingness to help clients and customers and to provide prompt service. Clients or
customers are not a hindrance - without them most agencies would not exist and most agents would not be
employed. Licensees and individual agents must be willing to assist at all times, act promptly and
professionally, ethically and be punctual.
ASSURANCES
- the knowledge and courtesy of staff and their ability to convey trust and con±dence. Trust
and con±dence are the rock on which customer service is built. Customers expect agents to be courteous
and respectful to them. If an agent is having a bad day, it is not the client’s or the customer’s fault so they
should not take it out on them.
EMPATHY-
providing caring, individualized attention to clients and customers. Knowing what a client or
customer expects is only one part of the challenge; the other is actually meeting those expectations.
Licensees and individual agents cannot always give the client or customer what they want but they can
negotiate, explain and ‘manage’ the relationship to satisfy needs so they leave feeling comfortable and happy
to remain a client or customer.
Every time that the customer service policies and procedures are reviewed and amended, the agency principal
and management must communicate these changes to all agency staff.
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[10.6] Reviewing policies and procedures
It is essential that the principal of an agency reviews and monitors all its policies and procedures regularly.
This helps agencies to learn from experience and feedback, adapt to changes as the agency grows and evolves,
and address changes in client and customer needs.
As customer service policies and procedures are used daily, they need to be continually reviewed to keep them
current and relevant to all current clients and customers, potential clients and customers and agency staff.
Things that may require you to change your policies and procedures are:
changes in real estate legislation;
changes in industry Codes of Practice or requirements;
requests or complaints from clients, customers and agency staff; and
changes to services that involve a change in structure of the agency, which impacts current policies.
It is the agency principal’s responsibility to ensure that the agency’s policies and procedures are reviewed and
updated every time there is a change. Agency staff meeting agendas should include a review of customer
service policies and procedures on a regular basis.
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[11] References and resources
Queensland Acts -
www.legislation.qld.gov.au
Commonwealth Acts -
www.legislation.gov.au
Queensland Of±ce of Fair Trading -
https://www.qld.gov.au/law/fair-trading
Australian Competition and Consumer Commission -
https://www.accc.gov.au/
Of±ce of Fair Trading’s real estate and property industry page -
https://www.qld.gov.au/law/laws-regulated-
industries-and-accountability/queensland-laws-and-regulations/regulated-industries-and-
licensing/regulated-industries-licensing-and-legislation/property-industry-regulation
Fair Work Ombudsman -
https://www.fairwork.gov.au/
Fair Work Ombudsman -
https://www.fairwork.gov.au/employee-entitlements/managing-performance-and-
warnings
Australian Communications and Media Authority (ACMA) -
https://www.acma.gov.au/
Australian Human Rights Commission –
https://www.humanrights.gov.au/
Of±ce of the Australian Information Commissioner –
https://www.oaic.gov.au/
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