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Promoters, detractors are your business

Part I: Gauging customer loyalty in real estate

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Editor's note: This is the first part of a two-part series about customer loyalty in the real estate industry. Part I examines the Net Promoter Score and why it may not be entirely applicable to the real estate brokerage industry, and Part 2 examines why even satisfied customers may not actively promote your services. Real estate satisfaction is short-lived and clients do not engage in transactions often enough to sustain it for repeat business. A real estate transaction lacks word-of-mouth promotional appeal, provides no social currency, the risk of a failed referral, and is limited by local marketing reach. For this reason, the Net Promoter Score -- a loyalty measurement that uses customer responses to a single customer satisfaction question to predict a company's growth by repeat business and referrals -- won't work for residential real estate brokerages, in my opinion. Introduced by Frederick F. Reichheld in his 2003 Harvard Business Review article, "The One N...