How Netflix Can Help Your Real Estate Business

This past weekend, a random Facebook status post from a friend caught my attention.  It all started when my friend commented that her local Blockbuster video store closed down and she was looking for another place to rent movies.  I sat there, staring at the screen over a period of 15 minutes just watching.  It felt like I was watching a stock price on a stock I just bought…going up and up and up.  That rarely happens so I was quite shocked and amazed.  Within a few minutes time, there were over 30 comments on her post and 95% of them were accolades for one particular company…Netflix.

Now, she does have an amazing number of friends in Facebook, so it didn’t shock me on the number of responses.  What shocked me was the number in the short time period I was watching and the positive nature of the comments.

Not one comment was a negative against Netflix or the way it rents movies.  Being a Netflix user, I apparently took for granted the ease of use.  I was just startled by the overwhelming consumer support of the product.  And, I’m pretty sure there’s no “gift”, referral fee or reduced payment involved if Netflix hears you’re recommending their services either.

So what gives…why do people want to shout out NETFLIX to their friend?  In search for an answer, I decided to analyze what it is that caused a broad cross section of consumers to run…no…sprint to the front of the line and offer their Netflix recommendation.

One compelling thought I had was this…what would happen if someone posted on their Facebook status… “Does anyone know a good Real Estate agent?”.  How much would you pay to have 30 people rush to offer your name within 15 minutes of the question being asked?  And, offer positive testimonials and accolades in the process.  Granted, renting videos and selling real estate are two different business models.  And, yes, Netflix spends millions on advertising.  But, there are some good lessons to learn here that can be applied.

Let me extract 3 reasons why Netflix has earned the respect of their users and why these users can’t wait to recommend their services.  These can be applied to any business…including your own.

1.  Highlight your ancillary service – Have a product or service that you provide that “enhances” the process.  This could be a myriad of things…websites, transaction coordinator, relationships with service providers…whatever.  The key is to find what sets you apart and proudly market it.  People don’t use Netflix because they offer streaming video.  Consumers get this value add if they sign up for their core business of mail order video rental.  Streaming video keeps consumers coming back for more and entices them to stay.  Buyers/sellers SHOULD NOT indicate they are doing business with you because of your enhanced service.  They do business with you because of your core service (being their Real Estate trusted adviser).  They should feel privileged they get to use this service as a result of doing business WITH you…there is a difference.

2.  Make it easy to work with you – Netflix mastered this with their easy to use website and their no hassle DVD return process.  If I had to find an envelope or lick a stamp to return the DVD’s…all deals are off…back to Blockbuster.  In Real Estate, there are a number of parties involved in the transaction process so it’s hard to control the process and make it easy.  We can only change and manage what we can control.  No matter how hard you try, you’ll never get the county to record your documents faster than other people’s documents.  So, what can you change or offer your clients to make working with you easier?  Perhaps, something simple like picking up your buyers at their home when viewing properties rather than meeting them at your office.  Do something special for people that refer your services.  A good exercise is to analyze your interactions with your customers and pick 2 or 3 items that cause your customers pain.  Find ways to alleviate that pain and make it a part of your services offered.

3.  Learn from your Customer -  Do you keep a database on your clients?  Netflix does a great job at building “relationships” with it’s subscribers.  It learns about their subscribers movie habits and offers meaningful recommendations based on previous viewing habits and ratings.  Now, Netflix spends millions on perfecting it’s algorithms.  They do this because their main goal is to teach a computer program how to predict what movies we will like or dislike.  An interesting concept would be to build an algorithm that will predict when someone is going to buy or sell a home.  But, we don’t have such a budget, nor access to all the necessary data-sets to make such a prediction.  But, we can keep it simple and just focus on the basics.  We just need to know what kind of questions to ask, listen to the answers and learn how to apply them to build better relationships.  For years, I’ve taught classes on how to manage a sphere and build a database that will return a wealth of information about your clients and build a strong referral base.  I’ve always started with an old book, kind of dated in today’s business world, but does offer some good ideas.  The book is How to Swim with the Sharks without Being Eaten Alive by Harvey Mackay.  Inside there is a section called the Mackay 66™….the 66 things you should know about your clients to build better relationships.

If you are struggling on where to start, click here to get the Mackay 66™ and start building a database of your clients and tailor your services around their needs.  A good customer database is a must have for entities ranging from a single Real Estate Broker to a company such as Netflix.

What are some of the things YOU do to set yourself apart and make it easier for your customers to work with you?