Creating Excellence in Owner Relations: The CRM Model

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Creating Excellence in Owner RelationsThe CRM
Model

• Presented by
• Paul Herman, Tom Leddy
• and Linda Hess

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What is CRM

• Customer Relationship Management
• Becoming a common and important concept in many
  industries
• Beyond mere Contact Management
• Many industries have CRM software to help sales
  process, on-going service, and even accounting

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How Does CRM Fit in the Vacation Home Rental World

• Our industry actually has 2 major customers
• Both owners and guests
• We need some quantity of both to thrive
• Customers can choose to go elsewhere
• The happier our customers are, the more likely
  they are to stay or come back

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How Do You Rank Your Customers?

• Is your owner your primary customer
• Or
• Is your guest your primary customer
• You cant have 2 primary customers
• In some states, agency defines this relationship

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Today Were Talking About Owners

• Whether the owner is your primary or secondary
  customer, he is still you customer and you can
  manage your relationship with him!

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Define Relationship

• Relationship
• The state of being related by kindred, affinity,
  or other alliance.
• Websters Revised Unabridged Dictionary

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Value of CRM

• Gain more control in interaction with customers
• Manage expectations better
• Understand what customers really want
• Provide products that better serve customers
• Increase trust and loyalty
• Competitive advantage

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A Working Definition

• The Plan and Practice of managing the lifetime
  relationship with your customer.
• The Plan Every successful endeavor requires
  proper planning. Successful CRM rarely happens by
  chance. Many organizations jump to implementation
  w/o proper planning.

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• The Plan and Practice of managing the lifetime
  relationship with your customer.
• The Practice Systematic implementation of your
  plans. Should produce measurable results. Should
  be evaluated and refined over time.

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• The Plan and Practice of managing the lifetime
  relationship with your customer.
• Lifetime Relationship The relationship needs
  to be actively managed from the day they enter
  your program until the day that they leave (and
  perhaps beyond).

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A Few Basic CRM Concepts

• Touch Points
• Each time your company interacts with a customer
  is a touch point.
• Can we name a few?
• Are they planned? Managed? Documented?
• Are all touchers properly trained? Enroll your
  complete staff in the vision.
• Any way to increase the effectiveness of the
  touch?
• Any way to increase the number of touches?

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Owner Touch Points

• Renter who purchases property
• Original purchase of property
• Rental listing
• Any owner stays in property
• Every months owner statement
• Newsletters
• Owner get-togethers
• Any phone call positive or negative
• Any marketing information that the owner may see
  including web site

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Listing New Owners

• Walk them through the process
• Create realistic expectations
• Provide written package of information
• Have face to face meeting (at home)
• Answer all questions, follow up
• Introduce them to staff members
• Be courteous, polite and professional

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A Few Basic CRM Concepts

• Market Segmentation
• Do you treat all of your customers the same?
• Are they?
• Consider the difference between an owner that has
  one 1970s motif 2 bedroom condo and an owner
  that has 3 8 bedroom oceanfront homes
• We shouldnt treat the condo owner badly, they
  are in your program for a reason (right?)
• We should realize that the OF home owner deserves
  the best that we can offer.

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Market Segmentation Examples

• Saks Fifth Avenue
• High value customers (2000/yr) are routed to
  special CSRs.
• The calls are routed such that a high value
  customer is connected to a CSR in one second or
  less.
• Could we coin a new acronym here
• HVO High Value Owner?

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What Type of Owner

• First-time owner
• Experienced owner
• Multiple properties
• Good business sense
• No business sense
• Hands-on
• Hands-off

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What is a Vacation Home

• Investment
• Revenue and occupancy are most important
• Second home
• Nice and homey
• Little touch of heaven
• Rest of life just in anticipation of next visit

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What does your owner relationship include

• You manage his property
• You rent his property
• You provide services to his guest
• You provide ancillary services for his home
• The more you know about him the better he feels
  about the relationship

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Important Relationship Items

• Good communication
• Regular out-going communication
• Easy access to correct people in-coming
• Recognition
• More is better, not easy for newer staff
• Respect
• VIP treatment in some fashion
• Reasonable deference from all staff
• Consistency of actions
• Good follow-through on problems or research

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Why did he choose you in the first place

• Most established company
• Oldest company
• Start-up company with lowest fee structure
• Personal relationship or referral
• Yellow pages
• Saw your sign driving by
• Bought the home from you

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All Owners Want

• To trust you with his property/asset
• To receive timely communication
• To receive timely revenue checks and
  documentation
• To arrive at your office and be recognized
• To call your office, be recognized and treated
  with respect
• To get quick, accurate answers to his questions
• To arrive at his home and have it perfect

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Many Owners Want

• To be self-sufficient
• Have more control
• Direct access
• Direct owners 800 number
• On-line access to specific information
• New capabilities available elsewhere
• Direct deposit funds

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Some Owners Want

• To exchange Christmas cards
• To make you Godparents of their kids
• To have dinner with you every time they come to
  visit
• Or
• To be totally invisible
• To be left alone

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Tools to Help Manage the Relationship

• Property Management System
• Current address and contact information
• All financial information from properties
• Current and past maintenance history
• Take full advantage of capabilities
• Newsletters
• Email or regular mail
• E-alert
• Disaster information
• Weather
• - Pre-arrival

• Owner Surveys
• Do them, and publish the results
• Web site
• General site containing items of owner interest
• Owner-specific site
• Access to owners statement and work order
  history
• Owners 800 number direct to liaison
• Owner agent/representative
• Guest Surveys
• Allow them to hear directly from guests

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Owner Retention

• You want to keep your owners in the program
• It is always less expensive to do more business
  with existing customers than to get new customers
• You invest in each owner through your web site,
  photographs, brochures, correspondence, etc.
• Encourage and listen to feedback thank them

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Owner Services

• Basic maintenance
• Cleaning
• Marketing for rental guests
• Handling finances
• Rental income
• Bill paying
• Educational opportunities
• Knowledge of market, trends, etc.

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Developing Loyalty/The Extra Mile

• Open house/party annually
• Owner/guest events weekly welcome party holiday
  activities
• Owners fair w/vendors, staff, community
• Educational seminars investing, upgrading, etc.
• Gifts welcome basket, logo items, cards
• --Trade w/local golf, restaurant, etc.
• Perks discount club
• Rewards add on services to reward action
• Select owners priority bookings, bonus services,
  etc.

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The Other Side of CRM

• Some owners should be let go
• They are too demanding
• Take up too much time and provide too little
  profit
• You can only know this if you measure it

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Competitive Advantage

• The closer your customers feel to you, the better
  customers they will be
• Better customers spend more money
• Better customers complain less often
• Better customers are more understanding when
  things go wrong

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Your Thoughts?