It's all about Service

When John Bearden became president and CEO of GMAC Home Services three years ago, he looked around and saw a company-and an entire industry-awash in a sea of numbers, statistics and trends... none of which brought a smile to his face.

Brokers averaging an anemic $137 per transaction. The average commission sinking to 5%. Consumers, to put it kindly, were fickle: Just 21% of sellers and only 4% of buyers said they used the same agent twice.

Time to shake things up, Bearden thought. "In an era of record home sales, nearly half of all real estate brokerage companies over the past few years have been losing money. Our industry can't stand much more of this prosperity," Bearden quips.

It didn't take him and his team long to realize that something had to happen, and quick. But Bearden wasn't satisfied with merely changing the way GMAC Home Services does business. He was-and remains-passionately determined to improve the industry for everyone.

And the magic key that the company is using to unlock this type of transformation is a uniquely conceived, customer-focused service model.

"We're going to do to the home services industry what Nordstrom, Southwest Airlines and the Ritz Carlton have done for customer service in their respective service industries," Bearden says. "These companies have called attention to the importance of customer service and serve as the models for raising the bar in the real estate industry. GMAC Home Services is going to be a company that changes its culture, which in turn, will help differentiate our brand by a wide margin."

To that end, the company is in the thick of an ongoing, multi-faceted nationwide initiative that will:

Implement its Premier Service program throughout all four business units. The first national program of its kind, Premier Service promises consumers consistent and measurable levels of service and was first introduced to the Real Estate Franchise Business Unit and Real Estate Company-Owned Business Unit. Now, it has expanded companywide to include GMAC Global Relocation Services and GHS Mortgage;

Transform GMAC Home Services into a true, one-stop "home services" company that provides brokerage, highly competitive mortgages, title and closing services, insurance and home warranties. "We've spent a great deal of time building a business format that will outperform the traditional format that's been in use for the last 30 years," Bearden says. Others talk about one-stop shopping and becoming a "home services" company, but Bearden say s no one can match GMAC Home Services' company-wide commitment and implementation of the philosophy.

Premier Service's "secret formula," Bearden says, really isn't so secret: It's grounded in a commitment to listening closely to customers. "It's based on giving consumers what they want and creating partnerships with your sales associates that help them expand their business," he says.

"Premier Service was developed as a direct response to customers, who are not only looking for more value, but in survey after survey they tell us they want more from their relationship with their agent. More than 80 percent of those surveyed expressed a strong preference for one-stop shopping, yet very few companies offered it. Buyers and sellers fail to see any difference in real estate companies or sales associates, and that's where Premier Service changes everything."

"We are the only national real estate company whose sales associates put in writing, up front, the full breadth of services they will perform as trusted advisors, skilled negotiators, and expert facilitators. Then, we ask our customers to honestly rate our performance after the transaction through an independent, third-party survey. We view it as the only way to improve and increase our level of trust and commitment between our customers."

Across the nation, customers say they want real estate companies and agents to offer more convenient and seamless access to a comprehensive menu of home services necessary to complete the transaction, including: mortgage, title, closing, homeowner insurance and home warranties.

Through Premier Service, GMAC Home Services has chosen not only to embrace change, but also to create a new kind of residential real estate company-one that customers can easily identify as being totally dedicated to providing the highest standard of service possible.

And it's working quite well, Bearden says. "The implementation of Premier Service has resulted in a customer satisfaction rating that we can use to better market our company, agents and brokers. Already, we've had nearly 50,000 completed surveys from customers and 94 percent said they were satisfied or very satisfied with the services they received. And we're encouraged because our most recent results look even stronger," he says.

"Our agents have found that when they implement Premier Service, act as a trusted advisor and make recommendations on other home services that are central to the transaction, they differentiate themselves and create a deeper relationship with their customer-which ultimately leads to repeat business and more referrals."

GMAC Real Estate Franchised Business Unit

In 2004, Lane Barnett, president and CEO of GMAC Real Estate Franchise, watched his company rack up some impressive statistics: sales of franchises shot up more than 100% and gross commission income rose more than 250% as the company recorded all-time records. But what makes Barnett even more proud is the way his brokers and agents have enthusiastically adopted Premier Service.

"Premier Service means much more than consumers being happy with their transaction, although that is critical," says Barnett. "It also means that the customer has graded the experience- and our sales associates and brokers are able to market their results."

One such broker is Danny Schwier, president and owner of GMAC Park Place Realty in Riverside, California. "When GMAC Real Estate rolled out Premier Service two and a half years ago, I realized that while Premier Service is packaged for the consumer, it presents a tremendous opportunity for recruiting," Schwier says.

And Schwier knows more than a thing or two about expanding a business. "Over the last four years we went from a two-office operation to a seven-office operation that is continuing to grow," by adding dozens of agents in the highly competitive Southern California real estate market to his team.

According to Schwier, what makes Premier Service different is the accountability. "A third-party company not affiliated with GMAC Real Estate surveys our customers. According to the independent surveys, we have about a 92% customer satisfaction rating. This is great news, but I'll be even happier when we're at 100%. Agents want and deserve credit for what they do and Premier Service delivers it."

Patt, White Company, Realtors GMAC Real Estate in Allentown, Penn., which has 12 offices and 265 sales associates covering the Lehigh Valley & the Pocono's, was an early adopter of Premier Service and has witnessed the benefits firsthand.

"The Premier Service program includes a commitment between our company, our associates and our customers," says Doug Patt, who along with his twin brother Don, own the firm. "It includes our commitment to provide quality, customized service, valued-added programs and a customer satisfaction survey to build a record of proven performance."

Patt, White Company GMAC Real Estate began offering Premier Service two and a half years ago and already enjoys a customer satisfaction rating of 92.3%. Patt says the program's philosophy matches the company's own mission statement, which is "to provide the finest real estate services in our market."

"The Premier Service philosophy takes our mission one-step further and it enables our customers to evaluate us on how we performed."

GMAC Real Estate Company-Owned Operations

According to Terry Morris, president of GMAC Real Estate Company - Owned Operations, the company ' s focus on the seamless delivery of real estate products and services, a Premier Service customer experience, branch leadership, and agent recruiting is driving its rise in the industry.

With offices in Chicago, New England, New Jersey, and San Francisco, GMAC Real Estate Company-Owned Operations last year grew to become the fifth-largest real estate broker in America based on closed sales volume-up from sixth the previous year-and advanced to the seventh-largest broker based on closed transactions, up from ninth. Morris attributes the company's growth to its expanding service offerings and its success at forging a new business relationship-indeed a "Premier Service based partnership"- with its agents.

"I think we're justified in giving a strong endorsement to the way in which our team of agents and management are doing business," Morris says. "We have begun to really see the benefits of our Premier Service branding, particularly as we introduce more transaction-related home services to our clients and customers through our agents-or sales 'partners' as we prefer to think of them."

GMAC Real Estate Company - Owned Operations now supports its agents everywhere with mortgage and branded home warranty services. The company intends to offer title and settlement services as well as homeowners insurance in all markets in a controlled environment by the end of 2005.

Adding services places special demands on branch management, and the company has responded to it. "Agents want leadership, not mere management," Morris says. "We've executed an intensive leadership development program that has advanced the skills of our branch executives, particularly as they relate to our agent's professional growth through business planning, training, and coaching."

GMAC Real Estate branch executives now help agents identify their income goals and create a written business plan that leads to an action plan. They assist agents in attaining desired results through one-on-one personal coaching.

In the final analysis, the merit of any GMAC Real Estate service or marketing initiative is measured by its ability to advance the company toward its goal of leading the industry in client service and individual agent production. Against that standard, GMAC Real Estate Company-Owned Operations is pleased by what it sees.

"We are outperforming the market in each of our regions and changing the production pattern of our agents at every level," notes Morris. "The change is especially evident among our new agents, many of whom have come to us with prior experience. These agents, who have fully bought into our new services and support, are making more money more quickly."

"Our agents increasingly see themselves as career professionals in partnership with our company and our family of service partners," he says. "They recognize that we're surrounding them with people they can trust- people whose fortunes are intertwined with their own and who have the technological support, financial backing, knowledge, products, and commitment to make the transaction happen."

GMAC Global Relocation Services

Thanks to GMAC Global Relocation Services, Premier Service has had a global reach since 2002, when the company embraced the philosophy and process. Although GMAC Global Relocation Services has always focused on delivering high levels of service to its clients and their relocating employees, the Premier Service process includes an individualized, written service commitment, online evaluation process and extensive internal training, enabling the company to take this service approach to the next level.

In 2004, GMAC Global Relocation Services relocated about 16,000 transferees, a third of which were international. The company has offices throughout the United States and around the world. Soon after a transferee relocates, they receive a Customer Satisfaction Survey asking them to rate the company in several key areas, including how GMAC Global Relocation Services met their unique needs; how well they were kept informed of relocation activities; and if company representatives promptly responded to phone calls and e-mails.

An independent research firm tabulates the results. In a recent corporate client online satisfaction survey, the company achieved 97% overall satisfaction-its highest rating ever, according to Rick Schwartz, president and CEO of GMAC Global Relocation Services.

"There is no doubt that Premier Service was a primary reason why 2004 was the most successful year in the history of GMAC Global Relocation Services. This was reflected in our growth, service results and the way we partner with the other GMAC Home Services' companies for the benefit of our clients," Schwartz says.

In addition to transferees, GMAC Global Relocation Services introduced Premier Service to its suppliers worldwide. In October, 2004, the company conducted a forum in which 125 of its suppliers joined the GMAC Global Relocation Services' newly formed Global Supplier Alliance and received certification training in the Premier Service process.

Schwartz said a Premier Service Forum is scheduled for March 2005 to introduce the company's Asia Pacific suppliers to Premier Service. A similar forum is scheduled in Brussels in June 2005. "We want to ensure that our suppliers provide the same level of quality service as the rest of the company," Schwartz says. "We want them to meet the same high standards so that services are consistent externally and internally; that it's not just an expectation for ourselves, but for our partners as well."

This approach assures corporate clients and their transferring employees that they are being served by preferred providers who have met rigorous service standards, Schwartz says. Premier Service will take on even more importance for the company in 2005, which promises to be an extremely productive and growth-oriented year, Schwartz says.

"Our key goals in 2005 include aggressive global business development strategies, including hiring additional sales people in London and China, and further enhancing our technology to allow greater integration and access to global client data," Schwartz says. "But none of our goals will be realized without a deeply rooted commitment to extraordinary customer service-and that's why Premier Service will serve as the foundation for everything we do on our clients' behalf."

Transformational Power

For John Bearden, Premier Service has proven beyond a doubt its transformational power. "Unprecedented customer satisfaction, increased consumer loyalty, rewarding, satisfying partnerships among brokers, sales associates and consumers, greater profit margins by those who have embraced the philosophy-are all the byproducts of listening to the customer and giving them what they want," he says. "I am absolutely, beyond-the-shadow-of-a-doubt convinced that Premier Service and a one-stop home services business strategy hold the key to our future. And, I believe, the future of the entire real estate industry.

We are determined to stay the course and continue to take a leadership position in the industry."

^ Return to Top