The Top 5 Factors Resulting in Resident Loyalty
by Joanna Ellis – PropertyManagementInsider.com
When it comes to maintaining and increasing resident retention, we seem to put a lot of focus on why our residents are not loyal to us, but what we should really be asking ourselves is “What am I doing right?” When you identify who your loyal residents are, you’ll usually find there are five common factors that correlate with their loyalty. We’ve listed them below for your convenience:
1. You Ask for AND Listen to Resident Feedback
You know that traditional satisfactions surveys don’t cut it – that you need to ask the hard questions and really listen to residents’ needs, wants, and concerns. You know that survey programs modeled after proven Net Promoter Score (NPS) methodology, give you the greatest insight into resident loyalty by answering the question “What is the likelihood you would recommend us?” Willingness to recommend is one of the strongest signs of customer loyalty(“The One Number You Need to Grow”, Harvard Business Review). Residents who are loyal will not only give you referrals, but they will stay longer and are willing to pay more.
After you take time to listen to their desires and honest feedback, you work to provide your residents with what they need or want in a home. You show them that you care about them, and caring builds trust. When you implement changes and improvements based on resident feedback, you cultivate resident loyalty, and practically, increased resident retention.
How can you get more feedback to generate resident loyalty?
- Ask your residents how they are doing at every opportunity, through:
- Loyalty-based resident surveys
- Personal conversations
- Social media channels
- Monitor apartment rating and review sites
- Review resident letters/complaints
- Keep current on the grapevine at your community
2. You are Fast to Resolve any Maintenance or Apartment Community Issues
When a problem does arise, you are prompt in providing the best solution. You know that resolving concerns as quickly as possible is part of the success equation. Quick action prevents small issues from becoming bigger. Using an ongoing program of loyalty-based resident surveys ensures that you have a constant flow of information and can stay apprised of any concerns so they can be addressed right away.
Because you realize your residents will share their experiences with anyone who will listen, you know that a speedy solution to problems is a winning proposition and will help generate resident loyalty (and increase lead conversion).
3. You Make Living at your Apartment Community Easy
Your staff and services are convenient for residents and you consider it part of your job to make their life easier and more enjoyable. You’ve designed your procedures and processes to deliver the kind of lifestyle that feels good to come home to. Residents know your team is there for them and will help them in any way they can. Keeping life simple is one of the best ways to generate resident loyalty.
4. You Know your Residents Have A Choice—and You Let them Know It
Unless your community is located in a remote area of Antarctica, you are not the only place your residents could choose to live. You express your sincere thanks to residents for choosing your community as their home. You offer valuable products and services that generate resident loyalty. A greater value keeps them coming back for more and will get you plenty of referrals. A mere 5% increase in resident loyalty can improve overall profitability by 25% – 100% (The Loyalty Effect, Reichheld).
5. You Create “WOW” Moments in your Community
Having satisfied customers is not enough – satisfied residents defect. Loyal residents stay and refer friends and family to your apartment community. You strive every day to create “WOW” moments by delivering a consistently positive and memorable customer experience. You know your resident’s emotional connection and reaction to their living experience is what drives their action and will ultimately generate resident loyalty.
Your focus on “WOW” experiences helps build a relationship between you and your residents based on trust. They come to expect you will adhere to good corporate citizenship, offer transparency, and hold yourself to a standard of accountability. Seventy eight percent of purchase decisions are made based on peer-to-peer recommendations, and because you consistently provide a “WOW” experience, your residents are enthusiastic enough they will stake their own reputation with a friend or colleague to refer them to you (“How Philips Uses Net Promoter Scores to Understand Customers”, Harvard Business Review).
Loyal residents are your most profitable residents. They are happier, lease longer, and will be your brand champions. Because of your personal experiences, you know who you would be willing to recommend to others and why.
What things do you do that generate resident loyalty?