Do You Have a Service Recovery Strategy?

Recovery Just Ahead sign with sky backgroundWe all know how important it is to have a clearly defined tenant service strategy … everyone’s heard that the happier your tenants are, the more likely they’ll renew their leases. One way to turbo-charge your tenant service strategy – and help create lifelong tenant loyalty – is to implement a service recovery strategy. The trick to an effective service recovery strategy is to proactively identify tenants with service issues and address those issues to the tenant’s satisfaction. Sounds easy, right? The truth is that an effective service recovery strategy is a detailed process that must be planned, organized and implemented with the support of the management team and communicated throughout the organization.

It’s inevitable that something’s going to go wrong at your property and tenants are going to get upset, so that’s why a recovery strategy is so important. Companies with a service recovery strategy certainly don’t welcome mistakes at their buildings, but they are likely inspired by that fact that customers who’ve had a negative service experience that is resolved quickly are significantly more loyal than customers who have never had a negative experience. The key, of course, is that the issue is resolved quickly. Not only will you create more loyal tenants, but you’ll likely generate positive word of mouth as a result of the quick resolution.

A specific example of service recovery in action is how a property manager at Marathon Realty, a company I used to work for, handled elevator entrapments. The property manager used to have stacks of gift certificates to local restaurants at the ready. Upon hearing that there was an elevator entrapment – an unnerving experience for tenants at the best of times – he would wait in the lobby with a fistful of gift certificates, which he would then offer (along with a personal apology, of course) to the recently unentrapped occupants of the elevator. What do you think those tenants were talking about afterwards? Not the entrapment but the gift certificate! (I often wondered if that property manager scheduled elevator entrapments just so that he could recover from them!)

A great way to proactively identify tenants with service issues is to conduct regular tenant satisfaction surveys (you can check out my blog post on tenant surveys here) but the lag time between the issue and the identification of the issue can be significant, so consider using real-time feedback collection tools like Net Promoter Score or even social media to create more immediate communication channels with your tenants. No matter how you connect with your tenants, know that effective service recovery can result in lifelong loyalty to an extent that “mere” good customer service can never match.

Do you have a service recovery tactic that you’ve used to WOW your tenants and build loyalty? If so, please click on the “Leave a Reply” link at the bottom of the page and post a comment.

Kirk Layton is the president of Eservus, an online corporate concierge company servicing over 30 property management companies in Toronto, Calgary, Vancouver and Boston.