Customer Behaviour Quarterly Update

Below is the quarterly review showing the general requirements and interests that customers have when first approaching us

In addition, we have shown the subjects that they wish to discuss in detail with managing agents when requesting a proposal

Analysis of initial queries and questions put to us by new customers

By reviewing the initial queries and questions that customers provide when they first come to us, we can see what is top-of-mind when they begin a new search for a block manager

Some of the key findings:

• Location and proximity to the customer’s building is important but decreasingly so. Whilst almost 50% of customers showed this as a priority 2 years ago, this is now closer to 30%.
• Customers are increasingly service focussed – instead of providing general requests for “better block managers”, they are asking for things like “RTM applications”, “Improved financial management” or “Complete major works”
• Approximately 15% of customers’ priorities are around cost and fees reduction, which has been quite consistent over the past two years
• Likewise, third-party reviews represent a small but stable segment (around 7-8%) of the market

Analysis of priorities when customers ask for proposals

By reviewing the screening questionsthat customer provide when they ask for proposals, we can see their top priorities when they are seriously interested in switching managing agents

Some of the key findings:

• Customers have much more skewed towards service details – asking for information about a specific type of work required for the buildings.
• A large number of customers (around 1/3) are looking for local experience, near the customer’s location
• Approximately 15-20% of customers are still interested in cost reduction, although there is some sign that this is a decreasing percentage of customers
• Comparison questions (where customers are looking to match of beat the performance of their current management) are a variable but small percentage of the customers

Implications

Most of the customers that approach us are looking for agents with a strong record in specific service provisions and local experience.

Agents that are able to demonstrate these two qualities are the most likely to impress and sign-up these customers. For their current customers, it will become increasingly important to show skills and experience that meet their changing needs in order to increase retention.