I was going to have my latest blog address a well known national portfolio filing Chapter 11, tying this back to the issue of the critical need to protect revenue via retention due to rising cap rates reducing asset values at a time when so many portfolio’s financing is expiring or up for reset. Then I stopped by a Lowe’s hardware store one morning recently before work.

I go to the same hardware store all of the time, despite a Home Depot being around the corner. Why? Because of the staff at Lowe’s. Nothing against Home Depot, but the Lowe’s staff has earned my loyalty.  Again, why?

As I walked into the store one morning days before Christmas, they were having their morning staff meeting on the floor. About twenty associates were in the middle of a team discussion. Despite that, as I walked by them quite a few made a point of enthusiastically greeting me with warm “Hi, good morning,” “Happy holidays,” and the like. Moments after they were done an associate found me, asking if I needed any help. This happened the last time I visited before work too.

Warm, caring people who clearly want to help customers.  You can’t teach that. Is being nice enough to make me write this blog? No, but it’s a great start. The icing on the cake is that their staff has great product knowledge and understand the value of a customer. Regardless of what department they work in, they can always point you in the right direction. On this day a gentleman walked me halfway across the monstrous store to show me what he thought was a solution for what I was looking for.

This experience was no different than every time I visit this Lowe’s. The staff is always friendly, personable, caring and knowledgeable. They consistently deliver quality service. The end result is that I know I will always have a good experience there! They have earned my loyalty.

What’s the point of this? There is no magic to great service and creating customer loyalty. And our research shows there is a clear impact on NOI and asset value for constantly working to improve the level of service delivered to residents. This has nothing to do with Facebook pages (although I am fine with anything that enhances communication about valuable stuff with residents, as long as it does not become a distraction). It has everything to do with hiring people with the right attitude, supporting them, and consistently doing the things that any customer appreciates: always promptly responding to calls and emails, always following up to make sure they were satisfied with how a service request was handled, being responsive and courteous 100% of the time.

If Lowes' associates can give this much effort to customers who come in to buy a $10 pack of light bulbs, how should your associates treat residents who are paying $10,000 - $25,000 a year in rent? How do you know your staff consistently delivers a world class attitude and award winning service? Try this on for size. Call ten or twenty of your properties just to see how your associates sound when they answer the phone. Or leave an anonymous message with your cell number or send an email from a personal email address (loveshoes@yahoo.com) just to see how long it takes them to respond.