How my friend’s story of ‘Taxi vs. Uber’ can lead homeowners to higher predictable profit and better experience, when selling their home.
Let’s just dive into it.
Last week, we looked at how disruptive platforms like Airbnb and Uber are winning the hearts & minds, and consumer attention, in their respective industries. If you missed that discussion (go here: http://www.restate.nz/airbnb-uber-meets-real-estate/)
But today, I want to share a story with you, that better demonstrates the precise factor we discussed. You may recall, Uber and Airbnb, the reason they’ve experienced viral growth is because they have a “documented approach” that has proven 97-99% of the time, yields for the consumer, a positive experience and outcome.
Contrast that to real estate, and you find that 72% of homeowners wouldn’t use the same agent again. And that stat comes from a study. For more info, search D.A.N.G.E.R Report – it’s a 168-page study – commission by the American NAR, that outlines the unfettered truth of the real estate industry (Sure it’s from the US but consumer opinions of the real estate industry is a world wide phenomena). In doing so, you will see the importance of what we talk about here—the need to protect yourself.
Back to that story though. A friend of mine recently paid a visit to Las Vegas. In his words, I’ll let him tell you his story. Then I’ll make my point…
“What is an Uber? I have been hearing for the past year that Uber is the way to go these days. Even though it is available in my home town now, I hadn’t used it yet. I downloaded the app before I left home, but wasn’t exactly sure how it worked. After I grabbed my bag, I headed for the exit. I pulled out my phone and opened the Uber app. It said the nearest driver was 15 minutes away. I found that hard to believe, but figured it had to be right. I opted for the taxi line instead. There was no wait and there were about 50 taxis lined up waiting. That should have been my first clue that I should have waited for the Uber instead.
I gave the driver the address. He plugged it into his GPS and got the route. I had no idea how much it was going to cost, but as we pulled away from the curb, the meter already read $7.00. This wasn’t going to be a cheap ride. As we sat in traffic, the meter continued to climb. We were only a few minutes in and it was already at $10.00. By the time we made it to the house the meter was over $25.00. Throw in the customary tip and we were well over $30.00. Sure they had a fancy credit card reader in the backseat, but the driver had to get me my receipt from the printer in the front seat.
Not more than an hour later, I had to head to an event. The drive was about the same distance as the drive from the airport. This time I opted for an Uber. I opened the app and was happy to see there was a car three minutes away. Two minutes later, Paul pulled up in his GMC Terrain. That was what I expected because the Uber app gave the driver’s name, his picture and the type of vehicle he drove. We got to my destination and I got out. I felt like I was forgetting something, but as I got out, the app finalised the charges, instantly emailed me a receipt and I was on my way. My total was $10.38. What a deal! I gave the driver a 5-star rating before I hit the front door.
What a difference of experiences for 2 services that essentially accomplished the same thing.
Over the course of my trip, I took four more Uber rides throughout the city. Each was just as convenient as the first. I noticed a feature that allowed you to estimate the charges for your trip before you requested the driver. The distance of my rides were always about the same length and the Uber fares were consistently cheaper than what the taxi driver charged on my first day.
It takes stepping outside of your comfort zone and trying something new that makes you realise that, the way you have been doing things, isn’t always the best. Had I not taken the chance and tried Uber, on that first day, I probably would have continued to take taxis.”
Now the obvious point is, if homeowners continue to think the traditional-approach to selling their home, will somehow improve their chance of escaping that 72% Horror Story factor – they will likely be disappointed. Like my friend, the way to escape disappointment is by finding a person, or platform, or service that utilises a documented approach – like Uber, like Airbnb – that guarantees a high level of positive experience.
And don’t listen to any provider or service-professional that “says” they have a documented approach. It should be tangible. Something physical. Something you can hold in your hands, and review in detail. Spelled out…
The second lesson, and less obvious, is how setting the appropriate expectation leads to a superior consumer experience—proven by my friends’ Uber experience. He is now a convert. For the rest of his life, only if forced, will he ever take a Taxi. Otherwise, Uber all the way.
It’s for that reason, why some businesses are constantly referred. Because consumers know what to expect. While other businesses are just ‘necessary evils, until that better alternative reveals itself.
