Susan Schneider’s Blog

Trailing Spouse? Bring your Bread Crumbs

That is if you are looking at qualifying for a mortgage with Fannie Mae and hoping that your spouse’s “to be” income will be considered. Unfortunately, you may find yourself living miles apart for a while or possibly downsizing to that smaller home. As of June 8th, Fannie Mae has changed their guidelines and will only consider income of those who are actually on someone’s payroll.

So how does this affect the relocation industry? In the traditional relocation where the spouse does not typically work, it will have little impact. But, as you consider the new and younger demographics, it may be substantial. Today, two incomes and a sizable home are not uncommon.

I am hearing two schools of thought on this change. Some are quite concerned, and see this as another relocation obstacle for employees to overcome before they can accept a job opportunity. These companies are wondering if they will have to offer more financial assistance to employees in this predicament. Others however, feel that this is just another adjustment to right the ship of lending to people who may find themselves unable to repay their loan.

Unlike Fannie Mae, Freddie Mac has not gone to this extreme…yet. For now, they are electing to tighten the guidelines. I guess, like everything else, I will take a wait and see attitude before I weigh in on my opinion. Sometimes, these issues feel bigger in theory than in practice.

Acronym Addict? There May be a Prize for you.

Is it a sign of laziness? Is it that we tire of repeating the same phrases over and over again? The relocation industry is full of them and I am guilty of resorting to using less letters whenever possible. So, I have decided to make this post a contest. Why not? It’s a holiday weekend…let’s relax.

Here is a list of acronyms. Test your knowledge and if you are one of the first five to send me the answers, I will send you a copy of any of the books listed on the “What I am reading link.” This is also a test of integrity – you can’t Google the answers. Best of luck!

• DOM
• NAR
• CRP
• EOD
• BTW
• ASP
• GBO
• BMA
• KPI
• SLA

Loss-On-Sale

Unfortunately, this phrase has become all too familiar. Employees and companies alike are struggling with how to find a win/win solution. We can all appreciate the transferring employee who bought their home two to three years ago. They bought at a time when prices were adjusting downward, they probably did not find themselves in a bidding war, yet no one ever anticipated that those values would continue to plummet. Now they are being asked to move again and it is difficult not to assist them. But what about those employees who bought their home five years ago? They were most likely out-bidding others and justifying an inflated price only to assume that they would continue to see gains in the coming years.

Both scenarios present unique challenges and require creative solutions. The idea of covering someone’s entire financial loss (the difference between the original purchase price and the current sales price) is becoming something of the past. Instead, companies are deciding to create benefits that have participation from both parties. This could include:

• Having the employee cover a percentage of the loss. This could be tiered by the amount of years they have lived in the house.
• Applying a cap to the amount paid to the employee. Perhaps a certain percentage of the original purchase price or just a flat amount.
• Spreading the loss over the amount of years lived in the home. Consider putting a maximum to how many years you are willing to cover i.e. employee has lived in house for six years, you may elect to only pay for 50% of that time, or three years

Be on alert for exceptions. You will inevitably hear from the employee who undertook a sizable remodeling project. If you stick to the original sales price, you should be in the clear. My suggestion, take the time to do some analytics on the cost/value proposition. It’s never easy, but that’s why we have to be creative.

No Complaints? Are you sure?

It is human nature to choose to avoid negative feedback or comments. Seriously, wouldn’t we all rather hear about the things we do well?  I have no problem admitting that I would. This isn’t a job interview, I can be honest. In fact I think we all can agree that we will go to great lengths to avoid hearing about someone’s disappointment with our performance or service. Take surveys, while I find they are important in getting feedback, it means nothing to the person taking time to provide their feedback only to know that it is falling on deaf ears. If you really want to know what you are not doing well, you need to ask and you need to be willing to listen to the answer.

How many times have you sat in a restaurant disappointed with your meal only to tell the server everything was fine? While it may be the path of least resistance, you are actually doing nothing for the owner whose primary goal is to have you return again and again. Perhaps it is because when we are asked how everything is going, the question doesn’t feel sincere. It feels like they are just following the “server” script. Right up there with “are you ready for your check” or “would you like a take home box?”

So, the question of the day is…how are you asking for feedback? Are you taking the “server” approach and slipping it in passively into the conversation or are you making a genuine effort to hear the truth? I think we need to continue to remind ourselves that we can only get better if we know what it is we really need to improve upon. As difficult as it may be to hear, an open mind and willingness to listen will diminish your defenses. And don’t forget, your employees and your customers want to see you succeed and do well….they depend on it.

25.5 Miles isn’t a Marathon

I love the readers right now who are opening this post with a slight grin on their face and thinking that I have a rather large typo in the title. Don’t we all secretly like to “catch” a mistake (especially others)?? Ok…back on track…what I am referencing today is the need to see a project, a goal, a task, all the way through to the last mile.

It would give me great pleasure to say that I know from experience what it is like to cross the finish line of a marathon. Unfortunately my marathon ends at about 3.2 miles. I can imagine what it must be like those last few miles, all you can do is picture the finish. But what if you suddenly needed to stop for a drink or help someone who fell. Would it change your focus? My guess is that it would, and my guess is that this same principle applies to many of us in the business world.

Think about a project you have led, a meeting that required intense preparation, or a client request that needed research. You envision the outcome and you can see the steps to get there. When all falls in place, the result and your attitude is amazing. Yet things can change quickly if someone throws a “wrench” into your plan, especially if it is going to make your task more difficult. How do you respond to this? Are you open to adjustments? I think we would like to believe we are, but in many cases, it can cause us to feel defeated or worse yet disinterested in the outcome. It is then we begin to settle for a little less than the best and our goal becomes just to get it over with, and here lies the problem.

We can all relate to this scenario, we have all been there. The real challenge lies in our ability to be truthful about how we feel. My personal solution is to talk with someone, admit that I am at the end of my tether, and ask for help. I know that I have to rely on others to get the end of the line, because sometimes I just can’t do it on my own.

Perhaps we should build our plan around a 27 mile marathon and more often than not, we'll reach the finish line early.

The First Day of my 20th Year

I just celebrated my 19th Anniversary in the relocation industry. It is hard to believe how quickly the time has passed and even more difficult to continue to convince people I am still 29.

I always tell new employees that the only way to learn the ins and outs of relocation is through experience. Sure, you can take classes or get certified but when you are dealing with real people and real life issues, the text books do not always have the answers. Time teaches you everything.

As I reflect on the past two decades, I am reminded of one thing: that the real estate market, the economy, the ebbs and flow of hiring…it’s all cyclical and we just have to be patient and wait it out. We will inevitably become stronger at the end of this journey.

I also want to take a moment to thank all of the people and mentors who have been an integral part of my learning. I hope that I have touched others the way you have me. I look forward to being a part of this industry for decades to come.

You Cannot Live Under Water

It used to be that when we said people were “Upside Down” in their homes, we were referring to a person’s negative equity position. If you listen more closely you will hear people now using the phrase “Under Water.” While you may just see this as semantics – think about the difference in the meaning…a person can SURVIVE living “Upside Down” but they CANNOT LIVE “Under Water.” When did we become so dire?

I, of course, would love to tell you that I came up with that clever quote but recognition goes out to Jo Lay, VP of Coldwell Banker in Chicago, who mentioned this new trend as she was addressing the attendees at the National Relocation Conference. Jo Lay was right, we need to make sure that our actions and intentions are facing due north as we continue through this economic challenge – and this includes our language.

I know that many of you were unable to attend the conference due to travel restrictions, so I thought I would note some of the highlights:

• Homes are selling – maybe not for top dollar but they are moving. This is great news!
• The lens of the corporate eye is still focused on cost containment and adaptability. Do you have the right solution?
• Corporations are saying that they don’t see an immediate change in relocation volume domestically, but that global mobility is still on the rise. Are you ready?
• Corporations still need assistance from all suppliers; they just aren’t quite sure what it looks like yet and what it is they need. Thank goodness we can lead them through this journey!

Some positive news if you couldn’t make the conference, Worldwide ERC® is going to be posting audio and video tapes from the sessions; I will keep you updated as the information becomes available.

Just-in-Time

Last week, I had a great time at the Worldwide ERC® Convention in San Diego, California. During the activities, I was reminded of how critically important networking relationships are, especially in our current market. We need each other. It also made me think about when I began writing "Wednesday's with Susan" to stay in touch with people in my industry. My goal was to pump out ten or so posts at a time, but I soon realized that the information dated itself as quickly as a loaf of bread. Really, information is only as good as the week in which it exists. To be truly pertinent, I found that I needed to write each and every week.

I think we can apply the same principle to customer relationships. We need to take a just-in-time attitude. If we are really focused on our customers, timely and relative information is critical. Most everyone has a customer relationship plan of some sort, whether that is through periodic updates, newsletters, e-alerts and so on. But the real value comes when we get the customers what they need...when they need it...and in order to do this, we have to be disciplined enough to have an intimate relationship with those whom we work.

I will go back to the 80/20 theory for listening over talking. Someone once told me that if you really listen to your clients, they will tell you everything you need to know, to either win or keep their business. So the challenge for us becomes listening intently enough to know how to serve them in the future. My theory is that if you can walk away from a cup of coffee or even a phone call centered around this theme, you can begin planning your just-in-time relationship. Now, when you send off that e-mail with a recent article or trend, it will be received with a sense of connecting to your customer's personal needs.

There is a reason that marketing companies have focus groups and target certain people; they know that they are meeting the specific needs or wants of individuals. Is there a reason you can't do the same? I am not saying to throw away direct marketing campaigns, but I am confident you will see strong results in taking a personal relationship approach.

Ghost Writer

One of the great benefits of writing a blog is all of the comments and ideas you get from readers. Sometimes it is directly on the site, other times through email. Last week I received this great parable from Marcus Carey, who is the VP of sales for his company. He forwarded this in response to last week’s 8/16 Rule, so I thought it would be great to share with the rest of you. I will be spending the week in San Diego at the Worldwide Employee Relocation Council meeting and looking forward to sharing my learning’s with you over the coming weeks.

Break the Rules

An Army general met with the representatives of two companies bidding for a contract to support field equipment. Faced with solving a real problem that came up that morning, he decided to put each vendor to the test.

Our system is down, and we don’t have any replacement fuses,” he said. Both companies made standard fuses that would fit. “Whoever gets the system up and running gets the first contract."

The rep from Company A began processing the paperwork, pushing it through the system. Thanks to his diligence, within seven days, instead of the usual 30 days, a replacement fuse was shipped to the Army base. He called the general, who thanked him for his prompt response, but said he had awarded the contract to Company B.

“Why?” asked the rep from Company A. “I happen to know their standard order-to-ship cycle is 30 days, and we got it to you in seven.”

“Yes,” said the general. “But after you left our meeting, your competitor drove into town, bought one of his company’s fuses at a hardware store, and brought it back to the base within 30 minutes.”

The moral: Policies work well during standard operating conditions. But, when extraordinary performance is required, don’t let policy stand in the way of solving the problem, serving the customer, or making the sale.

The 8/16 Rule

I must be in need of structure or discipline in my life because I tend to be blogging a lot lately about “rules.” Or perhaps I am falling on to a lot more conversations about customer service, which isn’t such a bad thing. Now most of you may be familiar with 8/16 rule, but last week was the first time I was introduced to this concept; do something great with your customers and they will rave about you to 8 people, do something poorly and they will warn 16. Apply the same principle to communication through technology such as Twitter and those numbers could easily reach numbers in the 1,000’s.

So for the sake of today’s post, let’s focus on the first number, the one that has created raving fans. Let’s consider how we can turn that into future opportunities. The simple truth is that better than advertising, marketing gimmicks, or good giveaways at a trade show, your best referrals for new business are your current clients. Think about how you feel when you go to a great restaurant, buy a new cell phone, or even get your hair cut. If you have great service, you want and are emotionally inclined to tell others. So why should your clients be any different? All you have to do is ask!

It may seem awkward at first and if you can’t quite get up the nerve, start by asking them why they like working with you or what makes your service better than others. Once you start the conversation, the rest will come naturally. I am sure if the tables were turned, you would be happy to provide the referral, perhaps even flattered!