Resident Retention: Dare I Say It - Don't Believe the Hype

Jen, Thanks for a really good and thoughtful post. Kudos.

I think it's good you went on record to make these comments. They stimulate important conversation.

In particular, I agree with you that email is still an essential part of any communication strategy. It's something we really emphasize, too.

Let's assume for a moment that you are right - i.e. the average community won't be able to track a lease or retained resident. What about thinking of social media as a substitute for an amenity many communities already have - printed newsletters. Resident blogs and social media provide the ability to make this initiative green- and real time for less than the cost of printing the newsletters. Let's further assume that the entire thing can be outsourced. Of course, this substitution can't be made at communities with low Internet adoption, but it is another interesting way to justify the expense....and you'll have a social media campaign up and running just in case social media does start to prove itself....

Social media's value might grow over time, but as Jen said we don't feel that the data supports the amount of attention given to them with regards to leasing and retention. The data surveying residents provides empirical support for this. Unless world class service is delivered consistently every day (driven by direct communication with the resident regarding service requests, resident issues, etc.), I feel social media is simply a distraction to the staff meeting the owner's goals. Sure its fun to go onto Facebook but at this time I do not believe there is any value to the property's performance - and the goal is not to have fun but to grow NOI and asset value.

Good point on eletters. First, we need to stop killing trees to print something the vast majority of residents never read. Second, I personally am a proponent of using resident portals for eletters. I am not totally against using a Facebook page for the property, but besides social media being a distraction to the staff, my other concern has been that Facebook pages open a community up to the risk of an uncontolled "tenants association" - with content that the property cannot control and is visible to the world (does a property want its dirty laundry open for those prospects who might go to the page?).

Not to say that some properties can cite a tangible impact on rentals, but for the most part we feel attention needs to be focused on the areas that have historically been made low man on the totem pole in the industry - residents, service requests and direct communication.

I agree with a lot of what you say. I don't know for sure, but do you think a property controlled Facebook presence may help stave off unauthorized "tenant association" Facebook sites. Last year, we set up a Facebook page for a client and were surprised to find an unauthorized resident site during that process.

I also don't think there is a one size fits all solution. We have clients doing blogs only (with comments turned off), FB and Twitter only as well as those that are integrating all of these.

Based on my own social media efforts for my company, it's kind of like off line networking. It takes time to be able to result with the possible exception of SEO. We do see inbound traffic to the blogs via search results (about 18% last month).

I can tell you that we have not seen a lot of negative comments on client FB and Twitter sites (yet) with one exception. We do have one client that has a relatively new FB page and there have been 2 negative comments. One was about snow removal and given that mass transit shut down in the property's market, it may be valid it was slow. The client was able to respond appropriately (and perhaps this was the only way they would have known there was an issue). The second comment was a question about the company's reputation. The minute we sent the owner's email, the user withdrew the comment himself (which was interesting-and helpful!).

Long story longer, it was better to give people a chance to communicate directly with the property than find these comments on a random review site with even less recourse. Ironically, this is one of our most bullish social media clients...

Jen, Doug, you are to be commended in your efforts to put a stake in the ground and stand by what may be a fairly unpopular position in this forum. That said, I do take some issue with the method you've used to arrive at said position.

As a former researcher, I'm very familiar with the sort of survey tool you've used here and, as such, I'm not 100% compelled by the findings. For example, you've asked "If your community needs to contact you, what are your preferred methods of contact." Based on that question, is it reasonable to expect that a high % are going to say "social networks?" I think no, and I think that is largely b/c of the question wording, specifically the use of the word "contact."

Contact implies personal, one-to-one communication which is not the primary interaction most folks expect to have with businesses/brands via social networks. To Ellen's point, by asking specifically about "contacting" you miss those folks who would be interested in keeping up to date on community news, events, etc. via a community presence on a social network. It's certainly possible those same renters you surveyed would also have said "no thanks" to that use of social networks, but given that you didn't ask, I'm hard pressed to agree that the industry focus on social media is "overhyped." You've missed a huge area of many communities' focus in social media by limiting the scope of the questions to "learning about" or "contacting."

Also, I'd argue that there are other questions missing here that could help in describing the landcape. How many of your respondents are active users of social media? How many of the communities where these respondents live have well-developed social presences? Not sure of the sample size, but if some disproportionate amount of your sample don't use social networks, there will certainly be some projectability issues. If very few communities have strong social presences, how would even the most active consumer of social media "learn" about a community? Perhaps people are seeking out info in social channels but not finding it?

In the end, I'm fairly certain that your overall conclusion (keep focusing on the "basics" and don't be overly distracted by the shiny new objects) is sound. I just don't believe you've supported that conclusion as definitively as you do based on this data.

TG

I think that perhaps I expected very different content when I read the title, than what the blog is actually about... I dont see social media strategies as a resident retention tool at all. In fact, it seems to me that when we think of retention our questions shouldn't really revolve around any type of marketing campaign. After all, most of resident retention (at the property level) has more to do with that property's drivers (location, visibility, price, etc.) than anything else. Resident retention at the enterprise level is something that you may have more control over.

When I work with REITs on developing actual 'retention tools' the goal is; How can we create a sense of SHARED VALUES between my prospective resident or current resident and my client. If we cannot connect with the resident on a level of values, then we are relying on the properties natural attributes for retainage. If none of that works, then we are stuck with relying on price- which is the least effective way to retain someone because, when the relationship is reduced simply to price- we are established as just another commodity.

Resident retainage revolves around assuring the resident that 1. they have made a good decision. 2. that you care about them. 3. that they are safe in your hands.

There is no marketing tool (website, brochure, etc.) that can do that. You have to create a program that addresses these issues- and then utilize a series of marketing tools to convey it. But traditional 'outbound' marketing or social media;'s 'inbound' marketing is only as good connection that you have made. They are reinforcers.

Abraham Lincoln once said "If I had 8 hours to cut down a tree, I would spend 6 hours sharpening my axe."

In other words, spend the time developing the tool that establishes shared values, and the means to convey it will take care of itself. Just a thought.

Great postings Tim and Ross.

Please note this is just our initial research. Here are some things to share.

First, Jen shared the 4th quarter 2009 figures, and these results are based on well more than several thousand respondents. We recently completed the 2009 SatisFacts Index, which is based upon hundreds of thousands of units surveyed. The 2009 SI figures are no different than what Jen shared for the 4th quarter. The sample size is not an issue for the 4th quarter (it was actually our busiest quarter of the year last year!) nor the annual figures.

Second, in terms of users of social media I am sure one would not want to survey social media users and then ask if they use social media. The portfolios we work with represent a true cross section of demographics and the industry - A, B and C class portfolios. While we built our business on random phone surveys, as the years have passed the vast majority of our clients now utilize our online survey programs. That said, at least two-thirds of the respondents in the sample evaluated completed their survey - online. In other words, the majority of the sample used for the SatisFacts Index are residents who are online. I think this data provides a good snapshot of online Americans - these renters use/don't use social media similarly to the rest of the adult population. Many people use social media - for social purposes - but I am not convinced based on all of the research that I have seen that people use Facebook or Twitter to shop and buy. No doubt this is a medium in a state of flux and who knows how it will evolve. We are not opposed to social media by the way - our only issue is that it cannot become a distraction to things that generally are industry weak spots...resident and prospect follow up, the team-based work order process, making sure turnover units are as close to perfect as possible, etc. We have some great findings in the SatisFacts Index on all of this. We know our clients get better and better each year at the best practices that impact retention. The issue is how the industry as a whole decides to delegate its time - on areas that we have proven impact retention or on the more fun angle of being on Facebook every day (lol).

Third, we pulled these results from some standard questions we ask. Keep in mind the number one focus of our surveys is to determine areas of strength and actionable areas that need improvement. The focus of our surveys is on staff, communication and service delivery - the things that one can control the most (vs. product related issues; we also dive into these but the focus is on communication and service). We are actually adding some special questions to client surveys this year that are more specific to the use of social media as a resident and as a prospect. I can't wait to see the results - and rest assured we will ultimately share this with everyone.

Great article Jenn...you always have such a fresh approach to dealing with today's customers. Thanks!

First of all, I love the topic and even though I am an advocate of social media, I think it's good to have a "sanity check" every once and a while.

However, I have to agree with Tim about the element of preferred contact. If I'm asked about what method I prefer to be contacted, even with multiple options, I'm going to assume it is something important. And in those cases, I want something a little more "traditional", such as by phone or email. That doesn't mean that I wouldn't appreciate connecting with my community via social networks - it just wouldn't be my preferred method.

And my other concern is that I see what a LOT of apartment communities are doing via social media. And if I were to guess a number, I would bet that only about 1.24% of them are using it appropriately (or even close). Of course, by coincidence that means that communities that are using social media appropriately are 100% effective! Ok, I'm kidding obviously, but we are talking about a giant shift in how people and businesses interact through social media, so I think it is still premature to say it does not work yet. And frankly, I think that marketing is not the most logical way to use social media to begin with. Resident retention has the potential to be impacted far greater than new leases from social media, in my opinion...

Jen, I really appreciate the conversation you've started here. I tend to agree with Tim -- I think the findings in this survey are valid, but I would suggest that we're asking the wrong questions, and more broadly, that we're trying to use social networking sites in ways that most people don't.

Looking at the questions posed, of course it would be strange for my property manager to contact me with a Facebook message or a DM. I'd probably get annoyed (or creeped out) if some leasing pro left a message on my Wall if they saw that I was looking for an apartment. It's also likely that I'm not going to start searching for an apartment on Facebook or Twitter.

What is more likely is that I'll use an ILS or Craigslist to narrow down my options, then ask my friends (probably via Facebook) if they've heard of the place and what they would recommend. Social media tends to work best when it's like word-of-mouth, not mass marketing. If you have a message that resonates with your audience, they'll likely share it with friends and family. If you don't, then I agree that your efforts are probably better spent elsewhere.

Also, it's interesting to note in your data that text messages are at the very bottom of the list. Sounds like another good topic for discussion there...

Now you are all about to say 'Ross, you are beating a dead horse.' and you are probably right- but after all beating a live horse would just be cruel. So here goes...

The key to social media is creating a content rich environment that draws consumers (current or potential residents in this case) in to our sites, and allows them to interact 'socially' with us. The key questions are:

1. Do I provide an environment in which I am aggregating interesting and compelling information and ideas (kind of like multifamily insiders)that will draw residents to it to contribute their ideas and experiences. Spoiler alert: that is the 'social' part of social media!
2. Is the content on my site compelling enough that non-resident will want to join it, follow it and contribute to it (that is the part that is marketing).

So if the answer is 'no' to those questions, I'm not actually doing social media. What I'm doing is using a social media device to do traditional push marketing.

The purpose of Twitter is not to contact someone, it is to commune with large groups. In this case, I'm simply using Twitter as a texting device. That's not social media.

I love this conversation, but I think that we should first agree that setting up a twitter account doesnt mean we are doing anything. We have to create a strategy which encourages insights and collaboration with our residents so that they feel that our media strategy is an extension of our communities values. Once we make that connection, we must build the blogging, discussion forum, news feed, etc. tools for them to want to belong...and more importantly to get their non-resident friends to want to belong to our community- and That is when social media marketing occurs.

It is not what we 'push' to them that matters in social media, it is what we all contribute that counts. Then again, I could be wrong...

RRB

Ross, I disagree with the notion that "the key to social media is creating a content rich environment that draws consumers in to our sites, and allows them to interact 'socially' with us." My view of social media aligns much closer with your last statement, "it is what we all contribute that counts."

No doubt, that content-rich environment needs to be there, and it needs to be well-kept and regularly maintained. But to have others engage with us, we need to first engage them. People won't magically appear and comment on most companies' blog posts and discussion forums -- we need to jump in first and retweet others, comment on posts by local bloggers, network with local business people on LinkedIn and actively facilitate discussions among those who make it back to our own sites.

That first step of active engagement seems to be missing from this conversation, and I'd argue that we'll continue to see similar data to what Jen has shared here, unless we shift the strategy from creating content to creating conversations (with even messier ROI measurement).

Wow, am I late to this conversation or what? Don't know how I missed this one. So here's the deal. I think the majority is measuring the success of social media wrong. It's not about leads, and it's not like traditional communication. Let's stop and think about this for just a moment. When the majority of the world signs up for facebook they don't think, "Cool, I'll be able to fan my apartment community, or Apple, or Walgreens." Nor do they go on Twitter with the goal to follow a bunch of major brands. They go on these sites to connect with people. An apartment community is not a person, and that is what many are missing. Yet, many are afraid to take the humans that are representing their brands in person and have them represent their brands (as a human) online.

The mistake being made is that the approach to social media from a brand perspective is not being human enough. People don't engage with a brand, people engage with people. Think about that and look at your current approach online. Social media is not like your website or your brochure. It is a place to be a real person, and a person that represents a brand. Instead of measuring your social media success with statistics from counting calls or asking people about a preferred method of contact start measuring on "buzz". Is there a buzz about what you are doing, and are people talking about it. It's the buzz that matters. Just like having a pool party, giving a cool move-in gift, or just offering great service, that creates buzz. We don't measure that, but we know it's critical to our resident's experience. That's how social media works. It's another opportunity to create buzz.

There are definitely plenty of ways to waste time trying to create buzz, and everyone needs a great strategy. I'm tired of hearing about content, content, content. If that content doesn't create buzz and doesn't come across as "human" then you have wasted your time. I'm not saying that content in general won't get you some Google juice, but it's not likely to get you any buzz. And that's what I'm measuring.

On a side note, I do believe that social media sites, blogs, etc. can be built to look like web pages or brochures and they can be used for those purposes. Why not, they are essentially free resources. However, those efforts should be kept separate from ones that your are trying to create "buzz" with. I actually encourage people to have a little bit of both as it can be great in expanding your online brand as a whole.

Jenn, first of all thank you for this post. It's very refreshing as always. When I first saw the title of the post, I can already hear the social media hounds howling. Mention the words "social media" and everyone gets into a frenzy. Our industry has become very predictable that way. Bottom line is, you do what you think is best for your company, social media or not. We're all running multi-million dollar assets here after all.

Isreal,
Well said!

No editorial here...a legitimate question. Cutting to the chase, can anyone provide hard, empirical data on the number of prospects being generated and apartments being rented via Facebook pages and the like? I am a former director of marketing for a top 50, and I have always liked real data as a starting point of evaluating marketing program performance.

GREAT conversation! I agree with several comments regarding the question of preferred vs. acceptable means of communication.

Even though the objective may not be to gain leads and leases, I've confirmed several leases with the use of Twitter as a referral tool and multiple leases with the use of Facebook. I think the reason those numbers aren't higher is simply due to a retention-focused content strategy.

Using social media networks as a customer service tool (like the phone and email) is becoming more popular. Questions are posed on Twitter, like "Are you salting the sidewalks this weekend?" and on Facebook, like "When is XYZ event taking place?"

When most of Americans expect businesses to have a presence on social media, the question in my mind is how can you afford NOT to participate?

@Doug, before we think about "traditional" metrics let me ask you some questions. Why did you buy your last car, what went into that decision process, and why did you buy from the dealership you bought from?

@Doug: It's a legitimate question, but I think it's the wrong one to ask:

Can anyone provide hard, empirical data on the number of prospects being generated and apartments being rented via Facebook pages and the like?

Most people probably aren't going to Facebook to look for an apartment ... but they probably are going there to ask for advice or recommendations from their friends. If you've established a brand/reputation worth talking about, there's a good chance one of those friends might mention your name. That interaction could very well end up with a signed lease, but it will probably be attributed to "word of mouth" or "referred by a friend." No worries, you still got the lease!

(For the vendors on the site, how many sales have you made that you can directly attribute to MFI? If the answer is none, do you still see value in participating here?)

Can we measure the value of a phone, email or website solely based on the number of prospects generated through each channel? They're all ways that prospects and residents can use to communicate with us, just like social media. Yet no one makes the argument that we should stop using email because the majority of emails aren't coming from new leads -- we all know that email serves a variety of purposes that benefit all functions within the business. Once we start looking at social media in a similar fashion (and we look at how prospects are using social media, rather than how we want them to use it), the benefits to business will become much more evident.

To answer your question Mark, I had owned BMWs in the past, and wanted to go back to BMWs after owning a different import. When I moved to Baltimore there was only one dealer close to my home...so I went there, test drove several, picked the one I wanted, bought it on the spot and drove it home.

Thanks for your post Jenn. This has been on my mind alot lately and I am glad you said it. We started implementing Social Media Sites into our communities about 18 months ago and it is very difficult to build a really solid resident following. We have tried very hard. I have been to several big conventions the last 3 years and I have been bombarded with Social Media Sessions. I think it is important to have FB and twitter, but re-designing your advertising plan to accomodate it is a mistake. Lastly, it appears to me that communities that have a SM strategy implemented from the time they start pre-construction marketing seem to have a higher success rate with SM than stabilized communities trying to get tenants to join their pages. I could tell you some properties to look at if you would like tweet me. You get the oppurtunity to get all new prospects and tenants to sign up on your sites when you are leasing to them. Getting tenants to sign up for something that they dont have to do after they have already moved in is very difficult in my experience. Our tenants have lives and they are probably interested in living them rather than browsing throught our facebook pages. Anyway, thats my rant. Get prospects to sign up the first time they come in and you will get more fans. Thanks Jenn

@Doug, so how does that BMW dealer (or BMW in general) measure your purchase in marketing metrics? They can't. It was about the experience for you. The experience you had by owning one in the past, the experience you had in owning a different brand of car, the convenient location making your travel/search experience more efficient, the opportunity to experience the vehicle first hand, and the availability of the one you wanted allowing you to experience instant gratification.

None of that relates back to you doing research online anywhere, talking to people you know that own BMWs, seeing a billboard or commercial, or reading the Sunday ads. Even if those things were to have influenced you it was still about the experience when you made your decision.

That's what social media allows companies to do, enhance the experience. It's not about "selling" anything or "promoting" anything and pushing a message at someone. It's about enhancing the experience and possibly, just maybe, getting customers to share that experience with others by just clicking their mouse. That of course depends on what kind of online experience you are delivering, and that is tough to measure with "traditional" metrics.

The way I see it, the goal with social media is not the lead or the sale necessarily (that is ideally an indirect result.) It's about creating more value. Creating more value for a brand or product that a customer currently lumps in a pool of other brands or products as a commodity. Having a unique human voice and maximizing communication channels available to us just makes sense if we're trying to differentiate ourselves beyond location, price, features, and amenities.

If we can use these tools to build more value then we should experience the ability to charge more for our product, have less pressure to "sell", and see increased demand. All of this by just being better people, and providing better experiences. Thus, putting less pressure on expensive product enhancements, overpriced marketing advertisements, and price.

The beauty of all this is that it can be copied, but never duplicated. My voice is different than my community managers' voices, and the voices of another company is different than ours. There is no cookie-cutter approach because we're not a society of robots. We have the opportunity to take our product and give it a unique voice vs. canning it up and making it look like all the others. Some may disagree or just not get it. The metrics might not ad up or it may be difficult to measure. But I'm OK with that. To me, it just makes more sense, just like it made more sense for you to buy another BMW.

Love the conversation...this is great. I know I have my beliefs, but it is invaluable to be exposed to divergent views on this. Seeing all of the different thoughts is really valuable and thought provoking.

I failed to mention that the dealership I visited was new and I saw their ad on TV - I hated my other car and the ad got me motivated to visit. I am sure BMW and the dealer want to know which advertising and marketing programs are delivering qualified prospects - so they can get the most return out of their budget.

I am not against social media. I know there is some value. How much, I don't know. Today is it delivering value? Not sure. I look forward to seeing how this develops. If it can become a really valuable tool, great. I know you can't measure everything. Sure, and not everything needs to be measured. But given limited time and resources, I am sure you would agree that those areas that are known to have an impact warrant priority attention over things that have an unknown value/return (today).

My biggest concern is the often-time OCB related to social media. Oh, it's sexy. It's a hot topic. And, yea, it's more fun to focus on than submitting detailed work orders and making sure toilets are fixed properly and promptly.

But there are much bigger fish to fry, like getting leasing associates to follow up with prospects and residents. Getting staffs to have more than 20, 30, 40 or 50% of their resident (correct/current) emails and cell phones in the pm system.

My concern with SM is that for the typical property it is a distraction to the things that really impact property performance. Fun, sure! Impactful? Who knows? But until we know, until we see residents and prospects showing/sharing their value, I will continue to question where it belongs in the pecking order. Our research shows where attention is needed...today. And it shows this isn't about not focusing more attention on the hum-drum day-to-day basics of customer service. Again, yawn, great/detailed work orders from the leasing staff, returning resident phone calls and emails the same day, fixing broken toilets promptly and properly are boring topics - but that's more important...at least today...than SM is in terms of impacting bottom line financial performance given the "ginormous" NOI hit vacancy/turnover causes.

And don't forget about property portals which can/should be loaded with online functionality that residents want (online work orders, rent payment, email the manager, property updates, etc.). There is a great deal of money invested in these powerful service delivery tools, tools that are built to help residents when they need it, 24-7. Portals and Facebook pages. Where should our time and resources be spent? What delivers more of what residents really want...today?

Tag, you're it. I am all ears...love this conversation...Jen thanks for starting this conversation!

@Doug Yep, you're right. All of those things need to be focused on and those "yawn" services need to be improved. That is all part of social media as well (in a roundabout way). I don't think anyone is saying that social media is the saving grace of apartment communication. It's just another channel people have an opportunity to tap into. The power of it and the Internet in general is bigger than any of us can probably fathom today! There is a smart way to apply the tools and having a strategy is critical. It's not about "hanging out" on facebook or Twitter, and it's not just about facebook and Twitter either. And those property portals you are talking about are, or at least should be, a social media tool themselves.

As far as time and resources, is 30 minutes a day too much to ask? That's a question for any on site folks that have tolerated this conversation so far.

Great conversation everyone BTW.

I am not a site person, but given how many people outsource CL postings, I don't know how realistic it is for people on the property level to spend 30 minutes a day (on something that requires a lot more imagination that CL postings). It can if something else gives or management is really monitoring it.

Personally, I work 50-55 hours a week, have a lot of flexibility and am committed to social media, but I don't think I'm getting in 30 minutes a day.

I am having a meeting with a 5000 unit property management company on Monday which is going to start having their property level people do social media. The point of my visit is to try to get them to use a tech tool that will help them track that people are actually posting, what people are writing in comments, Yelp, etc. It's an inexpensive proposition and mgmt is resisting. But I know the site level people. This is a very old school workforce and the overwhelming majority of them will let social media chores slip if no one is watching. So even if mgmt decides a commitment to social media, even 5 minutes a day, is realistic, how do you know site people will follow through?

This discussion continues to be valuable...new ways of looking at things. A couple of quickies, then I am going to go dark for a bit...I'll explain.

Don't mistake my questions for not being in favor of expanding communications to residents and prospects. One issue is that since the average leasing associate already does not do a great job of communicating with either, adding another thing to do will not help...and I doubt they will make proper use of the SM too (although I am sure they will love being able to chat with their friends all day online - since its likely acceptable to have FB open all day now - oh, yea, it's for work - lol!).

I think a FB page, for example, can be valuable as long as it is kept simple, from the staff standpoint:
- Post/introduce new staff members.
- As needed service announcements ("Please note the back lot will be inaccessible for the next two days as it is being repaved...").
- Do regular reminders about the online services available on the property/resident portal (online work orders, online rent payment, etc.).
- Promote residents communicating with each other - creating a greater sense of community, friendships, etc.
- Post approved quotes from resident emails and things like your resident survey/feedback programs.
- Then...get back to work returning resident and prospect voicemail and email messages, following up with residents and prospects, submitting work orders, going on tours, etc.

It will be intriguing to see how SM like FB and Twitter evolve, although I do question whether this will become a S(ales) Media (not referring to sites like RentWiki however – this is an ILS with an interactive/social component which I find valuable). While this medium evolves over time, there are still $10-$20,000,000,000 (yes billions) of multifamily notes that are at risk of default...today. These assets must focus on how to improve NOI today, and doing that means focusing on things that have been proven to offer validated returns on investment.

I was so fortunate that early in my career in multifamily, a management company called Gates Hudson invested heavily in having me work with top end strategic and marketing consultants. One of the great lessons I learned was that during a time of challenge, the key starting point is "maximizing the use of existing resources." Said another way, we need to maximize performance using the tools that we have that we know work. There is no magic wand that will cut costly turnover and jack up prospect conversions. The "existing resource" to maximize are the best practices that are known to help reduce turnover and increase rentals. Doing this requires focus and minimizing distraction.

Lastly, I have talked about the risk of SM being a distraction to doing what matters most. I proved this to myself in the last 24 hours. I have spent well over an hour writing and reading the posts in this discussion. At what expense? I had numerous client and staff emails and other tasks that got put on the back burner. Was it fun to participate? Yes, great, eye opening discussions. Did it divert my attention from things that need to be done...today? Yes. So, I will be signing off for a while so I can take care of business.

Doug, I just threw up. Paragraphs 4 and 5 sound like a conversation the local newspaper has had the last few years as they continue to lay off people. Everyone's perception is unique, but this is my interpretation of your last comment.

You are suggesting that people just "focus" more on things they apparently can't do. To motivate them we should threaten them with loan defaults and the fact that we don't trust them using new tools because no one has given them a script to follow. And to improve NOI we should invest in things that historically are proven to offer returns (and that's worked out so well for the newspapers, the record business, and the airlines.) Sounds like a frustrating dead end path to me, and a really cynical way to view management strategy.

We can't afford to market or manage things the way we have always done it. The best companies are inventing and creating, not doing more of the same. The Huffington Post is blowing away traditional newspapers, Apple has dominated with iTunes, and Southwest seems to be the only airline people talk about in a positive way. And you'll have to do some serious research to find evidence that any of those companies are successful today (in this economy) because they "focused" more on the same.

From my perspective, this conversation really isn't about social media or not believing the hype. It's about being brave enough to stand out and not fit in. Jen did an awesome job doing that with this post and inspiring discussion. Whether the metrics, the study, or her analysis is on point is irrelevant. She delivered, she stood out, and she inspired others.

I would say that right now companies/properties have an opportunity to do the exact same thing Jen has done here. Whether they do it online or offline that doesn't matter. What matters is that they invent, create, deliver, and inspire. They add "More Cowbell".

http://www.buzzhumor.com/videos/28180/More_Cowbell

Mark, I don't think Doug is suggesting communities focus on anything that should be considered a "dead end". His focus is primarily on maintenance and responding to residents, which he can provide plenty of stats to prove that a significant percent of communities still have a woeful grasp on.

Doug and I have talked several times about this issue, and I think that you are essentially talking about two different types of communities. Doug works with this massive segment of our industry that still can't seem to get the basics right. You work for a company that has controls/processes/etc in place and actually follows through with the basics. So from your point of view, you need to progress and innovate, which is completely correct. But for a dysfunctional community, I'm with Doug that much of social media should be a plan down the road, not the present.

That said, I still think there is significant amount of innovation potential with these struggling properties to think of new ways to inspire their teams to get the basics under control. But I'm not sure adding another layer of social media is necessarily the answer for them at this point.

(Note: I do think that there are some basic levels of social media that are appropriate for any community, such as claiming your page and reputation management, but I'm discussing creating far-reaching social media plans versus focusing on the basics for communities that aren't quite there yet.)

Wow! Talk about a lot of views, feelings and opinions...
What I got out of this is actually quite simple. Social media is something you simply cannot ignore. Why? Because your customers use it!
Does that mean we need to measure ROI? Not sure and actually not sure you can! As much as I would like to be able to measure everything and cut or enhance marketing based on performance it is not always possible. I think an early point point that Mark brought up is that it is a human network. This makes it challenging to integrate a business in it in many ways.
When it come to social media there is no question that you have to manage it and it will take time (money). The last thing you want is a fanpage about your community that is not yours... You also need to go in a read what is being said.
Social media is both an opportunity and a liability in many ways. Suggesting that it is potentially a poor investment could result in having to play catch up later on or have to do damage control.
An example of that would be the whole URL games that took place in the 90's. Companies that were not in front of the internet revolution found themselves with sites about them that were not theirs. While in the early 90's that may have not been a very important piece of their marketing I can assure you that these lapses are proving very expensive today for those who missed it.
Everyone will have their own way of managing their social media, that being said not managing it should not be an option!

@Brent Good point. Not every company is even meeting "spec". And I understand Doug's position. Focus on meeting spec first and then social media. Where does that end though? Focus on building a better website, then social media. Focus on better follow up, then social media. Focus on better service, then social media. Focus on better policies, and then social media. Focus on better software, and then social media. I could go on and on and on. These are all excuses.

What I'm saying is that "focus" isn't going to change behavior to surpass "spec". Even if you change focus to meet spec on every process you can think of, you're still just average, meeting spec. It will look like improvement, but you're still leaving so much on the table because you need people to look beyond spec. More systems and controls (focus) just help you meet spec. While a foundation is important, it's more important to inspire people to look past that and look past it now, not later.

I put the "More Cowbell" link in there not because it's funny, but because it's relevant. I also just made a new post here about looking beyond spec as it relates to American Idol.

Again, thanks to everyone for a spirited discussion. I really have enjoyed it.

http://www.multifamilyinsiders...Idol-.html

@Mark – So much for “going dark” for a couple of days – lol! I love that there is so much passion around this topic. And thank you, Brent, for your comments. I could not have said it better myself. I don’t want anyone to walk away from this conversation believing that I think social media is a complete waste of time. We are big supporters of all new technology that helps to improve performance (resident portals, online functionality, leasing call centers, etc.). I know there is value to social media - and I am all ears in the discussion of defining how, when and where it can best be utilized since it is clearly a powerful new medium. I am learning more and more every day, hearing perspectives like yours, and it is exciting. My own thoughts are morphing nearly daily, as I am sure they are for many - discussions like this help. As I have tried to say (and maybe not as clearly as I would have liked), my concern is with burdening staffs when they are already not meeting expectations in critical basic areas. I am confident the typical leasing team member is very capable of being a service super star. Education and setting priorities are critical…keeping eyes focused first on the basics. When the basics are handled well, then time can be directed to new areas. In the meantime, can certain designated people within the organization, maybe at the corporate level, be the ones to look “beyond spec?” I don’t know the answer to that, but I really appreciate the ideas you’ve presented here. Thanks for a great discussion!

@Doug I think it's everyone's responsibility to look beyond spec. For example, if I want to be a rock star leaser, I'm not going to wait around for someone to show me how. And if someone gives me some tools (training/cowbell) to be a rock star leaser, I'm going to play the hell out of that cowbell and bring my own personality to it. And, yes, if I want to be a rock star manager or regional, I'm not going to wait around for some V.P. or the President to tell me how. I'm going to innovate and reach beyond spec while inspiring my team to do the same and play the hell out of the tools they have been given.

We're not running factories here punching out widgets. We are operating communities of customers. Customers that require one on one customer relations on many different levels wearing many different hats. Training and "best practices" can be implemented, but we all know (and sometimes have a difficult time admitting) that these programs are just the bare minimum to get the job done to spec. When did spec, or average, become acceptable?

A couple weeks ago I shared a statement on my facebook page. I think this definitely applies to what you guys do at Satisfacts.

"The reason I measure performance is not to see if you can meet expectations but if you can exceed them."

@mark To touch on some of your points, and clarify where I am coming from...hope this helps. Our focus is on instilling/enhancing "a culture of responsiveness" throughout a client's organization. Every client review session, every client webinar, every educational tool, every article we write focuses on the critical role direct, personal, responsive one-on-one communication has on performance. As Brent pointed out, there are world class service providers in the industry. We are fortunate to work with quite a few of them. And there are those not there...yet; when we speak about best practices and industry needs, we are especially talking about this segment. And then there high scoring operators who desire to get to the next level - our highest scoring portfolios have a significant desire to ever improve, which I think is why they score so well. Note that only 5% of properties achieve "Exceptional" scores, about 50% "Superior" and the balance earn "Average" (a few "Warning" and "Red Flag"). This reminds me of a client. The first year they achieved a strong "Superior" score; the second year they rose to nearly the "Exceptional" level; and turnover dropped a whopping 6 points in that period (5,500 units x 6% = 330 fewer move outs x $4,500 = a $1,485,000 NOI increase and $18,562,500 increase in asset value). Or another client with 15,000 units that saw scores grow from mid-average to superior over several years - and saw turnover drop 9 points. We take on the role of lumberjack, cutting down trees to educate/remind about areas that really matter, areas have the greatest impact on satisfaction and retention.

My points are based on monitoring results from the more than half a million class A, B and C units we survey yearly. There is a clear, measurable impact...my rantings (lol) are based on our findings from surveying millions of units over the years. We preach a focus on communication and responsiveness. It might be helpful to understand where I have been coming from/what findings are driving my perspective. What impact has focusing on actionable best practices had on the SatisFacts Index (our annual benchmark) and turnover?

- A greater focus has led to SatisFacts Index scores on staff promptly responding to calls and emails growing from "Average" to “Superior.” This matters as of all of the areas we evaluate, this has the #1 impact on renewal likelihood.
- Likewise, greater focus has led to staff follow up on “completed” work orders to increase by nearly ten points in just the last year. This matters because this has the #2 impact on renewal likelihood (issue/risk comes when no follow up).
- Due to the above and other best practice improvements, the overall SatisFacts Index satisfaction score has grown from high "Average" to “Superior”.
- This matters because of satisfaction's strong correlation with renewal likelihood. The improvements above has led to “very likely” to renew scores to grow and “not likely” to renew to drop.
- With rare exception, and regardless of past performance, client scores in these areas grow year after year as staffs adjust focus/priorities, with particularly significant improvements when comparing first and second year scores.
- Our top 15 scoring clients’ scores for “very likely” to renew is 7 points higher than the SatisFacts Index.
- We work with a diverse collection of firms. All are committed to improving service and monitoring performance from their customer's perspective.
- Bottom line, clients average over a 9 point lower turnover rate than the NAA Annual Income and Expense Survey reports - they achieve this because regardless of where they were, they continue to try to max out regarding the best practices we espouse. They are so committed...it is exciting to see the impact of their efforts!
- Given that clients achieve superior turnover results and about 55% of properties win an award, it's reasonable to say properties that have higher turnover are likely not delivering the same level of service.
- In other words, it's likely a healthy percent of the industry needs to focus more attention on the things we talk about and clients are passionate about.

I hope this helps to clarify where I am coming from. It will be exciting to see how SM can enhance communication with residents and prospects - and like I've said, I am not yet exactly sure how, but discussions like this help to broaden perspectives and formulate ideas.

From my observations and experience, Facebook as a real traffic source for apartment communities has not made any impact. The comments to this point along with Jen's initial remarks seem to echo my opinion. On a different note, Facebook has allowed me access to individuals, even in the evenings, who would never return a call or email during the work day. Interesting....

Reveling the afterglow of the @MultiFamilyPro Optimization Summit, I'll share some Social Media takeaways.

First and Foremost: Pokens ROCK. Heh.

Negative Reviews are on open door to giving you permission to tell people why you don't suck. (Brent, I hope I don't get Gong-ed from the blogosphere because I just said "suck".

PEOPLE are the Killer App. Nothing beats WOM.
There's no gray area when it comes to customer service.
Engage diversity.
Address negative issues head on.
Pretending negatives don't exist won't make them go away.
Put some skin in the game.
Go where the conversations are happening.
Any conversation can go Global at any time.
RockStars have fans and are fans.

I have NEVER felt that my social media exploits were a value add with regard to landing tenants. I have had multiple offers of private money and joint ventures as a result of my facebook page (http://www.facebook.com/Advent...RealEstate) but have landed only a single new tenant from it even though I have been declared a "RockStar". I can't and won't discuss tenant issues directly with a tenant on my page so it doesn't work for that either. This subset of our society uses the net to research, but there is still too much direct face time necessary to provide service, close a deal and earn trust.

@Douglass
There is no doubt that personal interaction stay as a cornerstone of any marketing effort. The way I view social media is simply this: An opportunity to engage and connect. After that you have to absolutely focus on how you will convert these connections into prospects.
Social Media does not replace interaction but it should be viewed as way to increase your presence and your brand. This is still a new real in marketing strategies and we are starting to figure out how to properly leverage it. At the end of the day good social media strategy should result in increased traffic to your site and most of all give your resident ownership of your brand.
It is critical to keep our eyes on the ball and provide an exceptional experience when the first live interaction takes place to convert that effort into leases.

Greetings followers of this amazing discussion. Mark Juleen and I wanted to provide an update. If you have been following this discussion, you are aware both of us were sharing a great deal about our thoughts and “positions.” After many postings, Mark and I got “old school” and talked on the phone. We found the conversation so valuable; while it appeared we agreed on little, it turns out we agree on much more than we had divergent views about. We wanted to share some of what we got out of the process and also agreed on.

- While both having strong opinions, we both also have tried to be very open minded as social media is such a work-in-process, evolving daily. As a result of the discussions, we each broadened our perspectives.

- One thing I learned is that talking about social media is like, say, talking about transportation…a very broad topic! Transportation includes planes, trains and automobiles; likewise it involves topics like speed of travel, ease of travel, cost of travel. Social media is also such a generic term, so one needs to break it down into its many alternatives, components, uses. Some social media has leasing uses, some marketing uses, some retention uses, some service uses…some you control, some you cannot control, some corporate staff should handle, others on-site, etc.

- For example, think about the social media component of apartmentratings.com…while this permits upset residents to vent, it also helps shoppers make purchase decisions…no differently than hotels.com; of course the key is to satisfy residents so that ratings are as good as can be expected from sites like this. Other social media angles - how RentWiki lets people provide feedback about a community's neighborhood; YouTube videos for prospects; and there are ways to use social media to communicate with residents in a valuable way, whether messaging or trying to have residents connect, such as with Property Solutions' social networking component of their resident portals.

- One of the biggest issues is to have a strategy and process – one must ask what role the corporate office can/should play versus what the on-site staff has the time and skill sets to handle.

- I personally reviewed Mark’s resident portals and found them to offer great online services, easily accessed as well as a sound, not overly cumbersome messaging component (loved that he has moved from written eletters to online versions with resident and service focused content). This was a great example for me about the need for strategy, program and process – which Mark has accomplished.

- Mark shared his appreciation of not assuming staffs industry-wide are consistently communicating at key touchpoints – the need to, and value of, following up with residents and prospects – and that caution must be taken before adding more responsibilities to staffs…versus a program that makes the best use of corporate and on-site associates.

- That “managing your online reputation” has to do with focusing on the service you deliver to your residents, not by trying to use a Facebook page or combating ratings on apartmentratings.com – deliver world class service and everything else ultimately takes care of itself.

- That social media today has a variety of purposes, that can deliver value when well planned and executed…and that social media and its uses will continue to evolve and morph over time.

Mark and I are so glad we talked...communication is a beautiful thing!

@Doug and @Mark
The last line says it all. It is all about communication and interaction.