COLDWELL BANKER® STUDY FINDS CUSTOMER SERVICE IS KEY TO REPEAT BUSINESS

Consumers Change Providers Based on Bad Service Nearly As Much as on Price

PARSIPPANY, NJ (Monday, December 13, 2004) - With the holiday buying season in full frenzy and cash registers ringing, American businesses should continue to make customer service a priority according to a recent Coldwell Banker® Customer Service Study. In fact, nine out of 10 consumers surveyed declared that great customer service is “very or extremely” important in deciding whether to give a service provider repeat business. Additionally, United States consumers indicated they change providers because of bad service (32 percent) nearly as often as they change businesses for lower prices (38 percent).

Despite the importance of satisfying the customer, it does not appear that U.S. companies are properly gathering vital consumer feedback. In fact, only one-quarter of surveyed consumers reported having frequent opportunities to voice their opinions on their service experiences, while one-third reported they had infrequent opportunities to do so.

These are major findings of the recent Coldwell Banker Customer Service Study, an online survey of 555 U.S. consumers who have bought or sold a house anytime within their lives. Conducted by Harris Interactive and commissioned by Coldwell Banker Real Estate Corporation, the study measures consumer expectations and perceptions of overall customer service in a number of different industries.

From Bad to Great
The Coldwell Banker Customer Service Study revealed a strong correlation between the quality of a compan's customer service and its long-term success. According to the findings, the average U.S. consumer switched businesses they dealt with twice in the past three years due to “bad service.” When asked to define the differences between great and bad, consumers said the top characteristics of companies with “great service” were:

Resolving questions and problems (66 percent)
Knowledge of the product or service (49 percent)
Being easy to reach (35 percent)
Understanding requirements (35 percent)

Conversely, top characteristics associated with “bad service” were:


Inability to resolve questions or problems (46 percent)
Being unavailable/difficult to reach (38 percent)
Needing to deal with multiple people/departments to resolve problems (37 percent)
Lack of product knowledge (34 percent)
Unprofessional demeanor (33 percent)
“Service is king, and it can make or break a company,” said Jim Gillespie, president and chief executive officer for Coldwell Banker Real Estate Corporation. “Nothing beats knowledge, experience, problem-solving and responsiveness. Combining that with good manners usually wins a customer for life. It is one thing to talk about excellent customer service, but it is another to demand it and maintain it as a key element of an organization's culture.”

Calling All Industries
The survey examined several industries where customer satisfaction is most important. Banking (73 percent), retail (59 percent), utility companies (57 percent) and insurance companies (57 percent) were ranked the highest. Banking scored particularly high because almost nine out of 10 respondents reported dealing with a bank at some point in their lives, more than any other business segment. Thirty-eight percent of consumers indicated that customer satisfaction is important when dealing with a real estate sales associate.

Real Estate Customer Service
The survey found that the top five most important customer service skills associated with buying or selling a home are:

Listening (58 percent)
Helping to select a home based on their requirements (48 percent)
Helping consumers understand the buying/selling process (34 percent)
Listing of the property/advertising (28 percent)
Market analysis (26 percent)
When compared to all real estate agents combined, Coldwell Banker® sales associates received higher scores on four of these top five criteria. In general, the Coldwell Banker study found that the quality of customer service in the residential real estate segment has remained about the same (69 percent) as in the past, while 16 percent believe service levels have increased and 15 percent said they have declined.

A Shining Star in Real Estate
Coldwell Banker received high marks across the board for its customer service. Coldwell Banker sales associates received higher scores on four of the five most important customer service attributes (communications skills, selecting the correct home, marketing of property and professional analysis), compared to all other agents. In addition, homebuyers and sellers who have used Coldwell Banker in the past are more likely to use the company and the same agent again, compared to those who used other agents/brokerages.

Methodology
Harris Interactive conducted the research online in August 2004 with its sample drawn from the Harris Poll Online (HPOL) panel of double-opt-in* respondents. Qualified respondents needed to be U.S. residents, 21+ age, had bought or sold a home, and do not work for a real estate company. The margin of error for the Customer Satisfaction Study is plus or minus 4 percent.




*Double opt-in: After HPOL panelists initially agree to join the HPOL panel, they are asked to confirm their intent, thus opting-in to the panel two separate times.

Since 1906, the Coldwell Banker® organization has been a premier provider of full-service real estate. In 2004, Franchise Times magazine's prestigious Top 200 issue ranked Coldwell Banker number one in real estate and number eight among all franchisors. The Coldwell Banker System has more than 3,800 residential and commercial real estate offices and 123,900 Sales Associates in 28 countries and territories. The Coldwell Banker System is a leader in the industry in residential real estate, and in niche markets such as resort, new homes and luxury properties through its Coldwell Banker Previews International® division. It is a pioneer in consumer services with its Coldwell Banker Concierge® Service Program and award-winning Web site, www.coldwellbanker.com. Coldwell Banker Mortgage is one of the largest telephone/web based lenders in the country and the Coldwell Banker Commercial® network is an industry leader in providing commercial real estate solutions that serve the needs of tenants, landlords, sellers and buyers in the leasing, acquisition, disposition and management of all property types. Coldwell Banker Real Estate Corporation is a subsidiary of Cendant Corporation (NYSE: CD). © 2005 Coldwell Banker Real Estate Corporation Coldwell Banker® licensed to Coldwell Banker Real Estate Corporation. Each office is independently owned and operated except for offices owned and operated by NRT Incorporated.

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