Staying relevant can be a challenge for any business, particularly one that has been trading for 50 years. But, as Laing+Simmons general manager Leanne Pilkington, says “Franchising, not just in real estate, has changed, and franchisors must re-invent themselves to remain relevant.”

She says “In the real estate industry, we are experiencing a shift away from the one-size-fits-all approach of the some of the larger chains, which in some cases are reaching a critical mass in terms of their market saturation.

“Franchisees are increasingly realising they have the opportunity to be more strategic when deciding on a franchisor to align themselves with, taking into account the way they prefer to operate their businesses, the support they require and the values they hold.

“The most successful and strategic business people no longer focus solely on the brand and image of a potential franchisor, but rather the support, systems and culture that the franchisor can provide,” she says.

In evolving and rejuvenating its franchise offering, Laing+Simmons began the process by rebuilding the brand.

The business changed ownership in May 2012 when the Canberra based Dexar Group which owns the Independent Property Group purchased the NSW group of Laing+Simmons real estate agents.

Pilkington’s first task under the new owners was to address the questions of why and how to attract people to the brand. Franchisee collaboration was a fundamental part of the process, though achieved in an informal fashion. 

“We’re a small group, 37 offices, so we speak a lot. I know most of the franchisees really well, I’ve been there 19 years,” she explains. “We’ve had some very open conversations about what they need as business owners.”

First was a major rebrand, which changed the look and the feel, although not the colour: a franchisee focus group voted overwhelmingly to keep the distinctive yellow for all property related material.

“We felt the brand needed to be more sophisticated in the market. We’re close to the brand, we see what goes on in the field, we could see it was time to become more sophisticated and provide our franchisees with more sophisticated tools.”

With the refreshed brand in place, the company then set its sights on investing in and rolling out a coordinated suite of other initiatives including a new Visual Business Framework designed for its functionality, relevance, ease of use and capacity to add value for the franchisee.

What this system provides is a complete outline of the communication agents have with their clients throughout the lifecycle of that relationship.

“As part of our strategic growth strategy, we have invested significant resources in developing the best systems and tools to enable our existing and new franchisees to do what they do best and focus on their businesses,” Pilkington says.

One such tool is a new App which acts as an internal resource library for agents; it includes training videos and audios, marketing materials, letter templates and an array of other resources for agents to access at their convenience.

STAFF RECRUITMENT

Pilkington’s wish list also included a recruitment resource to employ and retain good staff without turning to the common practice among estate agents of poaching successful staff from other agencies. “We don’t believe that’s the right way,” she says.

So the business developed a 12 month training program. Within six weeks there have been three sales people signed up and another six at interview stage. “Real estate agents [recruiting for staff] have focused on sales but we’re hiring for attitude and culture,” she says.

This directly targets an area in which franchisees have expressed the need for support.

“The Laing+Simmons recruitment service for our franchisees goes further than a traditional service, in which employees are placed and forgotten, effectively shifting the burden of ongoing training and professional development back to the franchisee,” Pilkington says.

“Our service covers the initial hiring and training period while making ongoing training available to each recruit. The continuing professional development of all Laing+Simmons employees, top to bottom, is something we actively encourage.”

It is only through adding genuine value to franchisees that the company can achieve its sustainable long term growth objectives, she says.

“By working together with our franchisees to understand exactly where they require greater support and tailoring our service offering accordingly, we’ve ensured our investment will hit the mark.

“The evolution of our franchise offering has effectively re-energised our franchisees and the results they are already achieving on the back of these initiatives are encouraging,” she adds.

“Culture is so important in a system and has been undervalued. Consistency from the first phone call is a good way to build a stronger franchise system.

“One of the key things is this is not just the world according to Laing & Simmons, we’ve taken best practice from other real estate agents and others. We are going to work one-on-one with our offices, rolling this out across the network. We send email tips once a week on how to use the info and the manuals and we’re finding the engagement is really positive.”

ADVICE TIPS

Pilkington believes it is paramount for franchisors to refresh their offer to stay relevant and attract good franchisees.

“Franchising has changed a lot; people don’t need franchisors to provide the same services.” As a franchisor you have to be committed to change, she says.

And the starting point is simple:

“Have a realistic look at what services you provide. Consider what are the pressure points for your franchisees and how best you can use technology.”

What innovations have you brought into the business to aid franchisees? You can let us know by emailing: sarah.stowe@cirrusmedia.com.au