Transcript Slide 1

Innovative Marketing Techniques for Buyer Representatives

A Program brought to you by The Real Estate BUYER’S AGENT Council Of The National Association of REALTORS ®

Innovative Marketing Techniques

• Housekeeping – Before we begin… – Breaks/lunch – – Participation Language & Anti-trust – Pagers/Phones

Top Ideas:

Use the space provided to list the top marketing ideas that come to you throughout the course.

Course Objectives

• •

This course addresses marketing for the buyer rep keeping the buyer’s interest in mind. The course is broken down into an introduction, three modules and generous resource section including two optional modules.

Innovative Marketing for Buyer Representatives •

The introduction

will establish an understanding of innovation and describe rules to follow in establishing and implementing a marketing plan.

• •

Module One

will provide resources and an understanding of how to analyze your market and the market trends.

Module Two

will provide a focused approach on how to utilize horizontal and vertical marketing strategies.

Module Three

will help determine the best way to uniquely position yourselves in the buyer representation business.

Class Brainstorm

What is marketing ?

What is marketing ?

Marketing defined:

Attracting prospects through the implementation of a systematic plan that uses a mix of activities.

Marketing requires:

Patience

– – – –

Flexibility Commitment in writing Planning Measurability

What is marketing ?

The Marketing Action Plan

– – – – – –

Strategy Budget amount Proposed marketing activities Price plan for activities Timelines Tracking System

What is innovative?

Innovative is defined as:

– Creating value out of ideas, products, services or different ways of doing things

What is innovative?

Creativity requires:

– – An open mind Free of preliminary judgment – Consideration of all ideas and possibilities

The Rules

• • •

Change Perceptions to See Things Differently Ask Questions and Test Assumptions Tap Into Other’s for Ideas

The Rules

Tap Into Other’s for Ideas Two Heads Are Better Than One

– – Art Fry and Spencer Silver worked for 3M. Art needed a way to mark his place in a hymnbook. Art used a piece of scrap paper that he continually lost. Spencer recommended that Art try a “failed” glue on the paper to hold his scrap paper in place in the book.

Post It® notes was created… Two heads were better than one.

The Rules

• • • • • •

Change Perceptions to See Things Differently Ask Questions and Test Assumptions Tap Into Other’s for Ideas Eliminate Negative Thinking and Self Sabotage Take (Calculated) Risk Measure Your Success

The Big Picture

• • • • •

What are you trying to achieve? Is it working? Are you successful? Do you need to reevaluate your priorities and goals? What do you want to ‘walk away with’ from this course to help you achieve your ultimate goals?

Module One: Today’s Home Buyer It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.

Charles Darwin

MODULE ONE: Today’s Home Buyer

Save time and $$$

– – –

Identify your market!

Trying to serve everyone is impossible. Who are today’s buyers?

What do they think is important?

What are some basic marketing fundamentals?

Brainstorm Activity

What’s different about today’s home buyer vs. 10 years ago?

Marketing vs. Sales

• • •

“Selling” is defined by Wikepedia as “a practical

implementation of marketing”

Marketing is the foundation of sales. Effective marketing approaches should mirror sales approaches

Buyers were different 10 years ago so effective marketing should also be different.

Should the approach to sales be the same as 10 years ago?

Old Sales Model vs. New Sales Model

• •

Old Sales Model

Included tips, tricks, gadgets or techniques to “get the attention” of the consumer.

• •

New Sales Model:

Build rapport and trust in the beginning and throughout.

Out With The Old, In With The New

Old Sales Model New Sales Model

During the consultation phase, focus on the needs of the buyer. Identifying the needs and desires of the buyer will lay the foundation for discussing the

1. Trust 40% 3. Presentation 30% 4. Closing 40% 2. Consultation 30% 3. Presentation 20% 4. Commitment 10%

Note: This information was inspired by Brian Tracey at www.beststeps.com

Attracting Potential Buyer Clients

• •

Identify:

– – –

Who are they? Where are they? How do you make contact?

What do they want?

Who Is Today’s Home Buyer?

Home Buyers Are Seeking Buyer’s Representatives

Home Searching Facts

Home Searching Facts

• •

Buyer’s Representatives are in demand. Many buyers signed a buyer’s representative agreement.

The majority were repeat buyers who used an agent in a prior transaction.

Buyers who signed an agency agreement had a high rate of satisfaction because the agent’s performance matched their expectations.

WWW.REALTOR.ORG

TIP: For on-going research visit www.realtor.org

and review the field guides.

Home Searching Facts

Snapshot of the typical home buyer who used a buyer representative.

– – – –

General Buyer Information

The buyer wants the agent to find them a home.

The buyer first learned about their home from their agent.

Many buyers surf the Web for homes before contacting an agent.

– – – Buyers want an Internet savvy agent.

Buyers expect to use the Internet in future home searches.

Many buyers said they planned to use real estate agents as an information source in future transactions.

Buyers’ Information Sources

INFORMATION SOURCES USED IN THE HOME SEARCH

90% Real estate agent 77% Internet 71% Yard sign Newspaper Home book/magazine Open house Builders Television Relocation company

Buyers’ Information Sources

WHERE THEY FIRST LEARNED ABOUT THE HOME PURCHASED

36% Real estate agent 24% Internet 15% Yard sign 7% or less 5 other categories

Purchase Factors (reasons for buying) • • • •

Neighborhood Price Work accessibility Schools

Buyers’ Primary Motivating Factors

Reasons for making a housing change:

– – –

Job relocation Want to own More space

Investment/Tax deduction

California Association of Realtors® buyer research

Market Related Factors Influencing the Home Purchase (CAR)

– – – –

Interest rates (high or low) Anticipation of future benefits Economic improvement Repeat buyers want to use equity gains to trade up

Individual Activity

What Today’s Home Buyers Want

Quick survey. Write down what you perceive as the one, most important service you perform for buyers.

Buyers want help with…

– – – – – –

Finding the right house Negotiations Paperwork Comparables Affordability decisions Financing 58% 9% 9% 12% 4% 2%

Make Services Tangible!

• •

Reduce your service to writing, e.g. email, follow up letters or text messages. This will give the buyer something they can see or touch.

Communicate often and convey value!

Understanding Today’s Home Buyer

• •

Clients are stressed due to problems in various areas of their lives.

Buyer’s rep must identify and understand the problems in order to offer the right solutions.

Understanding Today’s Home Buyer

Problems Live in a fast paced world Are under high stress in their jobs and personal lives Have time pressures and constraints

> > >

Solutions Build relationships. Recognize Consumers as human beings first.

Reduce consumer stress. Communicate regularly Save the consumer time. Show why they should use only one buyer rep.

Have low service expectations

>

Overwhelm buyers with service.

Proactively communicate

Where Are The Buyers?

How Are Buyers Finding Their Buyer Representatives?

– Most buyers use the first agent they interview – Most home buyers with

buyer representative agreements

stayed with one licensee throughout the home purchase transaction

Most home buyers…

Most home buyers with buyer representatives were satisfied with their real estate professional.

Most home buyers who signed a buyer representative agreement were satisfied with the services.

Where Are The Buyers?

• 1.

Referral and repeat business is at the core of the real estate business. The two most popular reasons for choosing a real estate professional:

Referral from friend, family member or neighbor 2.

Knowledge of the agent from a prior transaction

Where Are The Buyers?

HOW BUYERS FOUND REAL ESTATE AGENT USED

44% Referred by (or is) a friend, neighbor, relative 11% 7% Used agent previously to buy/sell a house Internet 7% 6% Open House Yard sign Agent on floor duty (buyer called or walked in) Newspaper/print ad Direct mail

Where Are The Buyers?

• •

Fact:

meet.

Buyers usually stay with the first agent they

Conclusion:

difference between real estate professionals – The general public does not see a Use your

innovative marketing “top of mind

techniques to become and be the first person they think of, meet and call.

Most home buyers…

– 85% of buyers are satisfied with their agent and are likely to use the same agent again

But only a small percentage did!

11%

Class Brainstorm

Only 11% returned to the same agent used in a previous transaction WHY?

Identifying Your Market:

• • Niche Marketing: Who / What Is (Are) Your TARGET Market(s)?

What is your current buyer market base? Do they come from a specific profession, geographic area or do they have another common factor?

Where Is Your Market?

– – – – – – – Individual Activity: – –  

First Time Buyers Luxury Home Buyers

Vacation Home Buyers

Retirees

 

Condo Buyers Investors

  

Relo Buyers Golfers, Boaters, Equestrians Other:

Markets should be

specialized

and

lawfully

targeted.

Reaching Potential Buyers

• • • •

Where Is Your Market?

Where do they live, work and play?

What are they reading? Where do they go for information?

Do you have a presence in these information sources? On whom do they rely? With whom do they conduct business?

Do you have a presence or connection with these people?

Reaching Potential Buyers

• • • •

Do you understand your target market and the characteristics? Needs, desires, culture, demographics Why have you chosen these markets?

Have you determined there is a need? Have you analyzed the market?

What are your market’s trends?

Use the Marketing Action Plan Outline to assist in analyzing

Why Have You Chosen These Markets?

What information do you need to determine if your niche or target markets are right for you?

Attracting Inbound Buyers

• • •

What is their point of origin? Are you marketing to those buyers in that market? Develop your marketing efforts to position yourself in your market.

Class Brainstorm

• •

What are your market’s trends? Consider markets that are growing or have growth potential. Is your market renewable and expandable?

Caution

Do not put all your eggs in one basket

– If you rely on a single source such as referrals from one corporation, it could spell disaster if the company folds or changes its affiliation.

Class Brainstorm

How are you tracking your marketing efforts?

Some measuring tools include:

• •

Numeric or color-coded marketing pieces Unique telephone numbers or extensions

• •

Unique email addresses Do you know which of your advertising dollars and marketing pieces is making your phone ring?

Reminder:

• • •

It is unlawful, under the Fair Housing Laws, to target market based on race, color, religion, sex, handicap, familial status or national origin. Advertising should be inclusive and not exclude or target specific groups. For more information visit: http://www.hud.gov

or http://www.realtor.org

.

Module Two: Determining Your Market Strategy: Methods, Media And Materials They can’t and/or won’t use you if they don’t know you exist.

Module Two:

Determining Your Market Strategy: Methods, Media And Materials •

Two large target markets:

1.

Those you already know (directly or indirectly).

2.

Those you do not yet know.

Horizontal Marketing:

Horizontal marketing is defined as:

any marketing efforts made by the individual licensee designed to attract new / un-referred prospects (tapping into the unknown).

Horizontal Marketing:

• • –

Purpose:

Make the phone ring today – – Develop leads Initiate relationships – Heavily used by new agents – Equally important to experienced licensees because database and demographic aging demand client replacement

Horizontal Marketing:

• – – – – – – – – –

Examples:

Newspaper ads Home magazines Open houses Floor time Home buyer seminars (REBAC’s home-buyer seminar kit) Direct response ads Cold calls Farming For sale signs

Sources of prospects!

AIDA

A

Attention

I

Interest

D

Desire

A

Action

Top Media Sources – Yard signs

Idea

• After closing,

with the buyer’s permission,

place your sign on the property. The sign could say:

Acquired through ---------------- The Buyer was represented by ---------------- ABC Realty Represented the Buyer of this Home. Let us represent you, too.

Purchased with the assistance of ---------------- Verify with your local ordinance-as most will only allow for one “for sale” sign.

Top Media Sources

• • •

Direct Response Marketing

Choose your target market and your message Make certain you have a good quality mailing list Implement an activity plan for marketing that is – – consistent and persistent Measurable, easy to track

Top Media Sources

Direct Response Marketing

• • Your (targeted) marketing piece must: include a message that – – reflects the interests of the group Includes information that gives some benefit or solution Include a call to action – – within a specified timeframe or with a limited supply

Marketing Team Activity

• •

Direct Response Marketing

Designed for a target market and includes a message that reflects the interests of the group.

With your marketing team, design a direct response marketing piece targeting a specific group.

Top Media Sources

• • •

Open houses

Remember:

A successful open house will result in a sale to

one

prospect. All other visitors are potential buyer-clients looking for properties. This is a great opportunity to present your buyer representation skills to interested buyers.

Property Selection – – – Suited to your lawfully targeted market Good access and visibility Curb appeal

Brainstorm Activity

Open House

Make a list of creative, innovative things an agent can do at an Open House to market and differentiate themselves…

Top Media Sources

Advertising Media

home magazines, newspapers, announcements, MLS remarks…

• • Review creative marketing approaches and advertising from other industries Use AIDA when creating any advertisement

Marketing Team Activity

Advertising Media

home magazines, newspapers

• Marketing solutions

Top Media Sources

• • •

Pre-sell yourself

Conduct mini-interviews to analyze needs and desires Conduct home buyer seminars using REBAC’s home buyer seminar and home buyer kits Create presentations for distribution on CD and e mail

Marketing Team Activity

• •

Pre-sell yourself

Buyer Marketing Packet Buyer Relocation Packet

Activities

• •

Marketing Tips and Ideas Innovative horizontal advertising piece

Horizontal Marketing:

• •

Horizontal marketing is

successful when new, unknown prospects are attracted and initial contact is made. Goal: to set an appointment for a counseling session.

Vertical Marketing:

Vertical marketing is defined as:

marketing to build on relationships that already exist (like a

family

tree).

• It is working up and down your Sphere of Influence • We build on the foundation of relationship, generating and increasing referral business.

Vertical Marketing:

• • • • • •

Purpose:

Generate repeat business, Generate referrals, Keep you “

top of mind

Keep clients

raving

about you, Nurture relationships for life and beyond

Vertical Marketing:

• • • • • •

Examples:

Sphere of Influence (SOI), past clients, agent to agent referrals, professional referrals, company orphans

Vertical Marketing:

Class Brainstorm

List some ways you can contact your SOI.

Face-to-face Telephone E-mail Snail Mail

Vertical Marketing:

Vertical Marketing Tips and Ideas

Class Brainstorm

– What are some other examples of Vertical Marketing techniques that you or others have used?

Agent to Agent Referrals

Buyers you may want to refer

Interested in area outside your geographic market

Interested in property type outside your area of expertise

Example: commercial building/residential agent

Business To Business Referral Sources

Class Brainstorm

– –

Take advantage of and build relationships with other professional service providers and affiliates in your community

Who?

How?

Business To Business Referral Sources

Class Brainstorm

Take advantage of and build relationships with other professional service providers and affiliates in your community

– Who? attorneys, accountants, lenders, financial advisers, insurance agents, builders, bankers, apartment managers… – How? clubs, community projects, face-to face visits, mail, speaking at events, partnering for seminars…

Company Orphans

• • Another form of vertical marketing Every real estate company has extensive transaction files that contain the names of former clients. These files can be a great source of business.

Immediate Post-Transaction Marketing

1.

2.

3.

4.

5.

6.

Change of address materials Lunch or dinner on moving day Gift certificates Moving truck Closing/housewarming gifts Other creative ideas?

Transaction Phase Marketing

• • • Transaction Phase Marketing is defined as marketing which is designed to generate leads from the licensee’s current client(s). Simply put: While the transaction is maturing, the buyer (and seller) are more cognizant of real estate in their areas.

Excitement causes conversations you want to be included as a topic of those conversations.

Staying In Touch

• •

Goal:

To keep the phone ringing.

– – Requires a system Requires consistency

Goal: To stay “top of mind”

Staying In Touch

• • –

Develop A Great Database Use a good contact management software product or system

Update regularly and back-up data often

– –

Maintain it to foster referrals

Divide data into groups and niches Include personal information in the client record for future conversations – – Track referrals (set up referral trees) Track all efforts – keep records

Marketing Team Activity

Map out a marketing strategy

For a target group assigned to your team. Identify methods, media and materials you will use to contact your target group at least once a month.

Staying In Touch

Do Not Call Registry

• • • • •

It is unlawful to call any residential telephone number on the national list with a “telephone solicitation.

Two exceptions that apply to a real estate professionals 1.

2.

it is okay to call if the caller has received the express written permission of the consumer, if an “established business relationships” (EBR) exists between the parties $11,000 possible fine per unlawful call Managed at broker level, not at salesperson level Businesses must purge numbers on the Registry from their call lists every 31 days

Staying In Touch

Do Not Fax

• • A fax can be sent to anyone with whom the sender has an EBR, so long as the sender received the fax number voluntarily or had received the fax number prior to the enactment of the Act. The sender must include an opt-out mechanism

Staying In Touch

CAN-SPAM Act of 2003

• • • • • The Act does not ban commercial emails, but rather outlines a series of practices that must be followed when sending commercial emails. A legitimate return email and physical postal address Clear and conspicuous notice of the recipient's opportunity to “opt out,” that is, to decline to receive any future messages A mechanism that may be used or an email address (active for at least 30 days after message transmission) to which a recipient may send a message requesting not to receive any future email messages from the sender Clear and conspicuous notice that the message is an advertisement or solicitation

Staying In Touch Rewards Group…A Great Idea

• • • VIP Program On-going services and communications continuing long-term after the closing.

Allows continued EBR

Staying In Touch Rewards Group…A Great Idea

• •

Marketing Team Activity

With your marketing team, list things that could be promised to past clients in a rewards group.

Staying In Touch Rewards Group…A Great Idea

• •

Marketing Team Activity

– – – With your marketing team, list things that could be promised to past clients in a rewards group. – Housewarming party – Yearly Home Value Report Notary services Yearly client appreciation party Informative seminars on current issues and topics – Faxing/copying service up to ___ pages per year – Other ideas?

MODULE THREE: POSITIONING YOURSELF

Positioning, by Al Ries & Jack Trout,

“ You must “position” your product, service or yourself in the mind of the prospect.” Differentiating your product, service, or yourself from your competition is the key!

What Differentiates You?

• Begin with identifying the needs of the client • •

Individual Activity

“If I were buying a home, what would I need and want to know? What would concern me? What would I want from an agent?”

Differentiate Yourself And Your Services

• 1.

2.

3.

4.

Individual Activity

On what attributes do you and your company and/or your personal practice dominate? Differentiate? Do your competitors dominate or differentiate on any attributes? On what attributes could you dominate or differentiate?

Why should a buyer choose you rather than another licensee?

Image Building and Branding

• • Name branding and logo recognition are the – – tools of the mighty.

Consistency Continuity A brand is more than a logo. It conveys a message.

Image Building and Branding

Image Building and Branding

What’s in a name?

• • • Can you use your name uniquely?

Can your name be associated with a picture, song, words, etc?

Do you have a memorable brand?

Differentiate Yourself And Your Services

A Picture Is Worth A Thousand Words

Class Brainstorm - Ideas

How can you use a unique personal photo to your marketing advantage? What are some unique ways you have used photos or you have seen other people incorporate photos in their marketing campaigns?

Uniqueness Counts

• • – – –

Slogans can be based on: tempo, rhythm, rhyme property type (condo, new homes) consumer type (i.e. relocation, new home buyers)

– – – –

Uniqueness can be based on: professional designations (ABR) property type consumer type your services

Uniqueness Counts

• Business cards with unique pictures and slogans Mile 23 of the Boston Marathon • Combine business cards with give aways…

Internet Marketing

• – – – What are buyers looking for?

Properties –

not real estate agents.

Information –

not entertainment or flashy presentations

Free information -

includes anonymity

Internet Marketing

• – – – – – How can you use the Internet to your marketing advantage?

Personal website Page on company site

The advantage of a company site – less cost and less work in creating

Useful, updated information will bring clients to your website Your opportunity to make a connection Addresses general consumer needs May also address needs of a specific niche/target group on certain pages within website OR may have a separate website for the niche market

Marketing Team Activity

Map out a website marketing strategy

For a target group assigned to your team. Identify items and information that would be included to service the needs of the consumers in that group.

Opportunities For “Differentiation”

• – REBAC membership benefits include: Home Buyer Seminar • Template to assist in the development and delivery of home Buying Seminars in the local community – Post cards and other marketing tools • Themed postcards in a .pdf format – Press releases • Templates to announce significant milestones I the buyer reps career – Home Buyer Kits –

Available to REBAC members at www.REBAC.net

Opportunities For “Differentiation”

• • • • • • • – Tools for Building Loyalty Buyer journal – Searchable Websites that Search via Neighborhood-specific Information Realtor.com – – – Services for “New on the Market” Properties Professional consultations – direct buyers to, or provide free consultations with: Interior decorators Landscapers Custom builders Neighborhood Walk-through – Buyer Consultation & Buyer Packet Including “Questions To Ask Before Choosing A REALTOR ®” Others?

Opportunities For “Differentiation”

• –

Marketing Team Activity

With your marketing team, list your 5 favorite marketing ideas you have seen or heard today. Vote on the best, second best, etc.

Innovative Marketing Techniques for Buyer Representatives

Thank you for your participation