Targeting Success: Convert Leads & Build Relationships

Chapter: Targeting Success: Convert Leads & Build Relationships

This chapter delves into the crucial aspects of converting leads and building❓❓ strong relationships, specifically within the context of expired real estate listings. We will explore the science behind effective targeting, lead nurturing, and relationship management, drawing from theories in marketing, psychology, and behavioral economics.

1. Understanding Your Audience: Segmentation and Targeting

Effective lead conversion begins with understanding your audience. Not all leads are created equal, and a one-size-fits-all approach is rarely successful. We’ll explore the principles of market segmentation to tailor your message and strategy.

• 1.1 Market Segmentation Theories:

  • Demographic Segmentation: Dividing the market based on factors like age, income, family size, and location. This data provides basic insights into a prospect’s potential needs and affordability.
    • Example: Targeting homeowners in affluent neighborhoods with higher price points.
    • Practical application: Filtering expired listings data by average home value and homeowner age in a specific zip code.
  • Psychographic Segmentation: Understanding your audience’s values, attitudes, interests, and lifestyle. This segmentation helps you craft messages that resonate with their motivations.
    • Example: Identifying homeowners who value community involvement or those who are digitally savvy.
    • Practical application: Analyzing social media profiles of expired listing leads to understand their interests and tailor your communication style.
  • Behavioral Segmentation: Segmenting based on past purchasing behavior, product usage, and response to marketing efforts.
    • Example: Tracking which types of communication (email, phone call, direct mail) resulted in the highest response rates from expired listing leads.
    • Formula: Conversion Rate (CR) = (Number of Conversions / Total Number of Leads Contacted) * 100
    • Analyzing CR metrics helps optimize future outreach.
  • Geographic Segmentation: Segmenting your audience based on location, climate, and population density.
    • Example: Focusing your marketing efforts on areas with a high concentration of expired listings.

• 1.2 Target Group vs. Met Group vs. Allied Resources:

  • Target Group: Prospects you haven’t met but have identified as potential clients. Implement specific marketing campaigns.
  • Met Group: Individuals you’ve met personally or by phone. Focus on building strong relationships for increased business per person.
  • Allied Resources: A select subset of your Met Group. These are individuals you expect to do business with or receive leads from every year.
    • Core group in your database.
    • Meet with them regularly (meals, visits, parties).
    • Educate, Ask for Help, and Reward.
    • Reinforce your expertise and referral preference.
    • Systematically reward referrals (treat the referral source even better than the referral).

• 1.3 Experiment:

  • A/B Testing: Experiment with different messaging and offers for each segment to see what resonates best.
    • Example: Compare the effectiveness of a value-based message (“Helping you get the best price for your home”) against a fear-based message (“Don’t let your home sit on the market again”) for different demographic segments.
    • Analysis: Track the open rates, click-through rates, and conversion rates of each message.

2. The Science of Lead Nurturing: Building Trust and Authority

Lead nurturing is the process of building relationships with potential clients over time, providing them with valuable information and positioning yourself as the expert. This is crucial for expired listings, where homeowners may be hesitant or skeptical.

• 2.1 Cognitive Dissonance Theory: Explains the discomfort people feel when holding conflicting beliefs or values. When a homeowner’s initial agent failed to sell their home, they may experience dissonance. Your nurturing efforts should aim to reduce this dissonance by:

  • Validating their feelings and frustrations.
  • Providing evidence of your expertise and success.
  • Offering solutions to their problems.

• 2.2 The Mere-Exposure Effect (Familiarity Principle): People tend to develop a preference for things they are familiar with. Consistent and strategic communication increases familiarity and builds trust.

  • Practical Application: Implement a consistent communication schedule with expired listing leads, using a mix of email, direct mail, and phone calls.

• 2.3 The Authority Principle (from Cialdini’s “Influence”): People are more likely to comply with requests from perceived authorities. Establishing yourself as a real estate expert is crucial.

  • Strategies:
    • Share market reports and statistics.
    • Highlight your experience and credentials.
    • Obtain testimonials from satisfied clients.
    • Write blog posts or articles on real estate topics.
    • Offer informative, no-obligation consultations.

• 2.4 The “8x8” and “33 Touch” Programs: Structured outreach programs designed to build relationships.

  • 8x8 Program: Establishing relationships and cementing yourself as the number one real estate agent in their mind.
    • Meaningful contact once a week for eight weeks.
    • Letters, cards, and phone calls.
    • Mind share positioning process.
    • Includes: letter of introduction, personal brochure, market report, business card, recipe card, inspirational card, community calendar, market statistics, free reports, real estate investment or house maintenance tip, refrigerator magnet, notepad, usable giveaway with your name/logo/contact information, and phone calls.
  • 33 Touch Program: Ensuring year-round contact with the “Met” database.
    • Combination of emails, mailings, letters, cards, or drop-offs.
    • Elements: A combination of eighteen emails, mailings, letters, cards, or drop-offs. Eight thank you or “thinking of you” cards. Three telephone calls. Two birthday cards. One mother’s day card. One father’s day card.
    • Reminder to send you referral business and instructions on the best way to do so.
    • Promotional items you send should be items of value that they can use.

• 2.5 Experiment:

  • Content Marketing: Create valuable content (e.g., a guide on “Avoiding Common Mistakes When Selling Your Home”) and offer it to expired listing leads in exchange for their contact information. Track the number of downloads and subsequent conversion rates.

3. Building Rapport and Trust: The Psychology of Persuasion

Converting leads into clients requires building genuine rapport and trust. Understanding the psychological principles of persuasion can significantly improve your success rate.

• 3.1 Active Listening: Paying full attention to the speaker, understanding their message, and responding thoughtfully. This demonstrates empathy and builds trust.

  • Techniques:
    • Maintain eye contact.
    • Avoid interrupting.
    • Ask clarifying questions.
    • Summarize their points to ensure understanding.

• 3.2 Mirroring and Matching: Subconsciously imitating the other person’s behavior (e.g., body language, tone of voice) to create a sense of connection.

  • Ethical Considerations: Avoid blatant mimicry, which can be perceived as insincere. Focus on subtle cues to establish rapport.

• 3.3 The Reciprocity Principle: People feel obligated to return favors or gestures. Offering valuable information or assistance without expecting anything in return can trigger this principle.

  • Examples:
    • Providing a free market analysis.
    • Offering advice on staging their home.
    • Connecting them with reliable contractors.

• 3.4 The Scarcity Principle: People place a higher value on things that are rare or limited. Highlighting the unique benefits of your services or the limited availability of opportunities can create urgency.

  • Ethical Considerations: Avoid creating artificial scarcity or misleading prospects.

• 3.5 Experiment:

  • Training: Participate in a sales training workshop that focuses on active listening and rapport-building techniques. Track your conversion rates before and after the training.

4. Allied Resource Referral Generating Program

• 4.1 The Three Principles of Referrals:

  • Educate
  • Ask for Help
  • Reward
  • Repeat these three simple steps over and over.
  • Treat the referral source better than the referral. Always show appreciation at every point—when you take the referral call, when you meet with the referral, when you do business with the referral, and when the transaction is complete.

• 4.2 The Five Systems of Referrals:

  • Establish a Database of Your Allied Resources (Get a List)
  • Make Systematic Personal Contact (Stay Close—33 Touch)
  • Systematic Follow-Up with Special Communications (Cultivate the Relationship)
  • Provide Exceptional Customer Service (Develop Their Loyalty)
  • Implement a Client Appreciation Program (Go the Extra Mile Every Month)

• 4.3 Actions:

  • Direct Mail and Newsletters
  • Dial
  • Drop By
  • Do Lunch
  • Throw a Party

• 4.4 Options:

  • Handwritten Notes
  • Items of Value
  • Endorsement Letters

• 4.5 Plan:

  • Caring Attitude
  • Communicate
  • Consistency Through Systems

• 4.6 Surprise & Delight:

  • Do Something Special Systematically!

5. Ethical Considerations

It’s imperative to conduct all lead generation and relationship-building activities with the highest ethical standards.

• Transparency: Be upfront about who you are and what you offer.
• Respect: Respect the homeowner’s decision if they are not interested in your services.
• Honesty: Avoid making exaggerated claims or guarantees.
• Compliance: Comply with all applicable laws and regulations (e.g., CAN-SPAM Act, TCPA).

Conclusion

Converting leads and building relationships requires a strategic, scientific approach. By understanding the principles of market segmentation, lead nurturing, and persuasion, you can significantly increase your success rate in converting expired listings into closings. Remember that building trust and providing value are the keys to long-term success in real estate. The goal is to prospect and market yourself in such a way that as many people as possible will, over time, place you in their number one or number two real estate agent “mind share” positions. This can lead to immediate business or future business with you, and to referring immediate or future business to you.