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From Prospects to Advocates: Securing Referral Business
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Chapter: From Prospects to Advocates: Securing Referral Business
Introduction:
This chapter delves into the science and strategies behind transforming prospects into loyal advocates who actively generate referral business. Referral business is a powerful and cost-effective acquisition method. This chapter explores the psychological principles and structured approaches to cultivate a referral-rich network.
1. The Psychology of Referrals
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1.1. Social Exchange Theory:
- Explanation: This theory posits that social behavior is the result of a cost-benefit analysis. People are motivated to engage in relationships that provide them with rewards exceeding their costs. In the context of referrals, individuals are more likely to refer business when they perceive a net benefit, which could be social recognition, reciprocal favors, or a feeling of altruistic contribution.
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Mathematical Representation (Simplified):
B = R - C- Where:
B= Likelihood of Referral BehaviorR= Perceived Rewards (e.g., gratitude, status)C= Perceived Costs (e.g., time, social risk)
- Practical Application: Design referral programs that explicitly offer rewards that are valued by your target audience. Public acknowledgment of referrals, exclusive access to information, or small tokens of appreciation can increase perceived rewards.
- Experiment: Conduct A/B testing of different reward structures for referrals. Track the referral rate for each reward and analyze the statistical significance of the results. For example, one group gets a thank you card, the other receives a small gift card.
- Where:
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1.2. Cognitive Dissonance Theory:
- Explanation: This theory suggests that individuals strive for consistency between their beliefs and behaviors. When inconsistency arises, it creates psychological discomfort (dissonance). Referring business to a company can reduce cognitive dissonance by reinforcing a person’s positive view of that company. By recommending you, they strengthen their belief that choosing you in the first place was the correct decision.
- Practical Application: Ensure clients have a positive experience. Regularly solicit feedback and address any concerns promptly to minimize dissonance. Highlight positive testimonials and case studies to reinforce their belief in your value.
- Example: A client who initially doubted your high fees but received exceptional service is likely to refer you, subconsciously validating their initial investment and reducing lingering doubt.
- Experiment: Survey clients pre- and post-service. Measure their level of satisfaction and willingness to recommend. Compare the scores to determine if positive experiences directly correlate to increased referral intent.
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1.3. The Halo Effect:
- Explanation: A cognitive bias where a positive impression of a person, brand, or service in one area influences one’s overall impression. Providing exceptional service not only satisfies the immediate client but can also create a “halo” that makes them more likely to believe in your overall competence and trustworthiness, increasing their willingness to refer you.
- Practical Application: Focus on creating “wow” moments for your clients. Go above and beyond their expectations in key areas such as communication, problem-solving, and personalized service.
- Example: A real estate agent who skillfully negotiates a better-than-expected price for their client benefits from the halo effect, making the client more likely to recommend them despite any perceived shortcomings in other areas.
2. Building a Referral-Generating System
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2.1. Database Segmentation and Targeted Communication:
- Explanation: Not all contacts are equal in their propensity to refer business. Segmenting your database based on criteria such as past client status, level of engagement, and professional network allows for tailored communication strategies that maximize referral generation.
- Mathematical Representation (Probability):
P(R|S) > P(R|¬S)- Where:
P(R|S)= Probability of a referral, given the contact is a satisfied client.P(R|¬S)= Probability of a referral, given the contact is NOT a satisfied client.
- Where:
- Practical Application: Develop specific marketing campaigns❓ for each segment. For example, past clients receive personalized thank-you notes and exclusive offers, while professional contacts receive invitations to networking events. This is similar to “Client for Life” and “Advocate Appreciation” plans.
- Experiment: Divide your database into segments based on past interaction (e.g., transaction history, responsiveness to marketing). Tailor communication strategies to each segment and measure the referral rate from each.
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2.2. Systematic Nurturing (The 8x8 and 33 Touch Revisited):
- Explanation: Consistent, strategic communication keeps you top-of-mind and strengthens relationships. Programs like the 8x8 (rapid relationship building) and 33 Touch (long-term nurturing) provide a structured framework for delivering value and subtly reminding contacts of your services.
- Enhancements: These systems mentioned in the provided PDFs should have:
- Personalization: Avoid generic messaging. Tailor content to individual interests and needs.
- Value Proposition Reinforcement: Clearly communicate your unique selling proposition (USP) in every touch. Highlight what makes you different and why your clients benefit.
- Referral Prompts: Subtly incorporate calls-to-action for referrals in each touchpoint. Make it easy for contacts to recommend you.
- Experiment: Track the correlation between engagement in 8x8/33 Touch programs and the number of referrals generated from participants. You can score how personalized each touch is and the total score and number of touches against referrals.
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2.3. Referral Incentive Programs (Ethical Considerations):
- Explanation: Providing incentives can motivate referrals, but careful consideration must be given to ethical implications❓ and legal regulations. Focus on incentives that align with your brand values and provide genuine value to your contacts.
- Types of Incentives:
- Tangible Rewards: Gift cards, discounts, charitable donations in their name.
- Social Recognition: Public acknowledgment in newsletters or on social media.
- Reciprocity: Offering referrals to their business or professional network.
- Important: Clearly communicate the terms and conditions of the program to avoid misunderstandings or ethical concerns.
- Experiment: Using a split-test approach, offer incentives to one group of contacts while withholding incentives from a control group. Compare the referral rates for each group. Make sure that your referral sources know if you pass on their name to someone else that you are working with - and that they are compliant to local jurisdiction regulations.
3. Measuring and Optimizing the Referral System
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3.1. key performance indicators❓❓ (KPIs):
- Referral Rate: The percentage of your total business originating from referrals.
- Conversion Rate (Referrals): The percentage of referred leads that convert into paying clients.
- Cost Per Acquisition (Referral): The total cost of your referral program divided by the number of new clients acquired through referrals.
- Advocate Lifetime Value: Estimate of how much revenue a “core advocate” will generate via referrals throughout their relationship with your business.
- Formula to estimate KPI’s: You will need to track and have a CMS system to calculate the values. You also need to include the 8 x 8 and 33 Touch statistics and costs.
KPI = SUM(referral KPI values) / (Total number of records - unresponsive)
- Practical Application: Regularly track these KPIs to identify areas for improvement. For example, a low conversion rate may indicate issues with the quality of referred leads or the sales process. You may want to exclude “unresponsive” contacts who may still be engaged as a contact but have opted out of any email programs.
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3.2. Data-Driven Optimization:
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Explanation: Continuously analyze your referral data to identify trends and patterns. This allows you to refine your strategies and allocate resources effectively.
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Data Points to Track:
- Referral source (who is referring the most business?)
- Demographics of referring individuals
- Type of reward that motivates referrals
- Timing of referral (e.g., after specific touchpoints)
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Practical Application: Implement A/B testing to evaluate different approaches to referral generation. Experiment with variations in messaging, incentives, and communication channels.
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4. Ethical Considerations
* 4.1 Transparency: Disclose to new referrals that their name was passed from the original referral source
* 4.2 Client Consent: Make sure that every “Touch” abides by CAN-SPAM and local rules to allow clients to opt out of touch plans.
* 4.3 Service: Each client in your CMS system deserves quality customer service, no matter who they were referred from.
Conclusion:
Securing referral business is not simply a matter of luck or charm; it is a process rooted in psychological principles and structured strategies. By understanding the motivations of your contacts, building a systematic nurturing system, and continuously measuring your results, you can transform prospects into advocates who actively generate valuable referral business for your organization.
Chapter Summary
```text
Write a detailed scientific summary❓ in English for a chapter entitled “From Prospects to Advocates: Securing referral❓ Business”
in a training course entitled “Master Your Contacts: From Outlook to a Powerful CMS” about the topic “From Prospects to Advocates: Securing Referral Business”.
The summary should summarize the main scientific points, conclusions,
and implications❓ of the topic. The summary should be accurate and concise.
File content PDF (relevant part):
referral business.
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8 x 8 (continued)
Customizing targeted 8 x 8 plans. Directions:
Exercise
1. Get into groups of four to five. Your instructor will assign each group a specific type of 8 by8 plan to customize. Use the blank chart on the following plan to mock up which activities would best target the audience of your 8 x 8. When you are finished, record your plan on the flipchart paper.
2. When the groups are finished, share your results as a class. In the back of the manual is a handout with blank 8 x 8 plans that you may use to record ideas from other groups on customized 8 x 8.
Time: 15 minutes
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Communicate with It in a Systematic Way
8 x 8 (continued)
8 x 8:
Week # I will make contact by:
I will include this creative and quick reminder and instructions* on how to give me referral business:
1
2
3
4
5
6
7
8
Ongoing Implement your 33 Touch.
* For example: a sticker on the outside of an envelope, a bold graphic in my newsletter, photographs of people who have referred <a data-bs-toggle="modal" data-bs-target="#questionModal-405068" role="button" aria-label="Open Question" class="keyword-wrapper question-trigger"><span class="keyword-container">customer</span><span class="flag-trigger">❓</span></a>s to me in my newsletter, a reminder at the end of a telephone call, etc.
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Working Your Database Chapter 3
Communicate with It in a Systematic Way
33 Touch
When a contact finishes their 8 x 8 plan, they should be placed on an appropriate 33 Touch plan. 33 Touch is a systematic marketing and prospecting technique, which ensures year-round contact with all of the prospects, business contacts, and past clients in your contact database. It cements your relationship with the contacts in your database and sustains ongoing communication.
Basic 33 Touch Plan
1. Set aside a specific time each week to make contact with your prospects.
In one year, you will have made contact by:
14 A combination of fourteen mailings, letters, cards, e-mails, or drop-offs (which might include your business card) and may be one of the following: letter of introduction, your personal brochure, market reports, Just Sold/Just Listed cards, your personal newsletter, recipe cards, property alerts, real estate news or articles, community calendars, invitations, service directories, promotional items, etc.
8 Thank You or Thinking of You cards
3 Telephone calls
4 Personal Observance Cards (birthdays, anniversaries, mother’s day, father’s day, graduation, anniversary of their home purchase, etc.)
4 Holidays (Thanksgiving, Fourth of July, etc.)
33 Touches Total
Î Every single touch should have a quick reminder and instructions on how to give you referral business and identify the benefits of working with your team.
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33 Touch (continued)
2. Schedule mailings before your calls. The benefit of making contact by mail is that it makes it easier for you to call (or drop by) and say, “Hello this is from Keller Williams Realty. Did you receive the
I sent you?” and break the ice.
3. In your CMS, enter the days from plan launch for each of your various mail-outs and telephone calls in your 33 Touch plans. Also, assign 33
Touch tasks to appropriate team members. Your CMS will then remind you and your team members when different tasks in your 33 Touch plans come due for your contacts.
4. Modify the 33 Touch to work for you. The point is for you to be systematic as you make regular contact throughout the year. It is better for you to modify this technique so that it works for you, rather than not doing it at all or doing it haphazardly. But remember, frequency matters—the more the better. Here are some ideas:
Instead of doing 33 touches, do 24 touches.
Instead of sending Mother’s and Father’s Day cards, send recipes or market statistics.
Instead of a quarterly newsletter, do a monthly newsletter
(amounting to 12 mail-outs).
NOTE: Each time a contact is touched, take notes on what was said. Enter these notes in your contact management software. When you call next time, you’ll be able to ask them relevant questions about their lives (e.g., “How did your daughter’s recital go?”), which strengthens the relationship.
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33 Touch (continued)
The Research
Marketing to your Met contact database is generally the most cost-effective form of lead generation. For every twelve people in your Met contact database to whom you market yourself thirty-three times (33 Touch), you can reasonably expect to <a data-bs-toggle="modal" data-bs-target="#questionModal-405061" role="button" aria-label="Open Question" class="keyword-wrapper question-trigger"><span class="keyword-container">net</span><span class="flag-trigger">❓</span></a> two sales. One of the sales will likely be repeat business; the other, referral business.
Using a conversion rate of 12:2, if you wanted to make 50 sales a year, you’d need to have 300 people in your Met database who you had sent through your
8 x 8 program and who were moved into your 33 Touch program. This ratio, while you may not achieve it immediately, is easily attained incrementally over time, as you hone your marketing program.
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Communicate with It in a Systematic Way
33 Touch (continued)
Customized 33 Touch Plans
1. Now that you have a basic 33 Touch plan, create different versions for your various groups. Having a more targeted message will greatly enhance the effectiveness of your lead generation. From the list of sources below, put a check next to the ones for which you will develop customized 33 Touch plans:
; Client for Life
; Advocate Appreciation Program
My Sphere of Influence
My Allied Resources
Other:
; Regardless of other plans you may choose to include in your CMS, these are must have plans.
2. When contacts finish their plan or refer business, they should be placed on an appropriate 33 Touch plan.
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33 Touch (continued)
33 Touch: Client for Life
Below is a sample 33 Touch: Client for Life plan for past clients in your Sphere of Influence:
1. Clients who do business with the team should be placed on the 33
Touch: Client for Life plan.
2. If a contact is currently on an 8 x 8 plan or the 33 Touch: General plan, cancel that plan and place them on the 33 Touch: Client for Life plan as soon as the transaction is complete.
3. If a contact is currently on the 33 Touch: Advocate Appreciation plan, do not change them to the Client for Life plan. Leave them on the Advocate Appreciation plan.
12 Newsletters.
7 Holiday cards. If you throw an annual Client Appreciation Party, you might send the invitation along with one of the holiday cards.
5 Telephone calls. You should be touching in (‘How are you?’) and asking for referrals (‘Who do you know?’).
3 ‘Great Talking to You’ letter. Occasionally, you will want to follow up your phone calls with a letter.
4 Personal Observance Cards (birthdays, anniversaries, mother’s day, father’s day, graduation, anniversary of their home purchase, etc.)
2 Usable give-aways such as a magnetic calendar or notepad cube.
33 Touches Total
Î Every single touch should have a quick reminder and
instructions on how to give you referral business and identify the benefits of working with your team.
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Working Your Database Chapter 3
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33 Touch (continued)
33 Touch: Advocate Appreciation
Below is a sample 33 Touch: Advocate Appreciation plan for those clients who have or will refer business to you. This plan mirrors your 33 Touch: Clients for Life plan; however, you will include items of value to show your appreciation.
1. The Advocate Appreciation plan should be used for those clients in your inner circle who either have referred business to you or have committed to <a data-bs-toggle="modal" data-bs-target="#questionModal-405064" role="button" aria-label="Open Question" class="keyword-wrapper question-trigger"><span class="keyword-container">referring</span><span class="flag-trigger">❓</span></a> future business (Allied Resources, Advocates, and Core Advocates).
2. Items of Value include such things as School calendars, New Year calendars, Baseball or Football schedules for their favorite team, or Inspirational cards. To save time and money, plan and budget for your items of value prior to the beginning of the year.
3. If a contact is currently on an 8 x 8 plan or another 33 Touch plan,
cancel that plan and place them on the 33 Touch: Advocate Appreciation
plan as soon as they refer or pledge to refer business.
12 Newsletters. Send a monthly newsletter. Include items of value such as a School calendar, New Year calendar, Football schedule or Inspirational items.
7 Holiday cards. If you throw an annual Client Appreciation Party, you might send the invitation along with one of the holiday cards.
5 Telephone calls. You should be touching in (‘How are you?’) and asking for referrals (‘Who do you know?’).
3 ‘Great Talking to You’ letter. Occasionally, you will want to follow up your phone calls with a letter.
4 Personal Observance Cards (birthdays, anniversaries, mother’s day, father’s day, graduation, anniversary of their home purchase, etc.)
2 Usable give-aways such as a magnetic calendar or notepad cube.
33 Touches Total
Î Every single touch should have a quick reminder and instructions on how to give you referral business and identify the benefits of working with your team.
(continued on the next page)
© 2004 V3.2 KELLER WILLIAMS REALTY, INC.
Working Your Database Chapter 3
Communicate with It in a Systematic Way
33 Touch (continued)
Customizing targeted 33 Touch plans. Directions:
Exercise
1. Get into groups of four to five. Your instructor will assign each group a specific type of 33 Touch plan to customize. Use the blank chart on the following plan to mock up which activities would best target the audience of your 33 Touch. When you are finished, record your plan on the flipchart paper.
2. When the groups are finished, share your results as a class. In the back of the manual is a handout with blank 33 Touch plans that you may use to record ideas from other groups on customized 33 Touch.
Time: 15 minutes
© 2004 V3.2 KELLER WILLIAMS REALTY, INC.
Working Your Database Chapter 3
(continued on the next page)
© 2004 V3.2 KELLER WILLIAMS REALTY, INC.
Working Your Database Chapter 3
Communicate with It in a Systematic Way
33 Touch (continued)
33 Touch:
Qty.
Over the course of one year, I will make these touches:
I will include this creative and quick reminder and instructions* on how to give me referral business:
33 Total Touches
* For example: a sticker on the outside of an envelope, a bold graphic in my newsletter, photographs of people who have referred customers to me in my newsletter, a reminder at the end of a telephone call, etc.
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Bringing Value to the Relationship
Exercise
For your 12 Direct, 8 x 8, and 33 Touch plans, what are some items of value you can send your contacts?
Directions:
Use the table below to document everyone’s responses as your instructor leads this mini-needs analysis.
Time: 10 minutes
Investment tips Top college reports
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Working Your Database Chapter 3
Service all the Leads that Come Your Way
Lead Management
Get on the F.A.S.T. Track
Careful attention to lead tracking and conversion is one of the core disciplines of the millionaire agent. To do this effectively, you need processes that capture leads and track their progress through your team.
Lead management at the millionaire level is a key component of lead generation that requires leverage. By tracking leads that come in, you can ensure that
those leads are being serviced correctly. Properly managing your leads will
also help you determine what prospecting and marketing activities work for you and who is sending you business. And by tracking referrals, you can better reward those who have helped you grow your business and ensure that they will continue to send you clients.
Get on the lead management F.A.S.T. track:
Funnel
All leads must get funneled to one number, one email, and one person for the team. They must then be captured (name, address, phone number, and real estate needs) by someone on the team.
Assign
All leads must be assigned to specific members of the team who will be responsible for following up and servicing the lead to take it to a closed transaction.
Source
All leads must be sourced to determine where they came from. You should always all ask clients the following question: “How did you hear about the
team?” In addition, ask them again after the transaction in your client survey to verify the source.
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Working Your Database Chapter 3
Service all the Leads that Come Your Way
Lead Management (continued)
Track
All leads must be tracked to determine conversion rates and whether the responsible team members are following up on the leads properly. You must also track leads to determine which lead sources are most effective at bringing in leads that convert to business for the team.
Truth
Lead management is the number one visibility issue in your office.
Put this on your wallboards or in your CMS, so team members are
able to readily see who is assigned to what leads and where they are in the process.
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Service all the Leads that Come Your Way
Lead Management (continued)
Lead management processes
Step What system do you use for this?
How can you improve the system?
Who is responsible for this step now?*
Questions that must be answered and documented
Lead is Captured
Who is the lead?
How do we contact him/her?
What is their interest (buyer, seller, etc.)?
Lead is Sourced Where did the lead come from?
What will we do with this specific source?
Lead is Assigned
Who will follow up on the lead?
When will they follow up on the lead?
Lead is Stored and Tracked
Where can we find the lead in the database?
Do we know what has happened with follow-up
What is the next step and who is responsible?
* It is your responsibility to oversee these processes and follow up to make sure that the lead is serviced properly.
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Lead Management (continued)
Truth
The engine that drives these processes is your contact management software.
Benefits
Having a lead management system/process in place allows you to do the following:
1. Effectively train and consult with your staff on lead conversion.
2. More easily set performance standards and hold your team members accountable to them.
3. Know exactly what is happening in your business—who is getting the job done and who is not. When the numbers are always in the open, it is much harder to hide behind excuses.
Is Your Desk on Fire?
In a consulting call between Gary Keller and an agent, the agent expressed the fact that she didn’t have the time to follow up on all the leads that were coming in. She said that she had stacks of notes and lead sheets on her desk filled with names of people who had called. Gary suggested that she imagine those stacks as piles of money that were burning. It was her money in those piles, and she had just lit them with a match. The agent immediately got the picture, hired
two buyer specialists, and had her Marketing and Administrative Manager put in place a lead-tracking and conversion system.
When you have a team, your job as the Mega Agent on your team is to make the phone ring. Once it does, your team should be fielding the leads and putting them through a series of systems that ensure that every lead is handled properly. And it is their job to document those systems so that they are duplicatable, formalized standards that everyone can be held accountable to.
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Lead Management (continued)
Lead management systems
Directions:
Answer the questions below as a class.
Time: 5 minutes
Exercise
1. Once you put lead management systems in place, what does your job then become?
2. How will you effectively train your staff on using the system? When?
3. How will you hold them accountable to your standards?
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Working Your Database Chapter 3
My Scorecard
Directions:
Exercise
We have reached the end of this chapter! Before we move on, take five minutes to assess your mastery of this chapter's objectives.
1. Refer to the My Scorecard sheet located at the back of this manual.
2. Review the topics for this chapter.
3. Grade yourself on your mastery level of each topic (A - F). Be honest with yourself. At the end of this course, you will use this scorecard to evaluate your weak areas and develop an action plan for complete mastery of the subject matter.
Time: 5 minutes
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Working Your Database Chapter 3
Aha! Accountability
Directions:
Exercise
1. Think about what you have just learned that will help you to set up and work your database.
2. Get with a partner. Each of you will take turns acting as an Aha! consultant. Use the following questions to consult your partner about their Aha!.
3. Document your own responses.
Time: 10 minutes
1. What was your Aha!?
2. What is the need in your business that makes this such a revelation?
3. How will this change your business?
4. What do you need to do?
5. Do you know how to do it?
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Marketing-based, Prospecting-enhanced Chapter 4
MREA: SYSTEMATIZING LEAD GENERATION
Chapter 4: Marketing-based, Prospecting- enhanced
In this chapter, you will…
[1] Understand the MREA Lead Generation
Strategy.
[2] Present clear, cohesive and <a data-bs-toggle="modal" data-bs-target="#questionModal-405059" role="button" aria-label="Open Question" class="keyword-wrapper question-trigger"><span class="keyword-container">consistent</span><span class="flag-trigger">❓</span></a> image and a powerful message.
[3] Focus on seller listings to increase your number of leads.
[4] Recognize how diversifying your marketing and prospecting efforts ensures stability.
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Marketing-based, Prospecting-enhanced Chapter 4
MREA Lead
Generation Strategy
Your Lead Generation Program
Directions:
1. Look at the chart on the following page.
Exercise
2. Think about your current lead generation strategies, and check all of the methods that you are currently using in your business.
Time: 10 minutes
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MREA Lead Generation Strategy
Your Lead Generation Program (continued)
Prospecting
(Proactive and Direct)
Marketing
(Proactive and Indirect)
1. Telemarketing
FSBO (For Sale by Owner)
Expireds
Just Solds
Just Listeds
Past Clients
Allied Resources
Geographic Farm Area
Apartments
Corporations
Builders
Banks
Third-Party Companies
Sphere of Influence
1. Advertising
Newspapers
Personal Vehicles
Radio
Magazines
Bus Stop Benches
Billboards
Yellow Pages
Television
Grocery Carts
Moving Vans
2. Face-to-Face
Door-to-Door Canvassing
Open Houses
Client Parties
Networking Events
Allied Resources
Social Functions and Community Events
Seminars
Booths at Events
Teaching and Speaking Opportunities
Personal Meetings (meals, pop-bys, etc.)
2. Promotional Items (Magnets, Calendars, etc.)
3. Internet <a data-bs-toggle="modal" data-bs-target="#questionModal-405062" role="button" aria-label="Open Question" class="keyword-wrapper question-trigger"><span class="keyword-container">website</span><span class="flag-trigger">❓</span></a>s
4. Direct Mail
Postcard Campaigns
Newsletter Campaigns
Just Sold/Just Listed Cards
Special Events Cards
Quarterly Market Updates
5. IVR and Computer Retrieval programs
6. Broadcast
Voice E-mail Fax
7. Signs/Directional Signs/Brochure Boxes
8. Name Badges/Logo Shirts/Car Signs
9. News Releases/Advice Columns
10. Farming
Geographic Demographic
11. Sponsorship
Little League Charities
Community Events
Appears on page 138 of The Millionaire Real Estate Agent
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Marketing-based, Prospecting-enhanced Chapter 4
MREA Lead Generation Strategy
The Same Things Done Differently
Question
What’s the difference between the marketing and prospecting categories of millionaire agents and other agents?
Answer
Nothing. The options are the same.
The categories do not change; it is the way in which they are approached that changes.
There are six main differences about the way in which millionaire agents approach marketing and prospecting:
1. Clarity of Message
2. Focus
3. Diversity
4. Referrals*
5. Analysis**
6. Quantity**
* Referrals will be discussed further in “Chapter 5: Millionaire Referral Systems.”
**Analysis and Quantity will be discussed further in “Chapter 6: Knowing Your
Numbers.”
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Marketing-based, Prospecting-enhanced Chapter 4
Clarity of Message
Branding Your Business
As we saw earlier, in addition to <a data-bs-toggle="modal" data-bs-target="#questionModal-405066" role="button" aria-label="Open Question" class="keyword-wrapper question-trigger"><span class="keyword-container">creating</span><span class="flag-trigger">❓</span></a> a reputation, your marketing efforts should be aimed at getting you into that number one position for real estate in the mind share of your contacts. One of the keys to accomplishing this is repetition. Getting your message in front of your target audience as much as possible will ensure that it hits home with the necessary quantity.
This is where the issue of branding comes into play. Part of repetition is presenting a clear, cohesive, and consistent image to your contacts. If your marketing look is constantly changing, it will reduce the effectiveness of your message. When creating an image for your business, begin with a consistent brand, and then, develop a powerful marketing message around that.
Importance of branding
The importance of branding should not be overlooked:
1. Separates you from competition
2. Supports referrals
3. Increases in-bound calls
Elements of a brand
The components of your brand all add up to your perceived image in the market place. Some components are intuitive, but some may surprise you.
These are the mandatory elements of your brand
1. Your business name
2. Your photo
3. Font usage
4. Your slogo/motto* (centered around a powerful USP; see “Focus”)
*For a refresher on creating a slogan, see “Communicating Your Message: Creating Your
Slogan” in the Appendix.
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Clarity of Message
Branding Your Business (continued)
5. Your phone number
6. Your domain name
7. Your email address
And here are other ways to brand your business:
8. How many numbers you list on your card
9. How you answer the phone
10. Your style of dress
11. Your car
12. Your use of technology
13. Your website (content and look)
14. Level of service/efficiency
15. Your accessibility
16. The area you work in
17. How you stage an open house
18. Quality of property marketing materials
19. Direct mail frequency
20. Direct mail quality
21. Advertising quality/frequency
22. Signage
23. Your pre-list packet and other communication materials
24. Your involvement in the community
25. Your knowledge of the area and trends in the business
26.
27.
28.
29.
30.
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Clarity of Message
Branding Your Business (continued)
Promoting your brand
Once you have your business clearly branded, you’ll want to make sure that all of your marketing and communications to your customer base features that brand. This means that the following should be branded:
1. Email signatures
2. Sign riders
3. Websites
4. Team logo shirts
5. Ads
6. Business cards
7. IVR listings
8. Voicemails
9. Direct mail
10.
11.
12.
13.
14.
15.
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Clarity of Message
Crafting the Message
Two Big Words
To be a master of marketing, you must be able to effectively aim your marketing at specific targets and hit those targets with messages that have two important characteristics:
1. Memorability
Most people could readily tell you that Coke is “The Real Thing” or that Nike wants them to “Just Do it.” That’s because these brands deliver their marketing message in a memorable way—through catchy jingles in the case of Coke or association with famous athletes in the case of Nike.
2. Persuasiveness
Recognition by consumers is a means, not the end. Once they recognize you as a brand, they must be persuaded that your brand is the one they want. Successful brands have used comparisons to their competition, guarantees, and other tactics to persuade consumers that they are the brand of choice. They also make unique offers that make them standout, such as “If I can’t sell your home, I’ll buy it,” or “We’ll pay you $100 just to talk with us about selling your home.”
Fundamental questions
The creation of such messages involves a disciplined thought process that forces you to focus on the fundamental questions of marketing:
1. Who is my target audience?
2. What do these people want to know?
3. What is my purpose? (this is usually one or more of the three R’s: Repeat, Referral, or Reputation)
4. What would make them act on my call to action?
5. What impression do I want to create in their minds?
6. What special offer can I make?
7. What tangible guarantee of specific service can I provide?
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Crafting the Message (continued)
The Four-H Club
After you have answered those fundamental questions, you can then set about crafting your message to them. Any marketing message that you create should focus on at least one of the marketing 4 H’s:
1. Head
Make them think by appealing to their intellect. This involves laying a case for yourself as the premiere Realtor® in your market by stating various facts (awards, statistics, etc.) that back up your claim.
2. Heart
Appeal to their emotions. Make sure that they understand that you care about them and their family and that you are the kind of Realtor® who will go that extra mile to make them happy. Think “friendly,” “caring,” committed.” Use inspirational stories, testimonials, and quotes.
3. Humor
Make them laugh. A humorous play on words (e.g., “Helping you make all the right moves”) can make your marketing message standout. You may even use cartoons or caricatures of yourself.
NOTE: Be sure your marketing pieces are funny and not offensive.
4. Hard
Give them an offer they can’t refuse. Offering a satisfaction guarantee (with some sort of reward for failure to make good), a guaranteed sale program, menu pricing, and other sorts of programs are good ways of making it hard for a lead to say no to you and your team.
What are the H’s of these messages?
Directions:
Exercise
Look in the Appendix at some of the sample marketing messages beginning on pg. 172. As a class discuss which of the H’s each message addresses.
Time: 10 minutes
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Focus
Marketing-based, Prospecting-enhanced Chapter 4
Focus on Seller Listings
Advantages of Focusing on Seller Listings
Truth
Millionaire agents build their entire lead generation model around generating seller listings.
If there is a creative angle to your lead generation program you’ll want to pursue, it is to create your message, image, and methods such that they are conducive to generating seller listing leads.
Research shows that if your lead generation program consistently delivers seller listings, you can count on the marketing of those seller listings to deliver buyer leads.
1. Economic advantage
Seller listings, as a cost of sale, are less expensive to obtain than buyer listings and sales. At a cost of sale of around $100,000 vs. $600,000 for the same volume of buyer sales, the millionaire agent realizes a $500,000 cost savings.
2. Lead generation advantage
Properly marketing seller listings not only begets a 2 for 1 (1 seller = 1 buyer) but also begets more seller listings. Until a way is invented to effectively market buyers so sellers contact us, marketing the seller has a huge leverage advantage for the real estate agent.
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Focus
Focus on Seller Listings (continued)
The Natural Balance of Seller and Buyer Listings
The following chart is a summary of a study conducted by Keller Williams Realty International using data collected from more than 10,000 agents. It illustrates that, as an agent’s business grows, their percentage of listings grows, as well. While natural balance is achieved at about a quarter million in GCI, beyond that point, the number of buyer listings sold largely depends on the goals and priorities of the agents. They now have the option to convert more and more buyer leads (from their listings) into additional closed business. Some MREA’s have even said that they can close two buyers for every seller listing they have.
GCI Seller Listings
Sold
Buyer Listings
Sold
$40K 4 6
$80K 8 11
$150K 15 16
$250K 25 25
$750K 64 56
Appears on page 150 of The Millionaire Real Estate Agent
Truth
If you focus on seller listings, the buyers will come!
A properly marketed seller listing will consistently yield one or more buyer sales.
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Focus
Focus on Seller Listings (continued)
Communicating a Powerful, “Seller-centric” USP
Your seller marketing message will center around a strong, seller-oriented unique selling proposition* (USP). When you market your team or your listings, the unique selling proposition (USP) that you communicate should always speak to the concerns of sellers.
Higher selling price
For many sellers, getting the most money for their home is their biggest motivating factor. You should be tracking both your percentage of asking price and the market average. Being able to deliver above market average percentage of asking price makes for a powerful marketing message.
Having a higher than average percentage of asking price begins with properly training your Listing Specialists. They must internalize the scripts and dialogues necessary to get overzealous sellers to price their home correctly before they
put it on the market. Allowing your sellers to over price their homes when they list it with your team, only to come down in price later when reality sets in will ultimately hurt, not only your relationship with those sellers, but your value proposition to prospective sellers, as well.
Faster selling time
For other sellers, getting their home sold quickly outweighs getting it sold for the most money. This is why tracking your days on market and the market average is so important. If you have an average selling time that is better than the market average, make sure that you also include that in your marketing message.
Having fewer than average days on market is, in
