THE LAST 12 MONTHS have been marked by unprecedented low inventory. The pandemic and the ensuing economic uncertainty reinforced a long-term trend of dwindling listing opportunities. The Low-Inventory Logjam. These market conditions have created fierce competition among agents.
Some agents have achieved their best sales performance on record. They have differentiated themselves by doubling down on their strengths. To deliver value to consumers via their expert knowledge, business network, and problem-solving-driven service. This model delivers exactly what real estate consumers desire.
Unfortunately, consumers often experience the exact opposite with agents. Instead of being an extension of the personalized, consultative experience, an agent should be providing, real estate marketing and technology. They should throw consumers into an ecosystem of generic messages and one-size-fits-all experiences.
For brokerages and agents stuck in the status quo, the client’s poor experience can be especially damaging during a low-inventory market. This can lead to systematic problems including lower marketing conversion, customer attrition, and commission pressure.
It is the perfect timing, therefore, for all real estate professionals to carefully examine their marketing and technology strategies. They need to ensure that consumers are getting meaningful, personalized value.
This commitment to elevate and personalize the real estate experience is not only a solution to clear the current low-inventory logjam, but a meaningful evolution in the real estate industry itself that will pave the way for its long-term future.
Personalized vs Spray-and-Pray
Whether it’s a postcard farm, Facebook advertising, or a portal advertisement. Spray-and-pray marketing methods target a loosely defined audience with the lowest-common denominator message. Inevitably, this approach — while scalable — does little to communicate why a potential client should work with a particular agent or brand. In fact, with the exception of some of the most sophisticated, highest volume teams, most agents derive an exceedingly small portion of their business through these methods.
The tech strategy for brokerages and agents fares even worse, with many firms simply resigned to the fact that their clients will use national portals and other 3rd party controlled technologies.
It goes without saying that this provides no benefit to the brokerage and agent, and it offers a poorly personalized experience for the consumer.
Contrast these realities to what actually generates the bulk of an agent’s business: the sphere of influence. When working with their sphere of influence, communication with a potential client is, by default, personalized, consultative, and actionable. Agents actively provide customized data and analysis and solve problems specific to a particular client and market. Although highly manual, these activities are what lead to high conversion rates and customer satisfaction.
In low-inventory conditions, spray-and-pray marketing and a resigned tech strategy become even less effective as competition amongst listing agents intensifies.
Even personalized, SOI tactics can get even more time-consuming as seller confidence wavers in response to increased market uncertainty and risk.
Question is, how do you create a personalized yet scalable experience for your clients?