Traditional Marketing Tactics Fail to Produce Results in Today's Business Environment

Is your marketing message getting through to yourremain viable. You cannot employ the same old tired
target audience? Is it as effective as it once was ormethods and tactics and expect to be successful in
should be? Probably not and here is why.today's Relationship
The National Association of Realtors reports that theyAge.
have 1.1 million members and there is no mystery thatMeeting the Challenge
existing home sales are down significantly. There areMarketing has always been a costly endeavor,
simply too many agents chasing too few transactions.however, networking and the effective use of your
Add to that the fact that there have been manynetworks and connections is often overlooked.
forces at work in recent years that are changing theNetworking is the most powerful and professional
way consumers respond to advertising and marketingform of selling when done properly. The rapid rise in
messages. We are living in an over communicatedsocial networking tools gives you the ability to learn an
world that has consumers tuned out and trusting less.incredible amount of information about a contact and
What follows is an outline of the problem and themarket to them in a personal and powerful way.
contributing factors.Having a sound relationship management system will
Business through the ages:allow you to remain viable during the long sales cycles
What follows is a look at how our economic base hasand garner a steady stream of referrals. People do
changed over the years. It is important to know wherebusiness with and refer those they Know, Like and
we came from to understand where we are todayTrust. You must maintain that level of connection with
and where we are going.everyone you know to reap the reward of referrals.
The Agrarian AgeBy adding value to the lives of others, you will gain the
Farming and livestock formed our early economicsuccess you deserve. If you want to make money,
base. The land gave us what we needed to feed andadd value to the lives of others. If you want to make a
shelter ourselves. Trade amongst businesses waslot of money, add a LOT of value. I have found that by
very prevalent at this time.helping others gain what they need all of my needs
The Industrial Ageare met as well. These are RENA's principals of
In the early part of the 20th Century, we witnessedworking in the Relationship Age. It starts with a mindset
the Industrial Age. We not only worked the land forof giving. You need to give to others with the
food but also started to extract natural resources andexpectation of getting nothing in return.
raw materials to manufacture products. TheMost of the marketing methods used by Realtors
challenges that companies faced were based on thetoday have become common and generic. You need
productivity of workers and the efficiency of factories.to stand out from the crowd if you expect your
Manual labor and hard work were thought to be themessage to be heard in todays over communicated
answer to higher output and increased profits.society.
The Information AgeBecoming a Commodity
The latter half of the 20th Century ushered in theAlmost all real estate companies and agents are
beginning of the Information Age. The use of Highproviding the same general services. When you
Technology starts to change the game and the basisbecome generic, the only thing you have left to
for our economic output. The Information Age gave uscompete on is price. This is one of the major reasons
global companies like Microsoft and Intel and thewe have seen the decline in fees agents can charge.
products they produce enable even the smallest ofThe public views real estate services as a generic
companies to work smarter and not harder. We havecommodity and are refusing to pay what they used to
gone from using our hands to using our heads. One offor the service. There are other factors involved in this
the most valuable assets a technology firm has is theas well such as the dramatic increase in average
knowledge and intellectual capital of its workers.sales prices over a relatively short period. This makes
The Relationship Agethe 6% fee much more significant. The internet has
We are now entering a period where we are startingdealt a heavy blow to many other financial services
to understand the power of relationships. It is throughand businesses such as insurance, stock brokerage
human relationships that we are seeing new ways toand travel. It is actually amazing that the real estate
capture and keep customers. If done properly, youindustry has held up so well for so long. The fact is, our
create customers for life. The rapid rise in Social Mediaday is coming. If you want to remain viable, you need
sites shows peoples true desire to connect with eachto provide unique and valuable services.
other. When you take all of this into consideration, it isNiche and Specialization
clear we are living in a Relationship AgeOne of the best ways to cut down on the amount of
The following key factors have also brought us to thiscompetition is to have a niche or area of specialization.
Relationship AgeIf you look at the most successful people in the world,
The Cocooning trendthey share a few common traits. They all have great
Faith Popcorn coined the term Cocooning in the 1980's.networks; they have top-notch coaches and have a
This trend sees people socializing less and retreating tospecific niche they fill. Establishing yourself as an
their homes more. The trend is commercially significantexpert in a specific area gives you the ability to
in that it changes the way we reach out to obtain andtransmit a unique message and stand out from the
retain customers. This trend is also a direct assault oncrowd. You will also increase the amount of referrals
brick and mortar businesses. Some examples ofyou get from within your industry. Your niche does not
cocooning are working from home, internet homenecessarily have to be real estate specific, like first
delivery of goods, home theaters, gated communities,time buyers etc, you can specialize in a particular
surveillance cameras and many other services thatindustry or represent a particular demographic.
allow the consumer to retreat and stay home. TheAdvanced Database Marketing
Internet has enabled this trend to continue and furtherYour database holds the key to your success in
points to the need to embrace new tactics for thebuilding your business and relationships. A good
Relationship Age.database will allow you to do so much more than
Mistrust in corporationshave contact information for mailings. By acquiring high
Over the last decade, consumers have started tovalue data, that is information on your contacts beyond
develop mistrust in companies. You only need to thinkname and address, you can begin to provide a high
back to the Enron, WorldCom and Cendant scandals,level of personalized services. Along with custom
to name a few, to see how we got here. For manytailored marketing, you can also employ my cross
corporations, regaining the trust of the consumer hasendorsement and circle of endorsement strategies.
been their primary mission. Mistrust in businesses is atYour database is the lifeblood of your business.
an all time high. A recent survey by the public relationsMaintaining a database rich in information will put you
firm Edelman shows that only 44% of Americans saidon the path to creating a saleable business.
they trusted business as a whole. This is down fromIdentify Key Professionals
58% in the fall of 2007 and the downward trendYou can market your services to two different groups
continues. Consumers are fed up with the status quoof people. You can spend a lot of time and money
and are not going to take it anymore. Now more thantrying to find individuals that need to buy or sell real
ever, advertising messages are being viewed throughestate or you can work with other professionals that
skeptical eyes.deal with MANY people that buy and sell on a regular
Mistrust in leadersbasis. By understanding whom these professionals are
Along with a general mistrust in business is mistrust inand how to connect and add value to their lives, you
public figures and leaders. On an almost daily basis, wewill ensure you will have a steady stream of referral
see another disgraced Politician, CEO, Religious figurebusiness in any market. You also need to understand
or Celebrity grace the front page of the newspaper.the various roles people in your networks play such as
Whom we thought to be solid citizens giving soundMavens, Subject Matter Experts and Thought and
advice has become anything but. This has also causedOpinion Leaders. By identifying these key people, you
business to rethink how they go about advertising andwill find it much easier to broadcast your message and
marketing to new and existing customers.brand.
These factors all lead to the consumers need to haveBecome a Connector
a louder voice in what they buy and how business isAs I stated earlier, by adding value to the lives of
transacted. The increasing popularity of consumerothers, your business will grow to new heights. One
review sites is aiding them in protecting one anotherway to do this is to connect the people in your
from unscrupulous businesses. As countries around thedatabase with others that will add value to each other.
world struggle with economic challenges, people areThe average database contains 250 contacts. Within
yearning for deeper relationships and more say in thethose contacts, there are people that should know
process. People worldwide seek more than materialeach other and can add great value to each other's
wealth and superficial contacts. They wantbusinesses. It is up to you to identify these connections
environmental consciousness, business reform and aand bring them together.
deeper level of connection with companies, people andBranded Unique Services
the products and services they provide.Another way to stand out from the crowd is to have
The new forms of communication and technologiesunique services you offer that are branded to and
developed during the Information Age are changing theassociated with your name. This is a process of
game. Our past frustrations with corporatelooking at all of the tasks you do on a regular basis
performance, government, health care, education andand putting your own unique spin on them. A simple
environmental policy are providing the motivation for aexample of this would be holding a new home
new mindset. Enter the Relationship Age.orientation for buyers. After the close of escrow, have
From Transactional Marketing to Relationshipthe property inspector join you at the home with the
Marketingbuyers for an orientation of the homes systems. You
The days of "doing the deal" and hit and run marketingcan use the internet to print out instructions for just
are gone. Social Media tools and online technologiesabout all systems and appliances the property may
are allowing us to deal with customers on a morehave. This is an excellent way to present the new
personal and cost-effective basis. We now have thehome to the buyers and leave a lasting impression of
technology to deal with each customer on a personalservice. There are so many steps throughout a
level and if done properly, create an outspokentransaction you can apply this thinking.
advocate and a customer for life.After Sale Services
To do this you need to move from the old mindset ofAnother important tool for operating in the Relationship
being product centric to the new reality of beingAge is having strong after sale service programs. The
people centric. It is all about the customer. By puttingactions you take add value to your client's lives and
the customer first and serving their needs, we will backkeep you top of mind for referrals. Things such as
into running better businesses via a stronger brand andsending a repair person in for a few hours of free
deeper relationships with our clients.work for a buyer or rekeying the locks make strong
In the Information Age, employee's knowledge andstatements about your service and make you stand
intellectual capital were the primary currency forout. I have a long list of service programs I am happy
companies to keep their competitive edge. In theto share with you, just ask.
Relationship Age, it is the number and depth ofReferral and Reward Programs
connections with the customer that is the primary formIn order to build a strong referral business you must
of capital. It is a shift from Knowledge Capital to Socialhave programs in place that reward that behavior.
Capital. We move from serving companies by gettingTeaching people how to refer you, giving them
people to buy as much product or services as possibleinformation they can pass on and rewarding them for
to serving the customer at the highest level andtheir efforts are essential for you growth. I recommend
inducing them to buy and remain loyal to your brandhaving a "referral kit" that your clients can have readily
over time.available to aid in recommending you. The kit should
Slow Sales Cyclescontain you resume or bio, specific verbiage for them
Real estate has one of the slowest sales cycles ofto use, references and some gift cards.
any product or service. A typical client only needs yourConclusion
services once every 5 to 7 years at best. This makesThe economy and business climate has changed
staying in close touch with the client, adding value anddramatically over the last few years yet most people
gaining their referrals more important than in any othercontinue to employ the same tactics and strategies
sales profession.that were created 20 or more years ago. The real
A Call for Changeestate industry is in dire need of fresh thinking for
When you take all of these factors into consideration,agents to remain viable in the coming years. Many
a change in the way you market your service iswell-funded enterprises are attempting to replace
needed now more than ever. Change is inevitable andRealtors and reinvent the industry. This is a small
the rate at which our environment changes is gettingsample of many unique strategies that I have created
faster and faster each year. How you adapt to thatin my 20 plus years in the real estate business.
change will determine your level of success movingI urge you to contact me to learn more about RENA
forward. You need business and marketing systemsand the services I provide.
that speak to today's economy and demography to