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Matthew Ferrara & Company

Boston, Massachusetts

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Technology: Sales or Marketing?

Feb. 16, 2008
 

A recurring theme I'm hearing lately from some clients is that they are in need of a "system" that they can use to "automatically" prospect their new and past clients. You know, a database or something with some sort of "drip marketing" campaign tools. Isn't there something like that, where I can just put my clients into it and 'forget it' while it keeps sending stuff to them.

Well, yes, there are things like that. Databases. Campaign managers. Drip email tools. Autoresponders. Even integrated versions of all of the above.

Problem is: none of them really lead to sales.

Now, don't get me wrong: programs like Top Producer or ACT or even Outlook are great ways to organize data (and calendars and todo lists and the such). They even make it possible to create the ever-exhalted LABELS that are the staple of real estate relations worldwide. And sure, some of them even do a darned good job sending out emails, especially those (yawn) template kinds of mailings that are oh-so-exciting...

But that's marketing technology. Not sales technology. And the biggest danger in real estate nowadays is the confusion between kinds of technology. One makes it easy to send stuff to people. The other makes it easy to build relationships with people.

The confusion comes when real estate brokers and agents think that sending stuff equals building relationships.

It does not. Sending stuff equals...... sending stuff.

Evidence? If all it took to "make real estate deals" was to send more postcards, more emails, more mailings, more stuff - then hell, real estate brokers would be long gone by now. There are companies out there that would mop the floor with the average broker's budget for sending stuff. Catalog companies. Banks. Walmart. They send stuff ALL DAY - on TV, direct mail, newspaper, you name it. They use STUFF for MARKETING.

And they can; because to sell their goods, no "relationship" needs to really be created between the company and the consumer - other than a money-back guarantee (and who's ever heard of that in real estate?!)

But real estate isn't sold on "marketing". It's conducted on the basis of trust. On the basis of solid relationships. And the only way to build relationships is by applying sales techniques. And sales technologies.

Oh, and what's the absolute best sales technology in the world?

Simple. The recurring appointment reminder in Outlook. Simply create a new contact record; create a new appointment. Click RECURRENCE. Sent a regular date to contact the prospective customer. And then do it. Do sales. Do your job. Call them. Write to them. Email them. IM them. DO SALES.

If you want to also put the consumer on an automatic drip campaign, that's fine. Sure, send them stuff. New listing announcements. Open house schedules. Interesting factoids about Spring. How to bake a cake. Great. Send them stuff. And use technology to do it, because it's the best way to save time, money and effort. Use technology to create email campaigns and generate labels.

Just don't be surprised when all that marketing technology doesn't really lead to more sales. Why? Because nobody ever trusted an email newsletter enough to ask it - or the person behind it - to become their trusted real estate professional just because they had been receiving so much of your stuff.

Two needs. Marketing AND Sales. Not the same. Complementary, yes. But different technologies. And most importantly: BOTH needed.

Word to the wise: If you think your email campaign is a perfect substitute for having to reach out and build relationships with people, you're already out of the sales business. You just haven't run out of money yet.

-- M

User Comments

1. RE: Technology: Sales or Marketing?

Written by: Nancy Malick
Feb. 17, 2008
I agree with your viewpoint on the differences in marketing and sales; there is no substitute for the one-on-one contact it takes, to gain the confidence needed, to turn a prospect into a client. However, Drip campaigns were created to educate and keep a contact in the pipeline until they are ready to make a move in the market.
Now, if I’m reading your Blog correctly, you’re really not addressing the efficiency of a Drip campaign. But you are speaking to those agents who believe there’s an easy way, to get clients, without putting the time and effort into turning a prospect into a client. You couldn’t be more on target with the truth. There are no easy ways of gaining business than to spend the time, actually building trust with perspective clients.
As I see it though, another question these agents might be asking is: what is a better way of keeping in contact with so many prospects, and still have time for sales? The amount of contacts can be staggering. Maybe we should tell them how Drip campaigns really work.
Every Drip campaign sent should have a Call to Action. This allows those who have questions or are responding to your CtA, to contact you through the contact information or hotlinks to your Website, via your Drip campaign. If your Website is interesting enough you may have a recurring prospect who will continue to visit your site; (one Call to Action could be to ask them to place your site in their favorites) therefore building a relationship by getting to know you through your Website. Or they might email you directly.
The responses gleaned from your Drip campaign should be added to the next level of Drip. And…that next Drip might not be just in the form of an email campaign to keep in touch with them. Each contact made will give you more information, on the prospect, than you had before. You now know that this prospect is reading your Drip. You may even know when this prospect might make an RE move. You might want, at this time, to add this prospect to a contact software program so that you can pick up the phone or email them directly in a scheduled timeframe, thereby building that one-on-one  relationship it takes. But more importantly, you have now weeded out a slue of prospects who may never contact you. But then again, they might.
 
 

2. RE: Technology: Sales or Marketing?

Written by: Celia Maddox
Feb. 17, 2008
Thanks for the article, Mathew.  I have heard you speak three times with Women's Council of REALTORS® at national conferences  I enjoyed how you articulated:  "Simply create a new contact record; create a new appointment. Click RECURRENCE. Set a regular date to contact the prospective customer. And then do it. Do sales. Do your job. Call them. Write to them. Email them. IM them. DO SALES."    Sending contacts all the pertinent information you think will be of intererest to them is great. and marketing and sales are complimentary, as you stated, and both are needed.  Thanks for the article.

3. RE: Technology: Sales or Marketing?

Written by: Matthew Ferrara
Feb. 18, 2008

Hi Nancy:

Thanks for your comments. I think we're on the same page, except for a few minor items:

1. I don't believe agents should be prospecting to thousands of people; or barely even hundreds. If real estate is "local" then you need about 300 people max for a successful career. Most agents do less than 30 deals a year, so they only need 10% of their database to respond annually. 75% of all listings come from repeat seller clients or referrals; not from "out of the blue" marketing like drip campaigns.

2. The idea that "drip campaigns" can be used to weed-out potential inquiries is also a :weak-sales" concept. if you want to weed-out propsects that you might not work with,then get them into a conversation. Drip campaigns are one-way information. A converstion is a personal email, phone call or a meeting. Then, you can do an interview and decide if there's a service-to-consumer match. And then you don't have to spend time sending any "drip marketing" to them at all. Very few drip marketing pieces can "qualify" a contact - even if they read something it doesn't really help identify their needs. And since most drip marketing is either a) I"m a great agent!! or b) here's a house I need you to buy, even though I don't really know if you want it... - then the value of drip marketing remains less than zero, within the flood of total SPAM marketing out there...

SALES is sales. You meet people, talk to them, continue conversations by phone and email. All you need is a REMINDER in your calendar. The focus in the industry on "mass mailings" is nothing but a passive-agressive substitute for real sales that keeps most agents from ever becoming successful enough to stay in the business more than 18 months.

Have a great day!

Matthew

 

4. RE: Technology: Sales or Marketing?

Written by: Lola Audu
Feb. 18, 2008
This was an excellent article.  It is very easy to substitute sending stuff or writing about stuff for talking to people.  This is always short-sighted.

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