When working on that business plan to out pace your local competition it has to be more than just blogs, key words, and Facebook. You have to have a defined business plan with specific strategies to be successful. The following are 3 defined targeting strategies that you can implement into your current business model to gain that edge.
Differentiation Stratgey:
This is achieved by offering services that provide unique attributes valued by customers. The customer therefore perceives these services to be better than or different from the competition. You need to find a way to add value to your process with a unique service or tool without increasing your monthly overhead budget. For a real estate agent, that may mean a more personalized experience for a new client. I know one agent that makes the initial consult a complete experience, with a reserved parking spot with the clients name on it, a personalized video clip, and he has everyone from his staff make sure they know who is coming to the office and their names before they get there so they feel welcome right from the beginning. Make your client's experience unique.
Focus Strategy:
This is achieved when you focus on a narrow segment of the market, and then within that segment you find your competitive advantage. The belief here is that you can understand that specific market and it's customer by focusing soley on it. In turn you gain more client loyalty because there is a great sense of importance. This doesn't have to limit your growth, you can merely build what's called a "child brand". Your "parent brand" is your listing business, and your "child brand" would be a specific niche within your listing business like short sales or bank owned properties. Create a strong sense of importance to your targeted niche. People like to know they are important to your business.
Cost Leadership Strategy:
This is done by pricing your service either for market share, quality, and a competitive advantage. This doesn't mean you need to give away your commission. It in fact may just be the other way around. Many customer's first question is about commission. Why? Well it's usually because that's all they know to ask about. As consumers we are conditioned to ask about cost, forgetting what is value. Is it really better to sell your house for a 3% commission if it sits on the market for 120 days? Or is it better to work with a first class agent that utilizes the full compensation to showcase the property, and more importantly has a reputation of success to get the transaction done in 45days? There is a difference between cost cutting and value cutting. Use your cost leadership to build a reputation for success.
Defined business plans are keys to success, and a good layered business plan will utilize these strategies to capture more market share and add value to your office's reputation. Activerain is a great tool for any strategy, and it's a fantastic forum to learn from people more successful then us. Don't re-invent the wheel re-invent yourself.
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