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The future of farming: Transition to geo-marketing in 4 quick steps

By
Real Estate Technology with SmartZip

We all know the saying: Everything old is new again. And when it comes to the age-old real estate technique of “farming” your local area for potential business, that’s definitely true. If you’re wondering what “geo-marketing” is, and how it varies from traditional farming, you’re not alone.

 

Here’s the scoop on geo-marketing, plus the four steps modern agents can take to transition from old-school farming to this more advanced, localized technique.

 

What is geo-marketing?

In short, geo-marketing is using a consumer’s location to determine current and future marketing efforts. Geo-marketing differs from traditional farming because it uses real-time data and insights to recommend marketing tactics or campaigns (instead of sending one message or one postcard to every person within a given area).

 

STEP #1: Get localized predictions

So, how can a real estate agent narrow down their prospects from an entire ZIP code of homeowners, down to a smaller group more likely to convert? The answer is data — lots of it.

 

Every homeowner has thousands of data attributes that are related to their current and future choice of residence. Some of them are visible to the naked eye — perhaps your neighbor recently got a promotion and traded in their Kia for a Maserati. It may be obvious to you that a house upgrade isn’t far behind.

 

For most home sellers, though, there isn’t just one reason for selling. It’s a combination of factors that could range from personal finances, to home equity, to the age of their children, a new career choice, a bad commute or literally thousands of other factors. Because most homeowners have varied reasons for selling, it can seem impossible for the “average Joe” to predict who’s going to sell and when.

 

Big data and predictive algorithms, however, go beyond what seems subjective to find established patterns. Predictive engines churn through thousands of data points to determine their relevancy and make back-tested, proven selling predictions in any area of the country.

 

But let’s say you get a list of 150 homeowners who are “likely” to sell in the next year. What do you do with that information, exactly? In the new world of geo-marketing, it’s time to scrub (or qualify) those predicted prospects… and turn them into leads.

 

STEP #2: Qualify local sellers to create data-backed leads

If you’re overwhelmed by Step #1, don’t fret. Step #2 brings us back to the old-school. It’s time to get on the phone and determine if these predicted prospects plan to sell… and when.

 

Whether you have a full script prepared or prefer to wing it and talk casually, be sure to start calling or door knocking right after you get your list of seller predictions. That way, you can nab the homeowners who are preparing to list soon, while getting to know those who are still a few months out.

 

Common question: What if a predicted seller is adamant that they aren’t ready to move?

First of all, don’t push people against their will. These qualifying conversations are meant to be friendly and informative — so you don’t want to turn people off by implying you know more about their personal homeownership timeline than they do.

 

Still, many would-be sellers are just waiting for a gentle nudge in the right direction, so it can be advantageous to talk to the homeowners about their current situation and why you think they’d benefit from selling and moving. Ask easy, conversational questions about their family and home life, career and career prospects and future goals. Provide them with local market info that could help them understand how much similar homes are earning at closing.

 

At the end of the conversation, be sure to mark your CRM with an indication of their selling timeline and the next time you should follow up.

 

Don’t have the time to do it yourself?

Hire an inside sales agent (ISA) to handle your lead qualification calls. The best ISAs will follow a script and log warm leads… while teeing up hot leads directly to you so you don’t miss a chance at easy business.

 

STEP #3: Target your marketing efforts to top prospects

In step three, you’ll use your predictions to create targeted marketing campaigns focused on local sellers. Here are some basic guidelines as you create your marketing pieces:

 

  • Limit mailers or ads to your top-predicted sellers — which saves you money and time.

  • If your ads or mailers include home exterior shots, be sure they match your market area perfectly. Consider uploading your own listing photography so local sellers recognize homes from their neighborhood.

  • Include a clear call to action aimed at sellers — such as a CMA request. You want to give your top prospects an easy way to say, “I’m ready for your help!”

  • DO NOT include more than one call to action. To increase your engagement, give your audience one clear thing to do... and one clear way to do it.

 

STEP #4: Nurture til you get the deal

At this point, you know (from your qualifying calls) which predictions are the most accurate and the general timeline for when these predicted homeowners want to list. Plus, you know these homeowners are receiving your marketing campaigns, which offer seller assistance.

 

That means it’s time to go off auto-pilot and hit them with real-life interactions that can help you close the deal. Whether it’s making a casual call, emailing a local market update video, inviting them to a local community event or dropping by with a quick “Homeowners Guide to Selling,” it’s time to turn up the dial — and the charm — to win their business.

 

Wish this could be automated? It can!

Like its less-technologically advanced cousin, farming, geo-marketing can be time-consuming when it’s a fully manual effort. SmartTargeting is a geo-marketing solution that automates the first three steps so agents can access qualified, predicted seller leads, then target these soon-to-be sellers via engaging online ads and direct mail pieces.

 

A lightweight CRM app, CheckIn, helps agents stay engaged in Step #4 so that outreach doesn’t feel like a drag… but like a natural conclusion within the geo-marketing process.

 

Reach out now for a no-pressure, no-obligation demo of how you can take advantage of the latest advancements in geo-marketing.

Comments (26)

Sheldon Haywood
McGraw Realtors - Tulsa, OK
Your Realtor For Life!

I agree with Lee Keadle about the only haveing 1 call to action. I'm going to try that out. Thanks for the information! 

Aug 29, 2017 10:04 AM
Dorte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Sounds like you do the number crunching for us. We used to do this manually until it got too busy again.

Aug 29, 2017 08:03 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I sure appreciate the geo-marketing tips and some suggestions for staying in touch and what to provide.

Jeff

Aug 29, 2017 08:15 PM
Steven Nickens
Hawaii Life Real Estate Brokers - Wailea, HI
R(S)GRI ABR, Maui Real Estate Hawaii

Great information, stepping up the game, I like it.

Aug 29, 2017 09:21 PM
Mega Team Real Estate
Realty ONE Group Alliance - San Mateo, CA
San Francisco and Peninsula Real Estate Concierge

Great feature. I sure appreciate the geo-marketing tips, that is very interesting. 

Aug 29, 2017 10:54 PM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Clear steps for successful Geo Marketing.

Action is the next step.

Aug 30, 2017 04:39 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Sounds like a good plan. It is, however, a little creepy to think about how much strangers know about all of us.

Aug 30, 2017 02:20 PM
Stavrula "Sam" Crafa, RNC,GRI, CDPE, PSA
Future Home Realty - Seminole, FL
Providing the integrity and service you deserve.

Interesting concept. But what happens to the people that had no intention or need to sell and suddenly they find themselves with a job transfer or some other reason they must sell. They won't think of you if they are not being included in the consistent farming. Just sayin'...

Aug 31, 2017 11:04 AM
SmartZip Analytics

So true. The curve balls are hard to catch.  Typically our clients send just listed/sold cards to their whole farm which helps them establish their brand and neighborhood credibility.  This helps catch those unpredictable (or unpredicted) surprises.

Aug 31, 2017 12:12 PM
Ben DeHaven
Haven Realty & Investments - Lakeland, FL
Proudly serving Winter Haven & Lakeland, Florida

There is no magic bullet. Still, being in front of the right people consistently helps tremendously. 

Sep 04, 2017 01:38 PM
Corinne Guest

Yes, yes, yes, thank you for stating this. Too many people get sucked into plans and programs.

Sep 08, 2017 12:34 PM
Graig Griffin, SIOR
Utah Advisors | Windermere Commercial - Salt Lake City, UT
Commercial Real Estate - Utah and Nevada

Algorythmic marketing can offer some incremental returns, but by itself doesn't really do much more for most agents other than increase business by increasing contacts.  If however agents also work to become a true expert in the area and resource to its constituents, it becomes one of the most powerful techniques in the industry.  This doesn't mean sending out "look at me" postcards - it means really learning the area, attending council and planning meetings, knowing the local businesses and city workers there, and being an info hub.  A well maintained geofarm is not only highly profitable, they are also quite defensible.

Sep 08, 2017 09:44 AM
Lee Keadle
Carolina One Real Estate - Charleston, SC
Keadle Real Estate Group

A lot of our online traffic comes from Charlotte, NC which I was really surprised to learn.  However, when we look at our closings, very few of these buyers relocating come from Charlotte.  I'd also recommend to any Realtors evaluating their marketing to compare not just online marketing but closings, too.

Sep 08, 2017 10:06 AM
Corey Martin
Martin Presence Group - Ruston, LA
Real Estate and Management Solutions

Great information! Thank you for the tips! 

Sep 08, 2017 12:14 PM
Greg Mona
West USA Realty - Scottsdale, AZ
Professional Real Estate Representation for YOU!

I've heard a lot about Geo-Marketing for several years now, but have not participated in it yet. It does make sense to focus on prospects that may actually turn into a client in the fairly near or immediate future, but there is something to be said about always sowing seeds, even if they take a few years to "germinate".  Great and useful post!

Sep 09, 2017 10:17 AM
SmartZip Analytics

Hi Greg, great point. Sowing, when done well can create bountiful results.  If you're ever cureous to hear more or see a demo let me know.  Meanwhile, what is your favorite, most effective prospecting approach?  I love hearing what agents love best and are best at.

Sep 12, 2017 10:52 AM
Suzie DeYoung
Fridrich & Clark Realty, LLC - Brentwood, TN

I thought this was an interesting concept, but the representative from your company who contacted me late last year after my inquiry was so aggressive, I decided not to pursue.

Sep 09, 2017 06:10 PM
SmartZip Analytics

Suzie, Thank you for reading. And for sharing your experience. I apologize profusely.  We never want anyone to feel pressured. That isn't the approach we teach or endorse.  After reading your comment I did a little research and found who the Account Specialist is who you spoke with. We'll be able to share your feedback and let him know how his approach came across and remedy it so others don't feel the same way.  That's great for us. For you, please let us know if there is anything we can do.  Thanks again!

Sep 12, 2017 10:37 AM
Stavrula "Sam" Crafa, RNC,GRI, CDPE, PSA
Future Home Realty - Seminole, FL
Providing the integrity and service you deserve.

Makes sense. Might be something I would consider in the future. I don't farm currently but do my business almost exclusively by referral. But always open to new ideas. Thanks for the info. 

Sep 16, 2017 08:13 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Always a location, location, location mindset is the way to go in real estate, and this only makes it more so about that.

Sep 18, 2017 11:56 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Being open to new ideas is what makes life exciting in small ways every day and big ways after that Stavrula "Sam" Crafa, RNC,GRI, CDPE, PSA

Sep 18, 2017 11:58 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I read something about abundance the other day that reminded me of us and I do have hope for the future!

Sep 27, 2017 11:47 PM
Fred Sweezer Sr. CMI, LLC.
Hud Certified 203K Consultant - Long Beach, CA
HUD 203k Consultant

Keeping up to date marketing is good advice thanks for post on Online Marketing and it association tried and tested marketing. 

Oct 21, 2017 03:02 AM
Peter Mohylsky, Beach Expert
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

I like this idea alot.  Makes sense in most markets but it does take consistency.

Oct 29, 2017 04:23 AM