The words of Sam Walton still ring true and maybe even more so in today’s real estate market.
“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”
Then Peter Drucker builds upon the foundation of Walton’s famous quote with these words:
“The aim of marketing is to know and understand the customer so well the product of services fits him and sells itself.”
For many real estate agents, there is a lack of specificity regarding their customers and their clients. By analyzing (think assessing) both customers (those who have inquired but have not agreed to work with professional real estate agents) and clients (those who have agreed to work with professional real estate agents), clarity surfaces and with clarity better execution happens.
A customer analysis can be broken down into numerous categories depending upon the location of the agent.
- Demographics – Age, Sex, Education, Experience, etc.
- Budget – Cash, Financing such as Conventional, FHA, VA, USDA, Owner Carry of 1031 Exchange
- Financial Ability - Credit Score, Debt to Income Ratio, etc.
- Seller or Buyer Why’s – First time seller or buyer, Moving up, Downsizing, Relocation due to employment, Retirement, Moving for Health Issues, Snow Bird, etc.
- Needs – What are the basic needs such as location to amenities, no Homeowner’s Association, schools, healthcare, open floor plan, single story, garage, lot size, etc.?
- Wants – What are the “I would like to have, but are not a deal breaker if I don’t have it” wants?
Recently I spoke with a customer, an out of state older cowboy, who is now a client. He had spoken to several other real estate agents who failed to adequately educate him about buying vacant land. We have had about 3 hours of communication over the course of several weeks that allowed me to answer his questions while educating him about purchasing buying vacant land or even residential properties here in Mohave County, AZ. Being a cowboy he has horses and his “Need” is at least 5 acres with grass to reduce paying for hay.
Many of my customers and clients are relocating to Mohave County, AZ for various reasons though relocating for employment is not a frequent “Why.” Some of my clients work from home and one of their must needs is good Internet service.
Possibly in this analysis, identifying why the customer reached out to you may be helpful. Often this initial contact may be from direct referrals or Internet recommendations.
When this analysis or any other analysis is conducted on an annual strategic thinking basis, there will probably be trends that may have gone unnoticed because the strategic thinking was never undertaken.
Strategic Thinking Countdown Day 19 will discuss critical goal categories which help to organize goals and provide additional support to achieve small business success.
Extra Strategic Thinking Activity: Remember these two sales axioms:
- People buy from people they know and trust
- People often buy first on emotions justified by logic.
Your “tagline," Value or Positioning Statement, Communications, and Marketing copy should reflect these two sales axioms.
Leanne M Smith, The Grit and Gratitude Agent Who Goes the Extra Mile Because Life Begins Where the Pavement Ends.
Feature Photo Courtesy of Pixabay.com
Any reproduction of Leanne M Smith’s blog for use by any AI or GAI, distribution or reproduction including but not limited to electronic newsletters e.g. PDF’s Internet sites or physical products e.g. newspapers, CDs without prior written permission and consent by me, Leanne M. Smith (Leanne Hoagland-Smith) is strictly prohibited.
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