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Why You Need to Create a Customer Plan for Your REI Business

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By Sharon Vornholt

Today I want to talk about why you need to create a customer plan for your real estate investing business (in addition to a marketing plan) and exactly what a customer plan is. This is a new concept for real estate investors, but it’s something savvy businesses have been doing for a while.

What’s the Difference Between a Marketing Plan and a Customer Plan?

Simply put, a marketing plan is used to get leads. It’s used to attract motivated sellers.

Your customer plan details your process or what you do to keep those leads. The goal should be to have a repeatable process for nurturing the people that come into your business as leads.

Let’s Look At Your Marketing Plan

One of the first things you probably learned when you started your investing business was that your #1 job is marketing. You won’t be in business very long if you don’t have a steady stream of leads coming in the door. There are a lot of things you can put off but marketing isn’t one of them.

In order to effectively market your real estate business so that you always have leads, you must have a marketing plan.

Once you have implemented your marketing plan, it’s time to move on to your customer plan.

Exactly What Is a Customer Plan and Why Do You Need One?

A customer plan is a document that you create for your specific business. The customer plan for a real estate business would look much different than one a doctor created for their medical practice.

If you look at most businesses, they spend a lot of time writing business plans and marketing plans that attract customers. However, almost no one has a plan for keeping those customers (AKA motivated sellers) once you have gotten them to call you. Real estate is no different from any other business; it’s all about the customer. In our business they just happen to be folks that want or need to sell a property.

Your customer plan should be a detailed document that outlines everything needed to create a remarkable customer experience. This is the time for innovation; the time to think outside the box. If you really want to be the standout company in your marketplace, you need to find a way to reinvent the way you do business and deliver that exceptional customer experience.

Once you have created your customer plan, it also serves as a roadmap for making your company the absolute best company in your market.

Companies that got it Right

When you talk about companies that disrupted their markets, the first two companies that immediately come to mind are Uber and Airbnb. These companies “reimagined” the taxi business and the hotel business.

Uber changed the model of taxi business forever. People everywhere like riding in a regular automobile much more than a stinky taxi. Airbnb is another company that completely changed the customer experience. They reinvented the way customers choose accommodations when they travel. They are definitely giving hotels a run for their money.

What about cameras and voice recorders? Smart phones have pretty much replaced the need for both of these devices. They forever changed the way we take pictures on the go.

When I think back to the company that changed the way real estate commissions were traditionally paid, RE/MAX was responsible for that major change. Agents no longer had to share their commissions with the broker/office. If you are a RE/MAX agent, you pay a fee for everything; office space, copies etc. but you don’t share your commission. They reimagined the way Realtors get paid.

So the next question is …. how can you create a customer experience that is so different than what people are used to that you become “the one” they all want to work with?

It All Starts with the Customer

The first step is to know your potential customers. Don’t worry about your competition; worry about your customers. Once you know who your ideal customer is, then it’s time to create the best customer experience possible. Focus on creating the experience and the rest will take care of itself.

Of course ultimately this is about getting the deal. But more than that, it’s about creating raving fans that result in referrals, testimonials and repeat business.

Nurturing Your Leads

It’s easier (and cheaper) to nurture a lead than get another one. That’s a fact. Now don’t mistake this for trying to make a deal work that really isn’t a deal. That’s not what I’m talking about. This is about creating an experience for the seller at every touch point that is remarkable.

Anatomy of the Average Real Estate Deal

This is a very basic overview of the way a real estate deal goes from start to finish.

  1. You spend a lot of time and money generating leads
  2. Your marketing results in the seller contacting you about the property
  3. At some point you will have a phone conversation with the seller
  4. The next step is to look at the property if the initial screening call went well
  5. You inspect the property and decide whether or not to make an offer on the property
  6. After negotiations that offer is accepted or rejected
  7. If the offer is accepted you will proceed to the closing/settlement (and get a testimonial)

If you look at the process it’s all pretty mundane. Ask yourself this; looking at these steps, is there anything there that would create a remarkable customer experience? I don’t think so.

So let me ask you this:

  • If nothing were off limits, what could you do?
  • What would you change?
  • Is there a way to “reinvent” the way this process evolves?
  • Where can you innovate?

Let’s Do a Little Brainstorming Here

Let’s start with #1 which is lead generation and look at how you might reinvent the direct mail process.

If everyone is sending the same direct mail pieces; letters and postcards, what can you do differently? How about sending out a newsletter with helpful homeowner tips as your first mail piece? Instead of starting with a letter or postcard that says “I want to buy your house”, you begin your relationship with “Hi I’m Sharon, and I have some helpful tips for you today”. The point is to make a different first impression than everyone else.

Think of it this way; send the sellers something they will enjoy reading and in the process they will be introduced to you as a person rather than a business that wants something from them (their house). By doing this, over time you become the trusted resource in your market. At the bottom of your newsletter let them know that you buy houses and share your contact information.

Taking this thought one step further, why not replace one letter or postcard every quarter with something that would be useful to the sellers like a quarterly newsletter or market update? Information to create these information pieces is readily available on the internet, so it’s really pretty easy.

Doesn’t that make a whole different impression than a “we buy houses” letter or a postcard that’s all about you and your company? You bet it does.

Final Tips

I would like to challenge you to look at each one of those steps in the average real estate deal and think of a way you can “reimagine” the way you do business. Find ways that you can be remarkable in this crowded marketplace of real estate investing.

 

Sharon Vornholt

Louisville Gals Real Estate Blog

Why Sponsorship Marketing is a Win-Win

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By LAURA ALAMERY

Many of you will immediately associate sponsorship with sports; your name on the team jersey, a display ad printed in the game programs, your logo emblazoned on a prominent banner waving in the wind. You may be pleasantly surprised to learn that sponsorship marketing is far from being exclusive to the sporting world and humanitarian causes. And, it may just be the answer to integrating your brand into the local community; creating a loyal following of believers in your product or services.

Sponsorship vs. Advertising: What’s the difference?

Sponsorship marketing is one of the most effective and affordable ways for a growing business to gain plenty of exposure. By showing your support for (or alliance with) small and local businesses, sponsorship allows you to get your message out in front of a highly desirable audience; your community, your industry niche. Sponsorship marketing also provides the opportunity of an ongoing relationship, giving you more time to really nurture potential customers and gain their loyalty (and referrals).

Advertising, on the other hand, is a huge expense (especially for a startup business). One simple placement in a popular industry magazine – or several 30 second radio spots a month on your local station – can run into the hundreds of dollars. Your return on investment (ROI) is minimal, because the few seconds you’ve got anyone’s attention is not likely to convert to sales. And, the trial and error you’ll experience while finding what works for your company – and doesn’t – can be painful and time consuming.

Advertising is about quantity. Sponsorship is about quality.

Putting Sponsorship Marketing to Work

Whether online or onsite, this method for getting out your message and building brand recognition is superior to many others. Don’t miss the many types of marketing available to sponsors:

  1. Reaching a Target Audience: Remember, with sponsorship marketing your ideal prospect is essentially already in place, and you have their attention. Make good use of it! Sponsoring the right company means you skip about 20 different task levels in narrowing down the right consumers for your products and services!
  1. Standing above competition: Customers take many things into consideration when choosing to spend their money. While the cost and quality of your services (or products) are key factors, your commitment to the economic development of their local community will definitely influence their decision.

  1. Extensive brand exposure: In most cases, sponsorship marketing involves more than just writing a check. You will be given varied ways to introduce yourself to an attentive audience – in person or online, or both. From speaking at group meetings, to brand placement on coveted group web pages; from vendor table opportunities to guest posting. It’s a class act.
  1. Business collateral is a must: Here’s a chance to display your logo and message (banners, table runners) at events and distribute your cards, brochures, giveaways like cups or pens, etc. This goes so much further than wasting hundreds of dollars a year with a neighborhood newspaper ad; thrown into driveways, only to be rained on, run over and tossed in the trash.
  1. Be generous and tasteful: Go the extra mile and have your gift or donation for drawings branded with your logo. Use subtle yet creative ways to make sure the recipient knows (as well as the audience) that it’s your company providing the gift. Thoughtful, useful items may be kept for many years.

Sponsorship marketing is an excellent means of making the most of your valuable time and hard earned dollars. It is a mutually beneficial strategy to achieving meaningful business goals. Hence, the win-win.

Laura’s Story…

I was born and raised in beautiful Vicenza, Italy – only 40 miles from lovely Venice on the Adriatic Sea. I used to hang out at the top of this hill as a teenager, where I could see the whole city stretched out before me.

Laura Alamery investor

In 1985 I relocated to United States, moving to Honolulu in 1987 where I became a college student at Hawaii Pacific University; just 4 miles from the beaches of Waikiki. I began developing a keen interest in real estate, so I started reading everything I could find – watching late night infomercials and buying courses by Dave Del Dotto, Robert Allen and Carlton Sheets.

My Real Estate Career Begins

That same year I became a real estate agent, to help pay for my college studies. I joined Dolman and Associates in Honolulu, and right away I was inspired by some of the top agents on the island. I began following their lead and in my first year in the industry, I became a multi-million dollar producer!

In 1991, I graduated with a Bachelor of Science in Business Administration and moved to Missouri that same year. Once on ‘the mainland,’ my real estate career really took off. I started to purchase properties with no money down, using creative financing.

I continued my education by earning an MBA in Finance, still working part-time in real estate. Then I began a new career as an assistant controller in metal commodities, planning to climb the corporate ladder and keep real estate as a side business.

From Part-Time to Full-Time

By the mid-1990s I had already acquired a sizable portfolio (over 20 properties) consisting mostly of multi-families for rental income – and I was barely 30 years old! I was making more money in part-time real estate (less than 10 hours a week) than my full-time corporate job, so in 1996 I decided to flip the switch and devote myself entirely to real estate. Once I was able to immerse myself full-time into real estate investing, my career skyrocketed.

In 1997, I began sharing my knowledge of real estate investing, proven strategies and creative financing techniques by hosting real estate seminars. And, given the widespread use of the Internet, I decided to also share my practical knowledge and experience as well via online mentoring and coaching. In 2010, I opened The REI Lab, Inc. – the culmination of various companies I had started and closed in the past.

The Next Chapter Unfolds

With a love for laid back lifestyle and great weather (I really missed being near the water), I decided to relocate once more in May of 2015. This time the move was to Broward County, Florida; midpoint between Miami and Fort Lauderdale. Laura Alamery Miami investor

The Miami-Dade area is full of opportunities, and 59% of the real estate transactions here in 2016 were cash – more than twice the national average according to the National Association of Realtors!