Selling to Millennials

The housing industry is now onto its next big wave of potential consumers, the Millennials.  The Millennial population (87 million) is the largest generation in America cruising over the Baby Boomers (78 million).  Currently 65% of Millennials are over the age of 25 and have become financially stable yet a very small percentage has purchased a home.  So why, why is it so difficult to sell a home to a Millennial?  Let’s avoid talking about how the economy isn’t phenomenal and how student debt is hurting the middle class and young Americans.  About 31 million Millennials are unfit for home buying because of financial instability, but what about the other 56 million, what are we missing?

One of the most distinct features of the Millennials is they are extremely cautions buyers.  Millennials have grown up during an economic crisis centered on housing and just about every one of them is connected to someone who felt the negative effects of home ownership.  The best approach to counteract this fear of mortgages is to stress that home prices and interest rates are at a low point, making now the safest time to buy.

Another feature of Millennials that separates them from generations before is that being a home owner just doesn’t carry the same significance as it did with their parents and grandparents.  Being a home owner no longer acts as a symbol of status, it is not a badge of accomplishment to Millennials and it generally is not viewed as the gateway to building a family and creating an identity.  If anything Millennials see home ownership as a burdensome commitment.  When selling a home to a Millennial, especially if it is a first home, help them keep in perspective that this does not have to be a forever home and that they do not have to be tied to this decision forever.

Having a quick turnaround on answering questions for Millennials is also incredibly important when making a sale.  Millennials have grown up in a world of instantaneousness.  Do not wait to give the customer gratification.  If a customer asks a question, do not keep them waiting, even if you don’t have an answer for them yet.  Always respond.  Saying, “Hello, I don’t have a solid update yet but I’m looking into this for you” is much better than leaving them waiting.  Also, if you are breaking into the world of Social Media marketing and correspondence with customers make sure you know how to use it.  If you are not an expert with Facebook, Twitter, or other Social Media platforms, either get some practice beforehand or stay away from it.

Most Millennials are eco-friendly and conscientious about their impact on the environment.  When selling new homes highlight the eco-friendly features they have.  If a home has energy efficient appliances, high insulation values, or specialized windows, make a big deal out of it.  Never underestimate the importance of such features to Millennials.  Highlighting these features could steer them away from the drafty existing home market altogether.  Along with energy efficiency, make sure the home has plenty of energy or rather, plenty of outlets.  Most Millennials are not looking for a ton of flair and extravagant designs in their homes, if you provide them with a simple, open concept floorplan that is loaded with outlets so that they can keep their devices charged up and mobile throughout the home, your customer will provide all the flair necessary.

With some practice and a bit of understanding of the Millennial mentality selling to Millennials will begin to feel like selling to all other consumers.  Recognize the need of the consumer, find the product that fits the need, and introduce the product.  The sales methods stay the same, the sales pitches need to change.

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Marketing Funnel & Social Media

I recently attended a presentation about Marketing Funnels & Social Media by Ebb Walton from Nancy Marshall Communications.  The presentation was hosted by Tracy O’Clair from TOCmedia.  Click here to check out the TOCmedia website.   I thought I would share with you some notes I took from the presentation.

The definition of a Marketing Funnel is a holistic approach to marketing that creates well-prepared prospects ready to spend their money with you.  Please see the image below.  In our industry follow-up with the customer is so important because the process of deciding to buy a home could take several months.  This funnel allows us to capture the customer and allows for extended engagement. 

Here are 5 bullet points of a well-prepared prospect

– Aware of ALL of their needs

– Understand your differentiation and benefits

– Know, like and trust your business

– Self select as customers

– Take action to fulfill their needs with you

One of the most important steps is to make sure that your company is being seen and considered.  It is important to have effective advertising such as social media, digital advertising and SEO (Search Engine Optimization).  Other important factors to consider is how the customer views you vs. the competitor, which is what Chris Nicely covered during his presentation to us in April.    

The second step to the funnel is lead capture. There are several different ways to capture the customer information. For example, through a website inquiry, a message on your Facebook page or your salesperson captured their name, phone number and address from someone who came on your lot.

The third step is to keep the communication between you and the customer open. They suggested that after the first interaction, the salesperson sends follow up emails on the 3^rd, 8^th & 13^th day. Please use those emails to educate the customer about your product, promotions or upcoming events. Be very careful not to repeat information in the email which could lead to the customer getting frustrated and feeling pressured to purchase.

The fourth step means you have successfully gained the customers respect and trust and they are prepared to make their home purchase through you!

The fifth step is brand advocacy. Hopefully the customer has had a great buying experience through you and is willing to advocate for you. This could be through a customer testimonial that you can advertise on your Facebook page, website or make a commercial out of it.

The final step is to repeat this process! Send post-purchase follow up emails to customers, send monthly email campaigns, and update your Facebook page

Google Analytics

Google Analytics is a FREE statistical service offered by Google. The service offers a way for companies to track and analyze the traffic on their website. Google Analytics not only tracks your website but it can also track your social media sites like Facebook or WordPress (Blog). Since our customers are now online more than ever it will help give you a clear picture of where they are located and what their needs are. For more information – http://www.google.com/analytics/

“Once you know how well your latest promotion is converting, it’s time to act. Start testing! From marketing plans and ad keywords to the photo on your front page, Google Analytics is built to help you compare different approaches and see which performs best. Make changes, re-measure, and test some more. That’s the smartest way to make the most of your business and meet your performance goals.”

Below is an example of what the dashboard would look like when you login. The user will be able to easily see how many visits your website is getting, the average time on your website and where in your state the visits are coming from. For example if I were to click on the state of the United States and then Maine it would show me the top 10 towns where people are visiting my website.

Website & Social Media Presence

Having a strong internet and social media presence is more important for companies now than it has ever been before. According to the International Telecommunication Union, 81% of consumers in the United States have access to the internet.  This figure has doubled since the early 2000s. Below are three helpful tips to ensure your company has a strong internet presence.

1.  Keeping your website easy & simple – Today’s consumers are very impatient when shopping and researching products online. Make sure your home, inventory and contact information have clearly labeled links that are easy to find.  Consumers may be overwhelmed if too much information is displayed on the page, keep it simple and organized.  It may be a good idea to invest in a web designer who will create a user friendly website for you. If a customer cannot quickly find what they are looking for they will get frustrated and leave your website.

2.  Upload pictures – A majority of consumers now prefer to shop and research future purchases online. Providing pictures of your products on your website allows consumers to view your current inventory without travelling to your retail location. A consumer that lives far away may consider visiting your retail location after seeing your inventory online. To ensure your website loads quickly use medium to small size images.

3.  Facebook marketing – A Facebook page is an easy way to inform consumers of your everyday operations. Facebook is a great way to provide customers with up to date information about your product line. According to Pew Internet, 67% of all internet users are active on Facebook. Comments, likes and posts are quick and easy ways to interact with consumers.  Facebook is great way to generate traffic to your website and it is free.

 January’s blog post will be about Google Analytics which is how you can analyze the traffic on your site!