Presentation on theme: "1 Its a Changing World Future Success Strategies: Real Estate Agents Jim Bottomley September 15, 2011."— Presentation transcript:
1 Its a Changing World Future Success Strategies: Real Estate Agents Jim Bottomley September 15, 2011
The Future ????? ???
3 Todays Agenda s Morning: Industry Trends Future Opportunities & Challenges s Afternoon: Improving Future Success 1.Profiting from Change Trend Analysis – Future Issues 2.Meeting Client Lifestyle Needs Better Benefit Strategies 3.Improving Marketing & Sales Performance: Tools for Success
4 Change results in both opportunities and threats Change + _
5 The key to managing change is determining how to react to it... s Actions to embrace opportunities s Actions to minimize or avoid threats
6 What business are you in?
7 Work= Meeting Needs Success= Need Satisfaction
8 Evaluating an Opportunity Is it on trend? - a need that is growing Need Satisfiers identified? - target groups / defined goals Better Benefits provided? - solutions delivered in a better way than other options way than other options
9 Trend Areas 1. Technology 2. Economic 3. Social/Cultural 4. Demographic 5. Political/Legal Technology is the lead-edge of change…
10 The Global Picture The Global Picture s 7 Billion to 9 Billion by 2045 ? s Developed world pop. growth dependent in large part on level of women empowerment s 1 billion more people in middle class – increasing demand for meat (takes 4 lbs of grain for 1 lb of meat) Canadian Agriculture will impact the World! s Land prices becoming a global standard As are world-class cities…
11 Technology Changes + or - +Higher levels of productivity based on new technologies based on new technologies (new long range cycles coming) - Industry redefinition; often job loss, followed by increased career shifting
12 Major World Economic Eras 1. Hunter Gatherers 2. Agricultural Age (90% to 2%) 3. Industrial Age % of Jobs % of Jobs in Production 69% 53% 30% 15% 13% 11.5% 4. Information Age A whole new set of opportunities and challenges...
13 Widening Gap Between Highest & Lowest Income Earners? s The bar for minimum skills in all professions/careers is rising s How does an uneducated person find job security in the future? s Less traditional family & community supports to help the least fortunate There will be a growing need for housing to fill the gaps
14 The Rise of Small Business s Transitions between economies – maximizes opportunities for small business creation s Small business has been the major generator of job growth in Canada s Future trends point to high growth continuing for small business in Canada s Home offices and wired homes – can the office of the future be virtual… and at home?
15 Trend Convergence: The Age of Innovation Trend Convergence: The Age of Innovation s We are in an era of maximum change! maximum change! s We are entering the 5th Economic Era 5th Economic Era
Jim 16 Wealth = Technology X Resources New Technology comes from Collaboration, and now, new tools! Maximum potential for innovation…
17 Industry Transformation s World markets - finding your niche(s) s New Methodologies: -Internet -Radio Frequency ID -More complex J.I.T. logistics -Quality & Green Standards s Reducing costs – collaborative automation and continuous process improvement key s Big wins in client satisfaction possible –interactive transfer of information – knowledge has value! s Knowledge comes thru collaboration
18 The Ultimate Regional Alliance: Forming Regional Clusters s Centres of Excellence are mostly associated with research only s Clusters focus on area of lead- edge need, with collaborative public and private sector partners conducting research, commercialization and serving to promote regional economic growth s Recruitment & retention tie to regional identity, economic development & quality of life
19 The Regional Clusters Ultimate Goals s Develop new products and services which could be exported – creating high paying jobs & economic growth for the area s Synergies for Cluster Partners s Branding the region to attract investment, skilled labour and additional Cluster partners
20 Potential Clusters? s Match with regional strengths s On-Trend – world-wide demand themes s Connect to lead-edge research and/or application/testing of the better benefit solutions s Private & Public Partnerships
21 Challenges Developing Regional Vision s For Regional Tourism, the more input, the less differentiated the message tends to be s For Clusters, a sector focus limits identification of marketplace opportunities – better hows transfer across industries s Language that stimulates innovation involves better benefit goals – and can connect Clusters to recruitment to regional branding
22 Energy & Sustainability s When is peak oil? s Awareness of climate change growing s No magic bullet green solution s Solutions will involve many small & big steps involving businesses and consumers s Expect to be carbon aware; likely tracked and traded
23 Smart Planning The New Urbanism s Higher density & diversity s Walking, biking, public transit s Sustainable with lower ecological footprint s 100 mile rule – farmers markets and urban gardens s Friendly, interactive and community-minded s Unique identity and sense of place
24 Promoting a Region s Increasingly, not only infrastructure and business conditions, but social/quality of life factors are important s In future, companies will locate where people want to live s Community health and positive lifestyle offerings will increasingly be important to economic health
27 Aging Population s Baby boomers currently with peak year at age 50 with peak year at age 50 s Single parent & blended families are biggest growing family type – also more often extended families s Highly skilled people in their earlier years want action, vibrancy & diversity s Emerging trend? Baby Boomers & immigrants moving to small towns/rural – seeking nature, friendliness, safety & good health care s The future of crime is fraud (identity theft and title fraud)
28 Customer Perception: Im Not Aging like everyone else. s Recent research has shown: Boomers generally perceive themselves as 14 years younger than their actual age Boomers generally perceive themselves as 14 years younger than their actual age s An example: Gap launched a line of clothing for women over 35 – actually over 50 s Lifestyles now more important than age
29 Demographic Trends s Attracting skilled labour will be a bigger and bigger challenge s Immigration will grow - and diversity stokes innovation s Many workplaces now have 4 generations working together – in many places its skewed to older and youth
30 Communication by Generation s Gen Xs – born 65 to 80 (31 to 46) - less in this group – up against boomer power - less in this group – up against boomer power - weaker job market following the boomers, who also bid asset values up (realists) - weaker job market following the boomers, who also bid asset values up (realists) s Gen Ys - born 81 to 99 (12 to 30) - grew up in homes with absentee parents - grew up in homes with absentee parents - great L/T career prospects – have power - great L/T career prospects – have power Both groups are members of the Creative Class – less structured, seeking creative stimulation, want to be involved in decisions & embrace new technologies
31 The Millennium Generation s Saw parents sacrifices - lifestyle work balance sought s Raised with adulation & goodwill – expect thanks and involvement s Employers must coach not boss s Have bright employment prospects - theyll walk s Extraordinary Tech Skills
32 Social Trends Social Trends s Environmental sustainability; connecting with nature s Stress relief; seeking life balance s Cocooning: safety & security s Return to family values - Inter-family experiences sought s The creative class seeks vitality stimulation & is time-challenged s Caring capitalism s Remote technology - Alternative work styles possible - Alternative work styles possible
33 Most Important Social/Cultural Trend The Rise of Individual Power ThroughKnowledge
34Result s More demanding, knowledgeable purchasers s Focused need satisfaction strategies are the key to success in the new economy s Suppliers increasingly are partnering with buyers/client organizations to achieve need satisfaction – integrating supply chains and more robust services s Effective communication strategies are changing
35Result s Accountability & success tracked and made public How to best measure impact? How to measure if needs being met? How to track need satisfaction over time? How to measure organizational efficiency? s Effective reporting & communication strategies are changing…
36 Cultivating your Fives s Find out your 5s and engage s They can become your market intelligence, salesforce, researchers and promoters (LinkedIn is like Facebook for professionals) s What topics do you play in? How can you contribute to advancing the world of that topic? Who really cares about that topic? s Remember its about meeting needs… Key Question: Why should someone engage? (Ego, identity, exclusivity, money, knowledge and/or entertainment)
37 Key to Sales Success s Trust?? s To a customer, a good sales transaction is based on their perception of whether: The salespersons #1 priority is to put money in his/her own pocket or truly to meet customer needs? The salespersons #1 priority is to put money in his/her own pocket or truly to meet customer needs?
38 Leadership is Changing Old s Management is Control & setting rules s COP - Monitor s Coercion; Top Down, Leader Directed s Total Authority s Focus on the present New s Leadership is Motivational & guiding values s COACH -Inspire s Respect, Self- management, Teams s Share Authority s Focus on the future
40 From Mass Markets to Niche Markets to a Target Market of One
Jim 41 The 5 th Economy Is Coming… The Age of Innovation A combination of… s DNA s Computerization s Robotics & Process Automation s Nanotechnology Driven by Customization & New levels of Customer Collaboration
42 The Information Beast Has Escaped the Zoo s Microsoft Data predicts the worlds information data base will double every 7 days by 2020 s 24/7 communication access s Info attacks us everywhere and anywhere s +4,000 ad messages / day s Were Good at Tuning Stuff Out… All communications must be clearer and focus on stakeholder needs…
43 Better Benefits: s Attract attention in the age of information overload – drive branding s Our reason for buying anything s Drive motivation & investment s Define the value of each step in a process Better Benefit delivery is our collective and individual reason for being
44 Strategy for $$$$$ Moving from lowest price to providing added-value at higher margins? ¤Requires focused better benefit strategies ¤Involves providing specific high-priority need satisfiers better than competition… and high-priority need satisfiers better than competition… and proving it over time… your sales story should reflect this proving it over time… your sales story should reflect this
45 Marketing/Branding Success Positioning Message (Better Benefit Message) Company/product is the who/what you are that offers better benefit(s) Keep promises or apologize Surprise and delight
46 Delivering on Brand Promise s Understanding (of customer needs) s Identification (of competition) s Planning (an integrated effort) s Learning (what actions work/dont work) s Delivering (as promised!) s Evaluating (and measuring) s Improving (and continuing cycle) s SOCIAL MEDIA SUPPORTS THESE STEPS -connects people to communities efficiently -connects people to communities efficiently -brand is the sum of conversations re. you -brand is the sum of conversations re. you -listening & responding & promoting story -listening & responding & promoting story
47 The Innovative Organization s People understand the total system s Decision making at all levels s Information to those who act s No artificial barriers s Supervisors manage not police s Make jobs to fit strengths s Problem solving is shared
48 Process Design Guidelines Look for: s Disturbances/problems in the process – never hand off a problem to the next stage s Redundancies/non-value added hand offs s Inefficiencies/deficiencies/delays s Does the step add a better benefit or not? Are goals related to need satisfaction measurement?
49 Motivation = Clear and Shared Goals x Tracking & Measuring & Communicating Success x Rewards for Achievement
50 Leadership s Common goals are key for team success (managers change from cop to coach; need to align goals of the organization with those of each department with those of the individual) s Change Planning involves identifying both the positives and negatives s Involve people in the process s Ego-less Management…supporting the stressed and stressing the positive…
51 Electrical Career: Sales Pitch s Hands-on & fun s Work anywhere in the world s Intelligent: new technology s Most respected & popular trade s Well paid career s Work inside s Exciting (dangerous?)
52 Manitoba Hydro Career: Sales Pitch s Career Variety: Several Careers in One s Impact Future World Issues -powering economic growth with sustainability & environmental protection s Manitoba Hydro International – work the world s Quality of work life balance - flexible work cycle – time off, etc. s Leader in diverse work environment s Above average pay scale
53 The Anatomy of Innovation Attitude to the Activity PessimismOptimism Weeks or MonthsUp to Two Years Existing business is suffering Skeptical Enthusiasm Brass band and fireworks This is taking time Results arent visible Is it worth it? The Dark Night of the Innovator Start to see payoffs Maybe not a bad idea It works
54 Innovation & Success s Customer Focused s Creating Sustainable Competitive Advantages s Continuous Improvement s Dynamic Leadership s Strong Partnerships s Process Driven s Creating Learning Organizations...
55 In The Future… Well All Be Learning A Living
56 The Future of Real Estate: Issues? s Macroeconomy? Good or Bad? s Baby Boomer Choices? Rural? City? s New Technologies? Key ones to test? s Changing Homes? Whats next? s Changing Competition: Strategies? s Changing the profession? Strategies? s Utilizing social media effectively? s Other Issues?
58 The Information Age An Era of Maximum Change…An Era of Maximum Change… Change Causes Stress…Change Causes Stress… More opportunities than ever before for small business…More opportunities than ever before for small business… New strategies! New Skills!
59 Future of Real Estate: Big Issues s The future of the world economy? Bubbles? Canada? The future of housing? s Changing needs? Smart Cities? Green Living? Do customers want it? Do they pay? Is there a shift from 2 nd homes to a dream lifestyle? s The competitive environment? How to better satisfy customers? How to support a higher price for services? s Are success strategies changing? New strategies which may work better in future?
60 Information Overload s 24/7 communication access s Info attacks us everywhere and anywhere s +4,000 ad messages / day Marketing & Sales Messages must be Focused & Simple…
61 Lets Plan a Cruise s What need should we focus on? s What would our dining room look like?
62 Features s Any characteristic of a product or service Benefits s The need(s) a feature meets s Customers are attracted to need satisfaction – Benefits! s Why choose one over another? BETTER BENEFITS!
63 4th Dimension Planning 1) Trends Needs that are growing Needs that are growing 2) Customer Target groups Target groups Need priorities and benefits sought Need priorities and benefits sought 3) Competitive Identify other ways needs can be met Identify other ways needs can be met Identify Your Better Benefit Identify Your Better Benefit Keys to Planning Success
64 4th Dimension Planning 4) Internal Analysis Your vision & goals? Your vision & goals? Capabilities? Resources? Capabilities? Resources? What needs to be put in place to deliver the Better Benefit? What needs to be put in place to deliver the Better Benefit?
65 Steps to Effective Planning s Brainstorm all needs you could cater to… as long a list as possible since often innovative ideas come from combining needs or stacking on additional needs s For each need listed, examine trends – which needs are growing – where will we focus? s For each need priority listed, what would the various target groups be who care most about that need being satisfied? s For each Target Group, what better benefit story is most relevant? s For your organization, what needs to change to be more effective?
66 Better Benefits: s Reflect a better way of satisfying a customer need priority s Are the keys to establishing branding s Should reflect the overall organization, but may vary by type of service or client s Individually, are the route to career success
67 Every business owner has more than one business… s Marketing dollars are better spent the narrower the niche you target s Every business has many table legs to consider – with the potential for separate marketing approaches for each
68 Rifle Shots vs. Shotgun s A key success factor for the future in all industries is the ability to serve more than one target customer using separate marketing strategies s Leads to the question of focus (managing your tabletop) (managing your tabletop)
69 Higher Prices – Higher Profits s Better benefits support higher prices and better margins s Commodities lack better benefits s Remember the 2 of 3 rule re. quality, speed and lowest price s Battle scope creep with clear communication conduits
70 Effective Pricing Strategy s Are you establishing price based on cost-plus formulas? OR s Are you establishing price based on what the market will bear? s Start with the customer range of prices and look to compare where the product fits in on a better-benefit basis – often, margins can be improved
71 Strategy for $$$$$ Moving from lowest price to providing added-value ? ¤Requires focused better benefit strategies ¤Involves providing specific high-priority need satisfiers better than competition… and high-priority need satisfiers better than competition… and proving it over time… your buying story should reflect this proving it over time… your buying story should reflect this Often involves alliances to achieve
72 What Are a Homes Benefit Themes? s Safety, security, peace of mind s Convenience? Travel time to work, school, interests? s Active, healthy lifestyle? s Connection-to-nature lifestyle? Outdoor living? s Serenity? Peace? Spiritual need? (magic sunsets) s Aesthetics? Reflecting a certain style/lifestyle? s Better community experience? For what community? (golf, skiing, other activity? Attitude? Ethnic group? Work group? Telework?) s Elegance? Success? Exclusive to a certain class? s Multi-generational sharing? s Handling special needs? Aging? Health issues? s Better by family style? Singles? Aging?
73 Think of Housing Ads s Can you identify a feature- driven ad you could change to a better-benefit driven ad? s Share examples with your neighbour s Share best ones with us all?
74 Key to Sales Success s Trust?? s To a customer, a good sales transaction is based on their perception of whether: The salespersons #1 priority is to put money in his/her own pocket or truly to meet customer needs? The salespersons #1 priority is to put money in his/her own pocket or truly to meet customer needs?
75 High vs. Low-Involvement Buying process s For low risk/involvement purchases, a simple better benefit message is effective s For higher risk/involvement purchases (a home), client seeks information and compare own need priorities for at least three different options s A good salespersons role is to help clients develop their chart - and then help them evaluate options s After-sale anxiety (second guessing) must be dealt with if relationship is to thrive
76 The New-Economy Sales Process s Prepare questions to qualify need priorities s Partner with client to review need satisfiers focusing on action plan to achieve goals s Establish ongoing communication and future interventions
77 Client-Partnered Selling Process Client-Partnered Selling Process s Introductions & chit-chat s Clarify overall brand promise s Questions to determine specific need priorities s Present better benefit stories matched to needs identified s Answer Objections s Close the Sale s After-sales follow-up to improve brand promise / word-of mouth
78 Questions to Determine Need Priorities? s Are their good ones that you use to better determine customized client need priorities? s This is a future strength of your network… s Share good questions?
79 Toughest Client Objections? s There are only five types to prepare for... s What are best ways to answer these objections?
80 Types of Objections s Need – dont need; or cant believe need can be satisfied better s Source – Company or people s Time – Not right time s Price – Too high, or too low s After-sale Follow-up – Implementation / Training / Support / Problem-solving / Delivery / Performance Tracking
81 Marketing Realities s Very expensive to market direct to consumer s Need to stimulate future purchases (loyalty programs/viral marketing) (loyalty programs/viral marketing) s Strategy is to get key influencers to recommend provider s In the age of information overload, simplicity and repetition is essential – branding is key
82 What is a Brand Promise? A promise of better benefits consistently delivered with the highest level of satisfaction versus direct and indirect competitors
83 s Peace of Mind - Long track record of meeting needs successfully s Helping You is What we Do - better need matching with local knowledge and a focus on customers for a lifetime s Canadian owned with real impact on local community (Ex: Shelter Foundation) s Culture of open/sharing/support/family
84 Delivering on Brand Promise s Understanding (of customer needs) s Identification (of competition) s Planning (an integrated effort) s Learning (what actions work/dont work) s Delivering (as promised!) s Evaluating (and measuring) s Improving (and continuing cycle) s SOCIAL MEDIA SUPPORTS THESE STEPS -connects people to communities efficiently -connects people to communities efficiently -brand is the sum of conversations re. you -brand is the sum of conversations re. you -listening & responding & promoting story -listening & responding & promoting story
85 Branding Success 1) An ad that is pretty Stands out Stands out Attracts interest Attracts interest Memorable Memorable 2) An ad with a message 2) An ad with a message Two Components
86 Marketing/Branding Success Positioning Message Positioning Message (Better Benefit Message) (Better Benefit Message) Organization/product is the who/what you are that offers better benefit(s)
87 Sales Success s Ability to combine a clear better promise reflecting individual client need priorities WITH… s A story to prove the promise can be delivered - unique skills /process - client experience - performance / quality - unique relationship
88 Agent Better Benefit Pitches ? s Relationship: low-stress, ease, speed, convenience, low price (lending options) s Identification of needs of client s Finding suitable homes to buy s Finding suitable buyers effectively (mkting) s Getting a better sale price (staging, etc.) s Better peace of mind –risk assurance s Better impact on community – values s Better meeting specific needs (property type) s Better long-term relationship s ANYONE Like to SHARE GOOD ONES?
89 The Entrepreneur Improving leadership … and management… … and teams
90 How Should You Spend Your Time? What % of Time Now vs. Future? s Operational/delivery____ ____ s Organizational/HR____ ____ s Technical____ ____ s Financial____ ____ s Marketing & Sales____ ____ s Research & Devt____ ____ s Process Improvt____ ____ s Visioning____ ____
91 Stages to Effective Delegation s Establish joint goals and quality standards s Gut-check skills required and provide supports s Be clear on decision-making boundaries s Baby steps & check-backs, celebrating wins and giving it up over time
Jim 92 Keys to Employee Retention s Culture of respect and thanks s Quality direct supervision s Granting other priorities - family time - flex work time s Team-based culture - fun s Rewards for measured success s Clear vision matched to need priorities s Creative stimulation s Individual impact – local & world
93 Leadership and Values s Remember that organizational values drive behaviours s Values reflect the culture and are transferred from the top (walking the talk) (walking the talk) s What are your values in relation to the stakeholders you interact with?
94 Leadership s Common goals are key for team success (managers change from cop to coach; need to align goals of the organization with those of each department with those of the individual) s Change Planning involves identifying both the positives and negatives s Involve people in the process s Ego-less Management…supporting the stressed and stressing the positive…
95 Customer Service Satisfaction Customer Service Satisfaction s Collaborative s Showing Empathy s Focus on customer need priorities s Partner to solve needs/solutions s Prepare for objections – Price, Time, Source, Follow-up, Need s Keep promises or apologize s Surprise and delight