Presentation on theme: "Creating Sustainable Real Estate Consumer Relationships in the Groundswell/Recession Era Jeremy Conaway, President RECON Intelligence Services October."— Presentation transcript:
Creating Sustainable Real Estate Consumer Relationships in the Groundswell/Recession Era Jeremy Conaway, President RECON Intelligence Services October 7, 2009
Thank you for being here and thank you for participating in a whole new knowledge services technology
These are historic times
They are historic by virtue of the fact that the industry events of the eight years, starting in 2002 to be exact, the last time we touched normal
The path of the past eight years Market goes over 5M for the first time Market goes over 5M for the first time ,000 new agents brought in ,000 new agents brought in Market goes over 7m units Market goes over 7m units Sub prime mortgage crisis begins Sub prime mortgage crisis begins Market goes into a down spiral Market goes into a down spiral Recession hits Recession hits Recession ends, recovery begins Recession ends, recovery begins With luck the new market arrives With luck the new market arrives
They are historic by virtue of the cultural and generational events of the eight years, 2002 to be exact, the last time we touched normal
Following the generational path JAG NCIS NCIS Los Angeles
They are historic because at some point in the next eighteen month we are all going on a journey. But we arent certain about the timing, the destination or the mode of travel
They are historic because each of you, as your firms critical events manager are about to assume a whole new role in the business, the marketplace and the transaction
The requirement of a new business model was made even more certain by the events of the past eight years including the emergence of a new market, the arrival of a the new consumer, informational technologies and social media
They are historic because, depending upon your perspective, we are either in the last year of the last era or in the first year of a new one.
In 2002 you were all driving the full business model but by 2009 you were driving a much different business model
Hunkering down to the slash model
Over the 18 months each of you will be involved in the design, development and implementation of a new brokerage business model
Unfortunately tens of thousand of brokers are in denial and are looking forward to going back to the 2002 market driving their 2002 business model.
The overwhelming challenge is how to take advantage of a level of opportunity that exceeds anything the industry has experienced since the post WWII period.
The only question is what it is going to look like. How will it function. Will it meet the challenges of the day and how will it create relationships with todays consumer?
So what is your challenge today? To be thinking about a blueprint that will be used to support your company as it engages a whole new real estate consumer
What do we know about the real estate industrys next phase?
Three probable priorities … ProfitabilityProfitability AccountabilityAccountability Consumer centricityConsumer centricity
Profitability is the ultimate challenge
In order to promote capitalization and investment the industry must evolve a brokerage business model that can generate market level profitability
The 1953 brokerage business configuration was designed to provide a platform for a bigger than life super person whose personality controlled all that they touched …
It was not designed to generate profit …
Over the past four years virtually every brokerage has abandoned the traditional business model in favor of a slash or survival model. As the market returns every brokerage will have to make a decision relative to their new business model
The industry now understands that all of the rules of business directly apply to real estate.
The shotgun merger was a short term solution that may cause more difficulties than remedies moving forward …
The landing will tell the story …
The elements of profit … Premium service for a premium feePremium service for a premium fee Value propositionsValue propositions Consumer experiencesConsumer experiences Standardized service protocolsStandardized service protocols Quality monitoringQuality monitoring Consumer input and ratingConsumer input and rating
The New Consumer
The industry is in the process of forming two camps around vastly different visions of the future of the industry:
Agent centricity vs. consumer centricity What is the relationship?What is the relationship? Can a firm go both ways?Can a firm go both ways? What is the relationship between agent centricity and profitability?What is the relationship between agent centricity and profitability? What is the relationship between consumer centricity and profitability?What is the relationship between consumer centricity and profitability?
There are major players lining up to advocate both sides of the debate
Lesson #1: Building sustainable consumer relationships takes commitment. Use your level of commitment to your agents as a starting measurement
Lesson #2: Building sustainable consumer relationships takes respect.
Todays consumer is dominating all that they experience
Lesson #3: This is not about building just the agent/consumer relationship. It is also about building the consumer/brokerage relationship
Consumer want relationships with The teacher and the schoolThe teacher and the school The doctor and the hospitalThe doctor and the hospital The mechanic and the dealershipThe mechanic and the dealership The clerk and the storeThe clerk and the store The agent and the brokerageThe agent and the brokerage
Lesson #4: Building sustainable consumer relationships takes understanding.
The industry may have been managing consumers for one hundred years but they havent been creating sustainable relationships with this consumer
The Break Up
What we all know … The consumer wants professional assistanceThe consumer wants professional assistance The consumer will pay a fair commissionThe consumer will pay a fair commission This new consumer wants to have a real relationshipThis new consumer wants to have a real relationship
What does todays consumer want from their business and professional experiences?
Lesson #5: Building sustainable consumer relationships requires you to appreciate what they have gone through in the past two years.
What impact did the recession have on this new consumer?
The recession was the most traumatic economic event the United States since the Great Depression. It will impact the American real estate consumer for the next 20 years
Big business and Big Government
Day to day ethical behavior
Consumer protection through social media …
Lesson #5: Building sustainable consumer relationships requires an appreciation that they are way short of trust right now.
Lesson #6: Building sustainable consumer relationships requires an understanding that they have turned to social media for trusting relationships
Dont fool yourself. It is bigger than you can ever believe.
Listen to this man at REALTOR® Expo His name is Doug Devitre
Lesson #7: Building sustainable consumer relationships will require you to abandon your traditional approach to marketing and meet them in social media
Please read this … Trendwatching.com
Lesson #8: Building sustainable consumer relationships will require you to allow that consumer into your world
This means that encouraging consumers to rate, rank and comment on their real estate experience will be critical moving forward
Engage with client experience rating
Lesson #9: Building sustainable consumer relationships requires administration and automation
Relationship building will not be automatic Automate the relationship from beginning to end.Automate the relationship from beginning to end. Set standards of practiceSet standards of practice Ask the consumer how are we doing?Ask the consumer how are we doing? Seek frequent input from the consumerSeek frequent input from the consumer Listen carefully to the answersListen carefully to the answers Carefully monitor what the consumer is saying about you on the InternetCarefully monitor what the consumer is saying about you on the Internet
Lesson #10: Building sustainable consumer relationships will require a commitment to the long term.
Long term relationships Sustainability means quality, utility and durationSustainability means quality, utility and duration Through the transactionThrough the transaction Through the home ownership cycleThrough the home ownership cycle Through the lifestyle cycleThrough the lifestyle cycle Through the referral cycleThrough the referral cycle
Building sustainable relationships with todays real estate consumer will be the centerpiece of success for your brokerage moving forward