The real estate market is a changing animal, and one that those aligned with it must adapt to, or be left behind.  In this presentation done at the Chicago Sparkt event, I discuss the future of the real estate brokerage model, the future of our industry, and the rules for our changing industry.  Social media and other technology will influence our marketplace and only be embracing CORRECTLY will we be in a position to capitalize on this new landscape.

(FYI – the projector was disabled for the first 10 minutes!)

Matt Dollinger – The Rules for a Changing Game from SPARKt on Vimeo.

Is this your Marketing Strategy?

Word of Mouth Marketing (WOMM) is what most real estate agents are referring to when they say they are “Working by Referral” or “Sphere” related business.  This is the oldest and generally the most regarded form of marketing because it depends on a personal and typically genuine recommendation from one consumer (or provider) to another.

As defined by Wikipedia:

Word of mouth is a reference to the passing of information from person to person. Originally the term referred specifically to oral communication^[1] (literally words from the mouth), but now includes any type of human communication, such as face to face, telephone, email, and text messaging.

With the invent of Twitter, Facebook and blogs these mediums have allowed for “more” recommendations, (through RT, Link sharing, Posting, and Online Reviews).  The question becomes:

• Has this increase in WOMM QUANTITY taken away from the QUALITY of an actual referral?

Or

• Have the “identities” attached to these recommendations (profiles, online identities, Open ID’s, etc) substantiated these claims?

This question is one that demands a much deeper discussion and understanding, and not where I want to go with this post.

However, the idea of WOMM can be explained best visually through a recent post by David Armano who ran a contest for the best visual representation of Word of Mouth Marketing.  The winner, Mario Vellandi, submitted the entry below.

David and I were both impressed with the same breaking down into Promoters, Passives and Detractors.  This is a classic case of the saying, “bad experiences tell 10 people”.   Overall this is a great representation of the overall WOMM model.

What I WOULD like to see is how could be analyzed using today’s metric models.  Let’s say that more and more of the WOMM is NOT actually done via “mouth” but done via highly-viral technology platforms like Twitter, CitySearch, and others.  If a disgruntled recipient “used” to tell 10 people, how broad is their reach NOT with Social Media and online review sites?  Isn’t the actual effect magnified by a power of 100?

This only amplifies the need for a serious listening model to be overlying the tech world in a “comcastcares” format.  Imagine, based on this model alone, if one of the Detractor’s concerns had been addressed immediately

By addressing the conern of one Detractor, the individuals could have prevented an entire chain of eventual Detractors from forming, thus maintaining his/her brand reputation.  Listening is the key here and a strategy that should be implemented immediately through Twitter, Google Alerts, and other programs.

WOMM is still THE most respected and effective form of marketing available, but with the power of the web, could turn against you in a minute’s time.  With proper prepartation, message creation, and simple analyzation of past messages for improvements, etc. many of the common pitfalls we face could be avoided.

Summary: Start with creating a solid “brand aware” message before broadcasting and then keep your eyes and ears peeled.

Matt Dollinger

These short videos dive into everything from, “What is Social Media?” to “Measuring ROI with Social Media”.  EVERYONE looking to bring SM into their business, brand, or blog should take the time to watch these short videos.

While you’re at it, why not add Samir’s blog to your reader, or if you’re REALLY looking to stand out and be scandalous, peep out Mary’s blog over at Sacrilicious Marketing. I personally guarantee that she will keep you reading.

Below is my favorite video of the 7 videos speaking about the power of social media with regards to your brand.

Enjoy – Matt Dollinger “The You Factor”

We need to steer clear of this poverty of ambition, where people want to drive fancy cars and wear nice clothes and live in nice apartments but don’t want to work hard to accomplish these things. Everyone should try to realize their full potential. – Barack Obama

If you are like me (and even if you aren’t) you probably watched the election this year with Awe.  It seemed that even when the going got tough and the mud-slinging got rampant, our now President-Elect Barack Obama kept his cool and ran one of the most innovative and effective campaigns EVER.  Even taking out the “Presidential” element of this campaign, Mr. Obama ran one of the most awesomely instrumented marketing, informational, and electrifying “companies” out there.  And I, for one, think that he has single-handedly changed the political world forever.

Recently, there have been hundreds of posts regarding his comprehensive campaign and what we in the business community should learn about it.  Alison Rogers who writes the column “Diary of a Real Estate Rookie” at Inman recently wrote an entry entitled “A Presidential Marketing Lesson” and breaks the bullet points of his campain into 5 easily digestible areas of focus.

1. Define your brand.

2. Give people a place to find you.

3. Have a weird name.

4. Offer, if it’s possible, premiums.

5. Put the calls to action in your drip marketing.

And where I agree with Alison on these points I think that it goes even further than this.  There are many paralells that we as business folks should identify with (in additon to those above) and adopt immediately.  Some of those that stand out to me are as follows:

• Be Human – The guy was likeable.  He could talk to a celebrity and then turn around and talk to a UAW worker in Detroit… and he did so by being authentic.  (For more on this check out the book Authenticity – What Consumers Really Want by Pine, Gilmore and Joseph)
• Put your Value Proposition where everyone can see it.  On his website there was an ISSUES tab that outlined his views, stances, and what he wanted to do about it.  QUESTION:  Do your clients see your value proposition and what you stand for on your website or in your branded items?
• Don’t sugar coat shit.  I don’t know another way to say it, (sorry if I offended anyone), but it’s true.  Obama ran this entire campain on change and hope… but in his acceptance speech, Mr. Obama set the record straight by stating, “The road ahead will be long. Our climb will be steep. We may not get there in one year or even one term, but America – I have never been more hopeful than I am tonight that we will get there. I promise you – we as a people will get there.” Read the full transcript here
• Use all the tools.  SMS, Email, Viral Video, blogs, podcasts, oh my!  Obama used all of them to get his message of Change out to the public.  But… many of us aren’t incredibly savvy to this technology?  Hire someone.  Take a class.  Try something out.  Experiment.  I will say this and mean it… you cannot compete in today’s marketplace without using all the tools at your disposal.
• Stick to your message and brand.  Throughout everything, Obama stuck to one point and continued to leverage it throughout the campaign.  CHANGE and HOPE.  These were not necessarily tangable elements, but allowed him to capitalize on the desire for a better America.

And lastly, excite your audience by believing in what you preach.  Read, listen, or watch any of his speeches throughout the campaign and see how, even calmly, he is passionate about everything he speaks on.  Where President “Elect” Obama may have changed the rules of presidential campaigns forever, by taking some points from him and his “You Factor” I think we can all turn our respectful business worlds on their ear.

- Dollinger

If you haven’t met Seth Godin yet, it’s time you introduced yourself…. Better yet, introduce yourself to his blog and his way of thinking.

SETH GODIN is a bestselling author, entrepreneur and agent of change.  More importantly he is a lifesaver for the real estate industry, and any other that depends on a living, breathing consumer.  (Read his list of books here)

In one of his recent blog posts entitled “Rough Edges and Attention”, Seth talks about a recent campaign by UPS where they have, ” haphazardly affixed SAFETY sign hanging from the back.”  (See sample of the picture here)  Seth then goes on to discuss that if we truly want to gain show ummmm get people to notice your message, “When in doubt, scrawl make it human.”

 I read this, I LOVED this… and the more I thought about it, the more it walked hand-in-hand with The You Factor.  Question it all and ask, “What differentiates me from the commodities in my business?”  The answer, and the only thing that TRULY sets you apart from the competition is YOU.

YOU are different.  YOU are evolving.  YOU can adapt at the drop of a dime.  YOU can make a difference.  YOU have a heart.  YOU can listen.  YOU can understand.  YOU…  are amazing. 

Forget the brand.  Scrap the tag line.  Stand up, Turn on, and let your clients see it, feel it, and believe it.

Matt Dollinger

 [youtube=http://www.youtube.com/watch?v=xBIVlM435Zg&hl=en]

I shiver almost every time someone mentions the phrase Web 2.0.  The catch phrase of the millenia, 2.0 refers to “the next step”, NEW, better than the original.  The “official” Wikipedia definition refers to Web 2.0 as, “a term describing a trend in the use of World Wide Web technology and web design that aims to enhance creativity, information sharing, and, most notably, collaboration among users”.  (see article here)  So, what happens when our intricately laid plans of information sharing, creativity, and collaboration actually DISTANCE ourselves from our consumers instead of pulling us together for the sharing we so seek?

This is an issue that I often find myself smack dab in the middle of when talking with friends and others in the real estate community.  In an industry of “me too” and “ours is better” the question becomes; “In our quest to increase exposure to listings and target a finite consumer pool, are we appealing to our audience or distancing ourselves from them?”

My thoughts have always been focused (with real estate at least) around the following:

1. Enhance the overall customer experience
2. Provide more “usable” information than other sites/companies
3. Visual appeal and usability
4. Functionality

I was amazed when I witnessed the release of Chase Nation , a social networking site devoted to the Lake Tahoe/Reno, NV area.  It scores an 11 on the “Coolness” scale and set the tech community buzzing with its forward thinking and ingenuity.  Two months (roughly) after its release date, the network has a total of 350 members, (130 of them being Chase international Realtors, and I would guess another half being interested parties like myself).  I am assuming that the site, (unconfirmed), was assembled to provide area information, thoughts, opinions, etc. from the neighboring public – ultimately increasing the company’s exposure and increased potential buyer/seller traffic.  It remains to be seen if this idea catches on, but I am speculative. 

Even in Chicago, a city I know like the back of my hand and love, I could see this type of neighborhood network REALLY taking hold in maybe 4-5 areas with the right roll-out, marketing, and advertising.  (I have no idea about the roll out or advertising Chase International did for this project.)  But now, rather than wait for the general public to “catch up” to this technology, all the real estate tech blogs are exploring; What’s next?  What’s better than Chase Nation?  How can we surpass their tech-genius?  (One of our local real estate companies even tried their hand at creating a Second LIfe office and failed miserably.)

In my mind it all comes back to figuring out WHAT the consumer wants and WHAT the consumer is willing to use.  For the millions and millions of dollars that are annually spent in advertising budgets, statistics, and analyzing the behviors of consumers, my question always becomes; “Why not simply ask them?”  I encourage EVERYONE… whether in Real Estate or whatever business, to target your top 10 clients and ask them about their Psychographics.  Ask them why they worked with you, what they liked, what they didn’t, what websites they visit, what they think of yours, how you could improve it, etc…  Go to the source and listen… The #1 desire of all human beings is to be heard and understood.

Then, when you find what they want, desire, like, etc… then put 110% of your efforts into providing that to the nth degree and making their experience better.

(Part 2 to come – stats and figures)

Matt Dollinger

Below is an email that I received from one of the agents I coach last night after working with him last week.  He has been a Realtor for a while but feeling rather burned out with the whole industry lately.  We talked at length about his passions, what he liked to do in life, and how we could use this to incorporate a “You Factor” into his business.  The results were outstanding…

Matt, 

I just wanted to thank you for your time last week, I’m very glad <our owner> encouraged me to meet with you. Some of the ideas we came up with to build my business have me real excited! I went out that Friday and took a bunch of neighborhood shots for my listing in <a neighborhood of Chicago> where I have been getting a somewhat negative response on the location, and had them out on the table at a showing on Saturday. The first person to come to the listing and see the pics wrote a contract, that day. Maybe luck, maybe effort, but either way I had a lot of fun getting these pics, and it’s got me real excited about combining my passion of photography with my career as a REALTOR. I can’t wait to implement more ideas.

Thanks so much for you time, I’m looking forward to continuing working with you.

See the pics here

Now I’m excited… and when I’m excited… Katy, bar the door.

I’m a huge fan of branding and this is, yes, an example of furthering your business brand.  As quoted in the CNBC interview below, Paolo talks about surrounding yourself with beautiful things; a home, a car, or… yes… your Real Estate agent.

Enter supermodel/real estate agent Angelina Everhart.  This star of the runway has turned in her catwalk glamour for the glamorous life of an agent… and it seems that the my experiment is going well.

When viewing the video you will meet one of Angelina’s clients, Raymond Dowd who states that there IS a huge when seeing a piece of real estate with a supermodel.  “There’s a commitment to the highest quality of clientele and living,” Dowd states.  Ummm… ok.  Nice way to think on your feet Raymond rather than stating the obvious, which for me would be, “I’M WALKING AROUND NEW YORK WITH A SUPERMODEL DUDE!!!”

I digress…  but as funny and ludicrous as it may seem, I send props over to Paolo and Angelina both.  Luxury, Taste, and the finest things in life… they all makes up a lifestyle, and that’s something that they’re pitching.  Crazy but true… Way to embrace your “You Factor”!

 [youtube=http://www.youtube.com/watch?v=Uhe5yj2oF-E&hl=en&color1=0x3a3a3a&color2=0x999999]