There are many articles that have been written about the Customer Lifetime Value, and how to calculate the estimated value. Ultimately, the hope is to maximize the amount of money derived from each customer, while also minimizing the acquisition and retention costs. But what happens when the opposite starts to happen? For Sprint, this happened in 2007.
Sprint Breaks Up With High Maintenance Customers
I’m sure we have all had a prospect or client that needed more than their share of hand-holding. They call, text, and email multiple times a day. At some point it needs to be realized that the client may represent a large value, but the amount of time and effort that has to be spent on that client exceeds their lifetime value.
There are two options to alleviate the issue. First, establish limitations and expectations upfront. It is not always best to give the customer everything they want. They usually know what they are getting away with, and will continue to do so. The second option is, “It’s not me, it’s you.” Yep, it’s time to fire the client. It’s never fun, and I have had to do it in the past. Not all business relationships are not a perfect match. Maybe it’s time to start spending 80% of your time with the top 20% of your client book.
Each time I query a Lead Source Report, to determine where all of the leads are coming from, I am never surprised to see the top lead source. Property signs always produce the most results, and many times the best results. When analyzing lead data, property signs have contributed to over 60% of the monthly lead sources, year to year.
Property signs are advertising, and should be treated similarly to a billboard. What is it about each micro-billboard (property sign) that is going to gain attention, and inspire a call to action? First thing first, can people see your sign? Paco Underhill writes in his book, Why We Buy, how marketing departments need to be aware of how viewers are going to be viewing the a sign: from their car, at 60 mph. Can a viewer see your sign and read the information on the sign? Additionally, when someone would like more information about the property, does the sign offer the viewer enough information?
The next most important part about the sign is what happens at the call to action. Is there a link or QR code to send the prospect to a property specific webpage for more information? Or, even better, what happens when they call the office? The hottest lead is the lead that is standing on the property and calling you for more information.
Overall, property signs should not be overlooked on any listing. Allowable: there are some listings where signage is not permitted. However, most of the time signs are allowed, and should be installed on the property the day the property is listed.
If you ask the Marketing Department, every lead is a result of their efforts. Conversely, if you ask the Agents at the office, every lead just so happened to find their way to the Agent’s iPhone. So, to answer this question I will give two quick examples of lead generation situations.
- A prospective buyer sees the newest issue of <your city here> Magazine. The prospect sees the advertisement for your Real Estate Firm and calls to buy a property.
- A previous client calls an agent at your firm on their iPhone and buys a property.
In Example 1. The Marketing Department wins!
In Example 2. The Agent wins!
But wait… In Example 2, does the Agent win? In the book Never Lose Again: Become a Top Negotiator by Asking the Right Questions the first question is “How did you hear about us?” This question is of most importance to the Marketing Department. This question can answer what marketing dollars are being well spent. Additionally, a revision of this question can be asked of previous clients, “What made you call me?” Considering the client already knows about your real estate firm, what made them (a.) remember you out of all the other agents in the world, (b.) what was the call to action that prompted the client to call you?
Ha! In Example 2. Marketing wins again.
Marketing Departments not only create content to procure new buyers, but they also create “drip marketing” to stay in the forefront of the client’s mind. The moral of the story is, Marketing behind the enemy lines, creating an arsenal of marketing weapons to utilize on the company’s behalf to keep clients engaged and active. Next time a client or a prospect calls you, ask the right questions and determine where your marketing efforts are having the greatest return.