This is the conclusion of the latest Global edge survey into the habits and preferences of more than 200 agents and developers.
Customer referral programmes and search engine optimization are rated as the two most effective channels in terms of lead generation but are only used by 37.8% and 55% of agents respectively.
The most used marketing channel, property portals (78.4%) ranks third in terms of effectiveness but the average rating hides a huge variance in opinion with almost as many agents marking the top portals as “poor performers” as those rating them as “good” or “excellent”. We will cover this topic in more detail in tomorrow’s newsletter.
Luxury modern Hillside Villa in Ptuj (Podravje - Slovenia). - 1.150.000 €
Magazines & newspapers still used despite performance doubts
Magazine and newspapers prop up the performance table with the lowest scores but these media are still prevalent in the industry’s marketing plans with 40.5% and 30.5% of respondents using them regularly.
This result partly reflects the fact that measuring the “performance” of magazine and newspaper advertising is notoriously difficult, especially if your objective is to raise awareness and brand profile. However, it is also likely that there is a minority who continue to allocate money into these areas out of habit rather than judgment.
The best channels build competitive advantage
The most interesting insight from the survey is that three of the top four best performing channels are also the ones which are most difficult for your competitors to copy.
Whatever you thoughts on MRI, Darragh MacAnthony knew a thing or two about customer referral programmes. Over 30% of MRI’s sales came from this source and at a fraction of the cost of most other marketing activities. Once you come up with a good system (and the right set of products) for getting your customers to refer business, it’s a source of long term sustainable advantage.
To a lesser extent, the same can said of search engine optimization (SEO), which ranks as the second most effective channel. High rankings on keywords with intent to purchase in your niche are difficult to replicate. It requires time and expertise that many of your competitors don’t’ have and even if they do, Google gives a ranking benefit to older, more established sites.
Selling through agent and IFA networks, which ranks fourth in terms of performance, have similar characteristics. It takes time to source and develop relationships with the best referrers but these are difficult to copy, once established.
Other people’s media is like heroin
In most cases, given enough budget and a reasonable product, generating leads through portals, at exhibitions and in magazines and newspapers will always result in sales. They all (particularly portals in my opinion) have a valuable role to play but for the ambitious; those of you who want more than just a lifestyle business, they are not enough.
When compared to the long term benefits of building your own proprietary media channels (customer referral programmes, SEO, agent networks), using other people’s media is just a quick hit - an addictive high that feels good at the time, but does very little for your long-term prospects.
Words: Ashley Rigg ( globaledge.co.uk )
Most effective marketing channels for lead generation
|Effectiveness Rating*||% of respondents who use media regularly|
|Customer referral programmes|| |
|Search engine optimisation|| |
|Listing properties with portals|| |
|Agent & IFA networks|| |
|Email Marketing|| |
|Telephone qualified leads|| |
|Google Adwords|| |
|Exhibiting at shows|| |
|Online banner advertising|| |
|Magazine advertising|| |
|Newspaper advertising|| |
*Highest score possible is 4, lowest is 1