Marketing a Home to Wealthy 50+ Prospects

Capturing business from an offline generation

An October 2015 report from Forbes Insights, Engaging 50+ Consumers In A Digital World, examines the consumer behaviors of wealthy Americans 50 years old and above, a demographic which holds $3.6 trillion in annual income, or 49% of all after-tax income in U.S. Created in partnership with Wealth Engine, the report asserts that this demographic has wholly unique values and preferences concerning marketing from luxury brands and service providers. (Reprint from Luxury Insights)

1. Emphasize the property’s quality and craftsmanship.
To speak to the values of wealthy 50+ Americans, luxury real estate professionals should highlight the quality and craftsmanship of high-end homes rather than the related prestige of living in the home or community. The Wealth Engine survey shows that this group considers the most vital aspects of a luxury product or service to be quality (82%) and craftsmanship (66%). These values are even more important to baby boomers (51-70) than older generations, so this definition of luxury will be around for a while. In contrast, more traditional conceptions of luxury—prestige of ownership (19%), brand/maker name (17%), price (11%)—are not top-priority with respondents.

Marketing to Wealthy 50+ Prospects

2. Market online and offline.
While the Internet plays a part in their decision making processes, these consumers are tentative about the ever-changing technological landscape and thus unlikely to make buying decisions solely based on information received online. On the other hand, 50+ wealthy consumers are generally more receptive than younger generations to offline interactions, experiences, and marketing. 50+ wealthy consumers prefer to get marketing and advertising messages: (1) by word of mouth, (2) through an online search, (3) by visiting a known brand or retailer website directly, and (4) via print or direct mail.

While it can be challenging to strike the on/offline balance needed to engage these consumers, the Forbes/Wealth Engine report urges that careful, value-oriented marketing can really pay off: “While [wealthy 50+ consumers] might not be as digitally savvy as their children and grandchildren, they still have more discretionary funds to spend.”

3. Avoid email marketing with unknown leads.
Be cautious about how you use email to engage 50+ leads and prospects. The Wealth Engine survey shows that, while 17% of respondents rank “email from known brands” in their top 3 preferred methods of receiving marketing and advertising, only 8% appreciate emails from previously unknown brands. In fact, reflecting on the proliferation of unsolicited direct and email marketing, 21% say it makes them not want to do business with a brand, and 18% think it indicates that the brand doesn’t understand what they want.

4. Utilize data-driven targeted marketing, but don’t get too personal.
The wealthy 50+ demographic is particularly receptive to targeted marketing. Of respondents who decided to buy from a particular brand or service provider after seeing their marketing: 68% say they did so because “the timing of the marketing message matched when I wanted/needed to buy,” and 52% say that the inciting marketing message included a special offer that appealed to them.

On the other hand, Forbes notes that, “while they like the personal touch in real life, they are not as keen on it in marketing messages they receive.” 50+ wealthy Americans are hyper-sensitive to data privacy and liable to be made uncomfortable by over-personalized messaging. They will likely not appreciate messaging that mentions a birthday, recent purchase, or any personal information that indicates data mining practices.

5. Be direct when seeking referrals and reviews.
Wealthy 50+ consumers are comfortable gibing referrals and recommendations by word of mouth, but very unlikely to sing their praises online. The Forbes survey and report shows that, for referring a brand or business, 84% are willing to share by word of mouth, while only 21% are willing to write reviews online. To capture referrals from this demographic, real estate professionals should directly ask whether the client has any friends or family members who are thinking of buying or selling real estate in the near future. In addition, agents should ask for a written review to include in a testimonial book or in the testimonial section of your webpage.

Posted on February 18, 2016 at 09:17 AM in About, In the News, Institute News, Luxury Home Marketing Tips, Partners & Friends, Research & Statistics

Has Loyalty Killed Traditional Marketing?

Have you ever thought about de-emphasizing traditional marketing and focusing on loyalty instead?

A recent Harvard Business Review article theorizes that a focus on loyalty should trump marketing. Marketing Is Dead, and Loyalty Killed It

For most people, the word “marketing” summons up a single-minded focus on selling products
– a one-sided endeavor. But one-sided doesn’t work in a world where social media has given consumers a megaphone just as powerful as that of traditional marketers.

Instead, there is loyalty, which requires communicating brand values that people want to be affiliated with. Consumers today have many options, and more than ever they choose particular brands to communicate something personal about their own beliefs and priorities. The best way to establish and reinforce common values is to create content that’s so highly specific it defines not only the brand, but the customer.

Building loyalty is much harder work, and it requires not only valuing customers, but liking them enough to have a conversation every day. Bringing passion and excitement to that conversation requires genuine enthusiasm for your own products and mission. It’s nothing less than answering the question, “What should this company be?”

Read full article… by Alexander Jutkowitz

There’s More To Great Branding Than Advertising

Brand StoryAs digital disrupts more marketplaces, brands become more important and valuable – not less. They provide meaning and satisfy emotional needs. As consumers experience information overload, the tendency to gravitate toward what’s familiar increases. At the same time, reliance on traditional tools, like advertising, corporate identity programs, and PR, to build brands is waning. So how can companies strengthen their brands? Look at Apple: Since its “Think Different” ad campaign, it has withdrawn from image-building ads, kept a smaller marketing budget, and instead, focused brand efforts on creating a well-designed, holistic product experience. Firms must be able to tell a meaningful story through actions and products, not words in ads or statements. Products and services should encapsulate a brand and communicate value without an additional layer of advertising. Make your brand more central and embed it across the customer value chain.

Full article at Harvard Business Review

Dismantling the Sales Machine

Sales leaders have long fixated on process discipline, monitoring reps’ conformance to “optimal” behaviors and their performance of specified activities. Recently, however, this sales machine has stalled. The approaches that once led to predictable progress in a sale do not work with today’s customers, who are empowered with more information than ever before.

The New World of SalesThe new environment favors creative and adaptable sellers who challenge customers with disruptive insights into their housing needs—and offer unexpected solutions. Such “insight selling” gives associates latitude to discover what the customer has already concluded about its needs and the available solutions, determine who the decision makers are, look for signals that the customer is receptive to a new insight about their home, and then figure out how best to proceed.

Most organizations, despite faltering sales performance, still have a climate that emphasizes compliance rather than judgment.

To create a judgment-oriented sales climate, managers must serve as connectors within and beyond their teams, providing a continual flow of information that supports sales professionals as they exercise their judgment on individual transactions. These managers must also focus on the long term, monitoring customers’ behaviors and directing associate’s creativity and critical thinking to the most-promising opportunities. And they need to hire champions—not necessarily those with sales backgrounds—who can thrive in the new climate.

Please read entire HBR article here

4 Keys To Turning Customers Into Brand Evangelists

In order to retain market share and keep up profitability, business leaders must continually look for new and innovative ways to engage their consumers.

To grow your brand, know what people find meaningful, connect with them thoughtfully, create joy they can’t live without, and believe in your employees…
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Be Personal
Be Smart
Be Exciting
Be Yourself
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Century 21: Smarter, Bolder, Faster

No matter who you’re pulling for in tomorrow’s Super Bowl game, it’s going to be fun keeping score of your favorite commercials.

We’re pulling for Century 21 to be Smarter, Bolder and Fast enough to finish near the top…

 

www.McAuliffeMcCormick.com

Truth in Advertising

I want to thank Tom Fishburne for reminding me of this great video…

In 2001, a 12-minute video illustrating the importance of a well thought Creative Brief was released called, “Truth in Advertising.”

This hilarious video is PG-13 because all of the characters involved say exactly what is on their mind.

McAuliffe & McCormick, Inc.