How To Know If My Marketing Works? And How To Fix It
This details the 3 things you need to track from your marketing and the 6 reasons it isn't working.
When it comes to marketing for real estate investing, the holy grail is direct to seller marketing.
If you own a property, you've probably gotten a mailer or a phone call or something like that saying, “Hey, I want to buy your house.” You've probably heard different ads on the radio or TV of these guys who will buy your house for cash. That's the type of marketing that we typically do.
The very first thing you have to do in your marketing is actually track the marketing. So we call those KPIs or key performance indicators.
You want to track as many things as possible with your marketing. The three main things you want to track are:
- Amount spent,
- Amount of leads that came in
- Revenue was generated from those leads.
If you know those things you'll know if your marketing is working effectively or not. So for instance, one of our big marketing techniques is TV commercials. When I go to look at whether we should keep doing TV, scale back, or whether we should spend more on TV, I look at our KPIs. I'll look at the previous 30, 60, and 90 days. I'll see how many leads have come in during that period. I want to know, are we getting more leads? Are we getting less leads? Is it staying stable?
I also want to check our revenue from those leads. Now I always tell people when you're marketing, you have to give yourself at least 60 days, preferably 90 days before you come to any conclusion. The reason is when a lead comes in, they don't usually convert right away. They convert over time through a followup and sales process.
So if it doesn't go well the first month, that doesn't mean that the marketing doesn't work. You just need more data to definitively say one way or another. So I'm going to assume with any marketing, you've chosen that you've given it at least 60 to 90 days. Now, after 90 days, if you are not generating revenue and getting a return on your marketing, then you need to look at what the issue is. Diagnosing the issue with marketing that's not working is difficult and there are a number of things that it could be.
So here are six reasons why marketing might not work:
- Your audience,
- The marketing channel,
- The ad
- The volume at which your marketing
- Your sales process
- Your follow up process.
If any of those are broken your marketing is not going to work. The hard part is determining which of these is the problem. People are not responding to your ad?
Let's start from the beginning. We know you're not generating revenue from the marketing. Now, are you at least getting leads? That's the first thing you need to ask yourself. If you are not getting leads, then you need to first look at your audience, the marketing channel, the marketing volume and the ad itself. One of those things is off.
First off, look at the audience. If I'm trying to sell a blazer like this and I'm targeting women, that's probably pretty stupid. If I'm trying to sell a stylish slim fit blazer you probably are going to have to market to a younger guy, probably 20 to 35. Those are the type of guys who like slim fit clothing. I'm not going to target a 70 year old guy, right? So you've got to understand who your audience is in the game of real estate investing. We want to target people who might be in distress. People who are in foreclosure, maybe people who have owned the property a really long time. So we know that it's not in great shape. We probably don't want to target somebody who just bought a brand new home last month. So knowing your audience is the first thing to look at.
Second thing to look at is the marketing channel. Now whether your medium is TV, radio, cold, calling, texting, whatever the marketing channel is you need to figure out what works best in your market for your budget. Now not everyone can go on TV. It's very expensive. So if you can't afford it, then you already know that's not a marketing channel for you. You're going to go for something cheaper, like cold calling prospects, Facebook ads. So your marketing channels are mainly going to be determined by your budget and also just testing in your market. What works and what doesn't work. Texting might work really well in one market, but it sucks in another. So just because something works really good for me here in Las Vegas does not mean it's going to work great for you and your market.
Third thing is marketing volume. A lot of times, the reason people don't get leads is they simply don't market enough. In order to get a deal in real estate, you have to market a ton. You have to constantly be calling sellers every single day. You need to be in their face making offers every single day. That's what it takes to get deals. When somebody comes to me and they ask, “Why am I not getting a deal?” The first thing I always ask is, “How many offers have you made this last week?” Typically the answer is very few. That already tells me you have a marketing volume problem. You need to be marketing more and making more offers.
The last piece of marketing is your ad. If you're sending direct mail, what kind of postcard are you sending? What kind of letter are you sending? What exactly does it say? What is the picture? Are people opening it? Those are the types of things that you have to think about. With any type of ad, it all comes down to testing. You won’t know if it works until you've tested it and gotten results with a TV ad. The same thing happens with TV, billboards, Facebook ads and everything else. Do people want to call and respond to the ad that you are giving them? Is there even a call to action from your ad? The big thing with marketing is most people respond to emotion. So you want to be creating as much emotion as possible in your marketing piece.
Feelings of emotion can be joy, fear, urgency. You want to stir up something to make them go to action.
If you're not getting enough leads, one of those or a couple of those are the issue. Now let's say that you are getting enough leads, but you're not generating revenue. Well, now we have a sales issue and we have an issue with either the sales process or our followup process. Now the sales process is strictly whether you're a good salesman or not.
Then we also have the follow up process which is huge in real estate. Most people that call in or that you talk to are not ready to make the biggest financial decision of their life right then. It takes time for them to come to the conclusion that it is now time to sell their home. The only way that they will sell to you is if you're constantly following up with them.
Early on, I would get sellers who call in and say, “Hey, I'm not ready right now. I'll call you back.” Sure enough, they don't call us back. By the time that we reach them months down the road, they've already sold to someone else and you call them and you're like, “I thought you would call us back what happened?” And they would say, “Oh, I want it to, but I just couldn't find your number.” That happens all the time.
I can't tell you how forgetful sellers are. So do not rely on your prospect to call you back. It doesn't work like that. You have to constantly be reminding them that you're there for them. You can provide the service when they're ready, you're here. If you're constantly following up, they know you're serious and they will work with you as long as you build good rapport when they're ready. So in conclusion, if you're getting leads and you're not getting revenue, then you have a sales issue or a follow-up issue.
This applies to literally every business, every business is built around marketing and sales. You have to figure out how you get clients and prospects into the door. Then once they're in the door, how do you sell them on working with you or buying your product?