Traditional Marketing Tactics Fail to Produce Results in Today's Business Environment

Is your marketing message getting through to your target audience? Is it as effective as it once was or should be? Probably not and here is why.

The National Association of Realtors reports that they have 1.1 million members and there is no mystery that existing home sales are down significantly. There are simply too many agents chasing too few transactions. Add to that the fact that there have been many forces at work in recent years that are changing the way consumers respond to advertising and marketing messages. We are living in an over communicated world that has consumers tuned out and trusting less. What follows is an outline of the problem and the contributing factors.

Business through the ages:

What follows is a look at how our economic base has changed over the years. It is important to know where we came from to understand where we are today and where we are going.

The Agrarian Age

Farming and livestock formed our early economic base. The land gave us what we needed to feed and shelter ourselves. Trade amongst businesses was very prevalent at this time.

The Industrial Age

In the early part of the 20th Century, we witnessed the Industrial Age. We not only worked the land for food but also started to extract natural resources and raw materials to manufacture products. The challenges that companies faced were based on the productivity of workers and the efficiency of factories. Manual labor and hard work were thought to be the answer to higher output and increased profits.

The Information Age

The latter half of the 20th Century ushered in the beginning of the Information Age. The use of High Technology starts to change the game and the basis for our economic output. The Information Age gave us global companies like Microsoft and Intel and the products they produce enable even the smallest of companies to work smarter and not harder. We have gone from using our hands to using our heads. One of the most valuable assets a technology firm has is the knowledge and intellectual capital of its workers.

The Relationship Age

We are now entering a period where we are starting to understand the power of relationships. It is through human relationships that we are seeing new ways to capture and keep customers. If done properly, you create customers for life. The rapid rise in Social Media sites shows peoples true desire to connect with each other. When you take all of this into consideration, it is clear we are living in a Relationship Age

The following key factors have also brought us to this Relationship Age

The Cocooning trend

Faith Popcorn coined the term Cocooning in the 1980's. This trend sees people socializing less and retreating to their homes more. The trend is commercially significant in that it changes the way we reach out to obtain and retain customers. This trend is also a direct assault on brick and mortar businesses. Some examples of cocooning are working from home, internet home delivery of goods, home theaters, gated communities, surveillance cameras and many other services that allow the consumer to retreat and stay home. The Internet has enabled this trend to continue and further points to the need to embrace new tactics for the Relationship Age.

Mistrust in corporations

Over the last decade, consumers have started to develop mistrust in companies. You only need to think back to the Enron, WorldCom and Cendant scandals, to name a few, to see how we got here. For many corporations, regaining the trust of the consumer has been their primary mission. Mistrust in businesses is at an all time high. A recent survey by the public relations firm Edelman shows that only 44% of Americans said they trusted business as a whole. This is down from 58% in the fall of 2007 and the downward trend continues. Consumers are fed up with the status quo and are not going to take it anymore. Now more than ever, advertising messages are being viewed through skeptical eyes.

Mistrust in leaders

Along with a general mistrust in business is mistrust in public figures and leaders. On an almost daily basis, we see another disgraced Politician, CEO, Religious figure or Celebrity grace the front page of the newspaper. Whom we thought to be solid citizens giving sound advice has become anything but. This has also caused business to rethink how they go about advertising and marketing to new and existing customers.

These factors all lead to the consumers need to have a louder voice in what they buy and how business is transacted. The increasing popularity of consumer review sites is aiding them in protecting one another from unscrupulous businesses. As countries around the world struggle with economic challenges, people are yearning for deeper relationships and more say in the process. People worldwide seek more than material wealth and superficial contacts. They want environmental consciousness, business reform and a deeper level of connection with companies, people and the products and services they provide.

The new forms of communication and technologies developed during the Information Age are changing the game. Our past frustrations with corporate performance, government, health care, education and environmental policy are providing the motivation for a new mindset. Enter the Relationship Age.

From Transactional Marketing to Relationship Marketing

The days of "doing the deal" and hit and run marketing are gone. Social Media tools and online technologies are allowing us to deal with customers on a more personal and cost-effective basis. We now have the technology to deal with each customer on a personal level and if done properly, create an outspoken advocate and a customer for life.

To do this you need to move from the old mindset of being product centric to the new reality of being people centric. It is all about the customer. By putting the customer first and serving their needs, we will back into running better businesses via a stronger brand and deeper relationships with our clients.

In the Information Age, employee's knowledge and intellectual capital were the primary currency for companies to keep their competitive edge. In the Relationship Age, it is the number and depth of connections with the customer that is the primary form of capital. It is a shift from Knowledge Capital to Social Capital. We move from serving companies by getting people to buy as much product or services as possible to serving the customer at the highest level and inducing them to buy and remain loyal to your brand over time.

Slow Sales Cycles

Real estate has one of the slowest sales cycles of any product or service. A typical client only needs your services once every 5 to 7 years at best. This makes staying in close touch with the client, adding value and gaining their referrals more important than in any other sales profession.

A Call for Change

When you take all of these factors into consideration, a change in the way you market your service is needed now more than ever. Change is inevitable and the rate at which our environment changes is getting faster and faster each year. How you adapt to that change will determine your level of success moving forward. You need business and marketing systems that speak to today's economy and demography to remain viable. You cannot employ the same old tired methods and tactics and expect to be successful in today's Relationship

Age.

Meeting the Challenge

Marketing has always been a costly endeavor, however, networking and the effective use of your networks and connections is often overlooked. Networking is the most powerful and professional form of selling when done properly. The rapid rise in social networking tools gives you the ability to learn an incredible amount of information about a contact and market to them in a personal and powerful way. Having a sound relationship management system will allow you to remain viable during the long sales cycles and garner a steady stream of referrals. People do business with and refer those they Know, Like and Trust. You must maintain that level of connection with everyone you know to reap the reward of referrals. By adding value to the lives of others, you will gain the success you deserve. If you want to make money, add value to the lives of others. If you want to make a lot of money, add a LOT of value. I have found that by helping others gain what they need all of my needs are met as well. These are RENA's principals of working in the Relationship Age. It starts with a mindset of giving. You need to give to others with the expectation of getting nothing in return.

Most of the marketing methods used by Realtors today have become common and generic. You need to stand out from the crowd if you expect your message to be heard in today's over communicated society.

Becoming a Commodity

Almost all real estate companies and agents are providing the same general services. When you become generic, the only thing you have left to compete on is price. This is one of the major reasons we have seen the decline in fees agents can charge. The public views real estate services as a generic commodity and are refusing to pay what they used to for the service. There are other factors involved in this as well such as the dramatic increase in average sales prices over a relatively short period. This makes the 6% fee much more significant. The internet has dealt a heavy blow to many other financial services and businesses such as insurance, stock brokerage and travel. It is actually amazing that the real estate industry has held up so well for so long. The fact is, our day is coming. If you want to remain viable, you need to provide unique and valuable services.

Niche and Specialization

One of the best ways to cut down on the amount of competition is to have a niche or area of specialization. If you look at the most successful people in the world, they share a few common traits. They all have great networks; they have top-notch coaches and have a specific niche they fill. Establishing yourself as an expert in a specific area gives you the ability to transmit a unique message and stand out from the crowd. You will also increase the amount of referrals you get from within your industry. Your niche does not necessarily have to be real estate specific, like first time buyers etc, you can specialize in a particular industry or represent a particular demographic.

Advanced Database Marketing

Your database holds the key to your success in building your business and relationships. A good database will allow you to do so much more than have contact information for mailings. By acquiring high value data, that is information on your contacts beyond name and address, you can begin to provide a high level of personalized services. Along with custom tailored marketing, you can also employ my cross endorsement and circle of endorsement strategies. Your database is the lifeblood of your business. Maintaining a database rich in information will put you on the path to creating a saleable business.

Identify Key Professionals

You can market your services to two different groups of people. You can spend a lot of time and money trying to find individuals that need to buy or sell real estate or you can work with other professionals that deal with MANY people that buy and sell on a regular basis. By understanding whom these professionals are and how to connect and add value to their lives, you will ensure you will have a steady stream of referral business in any market. You also need to understand the various roles people in your networks play such as Mavens, Subject Matter Experts and Thought and Opinion Leaders. By identifying these key people, you will find it much easier to broadcast your message and brand.

Become a Connector

As I stated earlier, by adding value to the lives of others, your business will grow to new heights. One way to do this is to connect the people in your database with others that will add value to each other. The average database contains 250 contacts. Within those contacts, there are people that should know each other and can add great value to each other's businesses. It is up to you to identify these connections and bring them together.

Branded Unique Services

Another way to stand out from the crowd is to have unique services you offer that are branded to and associated with your name. This is a process of looking at all of the tasks you do on a regular basis and putting your own unique spin on them. A simple example of this would be holding a new home orientation for buyers. After the close of escrow, have the property inspector join you at the home with the buyers for an orientation of the homes systems. You can use the internet to print out instructions for just about all systems and appliances the property may have. This is an excellent way to present the new home to the buyers and leave a lasting impression of service. There are so many steps throughout a transaction you can apply this thinking.

After Sale Services

Another important tool for operating in the Relationship Age is having strong after sale service programs. The actions you take add value to your client's lives and keep you top of mind for referrals. Things such as sending a repair person in for a few hours of free work for a buyer or rekeying the locks make strong statements about your service and make you stand out. I have a long list of service programs I am happy to share with you, just ask.

Referral and Reward Programs

In order to build a strong referral business you must have programs in place that reward that behavior. Teaching people how to refer you, giving them information they can pass on and rewarding them for their efforts are essential for you growth. I recommend having a "referral kit" that your clients can have readily available to aid in recommending you. The kit should contain you resume or bio, specific verbiage for them to use, references and some gift cards.

Conclusion

The economy and business climate has changed dramatically over the last few years yet most people continue to employ the same tactics and strategies that were created 20 or more years ago. The real estate industry is in dire need of fresh thinking for agents to remain viable in the coming years. Many well-funded enterprises are attempting to replace Realtors and reinvent the industry. This is a small sample of many unique strategies that I have created in my 20 plus years in the real estate business.

I urge you to contact me to learn more about RENA and the services I provide.

About Larry Klapow
Larry Klapow has been a luminary in Bay Area real estate for over 19 years. He has been an influential leader holding every position from top producing agent to President of the largest real estate firm in Northern California throughout his career. Using fresh thinking and creative ideas, he has mentored both individuals and entire offices to amazing success. Currently, Larry is the founder and CRO of RENA Professional Networks Inc. RENA is an innovative company that manages powerful networking teams, produces highly impactful seminars and coaches and mentors business leaders to their highest levels of achievement. Larry is also the author of the book "Effective Networking in the Relationship Age" and a member of the National Speakers Association.

Larry Klapow was the President of Coldwell Banker Residential Brokerage's San Francisco Bay Area Region - incorporating 16 offices and a talented team of more than 1,000 real estate professionals. Prior to being named President in 2007, Larry was the Senior Vice President and Regional Manager of Coldwell Banker Residential Brokerage's San Francisco-Peninsula region, a position that he held from 2001-2007. During his tenure, the San Francisco-Peninsula region's offices earned several outstanding accolades. Most notable was the San Francisco Van Ness office's achievement of number two producing office nationwide. This impressive accolade, combined with countless others, positioned the San Francisco-Peninsula region as one of Coldwell Banker Residential Brokerage's most notable and productive regions in the country.

Prior to serving as Senior Vice President and Regional Manager, Larry was Manager of the company's award-winning Morgan Hill/Gilroy offices. Among Larry's impressive list of managerial accolades: member of the President's Council of Managers (1999-2006) and during his tenure, the Morgan Hill/Gilroy office earned the coveted Premier Office - honoring offices with consistent sales achievement for four consecutive years.

What Does it Take to Be Successful in Today's Corporate America? Is it Different Than 20 Years Ago?

Has anything changed during the last decade?

I do not think so. The following paragraphs summarize what I told an audience of recently MBA graduates at their 11th Annual Conference of the National Society of Hispanic MBAs in November 10, 2000. At the time, I was the President of Phelps Dodge Industries with responsibility for an operating group comprised of 50 plants in 27 countries engaged in the manufacture and sale of engineered products for the electrical, communications and automotive industries. The Group had revenues of $2 billion and employed over 5,000 people. After early retirement in 2002 and 35 years of corporate experience I became an entrepreneur. Bottom line, nothing has changed.

This is what I said then and what I would say today:

Good evening ladies and gentlemen. I am delighted to be with you on this special day. A few minutes ago my fellow panel members talked to you about the challenges and opportunities that you will face in this new era of e-commerce, globalization and high technology. These are indeed very exciting times! You will be part of a generation of leaders that will take our businesses to uncharted territories. It was only 30 years ago that I was sitting in a room like this wondering what it would take to be successful in Corporate America. Little did I suspect that one day I would be discussing with you my impressions on what is a very complex subject with no "clear cut" answers. My bottom line advice to you is this: "Business mirrors life. There will be highs, lows, compromises and sacrifices in your quest for success. Approach it as a journey and use your head, your heart and your gut to guide your decisions along the way." I am not going to spend any time stressing the need to be technically proficient in your field of expertise. That is the price of admission. Rather, I will share with you a simple model that has worked for me as I have progressed in the pursuit of my professional dreams. I refer to this model as my "Seven Ps"


Plan
Preparation
People
Passion
Proactive
Partnerships
Performance

P number one - Plan

Planning your future is like putting together a strategic plan. A Company defines its vision and you must do the same. For each of us, that vision is more like a dream. I had a dream and I am sure each of you has one. But you can't achieve that dream without following a disciplined and systematic process. What is your dream? What will it take to achieve it? Are you willing to make the personal sacrifices that may be required? Having the intent is not enough. It is the combination of will and vision that eventually allows you to reach your full potential.

And this takes me to the second P - Preparation

Education and experience are two critical factors for success. You must be obsessed with learning. Learning is a never-ending process. Some learning opportunities will be provided by your company but that alone is not enough. You must take the initiative and be in control of your professional development. And this requires significant commitment and personal sacrifice. I'm an avid reader and the number of books and magazines I read each year has a direct correlation to the number of air miles I travel. I firmly believe that to become a well-rounded businessperson you must expose yourself to a diverse range of subjects and viewpoints. I generally encourage my key managers to read between 3 and 4 newspapers a day, and 20 to 30 publications each month covering a wide range of topics: economics, finance, demographics, social issues and politics, management and technology. No single one of these topics should be considered in isolation and much less taken as the gospel. And if you're waiting for the one good book that will guide your entire career, forget about it...You are the author of this book and it is work in process. Instead, consider everything you read as an opportunity to germinate new ideas that you can apply to your business challenges. I can tell you from my own experience that even at this stage of my career I learn something everyday. Failure to do so translates into what I refer to as "intellectual obsolescence." None of us can afford that. The second component of preparation is experience. You are all probably familiar with the expression that there is no substitute for experience. In my professional life, I have never turned down an assignment that would increase my know-how of a process, a country, a company, a culture or any other subject essential to my future ability to accept more responsibilities.

P number three - People

There is a business adage that says that you will pass the same people in an organization on your way up as on your way down. I know this to be true from personal experience. And always remember that you are only as good as the people you work for, the people you work with and the people who work for you. Never abuse or misuse your power. You can be demanding but you must also be fair. And never forget to act on what is right and not on who is right. You also must mentor and develop the people in your organization. A decade ago, mentors were the "seasoned old guys" in the executive suite, and mentorees were the MBAs fresh out of school. Today thanks in large part to the rapid acceleration of technology development, mentoring is more diverse. It's not unusual, for example, to find a 25-year-old technology guru mentoring a group of seasoned leaders. Look for every opportunity to be both a mentoree and a mentor at every stage of your career. As I said, there is always more to learn, and as you advance, your experience can help others succeed. In addition to my mentoring role within my company, I have been a mentor and a lecturer at the University of Miami MIBS Program for several years. You would be amazed at what I have learned from your contemporaries both one-on-one and in the classroom. Transferring your knowledge to others is a very rewarding experience that can be accomplished at all levels of the organization.

P number four - Passion

Leading an organization requires you to be Passionately Committed. I have never met anyone who excels at anything that does not possess an inner fire. Ordinary efforts will only produce mediocre to average results. Drive and passion produce outstanding results. Sometimes, success leads to a false sense of comfort. Often, some of the best people lose their passion. When that dies, it is difficult if not impossible to sustain excellence. So, I encourage you to work hard to feed and fuel your inner passion.

P number five - Proactive

Today's rate of business change also will require you to be Proactive. You will be required to seize challenges and opportunities. Speed and innovation are the keys to staying ahead. Quick victory is the aim of competitive action. You need to move fast and move first. This does not mean that you will always do things right but you must always do what is right. You must have the intellectual honesty to acknowledge that some solutions or actions did not work. If they didn't, try something else. As President Roosevelt once said: "It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something". Proactivity allows you to stay one step ahead and this is worth more than any other competitive advantage.

Successful executives also rely on the next "P" - Partnerships

In today's world you cannot do it alone. You'll need to forge alliances to offset your weaknesses, and to bring together diverse geographic and business cultures. You'll also need to harness the commitment of your team to get the job done. And let me emphasize the word TEAM. This would be a natural point for me to offer some anecdotes about the power of business partnerships, but instead, I'd like to put the emphasis on the partnership that you now have, or that you may have in the future, with your spouse, your significant other and your family. All of the business demands on your time will make it increasingly difficult for you to create a balance between your personal and professional life. I must confess that this is the area in which most of us fail, at least from time to time. And I am no exception. My wife Maria, who is here with me tonight, gets all the credit for providing the on-the-ground, day-to-day stability that our young sons needed in their formative years. But she, and my sons Manuel and Carlos held me accountable for being present at the important events, and there were no excuses accepted if I failed to pick up the telephone and check in each morning while they had breakfast, and again each evening to hear about their big events of the day. There is no right or wrong answer about how to calibrate the balance needed to make that partnership succeed. You will learn with time how and when to compromise. But you must learn how to do it sooner rather than later. Our families are often thought of as being in the background. But make no mistake about it. It is only through their support that we have a chance to advance in our business endeavors.

P number seven - Performance

Performance is critical. You must focus your efforts in results not politics. It is not how well you play the game or how much effort is applied. The end result is to create value for all your stakeholders. You'll also find that success is a constantly moving target. You will never be able to sit back and relax. It is true that you are only as good as what you deliver today. Get used to it. And remember this is driven more by the demands of the customer and the marketplace, than it is by your manager's expectations. Learn to stretch your expectations of yourself. At some point in your career you will become "good." But don't let good get in the way of becoming "great." If your quest is to be the best there is no room for complacency. You must aim higher and higher. Today's excellent performance will be average tomorrow if you do nothing to get better. Make continuous improvement a part of your life. Remember, becoming the best at what you do does not happen by accident. You must continuously work hard at it with passion and intensity. When you sum the total of your efforts you will achieve outstanding performance. From time to time, I hear managers describe someone else's good performance as "luck." But long-term business success is not "luck" unless you define luck as the point at which opportunities and preparations converge. You must be always ready to take advantage of an opportunity.

In fairness to this audience, I suspect I could not adequately address your interests unless I also speak about the subject of diversity. Be proud of who you are and where you come from. Use it to your advantage, but don't take advantage. Being a minority does not entitle you to anything. Each of us must earn what we have, and must maximize what we have been blessed with. I believe that diversity in a very broad sense is strength. It is in our differences, not our similarities that the most dynamic, exhilarating and life-changing experiences can be found. Allow your heritage to give you clarity of self -- to know who you are and what motivates you. But let your brain, and your guts and your heart - not your gender or the color of your skin -- lead you through life. As the global leaders of the future you must learn how to balance your technical strengths with the many cultural requirements of the people who you encounter.

You also must learn to be diplomats. I say diplomats because to become a global leader you must possess a keen understanding of the history, geography, religion and politics of the local economies in which you will conduct business. You must learn to be flexible, resilient and adaptive. Respect for local, country or regional culture is and will continue to be essential elements for success. Only "global leaders" will be able to strike the proper balance. As a member of this new breed of leaders you must be able to conduct business in at least two languages and let me emphasize the word "conduct."

The ability to read, write and speak a language is not sufficient to fulfill the requirements of the future. You must understand the culture and be sensitive to cultural differences. You must be able to create a seamless bond. A case in point. English has become and will continue to be the universal language of the Internet, but the cultures of the English-speaking world don't represent a universal culture. Economist Milton Friedman says it is now possible for a company located anywhere, using resources from anywhere, to produce a product anywhere that can be sold to customers everywhere. What Mr. Friedman does not tell you is that you cannot build the plant, purchase the resources, or market the product if you do not relate to each culture individually on its own merits and within its cultural paradigms. This is a most important and difficult point for global leaders to accept when learning to work with different cultures: A single paradigm does not work universally. You by virtue of your Hispanic background have the best of both worlds and an excellent foundation to accommodate the best of various cultures and to create new ways to lead business. You can make a difference. I went with confidence in the direction of my dreams and lived the life I always imagined for myself and my family. Now, it is your turn to create and follow your dreams. Thank you for your kind attention.

Mr. Iraola is the founder and CEO of The Aloaris Group, http://www.aloaris.com, a privately owned group that provides financing and manages start up ventures with the potential to revolutionize existing business models.

The Group also provides a full range of advisory services to companies operating or planning to operate in emerging markets. He is also a co founder and CEO of http://www.Homekeys.com a developer, integrator and provider of state of the art web-based information tools and services for the real estate industry.

Mr. Iraola currently serves on the Board of Directors of Central Hudson Energy Group Inc. (NYSE:CHG). He previously served on the Boards of Phelps Dodge Corporation (NYSE:PD), Southern Copper Co. (NYSE:PCU) and Schweitzer Mauduit International Inc. (NYSE:SWM).

Traditional Marketing Tactics Fail to Produce Results in Today's Business Environment

Is your marketing message getting through to your target audience? Is it as effective as it once was or should be? Probably not and here is why.

The National Association of Realtors reports that they have 1.1 million members and there is no mystery that existing home sales are down significantly. There are simply too many agents chasing too few transactions. Add to that the fact that there have been many forces at work in recent years that are changing the way consumers respond to advertising and marketing messages. We are living in an over communicated world that has consumers tuned out and trusting less. What follows is an outline of the problem and the contributing factors.

Business through the ages:

What follows is a look at how our economic base has changed over the years. It is important to know where we came from to understand where we are today and where we are going.

The Agrarian Age

Farming and livestock formed our early economic base. The land gave us what we needed to feed and shelter ourselves. Trade amongst businesses was very prevalent at this time.

The Industrial Age

In the early part of the 20th Century, we witnessed the Industrial Age. We not only worked the land for food but also started to extract natural resources and raw materials to manufacture products. The challenges that companies faced were based on the productivity of workers and the efficiency of factories. Manual labor and hard work were thought to be the answer to higher output and increased profits.

The Information Age

The latter half of the 20th Century ushered in the beginning of the Information Age. The use of High Technology starts to change the game and the basis for our economic output. The Information Age gave us global companies like Microsoft and Intel and the products they produce enable even the smallest of companies to work smarter and not harder. We have gone from using our hands to using our heads. One of the most valuable assets a technology firm has is the knowledge and intellectual capital of its workers.

The Relationship Age

We are now entering a period where we are starting to understand the power of relationships. It is through human relationships that we are seeing new ways to capture and keep customers. If done properly, you create customers for life. The rapid rise in Social Media sites shows peoples true desire to connect with each other. When you take all of this into consideration, it is clear we are living in a Relationship Age

The following key factors have also brought us to this Relationship Age

The Cocooning trend

Faith Popcorn coined the term Cocooning in the 1980's. This trend sees people socializing less and retreating to their homes more. The trend is commercially significant in that it changes the way we reach out to obtain and retain customers. This trend is also a direct assault on brick and mortar businesses. Some examples of cocooning are working from home, internet home delivery of goods, home theaters, gated communities, surveillance cameras and many other services that allow the consumer to retreat and stay home. The Internet has enabled this trend to continue and further points to the need to embrace new tactics for the Relationship Age.

Mistrust in corporations

Over the last decade, consumers have started to develop mistrust in companies. You only need to think back to the Enron, WorldCom and Cendant scandals, to name a few, to see how we got here. For many corporations, regaining the trust of the consumer has been their primary mission. Mistrust in businesses is at an all time high. A recent survey by the public relations firm Edelman shows that only 44% of Americans said they trusted business as a whole. This is down from 58% in the fall of 2007 and the downward trend continues. Consumers are fed up with the status quo and are not going to take it anymore. Now more than ever, advertising messages are being viewed through skeptical eyes.

Mistrust in leaders

Along with a general mistrust in business is mistrust in public figures and leaders. On an almost daily basis, we see another disgraced Politician, CEO, Religious figure or Celebrity grace the front page of the newspaper. Whom we thought to be solid citizens giving sound advice has become anything but. This has also caused business to rethink how they go about advertising and marketing to new and existing customers.

These factors all lead to the consumers need to have a louder voice in what they buy and how business is transacted. The increasing popularity of consumer review sites is aiding them in protecting one another from unscrupulous businesses. As countries around the world struggle with economic challenges, people are yearning for deeper relationships and more say in the process. People worldwide seek more than material wealth and superficial contacts. They want environmental consciousness, business reform and a deeper level of connection with companies, people and the products and services they provide.

The new forms of communication and technologies developed during the Information Age are changing the game. Our past frustrations with corporate performance, government, health care, education and environmental policy are providing the motivation for a new mindset. Enter the Relationship Age.

From Transactional Marketing to Relationship Marketing

The days of "doing the deal" and hit and run marketing are gone. Social Media tools and online technologies are allowing us to deal with customers on a more personal and cost-effective basis. We now have the technology to deal with each customer on a personal level and if done properly, create an outspoken advocate and a customer for life.

To do this you need to move from the old mindset of being product centric to the new reality of being people centric. It is all about the customer. By putting the customer first and serving their needs, we will back into running better businesses via a stronger brand and deeper relationships with our clients.

In the Information Age, employee's knowledge and intellectual capital were the primary currency for companies to keep their competitive edge. In the Relationship Age, it is the number and depth of connections with the customer that is the primary form of capital. It is a shift from Knowledge Capital to Social Capital. We move from serving companies by getting people to buy as much product or services as possible to serving the customer at the highest level and inducing them to buy and remain loyal to your brand over time.

Slow Sales Cycles

Real estate has one of the slowest sales cycles of any product or service. A typical client only needs your services once every 5 to 7 years at best. This makes staying in close touch with the client, adding value and gaining their referrals more important than in any other sales profession.

A Call for Change

When you take all of these factors into consideration, a change in the way you market your service is needed now more than ever. Change is inevitable and the rate at which our environment changes is getting faster and faster each year. How you adapt to that change will determine your level of success moving forward. You need business and marketing systems that speak to today's economy and demography to remain viable. You cannot employ the same old tired methods and tactics and expect to be successful in today's Relationship

Age.

Meeting the Challenge

Marketing has always been a costly endeavor, however, networking and the effective use of your networks and connections is often overlooked. Networking is the most powerful and professional form of selling when done properly. The rapid rise in social networking tools gives you the ability to learn an incredible amount of information about a contact and market to them in a personal and powerful way. Having a sound relationship management system will allow you to remain viable during the long sales cycles and garner a steady stream of referrals. People do business with and refer those they Know, Like and Trust. You must maintain that level of connection with everyone you know to reap the reward of referrals. By adding value to the lives of others, you will gain the success you deserve. If you want to make money, add value to the lives of others. If you want to make a lot of money, add a LOT of value. I have found that by helping others gain what they need all of my needs are met as well. These are RENA's principals of working in the Relationship Age. It starts with a mindset of giving. You need to give to others with the expectation of getting nothing in return.

Most of the marketing methods used by Realtors today have become common and generic. You need to stand out from the crowd if you expect your message to be heard in todays over communicated society.

Becoming a Commodity

Almost all real estate companies and agents are providing the same general services. When you become generic, the only thing you have left to compete on is price. This is one of the major reasons we have seen the decline in fees agents can charge. The public views real estate services as a generic commodity and are refusing to pay what they used to for the service. There are other factors involved in this as well such as the dramatic increase in average sales prices over a relatively short period. This makes the 6% fee much more significant. The internet has dealt a heavy blow to many other financial services and businesses such as insurance, stock brokerage and travel. It is actually amazing that the real estate industry has held up so well for so long. The fact is, our day is coming. If you want to remain viable, you need to provide unique and valuable services.

Niche and Specialization

One of the best ways to cut down on the amount of competition is to have a niche or area of specialization. If you look at the most successful people in the world, they share a few common traits. They all have great networks; they have top-notch coaches and have a specific niche they fill. Establishing yourself as an expert in a specific area gives you the ability to transmit a unique message and stand out from the crowd. You will also increase the amount of referrals you get from within your industry. Your niche does not necessarily have to be real estate specific, like first time buyers etc, you can specialize in a particular industry or represent a particular demographic.

Advanced Database Marketing

Your database holds the key to your success in building your business and relationships. A good database will allow you to do so much more than have contact information for mailings. By acquiring high value data, that is information on your contacts beyond name and address, you can begin to provide a high level of personalized services. Along with custom tailored marketing, you can also employ my cross endorsement and circle of endorsement strategies. Your database is the lifeblood of your business. Maintaining a database rich in information will put you on the path to creating a saleable business.

Identify Key Professionals

You can market your services to two different groups of people. You can spend a lot of time and money trying to find individuals that need to buy or sell real estate or you can work with other professionals that deal with MANY people that buy and sell on a regular basis. By understanding whom these professionals are and how to connect and add value to their lives, you will ensure you will have a steady stream of referral business in any market. You also need to understand the various roles people in your networks play such as Mavens, Subject Matter Experts and Thought and Opinion Leaders. By identifying these key people, you will find it much easier to broadcast your message and brand.

Become a Connector

As I stated earlier, by adding value to the lives of others, your business will grow to new heights. One way to do this is to connect the people in your database with others that will add value to each other. The average database contains 250 contacts. Within those contacts, there are people that should know each other and can add great value to each other's businesses. It is up to you to identify these connections and bring them together.

Branded Unique Services

Another way to stand out from the crowd is to have unique services you offer that are branded to and associated with your name. This is a process of looking at all of the tasks you do on a regular basis and putting your own unique spin on them. A simple example of this would be holding a new home orientation for buyers. After the close of escrow, have the property inspector join you at the home with the buyers for an orientation of the homes systems. You can use the internet to print out instructions for just about all systems and appliances the property may have. This is an excellent way to present the new home to the buyers and leave a lasting impression of service. There are so many steps throughout a transaction you can apply this thinking.

After Sale Services

Another important tool for operating in the Relationship Age is having strong after sale service programs. The actions you take add value to your client's lives and keep you top of mind for referrals. Things such as sending a repair person in for a few hours of free work for a buyer or rekeying the locks make strong statements about your service and make you stand out. I have a long list of service programs I am happy to share with you, just ask.

Referral and Reward Programs

In order to build a strong referral business you must have programs in place that reward that behavior. Teaching people how to refer you, giving them information they can pass on and rewarding them for their efforts are essential for you growth. I recommend having a "referral kit" that your clients can have readily available to aid in recommending you. The kit should contain you resume or bio, specific verbiage for them to use, references and some gift cards.

Conclusion

The economy and business climate has changed dramatically over the last few years yet most people continue to employ the same tactics and strategies that were created 20 or more years ago. The real estate industry is in dire need of fresh thinking for agents to remain viable in the coming years. Many well-funded enterprises are attempting to replace Realtors and reinvent the industry. This is a small sample of many unique strategies that I have created in my 20 plus years in the real estate business.

I urge you to contact me to learn more about RENA and the services I provide.

About Larry Klapow
Larry Klapow has been a luminary in Bay Area real estate for over 19 years. He has been an influential leader holding every position from top producing agent to President of the largest real estate firm in Northern California throughout his career. Using fresh thinking and creative ideas, he has mentored both individuals and entire offices to amazing success. Currently, Larry is the founder and CRO of RENA Professional Networks Inc. RENA is an innovative company that manages powerful networking teams, produces highly impactful seminars and coaches and mentors business leaders to their highest levels of achievement. Larry is also the author of the book "Effective Networking in the Relationship Age" and a member of the National Speakers Association.

Larry Klapow was the President of Coldwell Banker Residential Brokerage's San Francisco Bay Area Region - incorporating 16 offices and a talented team of more than 1,000 real estate professionals. Prior to being named President in 2007, Larry was the Senior Vice President and Regional Manager of Coldwell Banker Residential Brokerage's San Francisco-Peninsula region, a position that he held from 2001-2007. During his tenure, the San Francisco-Peninsula region's offices earned several outstanding accolades. Most notable was the San Francisco Van Ness office's achievement of number two producing office nationwide. This impressive accolade, combined with countless others, positioned the San Francisco-Peninsula region as one of Coldwell Banker Residential Brokerage's most notable and productive regions in the country.

Prior to serving as Senior Vice President and Regional Manager, Larry was Manager of the company's award-winning Morgan Hill/Gilroy offices. Among Larry's impressive list of managerial accolades: member of the President's Council of Managers (1999-2006) and during his tenure, the Morgan Hill/Gilroy office earned the coveted Premier Office - honoring offices with consistent sales achievement for four consecutive years.