...And why isn't it you?

It's no secret that most agents do a pretty horrendous job of keeping in touch with the consumer post-close. Knowing this and talking to clients about this issue for the past several years got me thinking about the typical homeownership lifecycle and who owns the consumer during the eight or so years between moves. Let's break it down:

Not looking to make a move (approximately six years)

During this time, unless someone from the brokerage has kept themselves front and center when it comes to the consumer's investment in, most likely, their largest asset, who are they talking to? Home improvement retailers and contractors, their HOA, interior designers, utilities, etc. Probably no agents or real estate companies in site.

Thinking about making a move (12-18 months)

My latest move was last August (from Atlanta to Miami). However, my wife and I started researching neighborhoods, etc. in December 2011--over 18 months before we actually closed. Our initial research was on Zillow, Trulia, and Realtor.com. We tried to talk to a couple of agents, but since we were not "hot" prospects, we were dropped pretty much right away. I don't recall looking at any local sites. Another year plus went by without a brokerage or one of their agents involved with us. I don't think our behavior is that uncommon, do you?

Committed to making a move (3-4 months)

Once a consumer decides they are ready, they usually engage the services of a real estate brokerage and agent. How do they find that brokerage? Maybe they talk to friends, if the brokerage is good, they might find them online, but in more and more cases, they are relying on the national portals. Again, I ask, "who owns the consumer?" Finally:

The transaction (1-2 months)

House is found and deal is made. This process might take a couple of months and that is the time where the brokerage and agent are intimately involved.

Based on this timeline, it is entirely possible that the brokerage and agent are only involved with a consumer six months out of a typical homeownership lifecycle total of 96 months. That's less than 7% of the time the consumer owned their home.

That's embarrassing!

Here is what's more embarrassing, nobody is doing anything about it. There are a ton of stats from NAR. We have done some of our own research:

In our own survey of real estate agents:

• Over 90% did not use a post-close marketing system;
• Most agents with over two years of experience admitted they had lost opportunities; and,
• None had an automated system that alerted them when past clients might be back in the market.

The small percentage of agents and companies that have a post-close system are not sending relevant information. In fact, most are sending fluff. Today's consumer wants relevant information such as: Local home process, Tax information, Current home valuations, Mortgage analysis, etc. Things that really matter to a consumer who has just plunked down several hundred thousand dollars and are viewing the purchase not as just a new home, but their biggest investment. Cookie recipes just don't cut it in 2014.

We believe this sort of information is a critical first step in "owning" the consumer throughout the whole homeownership process, not just 7% of it. We are helping clients here but we also believe there are other things that can be done like making your office not just a real estate office, but a neighborhood information center. Your company should not only be experts in what's happening in the housing market but also about things important to consumers like schools, restaurants, and other amenities that convince someone to live in one neighborhood from another (more on this topic next time).

In the meantime, ask yourself this question, "How can I get the consumer thinking about my company before they are even thinking about making their next move?" This simple question is why companies like Apple, Starbucks, Tesla, and others have created extremely powerful brands with tremendous loyalty.

How can you get there?

Here at PCMS Consulting we have a brand new tool to assist you in relevant post-close marketing to your homeowners. Contact Jose Perez ([email protected] or visit our webpage on post-close marketing to learn more about DATUM).

To view the original article, visit the PCMS Consulting blog.