Positioning: Create a Value Proposition that is Clear, Concise and Consistent
The framework most responsible for my real estate success, which I describe in The HyperLocal, HyperFast Real Estate Agent, is the Segmentation, Targeting, and Positioning (STP) model. The bottom line is you want to segment that market in a way that allows you to target a portion of it that is big enough to get consistent business, but not so big that it is hard to break into. If you have too small of a target market there simply will not be enough sales to run your business or justify investing in that market. If the target size is too big you will not be able to get your message across. Getting the right size target market is critical. However, that is only half the battle. If you do not position yourself correctly to your target market it will not matter even if you have picked the perfect market.
If selecting the best target market is what allows you to have an opportunity for success, correctly positioning yourself to that market is what will turn that opportunity into results. In order to do that you must develop a unique sales proposition (USP) tailored specifically for that target market. A USP is something of value that you do better than anyone else, or even better something of value that you do than no one else does.
Feature vs. Benefit
When you are thinking about developing your USP make sure you are thinking in terms of benefit. Too many agents and salespersons focus on the feature instead. The extra marketing you do is not what the sellers want. They want the higher price or the faster sale. Buyers do not care about your how you find off-market homes. They care about buying their dream home at the best possible price. Focus on the benefits that you can provide to your clients such as faster than average sales, higher prices, less stress during the home buying and selling process and winning out on competitive offers.
The Three C’s and the Two Tests
If you have a great value proposition you need to develop a way to communicate it that meets the three C’s:
- Clear – Your message must be easy to understand. Simple is better.
- Concise – Less is more. People have short attention spans. Tailor your message with that in mind.
- Consistent – You need to repeat your message early and often and keep it the same.
A great way to check if you are meeting these criteria is to apply the following two tests:
- Elevator Test – If you were in an elevator and someone asked you what business your were in could you explain it to them in the 30 seconds or less that you will have before the elevator stops?
- Bathroom Floor Test – If you dropped a marketing piece in a stall in a public bathroom and the next person read it while using the bathroom would they immediately understand your value proposition without needing any further explanation?
Position Yourself for the Win
If you have a value proposition that provides unique benefits to your target market your business will expand in that target market if you communicate in a clear, concise and consistent manner. Once you do that you can expand your reach by expanding your target segment or picking another target area.