Friday, March 30, 2012

Marketing Luxury Real Estate: Tour and Brew to Impress

When you are marketing luxury real estate, here is a fun way to impress your clients while driving them from property to property. Why not offer them an espresso?

Handpresso, a French company is the creator of an outdoor version of an espresso machine powered by a hand pump which is available in the US via importika.com, $199.95. This model comes with 4 cups, a serving flask, and two small napkins in an elegant black carrying case, As you are touring the gardens of a home you are showing, you can relax with your clients as you discuss the property and serve them a freshly brewed espresso. We would suggest packing a tin of biscotti and some chocolate to sweeten the deal making process. The coffee pods are also available in decaf.

The other gadget is a personal one. Since 2008, European drivers have had the advantage of being able to brew a creamy cup of espresso in their car. This is very handy when you are rushing out of the door and have no time to stop at your favorite coffee place. The new gadget, HandpressoAuto, made by French company Handpresso is due to arrive in the US later this year (Christmas present?) plugs directly into the cigarette lighter of your auto. It takes two minutes for the portable machine (size of an average thermos) to deliver a cup of espresso. All you have to do is pour water into the thermos, place a coffee pod, hit the “on” button, and enjoy the hit of caffeine. The personal one presently retails for 150 euros.

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Tuesday, March 27, 2012

Marketing Luxury Real Estate: Understanding Your Client's Mindset

Understanding the mindset of your high net worth clients is a high priority when you are marketing luxury real estate. The ability to temporarily step out of your own mode of thinking and see the world through they eyes is one of the keys to becoming a market leader. It is essential to maintaining any great relationship.

People take different routes to arrive at the same place. They solve problems from different angles. They see the world through different paradigms or frameworks of thought. Your ability to see their way and demonstrate that you can solve problems using their methodology can go a long way in gaining their trust. You do not have to abandon your own preferences in the process. Most people just want to be understood.

Here is an example of how it works. Remember word problems in math? Some of you might cringe at at the thought. But, try this one for fun.

If you have 8 balls of yarn and it takes 2/3 of a ball to make a scarf, how many scarves can you make with this much yarn?

Using typical mathematic methodology this can be accomplished by dividing 8 by 2/3, which is the same as multiplying 8 by3/2 (inverting the fraction 2/3 to 3/2 and multiplying), 8/1 x3/2 =24/2 or 12 scarves.

Someone else might that I can get at least 8 scarves out of this because it does not take a whole ball to knit one. That would leave a 1/3 ball from each of those 8 scarves, and I need 2 of those remaining 1/3 balls to make another one. Since I have 8 (1/3 balls left, I need 2 of those for each additional scarf. I can divide 8 by 2 and get 4 more scarves for a total of 12 scarves.

Both approaches get you to the same place. Which method is right? Which method is best? Is there only one way to get there? Perhaps you prefer one method over the other. But if you can understand how others think and are willing to demonstrate that you understand their approach, you will find that they are suddenly more receptive to understanding your way, too. This can translate into more listings and more closed transactions.

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Monday, March 26, 2012

Marketing Luxury Real Estate: Enchantment Marketing - Part 3

In marketing luxury real estate always keep this vitally important concept in mind: When Your Marketing and Branding Is Enchanting It Accelerates the Speed of Trust and Enables You to Close More Transactions

When a home buyer or seller is not relying on a referral to select a luxury real estate marketing professional the big question on their mind is “Who can I trust?” This is certainly the dilemma of most website visitors from out of town. If you can quicken the time it takes to establish trust you can save your prospects time and anxiety, which they will appreciate. Because enchantment marketing and branding accelerates the speed of trust it also enables you to close more transactions.

Think about how enchantment marketing and branding plays out when you are shopping for unfamiliar luxury goods without a brand recommendation from a trusted friend. When you do not have a recommendation three things help to accelerate the speed of trust and thus speed up your buying decision: 1) Enchanting Packaging; 2) Enchanting Messaging, and; 3) Enchanting Brand Strategy.

Do you have a special memory of enjoying ice cream or gelato somewhere in time, somewhere on earth? We have two enchanting gelato memories and they both occurred in Italy. One memory is Vivoli Il Gelato in Florence and the other one is a gelateria on the central square of Turin, Piazza Castel. We are always open to new ice cream and gelato experiences that compare to these fond memories.

Enchanting Packaging

Recently, we passed by the frozen dessert display case in one of our favorite markets and something caught our attention. It was a new brand of coffee ice cream called, Blackbean. The clever container is shaped like a coffee cup with a lid. As gourmet coffee lovers and coffee ice cream lovers we felt obliged to test out this new brand because we were instantly enchanted by the packaging.

Enchanting Messaging

What is remarkable about the combination of the packaging, the graphic design and the brand name itself is Blackbean’s clearly articulated marketing message. First, it instantly let us know the product’s specific niche within the larger category of ice cream or gelato: coffee ice cream. This is focused niche marketing at its very best! Then, it told us, in a nano-second, its distinct promise of value, i.e, its unique selling proposition: “Bolder Coffee Ice Cream”. As a result we immediately expected that this product would taste like a great strong cup of gourmet coffee that you would buy at a specialty coffee store or expresso bar. That is enchanting packaging and messaging!

Enchanting Brand Strategy

The price was also remarkable. Because of the smaller size of the container (12 oz.),it cost less than the other brands on the same shelf that have larger pint size containers (16 oz.). The price per ounce may be identical to other premium ice cream and gelato brands on the same shelf that we had not yet tried. But, with a lower price it offered yet another compelling reason to try Blackbean first. That is enchanting brand strategy!

Promise of Value Fulfilled

After just a couple of spoonfuls, Blackbean became our favorite coffee ice cream! It is very creamy and has a strong, rich coffee flavor which is exactly what we expected based on the enchantment of the packaging, messaging and brand strategy. Taken together these marketing and branding elements propelled Blackbean from total obcurity to top of our minds, in the niche of coffee ice cream.

To our surprise and delight, the mocha chips are actually unsweetened chocolate. We are fans of 80-85% cacao dark chocolate. So, we appreciated that the crunchy chocolate bits had a distinct bittersweet character that required our taste buds to “borrow” from the sweetness of the ice cream itself to balance the overall flavor. This engaged our minds as well as our palette in the tasting experience which is the hallmark of outstanding gourmet food. It adds another dimension to fine dining when you can also appreciate the thought behind the flavor sensations and aromas.

Enchantment Marketing and Branding Accelerates the Speed of Trust.

Delivery on Your Promise of Value Seals the Deal!

Based on our enchanted Italian gelato experiences and our love for strong gourmet coffee we were the perfect target market for Blackbean Mocca Chip ice cream. But, had the packaging not grabbed our attention in the first place, the probability of discovering this brand would have been very slim. We were not even thinking of buying ice cream that day.

Enchantment marketing and branding accelerated the speed of trust. We were a match to the innovative thinking that went into this brand strategy and were wiling to risk $2.29 for a new culinary adventure. But, if Blackbean did not deliver on its value proposition that was so brilliantly communicated, we would not become loyal customers and raving fans.

Luxury is all about heightened, uplifting experiences that convert to enchanted memories, whether it is buying a home or buying dessert. When it comes to selecting a luxury real estate marketing professional without the recommendation of a trusted friend a risk must be taken by your prospects. That is why enchantment marketing and branding is so vital to your luxury real estate marketing practice. How many out of town prospective buyers know one local broker from another? Enchantment marketing and branding can encourage prospects to take a chance on you by accelerating the speed of trust. If you consistently deliver on your promise of value, you will definitely close more transactions.

The concept of Enchantment Marketing was inspired by Guy Kawasaki

ENCHANTMENT MARKETING Part 1, Part 2

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Tuesday, March 20, 2012

Marketing Luxury Real Estate: Enchantment Marketing – Part 2

Photo by Luis2007,

In Part 1 of this article series we differentiated Enchantment Marketing from what many luxury real estate marketing professionals claim as “exceeding expectations”. Consumers have come to expect less and less professionalism from service providers. We advised you not to fall in the trap of thinking that delivering excellent service and exceeding these lower expectations is the same as enchantment marketing.

In today’s time starved world competition for attention is fierce. Achieving market leadership is all about attaining and sustaining top-of-mind status. First, you need to capture the attention of your target market. Then you need to hold their attention over time. That is what enchantment marketing is all about. To enchant means to charm, captivate fascinate, enthrall and delight.

The biggest challenge of enchantment marketing is being consistent. You may be able to cast your “spell” of enchantment with a single action. But, if you are not consistent, the spell will be broken and your clients may become disenchanted with you.

Nowhere is the challenge of consistent enchantment put to the test more rigorously than in the restaurant business in a major city. Here is a tale of two outstanding Italian restaurants in Los Angeles that have been around for decades which is a major feat in a town that can be extremely fickle. Both of them consistently serve excellent food. Both consistently provide excellent service. Each of them is owned by a master of enchantment. But, for us, the spell of enchantment was broken by one of them.

Over the years, Restaurant #1 gained the reputation of being one of the best gourmet Italian restaurants in the world. We were taken there by out-of-town guests in the year it opened. It is expensive, but worth it because of the enchantment of the owner. Whenever we wanted to celebrate a special occasion or entertain clients this was the restaurant that came to mind first. We became friendly with the owner and introduced him to our friend who became his pastry chef. We never looked at a menu; the owner always ordered for us. He would select our wine and serve it himself (after his usual explanation of the wine’s origin and its characteristics) .

Restaurant #2 is the quintessential trattoria. One of the largest restaurant companies in Japan studied his operation for years before selecting the owner as their partner to open Italian restaurants in Japan. Being less expensive and less formal Restaurant #2 became an extension of our home when we were too exhausted to cook for ourselves. We were immediately enchanted by the owner on our first visit while we were waiting for our table. He brought us a glass of fine Italian wine and a slice of pizza “on the house”, because the place was literally swarming with people who arrived without reservations and the wait was longer than expected.

We also became friends with the owner of Restaurant #2. In fact, as commercial real estate brokers, we represented him in three restaurant transactions in Los Angeles. We went to his wedding; we skied with the chef and have remained friends throughout the years. Each visit to Restaurant #2 is still special. There is always something unexpected brought to the table—a special glass of wine to try, a new recipe. And, we always leave with a huge hug.

It was Restaurant #1 with which we became disenchanted during a recent birthday celebration. We have not lived in LA for over 10 years now and it was 5 years since our last visit. Prior to our arrival we were warned that Restaurant #1 was no longer up to par but we ignored it.

On this visit to Restaurant #1, the service and the food was excellent as usual. But, the “sorcerer” never came over to our table to chat, to discuss our order, to select and serve our wine. The birthday dessert, which was always on the house, was forgotten. He acknowledged us only briefly when we arrived and was absent at the door for his typical Italian farewell.

On the long drive home to Santa Barbara, where we now live, we questioned the value of the dining experience at Restaurant #1 for the first time ever. The spell had been broken. Our willingness to pay the higher prices for the enchanting experience evaporated. There is no question that if we were to call him and tell him about our disappointment, we would be invited back for an extravagant meal at no charge. Perhaps if the restaurant was in our new home town we would do it. But, we are rarely in LA for dinner unless we are staying overnight before a flight from LAX.

Since the disenchantment with Restaurant #1 we have been to Restaurant #2 twice and we continue to feel like #2 is an extension of our home. Consistency is the biggest challenge of enchantment marketing. As a luxury real estate marketing professional, are you up to the challenge?

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Thursday, March 15, 2012

50 Top Luxury Real Estate Markets in the USA: Telluride, CO

Imagine a world class ski resort with no traffic or long lift lines, and no driving once you've arrived. That is Telluride, Colorado. The Telluride Historic District (the majority of the town) is listed on the National Register of Historic Places and is also one of Colorado's 20 National Historic Landmarks.

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Wednesday, March 14, 2012

Marketing Luxury Real Estate: Enchantment Marketing

As a luxury real estate marketing professional, you know that referrals are the best way to ensure the success of your business. The number of referrals you get are indicative of the service you give, and the success you will continue to have. When you give your clients something remarkable to talk about, they will go out of their way to refer you.

A recent blog written by David Johnson, a digital marketing strategist whose niche is the automotive dealer industry, emphasized the importance of ROE (return on enchantment).

“Word-of-mouth is gold and social media is the vessel we use to promote it, but how exactly is it accomplished? As businesses we are always looking for ways to lower the cost of acquiring new customers. Give your customers something positive to talk about. This goes a long way to influencing a higher rate of word-of-mouth; let’s call it your ROE or "Return On Enchantment."

Many businesses and professionals, including those who market luxury real estate, claim to “exceed’ clients’ expectations. But, what does that really mean? Consumers have come to expect less and less professionalism from service providers. Don’t fall in the trap of thinking that delivering excellent service and exceeding these lower expectations is the same as enchantment marketing.

Here is an example of enchantment marketing in the automotive world from Mr. Johnson’s blog:

“A customer comes in to your dealership to purchase a vehicle for his daughter’s 16th birthday. You decide to take things to the next level by getting the car wrapped for him, complete with a big bow on top. But you don’t stop there because you really want to enchant your customer so you give to his daughter a year’s worth of free oil changes, 5 complete details and a $150 gas card.”

This kind of service leads to buzz. When it happens to you, you cannot wait to tell everyone you know about it, and chances are it will be on a social media platform. Someone just made a customer for life, a customer who is enchanted.

One of our clients has an investment buyer who now keeps sending her business after experiencing her take on enchantment marketing. Her buyer had always wanted to eat at the most famous (and most expensive) restaurant in her marketplace. But, the buyer knew that it took three months to get a reservation there. Since our client was a dear friend of the owner/chef, she reserved a table for him, treated him to dinner, and had the chef sign the menu. Furthermore, she had the menu framed with a picture of the chef and the buyer. This is part of her enchantment marketing budget. The cost of this is significantly less than a full page ad in a magazine.

Thoroughly delighted, this buyer turned around and invited her to the Masters’ Tournament in Augusta, Georgia. He sent his private jet for her so that she could be introduced to his friends at the Masters’. The return on enchantment continuously evolves and multiplies. As a result of this trip, she now has several new potential buyers, people that she never would have met otherwise.

Enchantment marketing goes far beyond what most luxury real estate marketing professionals call exceeding expectations. Professionalism should be a given. You know that you have enchanted your client when your client goes out of their way to promote you, when your efforts truly spark significant word-of-mouth advertising about YOU. That is your Return on Enchantment.

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Tuesday, March 13, 2012

Luxury Real Estate Marketing: Is Your Target Market on Social Media?

As a luxury real estate marketing professional, you know that your presence on different social media platforms can be a relevant venue to market you and your properties. However, given that your time is at a premium, it is also important to understand the demographics of the individuals frequenting those sites to make sure your time is well spent.

A recent infographic study on social media by Online MBA uses the following criteria for demographics: education level, income, age, gender. In addition, they include the number of registered users, geographical locations, time spent on sites, as well as user occupation.

Recently there have been several articles published about Pinterest as the new “hot” place to be in social media. Here are some of the facts on Pinterest included in the study which may surprise you: 82% of the users are women. The majority of these women are interested in crafts, gift ideas, hobbies, interior design and fashion. The top geographical location is East South Central (Mississippi, Alabama, Kentucky, and Tennessee). Is this your target demographic?

Another new social media with 90 million unique visitors is Google+. Unlike Pinterest, Google+ is favored by men (71%), early adopters, engineers and developers. Fifty percent of Google+ users are 24 or younger. Is this your target demographic?

If income is one of your criteria, it is interesting to note that out of Facebook’s 845 million users, 8% are in the $100,000 plus income category, whereas Twitter (127 million) has 15% in the same income category. Is this a high enough concentration of your target market to warrent the amount of time you spend on these sites to drum up business?

Is your time well spent? This is a good criteria to evaluate your participation on a given social media platform. If you have not seen a significant ROI you may consider spending more of your business marketing time socializing or networking in person.

To read more about this study, here in the link to OnlineMBA.

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Monday, March 12, 2012

Luxury Real Estate Marketing: The Art of Storytelling

Engaging buyers who are interested in purchasing properties in the upper tier of the market is really about showing them how they can live out their dreams in a given home in a particular marketplace. That is why some of the most successful luxury real estate marketing professionals are those who have learned the art of storytelling. They know how to romanticize their marketplace.

Human beings have been telling stories even before recorded history. The paintings on the walls of the Lascaux Caves in southwest France, as depicted above, are estimated to be over 17,300 years old. These cave dwellers were telling stories mainly about animals which were obviously a central part of their lives.

Storytelling comes naturally to some. For others, it is a skill that can be developed over time. As authors of the Language of Luxury we strive to continuously sharpen our storytelling skills as we build our audience. We also understand that every great brand tells a great story that is compelling to its customers or clients. And, we help our clients to develop their own distinct brand story.

Recently, we heard a presentation by one of the Academy Award winning storytellers at Pixar, Andrew Stanton, who wrote Toy Story, WALL-E and John Carter, which was just released by Disney. We wanted to share some of his points with you in this article:

  1. Keep your promise that your story will lead somewhere that is worth the investment of time by your audience.
  2. Your audience wants to work for its “meal”. We are all born problem solvers. We enjoy using our deductive or inductive logic. We like to think. Do not give all the answers. Let your audience solve the problems.
  3. A strong theme always runs through a well-told story. Get clear about what your theme is.
  4. A great story is uplifting in some way.
  5. Does your story evoke wonder? Does it confirm that life is worth living?

What are some ways that you can become a better storyteller as a luxury real estate marketing professional? One way you might consider becoming a great storyteller is by practicing the art of storytelling in each of your blog posts. How can you romanticize your marketplace in each of your posts?

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Friday, March 9, 2012

Personal & Company Branding: Regaining, Obtaining and Retaining Trust

Developing a personal or company brand for luxury real estate marketing professionals involves the same branding process that is required by any major corporation. The fundamentals are the same whether you are targeting the upper demographic or Middle America, whether you offer a product or a service, locally, regionally or globally. The primary goal of branding or rebranding is regaining, obtaining and retaining trust.

Here is an overview of the branding process:

  1. Take the time to understand the most pressing needs of your customers or clients in the context of your capacity to fill that need.
  2. Tune in to your own “DNA” and determine precisely what your unique promise of value is or can be in that context.
  3. Distill that promise of value into a compelling marketing message that can be expressed in just a few words.
  4. Craft a symbol (logo/brand identity) that further accelerates the speed of communication of that promise of value and also the speed of trust
  5. Align all of your marketing efforts (from the first contact with your client to the follow up after the sale) in such a way that you consistently communicate this singular message

Did you happen to see the very funny JC Penny re-branding commercials with Ellen Degeneres? In a matter of 180 seconds (three 60 second commercials during the Academy Awards) the commercials began to positively turn around the perception of this 100+ year old company and give it new life. Behind this transformation is CEO Ron Johnson, who first worked with Target to pioneer the retailer’s “cheap chic” image. But, more recently Mr. Johnson was the creative genius behind Apple’s retail stores where he spent a decade changing the way Americans shops for electronic gadgets.

In these brilliant commercials Johnson drives home the singular message that Penny’s is fun, that they have cut out heavy discounting and now provide services not just products. Ellen perfectly conveys the company’s values with great warmth and her down-to-earth attitude. The message that she conveys through the commercial is their new focus: “Be in sync with the rhythm of our customer’s lives and operate in a ‘Fair and Square’ manner that is rooted in integrity, simplicity and respect”.

JC Penny’s announced that part of its strategy is getting rid of hundreds of sales it had each year and is now focused on everyday pricing. It will offer discounts on a group of different items each month and have clearance sales on the first and third Friday of the month when many of its customers are paid. They plan on creating an open area in the center of its stores called ‘Town Square’, similar to Apple’s Genius Bars, that will offer services yet to be announced.

JC Penny’s ‘Fair & Square’ message, intended to regain the trust of its customers and win new ones, comes across loud and clear in the commercials and is also reflected in its new square logo. The sheer brevity of the messages delivered by America’s favorite talk show host, with humor, demonstrates all of the fundamentals of great branding or rebranding. Here are the messages from the commercials:

  • No coupons, just great prices
  • Return any item, any time
  • No games just great prices
  • No door-buster sales, just great prices all the time

Notice that the new logo is in red, white and blue, the colors that resonate most with Middle America—JC Penny’s target market. There is an entire psychology of color involved in the branding process. It is one more component that needs to be aligned when the intent is to accelerate the speed of trust.

As a luxury real estate marketing professional, is it time for you to brand or rebrand yourself, your team or your company? You target market may not be the same demographic as JC Penny’s but the aim and the process is the same. Regaining, obtaining and consistently retaining trust is the name of the branding game. That is how customer/client loyaly is created over time.

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Tuesday, March 6, 2012

Luxury Real Estate Marketing: Do You Know What Your Time Is Worth?

As a luxury real estate marketing professional it is important to constantly improve the way you run your business. Inefficiency in any business is equal to amount of time wasted. In financial terms this is known as return on investment or ROI. First, you have to establish what your hour is worth. Then, keep a diary of all the things you do in a day and note the time you are spending on doing these items. What is your return on the time you spent doing that cycle of action? Could some of these items be delegated to someone else whose hourly rate is considerably less than yours?

Which items produce actual income? Those are the cycles of action that lead to a listing/sale. One of our clients has trained her assistant to shoo her out of the door on a daily basis. They both know that when she steps out the door to get a cup of coffee or have lunch, she will invariably run into someone who has a listing or a referral or a clue as to what may be for sale, or who is in the market. The longer she is out of the office, the more listings she gets.

Recently, we spoke to another one of our clients who plays golf regularly. This 4-5 hour activity (three times a week) has landed him several sales and listings in a month. Another is an exceptional tennis player, and he plays at the club in his marketplace and in all the local tournaments. This enjoyable activity leads to sales and listings.

Busy work and all the other minutiae that need to be done should be executed by someone who is good at it, and you should do what you are good at, which is bringing in the business. Delegating can be the springboard to increasing your business as well as increasing your discretionary time for yourself and your family. Do we practice what we preach? Absolutely, we have a virtual assistant and a local one. We have found that we are happily getting a great ROI on the time we spend working. Do you know what your time is worth?

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