14 Aug THE COLD HARD TRUTH OF LOGIC.
The Cold Hard Truth of Logic.
I'm a sucker for reading anything claiming to be "Pretty Radical Stuff" - mostly, it's nothing even close.
An article I clicked on Twitter, to find out how radical it might be. From an estate agent/"trainer" for whom, full disclosure, I have little regard. Might have something to do with breaking lock-down rules to conduct a viewing, but that's another story.
This article was about customer acquisition.
"Word of mouth is NOT a business generation strategy. It's a by-product of all the good things you're doing."
I have to disagree, of course, because word of mouth/referrals/reputation is what builds a loyal audience of homeowners that simply wouldn't entertain using any other agency. How an agency amplifies that word-of-mouth is the important part of business generation strategy.
The cold hard truth is that Interruption, a.k.a Spam, drives most away.
The article continued.
"Let me ask you this: if I told you that next month you had to double the number of valuation appointments you generated , how would you do that using word of mouth? You couldn't"
Which is where I defer to the logic of bad example and hasty generalization.
Bad example, in that, no agencies ever have to double the number of valuation appointments in any given month and, further, if there aren't homeowners wanting to sell, no amount of persuasion will entice them. There is a finite number of leads that agencies can attract. Unless, of course, they aren't concerned with quality, but simply quantity.
"If you want to build a business that has a robust and sustainable growth strategy, you HAVE to be able to 'buy leads' and valuations.
There's no denying that buying leads and valuations works - just ask PurpleBricks. But is it profitable and is it necessary?
It gets worse!
"Paying to acquire customers (aka marketing) means that you can figure out what works and what gives you the best return on investment and then just do more of that."
Seth Godin sums up that soul-less tactic perfectly when he says "On the one side are the roboticists. They test & measure & do what works. They do it with no interest in how people decide, or what they believe, or what story they tell themselves. Instead, they treat the human as an ant, in an ant farm, a robot that does this, or that. On the other are those that seek to get to the heart of what makes us human..they know that truly understanding our narratives is the essence of doing work that matters, that connects and that spreads."
The essence of the remaining narrative is focused around examples of how Facebook ads and direct mail might work.
"If you spend this, you should get that."
"Let's say that you spend £500 on Facebook ads,which gives you 20 leads at £25 each. "
In Logic, the terminology is fallacy of ignorance. There is a logical chasm in these examples. A disconnect between proof and conclusion. It's hypothetical!!
In all forms of advertising, there are two core questions that should be asked:
What does it make you feel?
Why do you think they want you to feel that way?
Let's address the first - what does it make you feel?
For me, absolutely nothing. I'm against advertising. It's generally a waste of time and money.
Because people willfully ignore advertising. Why waste energy on trying to dissuade them of their belief?
But let's assume for an estate agency, they feel curiosity. After all, the Holy Grail for them is Customer Acquisition.
Their recommendation is direct mail and the stunning admission that typical sales letters get one response per 200-300 letters. A less than 0.5% response rate isn't something to shout about. Especially as those letters are targeted to on-market homeowners.
After-the-horse-has-bolted springs to mind. A vendor, already on the market with another agency and now being hustled by an agency they hadn't even considered, first time.
Why do they want you to feel that way?
Because, simple answer, they want to sell you something.They're attempting to demonstrate expertise and a willingness to guide your agency through the minefield of paid acquisition.
"Paying for leads is not an unnecessary expense, it's a vital business transaction. Without it, you just have lots of goodwill and a warm feeling inside."
I know the estate agency "trainers" won't really be surprised by this, but we don't have a lot in common.
With very few exceptions, the advice they share is fast becoming the exact opposite of something I can believe in. Perhaps, it's something to do with the constant "do what I say" narrative.
They aren't providing multiple options for agencies. Allowing the agencies to decide which option is most suitable. They are presenting the solution - a solution that doesn't hold the provider accountable should it not work. And much of what they say is from the past. Simply re-hashed as "fundamentals".
"Lots of goodwill and a warm feeling inside" isn't something to disparage. Especially when estate agencies have such a negative reputation.
There's far more likelihood of a potential client instructing an agency that has goodwill than an inadequate one that bombards them with unsolicited ads and email. People have ad blockers for a reason.
I've watched this particular "trainer" on Twitter over several months of regular posting. In that time, the cold hard truth is that there has been ONE like - so not exactly engaging with the audience on that particular platform.
The cold hard truth is that Customer Acquisition isn't about interrupting strangers, that haven't asked to be interrupted. It's about attracting interest through having something important to say and building an audience that spreads the word.
"People make decisions based on emotion. The moment you can make them feel the way you want them to feel, you can make them take action." - Jonathan Khan.
When your agency can do that, it won't need to speculate the marketing budget on third-party platforms and direct mail that ends up being filed under W.P.B.
Those that are looking for you will seek you out and they will stay.
Acquire relationships, not leads.
Thanks, as always, for reading this far.
Chris.
mob: (44) 07369251435
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