Navigating the sales call is a challenge. In real estate, it is expected that agents will pick up the phone regularly to connect with new prospects. After all, this is the precursor for which deals get done.
While knowing what to say, including asking for permission to speak to prospects (Canada has rules surrounding its national do not call list) and knowing how many times to follow up is important, this isn’t enough to secure new meetings or generate interest.
Realtors need to do their market research. In other words, blindly calling the wrong people, neighbourhoods, or companies will be time wasted.
Brokers can often teach their team to put the cart before the horse; “Make the cold calls… hit the numbers… it’s a numbers game” are common phrases that can be misguiding.
Market research: The missing link?
While the numbers are important, sales reps who spend their time in the wrong areas will find it draining and demoralizing. Imagine having strong communication and relationship-building skills and feeling confident over the phone when prospecting and then hearing no after no. Is there a better way? The missing link is market research before the cold calls.
To conduct market research in residential real estate, for example, a broker can benefit from hiring a market research firm to study the competition and find out which neighbourhoods to approach. This will help narrow down their target market (region/neighbourhood). Realtors can understand supply and demand dynamics, market trends and economic factors with proper market analysis. This will help them to determine pricing strategies.
The importance of demographic analysis
Effective market research can also help brokers and realtors with demographic analysis, which demonstrates population growth, age distribution, income levels and employment trends. By doing such an analysis, they are able to identify target markets and assess the potential demand for properties.
Quality market research can be very time-consuming and complex. Most brokerages don’t have the staff or expertise to complete this work effectively, which can result in costly errors.
A market research firm can make a sample of calls to assess the competition and a particular target market. They can also send out emails and see what the response is like.
Market research can be a significant investment, with a sample survey involving 100 phone calls or emails ranging from $3,000 to $5,000. However, the valuable insights and outcomes derived from this research often justify the expense.
Once a brokerage has zeroed in on its ideal audience, it can guide sales reps into making focused cold calls. The results will be worth it.
Learn more about optimizing your real estate sales strategies from Nicole on YouTube.
Nicole Attias is the owner of Prospect2Win. Prospect2Win is a sales-based company in Canada that is dedicated to helping businesses get in the door through cold calling and presentation training. Nicole facilitates workshops and webinars for real estate agents and various real estate boards. Contact – nicole@prospect2win.com
Stay tuned for my upcoming eBook, “Transform your sales approach – More than just a cold call.”
