Owing to the nature of its product those in the real estate and property management sector have always found it easy to figure out what their clients are buying – but rarely have they known why.
But thanks to modern neuroscience, getting vital data on a consumer’s purchasing behaviour is now possible through neuromaketing. But what exactly is neuromarketing and how can it be applied in the field of real estate?
We talked to marketing and brand experts to find out how neuromarketing can work in the competitive property sector and the ways you can use it in improving your marketing strategies.
What is neuromarketing?
Neuromarketing is a branch of marketing that uses modern brain science to measure the impact of marketing and advertising on consumers so that marketers – or in this case, agency principals and top agents – can accurately deliver what their clients are searching for.
Belinda Vesy-Brown, a brand strategist and founder of branding agency Brandonian, describes the practice as “a combination of the science behind how we as humans will connect with a person and how they make a buying decision, which is then combined with how we can tell these messages in our marketing to attract the right customer/client.”
Why use neuromarketing in your real estate business?
Digital branding expert Melanie Hoole, the founder of Sydney-based RE branding agency Hoole, says at its core neuromarketing works by reducing the guesswork or anecdotal reasoning for marketing a property, person or business.
“It saves all those arguments with the boss or your peers, as it encourages you to find ways to learn more about your client or vendor and better identify what makes them tick; i.e. how they think, feel and behave toward certain marketing elements in your campaign or strategies you apply to your website or open home.”
To Vesey-Brown, the key advantage for agents considering incorporating neuromarketing into their promotional mix is that it will help them attract the right people who will arrive ready to buy. Moreover, the introduction of neuromarketing in real estate and property management agencies has the potential to not only shorten the sales cycle for the agent and impact the conversion rate, but also ensure client expectations are more readily met.
5 ways to use neuromarketing in property management
There are a number of different touch points where you can apply modern neuromarketing in RE and property management (PM) today and the good news is that today’s technology makes it easy to do so. Hoole shares the following applications for real estate businesses:
- Colour scheme association
Using colours identifiable to your brand is one of the more classic examples of neuromarketing that traces its roots to traditional marketing. Studies consistently show that colours can evoke a wide range of emotions and using the right schemes in your promotional content or even in home styling, can help influence a potential customer’s behaviour.
- Eye and Click Tracking
Another way to use neuromarketing is by using eye tracking technology or click tracking applications such as Hotjar in your website, which can help benchmark where people spend most time on your website and what content they respond to.
- Social media targeting
Social media targeting through behavioural tracking can also be used to determine what visitors are interested in so that you can show your brand or selected properties to people that have visited a particular area of your website.
- Ad Testing
In ad testing, different ads are shown to different segments of your email database or social media advertising audiences to help define which one generates more leads for your business.
- Price manipulation
By far the most common example, however, is through price manipulation, Hoole says. “Most agents or PMs are using techniques that relate to our brains and perception all the time – when they set the price of a home for sale or auction or rent. Different strategies are applied to support different scenarios whether the market is hot, slowing or the vendor wants a quick sale or high price result.”
Vesey-Brown says adoption of neuromarketing techniques won’t provide instant return on investment (ROI) owing to the fact these techniques usually sit across the whole business. Instead their success will be noticeable via an increase in the agent or agencies attracting their desired client and the type of staff who wish to work at the agency, she says.
“A key metric for agencies is to measure referral business and not just from past clients, but from unknown people who understand who they are and why their friend or family member or colleague needs to contact them. Lots of information about a property is available online for free or for a small fee, so agents and agencies need to be changing and adapting to remain relevant.”
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