If you knew exactly how a sales and lead generation funnel actually works, how would you change your approach as a real estate agent? Pretty compelling question, isn’t it? As important as it is, why do so many real estate professionals, brokers and developers that hire massive volumes of sales agents in the Philippines choose to completely ignore it?
If you don’t believe this question is being ignored, just go into any mall, drive past any major subdivision or visit any Real Estate Facebook page. What will you see? A real estate agent staring right at you pushing a flier/brochure on you as pass by and try to ignore eye contact or ignore engaging in their Facebook post. Try engaging in a test conversation with one of them and you’ll find them jumping straight into their sales pitch, “blah…blah…blah…bili ka na, sir/ma’am”!
If you were on the receiving end of that conversation as a potential buyer, how would you feel?
You might not say this but I bet you’d be thinking, “uh dude, sorry but I don’t know you. Even if I did, why would I give you a commitment for the single largest purchase that I’ll make in my entire life”?
Today, let’s explore the answers to this multi-billion peso question.
And, if you’re really open, honest and willing to do whatever it takes to succeed as a real estate professional, this could be a HUGE game-changer for you!
Here’s the bottom-line, in order to understand how a real estate buyer thinks and how to improve your real estate lead generation for the Philippines, you need to understand the definition and concepts of what we like to call the “marketing funnel”, “customer funnel” or “sales funnel”. They all mean the same thing.
So, what is a marketing funnel?
Wikipedia says it best, “…a consumer focused marketing model which illustrates the theoretical customer journey towards the purchase of a product or service.”
In case you didn’t understand it, read it again, word for word.
If you, as a real estate sales professional don’t acknowledge that there’s a framework and a mental thought process that a buyer goes through which is a specific and repeatable progression of research that ultimately culminates to a final decision of either to purchase or not, then you’re in for a long journey of guessing and flying in the dark towards hitting your goals.
Why do you need to understand your marketing funnel?
Funnels are important so that you can identify and measure what part of your sales and marketing activities are working and not working. On the macro level, it will help you understand what you need to do for each prospect to either move them to the next step of the funnel or move them out as an unqualified lead.
How does understanding the marketing funnel affect all of your real estate lead generation for the Philippines?
Funnels help define who the best leads are in the Philippine real estate and where they are in the lead generation process.
What does a marketing funnel look like?
For most real estate individuals and companies, your marketing and sales funnel stages can consist of the following at very basic level:
- Top of the Funnel (TOFU): This is defined as the awareness stage.
- Middle of the Funnel (MOFU): The point and stage where potential buyers come back to visit your website or call or message you about potential interest. If you set up a meeting or call as “first appointment”, your potential buyer moves to the next stage that we call a “conversion”.
- Bottom of the Funnel (BOFU): Once you’ve completed your “first appointment”, you should be able to begin qualifying your potential buyer as they go through the “product consideration” stage to “how and if I should complete a purchase” stages.
Here’s an image to help illustrate the progression from each stage.
Now that we’ve broken down the stages and the structure of the marketing funnel, and if you think back to what we see most real estate professionals doing out there (remember what I said about what happens at the mall, on the street in front of a real estate development or on a FB page), most agents start their sales process at the bottom of the funnel (BOFU) when the buyer hasn’t even gone through the first stage of the awareness process of their buyer journey. If you’re lucky, you might start a conversation with someone at the MOFU or BOFU but even still, you haven’t established your credibility so why would they buy from you. All they see you as is the “blah…blah…blah…bili ka na, sir/ma’am,” sales person that everyone tries to avoid.
In contrast, what would happen if you started every potential buyer with the actual buyer’s journey and thought process that they go through?
Would you have a better chance to get their attention and awareness?
Would you have a better chance to talk to only more qualified leads versus people who will waste your time?
Would you have a better opportunity to build your credibility as a “trusted advisor”?
Look, I get it, this stuff isn’t easy and for now, my goal was to layout the concept and stages of the marketing funnel so you get a better idea of how real estate buyers think.
I realize there’s a lot more to this and a ton more detail on how to move a buyer through each stage but don’t worry, just stay tuned and in one of our next posts, we’ll discuss each stage in full detail.
If you found this article interesting, compelling or if you wanna give us your opinion, we’d love to hear it…just leave us your comments below.
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Dennis Velasco
Technology Evangelist super passionate about helping the industries of eCommerce, SMEs and real estate in the Philippines reach new levels of success.
Wow, what a great write up about getting quality clients for real estate business especially in the realm of real estate marketing & selling.
This is what I am longing to create for a long time but because I am not a very technical guy, I am having difficulty creating a sales funnel.
With the project of Dennis Velasco, I am sure that this will be a big help to all marketing people in the real estate industry.
Thanks and more power,
Elmer Loredo
Real Estate Investor, Mentor,
Motivational Speaker, Online & Digital Marketer, Network Marketer
Thanks for the props Elmer. As always, let me know how we can help.
Hi Sir Dennis,
It is very interesting and a great help to all property sales consultant like me.
Thank you and God bless!
Donna G. Casem
Filinvest City, Alabang
0977-3032399
No worries Donna. Super passionate kami about helping real estate agents and companies reach their full potential.
Thanks for this Dennis. I remember our discussion in your office about building familiarity. Knowing when the buying window opens or when the client is ready to purchase is not enough. It’s usually too late by then. Prospecting touches with building familiarity in mind helps us to be in a better position whenever a need to purchase triggers. Thank you for that insight! 🙂
Randall Peña
Real Estate Investor
You got it right Randall! I would add that the best opportunities come from your most cultivated relationships and to take it further, the best relationships are built way before a prospect gets into the bottom of funnel.
Hi Sir,
I am really struggling to create a strategy on finding a clients and closing a sale. I am new in real estate invironment and process.It feels like nangangapa sa dilim although i attended the training, still i have lots of questions on doing the job and get an interested clients.Hope to be assisted by you.Thanks.
I completely get it Sheila. Getting started in a new industry and in real estate isn’t easy. Have you read the blog that I wrote specifically for new real estate agents? Here’s the link.
That was really helpful. As of “right now”, I’m not struggling to find clients but my main problem is closing the deal on time.
Thank you sa lahat po ng advice sir DV!
Erica Hugo
Property Specialist
You’re very welcome and maraming salamat din sa yo for your support!
Regarding your question about closing deals on time, have you ever tried creating and preparing a “Close Plan” template? This is merely a timeline of tasks, who’s responsible and the date on when each task should be done. I suggest you create one and then present to your client and get their confirmation that the time frame and steps are something that they can commit to in order to reserve their property on time otherwise it will get put back into the available inventory.
What do you think?
Fantastic idea boss this is great tools when ASEAN Integration happens soon, very professional approach so please it keep going. Good job!
Thanks for the feedback Temistocles. Let us know how we can continue to help you sell, market and reach your goals.