Understanding Generational Differences and its Impact on the Real Estate Industry<br />Matthew Ferrara & Company presents<...
The Proposition<br />A Perfect Storm<br />Economic: Recession<br />Commodity: Prices, Oversupply<br />Demographic: Four Ac...
So get ready to boldy go where nobody has gone before!<br />
The Key Question<br />How will Gen X and the Millenials Change Real Estate?<br />
!<br />Real estate today was built by Baby Boomers, for Baby Boomers.<br />The next generation of buyers and sellers aren’...
The purpose of a business is to create a customer. Peter Drucker<br />
Create a Customer?<br />Different than “serve” customers<br />To satisfy a particular market desire<br />Must start with t...
It is the customer…<br />… who determines what a business is. It is the customer alone whose willingness to pay for a good...
So what do we know about customers...<br />… and what is of value to them?<br />
62%<br />31%<br />Gen X<br />Baby Boomers<br />Silent<br />Gen Y - Millenials<br />
Size of Home Purchased<br />
Demograph Transfers<br />31<br />Average age of the First Time Home Buyer<br />47<br />Average age of Sellers<br />
Is Real Estate Valuable?<br />
64%<br />Percentage of listings thatwere derived fromrepeat clients or referrals<br />67%<br />Contacted only one agent <b...
What “process” did they use?<br />
How did they hire us?<br />
What did they want from the process?<br />
Disturbing trends?<br />
“<br />”<br />The aim of marketing is to know and understand the customer so well the product or service fits him and sell...
Baylor University Study, 50,000 REALTORS, 2009<br />
There is nothing so useless as doing efficiently that which should not be done at all. Peter Drucker<br />
 Buyers between 18-44 using Social Networks daily in 2008<br />95%<br />
35%<br /> * REALTORS use social networkingat all, in 2009<br />
75%<br /> REALTORS never used a blog or podcast<br />
But don't take my word for any of it….<br />
<br />Let’s look at consumer archetypes to determine what they value<br />
Real Estate positioning:<br />First time and move-up buyer population<br />49% of new homes, 2006-2008<br />
What constitutes their value set?<br />Individualists, Competitive<br />“Question everything, ” skeptics<br />Distrustful ...
The Value Shift<br />$1.80<br />16 ounces of actual coffee<br />It’s hot<br />
You look maaaahvalous….<br />$3.83<br />4 ounces of coffee, 12 ounces of foam<br />Requires special ordering language<br /...
It's happening just like they imagined it!<br />
Gen X’ers Value what’s Behind the Curtain<br />What they want<br />WebMD experience: Extensive, accurate, engaging Informa...
<br />Take a closer look at Gen Y<br />
Gen YThe :We: Generation<br />
Gen Y (Gen We) Critical Facts<br />78 million U.S.; 2b worldwide<br />Real Estate positioning:<br />Significant portion of...
Gen Y (Gen We) Critical Facts<br />What’s their value set?<br />Group Oriented<br />Close to Boomer parents<br />Highly st...
Millenials in Perspective<br />
Technology is more than computers<br />
Once again, science fiction becomes fact<br />
What’s new is old…<br />
What does the future hold for Millenials?<br />
Social Networking = Mind Meld v 1.0<br />Gen X and Y are constantly “broadcasting” what’s happening in their lives…<br />Y...
How to Connect with Gen Y’ers<br />Use technology to establish relationships<br />Tether then to the process, but not to a...
?<br />Now that we know more about the Zebra, how shall we catch it?<br />
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Matthew Ferrara Understanding Re Generational Differences

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Learn how different generations of buyers and sellers will affect the real estate industry with Matthew Ferrara & Company.

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Matthew Ferrara Understanding Re Generational Differences

  1. 1. Understanding Generational Differences and its Impact on the Real Estate Industry<br />Matthew Ferrara & Company presents<br />
  2. 2.
  3. 3.
  4. 4. The Proposition<br />A Perfect Storm<br />Economic: Recession<br />Commodity: Prices, Oversupply<br />Demographic: Four Active Generations<br />
  5. 5. So get ready to boldy go where nobody has gone before!<br />
  6. 6. The Key Question<br />How will Gen X and the Millenials Change Real Estate?<br />
  7. 7. !<br />Real estate today was built by Baby Boomers, for Baby Boomers.<br />The next generation of buyers and sellers aren’t Baby Boomers!<br />What they value is a lot different than what we have been prepared to sell. <br />
  8. 8. The purpose of a business is to create a customer. Peter Drucker<br />
  9. 9. Create a Customer?<br />Different than “serve” customers<br />To satisfy a particular market desire<br />Must start with the desire, not the product/service (contrary to current)<br />
  10. 10. It is the customer…<br />… who determines what a business is. It is the customer alone whose willingness to pay for a good or for a service converts economic resources into wealth, things into goods. What the customer buys and considers a value is never just a product. It is always a utility, that is, what a product or service does for him.<br />- P. Drucker, Effective Executive<br />
  11. 11. So what do we know about customers...<br />… and what is of value to them?<br />
  12. 12. 62%<br />31%<br />Gen X<br />Baby Boomers<br />Silent<br />Gen Y - Millenials<br />
  13. 13.
  14. 14. Size of Home Purchased<br />
  15. 15. Demograph Transfers<br />31<br />Average age of the First Time Home Buyer<br />47<br />Average age of Sellers<br />
  16. 16. Is Real Estate Valuable?<br />
  17. 17. 64%<br />Percentage of listings thatwere derived fromrepeat clients or referrals<br />67%<br />Contacted only one agent <br />Before selecting themas listing agent.<br />
  18. 18. What “process” did they use?<br />
  19. 19. How did they hire us?<br />
  20. 20. What did they want from the process?<br />
  21. 21. Disturbing trends?<br />
  22. 22. “<br />”<br />The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.<br />Peter Drucker<br />
  23. 23. Baylor University Study, 50,000 REALTORS, 2009<br />
  24. 24. There is nothing so useless as doing efficiently that which should not be done at all. Peter Drucker<br />
  25. 25. Buyers between 18-44 using Social Networks daily in 2008<br />95%<br />
  26. 26. 35%<br /> * REALTORS use social networkingat all, in 2009<br />
  27. 27. 75%<br /> REALTORS never used a blog or podcast<br />
  28. 28. But don't take my word for any of it….<br />
  29. 29.
  30. 30. <br />Let’s look at consumer archetypes to determine what they value<br />
  31. 31.
  32. 32. Real Estate positioning:<br />First time and move-up buyer population<br />49% of new homes, 2006-2008<br />
  33. 33. What constitutes their value set?<br />Individualists, Competitive<br />“Question everything, ” skeptics<br />Distrustful of authority<br />Prefer / “Certain” in own beliefs<br />Information age mentality, skills<br />Image Conscious<br />
  34. 34. The Value Shift<br />$1.80<br />16 ounces of actual coffee<br />It’s hot<br />
  35. 35. You look maaaahvalous….<br />$3.83<br />4 ounces of coffee, 12 ounces of foam<br />Requires special ordering language<br />Lukewarm<br />
  36. 36.
  37. 37. It's happening just like they imagined it!<br />
  38. 38. Gen X’ers Value what’s Behind the Curtain<br />What they want<br />WebMD experience: Extensive, accurate, engaging Information on market/services before any consideratoin of personal authority<br />Consumer Reports level of Process Transparency<br />Customized to individual needs<br />They must be “in charge” of the outcomes<br />
  39. 39. <br />Take a closer look at Gen Y<br />
  40. 40. Gen YThe :We: Generation<br />
  41. 41. Gen Y (Gen We) Critical Facts<br />78 million U.S.; 2b worldwide<br />Real Estate positioning:<br />Significant portion of FT and move-up populations<br />6 - 12 transactions lifetime<br />
  42. 42. Gen Y (Gen We) Critical Facts<br />What’s their value set?<br />Group Oriented<br />Close to Boomer parents<br />Highly structured lives<br />Consume/d by entertainment<br />Technology Normal (Integrated)<br />
  43. 43. Millenials in Perspective<br />
  44. 44.
  45. 45. Technology is more than computers<br />
  46. 46. Once again, science fiction becomes fact<br />
  47. 47. What’s new is old…<br />
  48. 48. What does the future hold for Millenials?<br />
  49. 49.
  50. 50. Social Networking = Mind Meld v 1.0<br />Gen X and Y are constantly “broadcasting” what’s happening in their lives…<br />You just have to be there, listening, watching for those life-changing moments that are associated with real estate needs!<br />
  51. 51. How to Connect with Gen Y’ers<br />Use technology to establish relationships<br />Tether then to the process, but not to a computer (wireless)<br />Decisions must be validated by the network<br />Future luxury looks more like the rooms at the Encore than at the Ritz. <br />
  52. 52. ?<br />Now that we know more about the Zebra, how shall we catch it?<br />
  53. 53.
  54. 54.
  55. 55. matthewferrara.comfacebook.com/mfcompany<br />

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