Surviving in the Social Era


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  • This is the old way. You target people. You hunt them down. You do marketing to them.
  • This is the new way: Consumers market to each other.
  • Created new expectation
  • Created new expectation
  • Surviving in the Social Era

    1. 1. Riding the Bullet Train toRiding the Bullet Train torrelrrele v ae v a nn cc e ?e ?II
    2. 2. Course Objectives• Understand Social Era versus SocialMedia;• Discuss the “Power Shift” from realestate professionals to consumers;• Examine consumer influence on theagent’s business model; and• Learn how to service the "nextgeneration" of home buyers andsellers.
    3. 3. This is NOT a class on Social Media
    4. 4. Its ABOUT the Social Era
    5. 5. If the industrial era wasabout building things…………
    6. 6. …..the Social Era is aboutconnecting things, people,and ideas.
    7. 7. IntroductionsIntroductions
    8. 8. The Only People That Like Change……The Only People That Like Change……
    9. 9. Change• How did it feel to be asked to change seats?• Did you view changing seats as an opportunity tosit with someone new or as an uncomfortable orundesirable change?• What are some things that make people resistantto change?• What can you do to make it easier for people inyour organization to accept the changes?
    10. 10. 1937 Clothing of the Future1937 Clothing of the Future
    11. 11. 1967 – Predictions of Online1967 – Predictions of OnlineShopping and EmailShopping and Email
    12. 12. 1993 GPS Prediction1993 GPS Prediction
    13. 13. What changes Are Coming inWhat changes Are Coming in2013 and Beyond2013 and Beyond
    14. 14. The Social EraIf the industrial era was about building things, the Social Era is aboutconnecting things, people, and ideas.Connections create value. The Social Era will reward those organizations thatrealize they don’t create value all by themselves.Power in community. Power used to come largely through and from biginstitutions. Today power comes from connected individuals in community.
    15. 15. The Social EraCollaboration > control.Instead of centralized decisions, there is distributed input, decisions, anddistributed ownership.Talent inclusion—across ages, genders, cultures, sexual orientation—it’sessential for solving new problems as well as for finding new solutions to oldproblems.
    16. 16. The Social EraBuyers and sellers become “co-creators.”Embrace buyers and sellers as “co-creation” partners instead of as an object atthe end of a value chain.Mistakes can build trust.Relationships gain strength from trying new things and the resulting failures.
    17. 17. The Social EraLearn. Unlearn. (Repeat.) Rather than viewingCHANGE AS BAD”, understand that it as a natural part ofthe business development. Adaptability is central to howwe will survive.Social purpose unleashes ownership.Purpose is a better motivator than money. Money, whilenecessary, motivates neither the best people nor the best inpeople.When people know the purpose of an organization, theyjust come.
    18. 18. The Social Era
    19. 19. Generational DifferencesGenerational Differences
    20. 20. GenerationalDifferencesFor the first time in history there are 6living generations in America.• GI Generation (1901-1926)• Silents (1927-1945)• Boomers (1946-1964)• Generation X (1965-1979)• Millennial’s (Gen Y) (1980 -1998)• Generation Z (1999 – present)• And………
    21. 21. Generation “Wired”• Have a lifelong use of the Internet, texting, IM, MP3’s andSmartphones (not cell) earning them the nickname "digitalnatives".• Have been raised entirely after the end of the Cold War and theInternet.• Theyre the children of Generation X• The youngest members can also be children of Generation Y• Their grandparents tend to be members of the Silent Generation
    22. 22. Houston’s Population by Age & Ethnicity
    23. 23. GenerationalDifferences4 of them are working together in theworkplace and exist side by side.• The traditional industry modelsbecome less appealing and relevant toeach succeeding generation.The generational disconnect can bebridged.Recognize the growing differencesin the agents & buyers needs,preferences, & values & dosomething about it, otherwisethey will deem you irrelevant.
    24. 24. Toyota Venza
    25. 25. AT&T
    26. 26. MarketStructure:Consolidations&SpecializationsRealtors operate in markets.• None operate in the same market inwhich they were composed,structured or functioned.• Realtors are more different than theyare similar because of the demands ofthe marketplace.
    27. 27. You Have To Know Your Respective Market!
    28. 28. It is notIt is not Business As UsualBusiness As Usual!!
    29. 29. Consumers listenmore to oneanotherthan they do tomarketingmessagesof advertisers.Technologydamaged thetraditionalpurchase funnel.People areincreasinglyindividualist.They escapebeingcategorized.It’s not aquestion oftechnology, it’s aquestion ofcustomerrelationships.
    30. 30. Organizational Responses• Many brokers and agents spend all daydefending what they do, how they sellservices, and try to prevent theirorganizations from being devoured by the“NEW.”• Unaware that everything that is happening inthe real estate industry is ever more likely tohappen on a screen or handheld device.• Denying that traditional Media is in a deathspiral
    31. 31. If You Strap An Engine on a Horse do you have aCar?• You must ask yourself whatbusiness you are in andwhether your traditional ideaof “how to be in thatbusiness” is still relevant towhat the customers want.• You can’t solve a problembefore you know what theproblem is: otherwise youwind up strapping engineson horses.
    32. 32. The industry faces not one but four changesWhere a change in one influences the other threeWhere a change in one influences the other threeWhat’s Driving the Shift?What’s Driving the Shift?
    33. 33. ConsumersContentCurationConvergenceFour Factors Shaping OurFour Factors Shaping OurFutureFuture
    34. 34. Choose what, how &when they consumeConsumersConsumers
    35. 35. Profile of Realtors & HomebuyersProfile of Realtors & Homebuyers• Median age of a Realtor is 56years old• 60% are female• 76% of Realtors have realestate as their onlyoccupation• 9% of Realtors are foreignborn• Largest share of homebuyersare 25-34 years old; Medianage overall is 42 years old• 39% are first-timehomebuyers (Median age, 31)• 16 % are single females; 9%are single males• 13% of first-time home buyersare foreign born; 8% arerepeat
    36. 36. • 56% of Realtors have a smartphone with wireless internetand email access• 91% of information on thewebsite is the Realtors ownlistings• More than 1/2 are using socialmedia.• Realtors spend a median of$200 to maintain theirwebsites• 90% of homebuyers used theinternet to search for a home(96% for buyers under 44YOA)• 87% used a real estate agentor broker• 27% of buyers used printnewspaper ads to find info onhomes for sale• 1% of buyers found the homethey purchased using printads; 42% Internet; 34% AgentProfile of Realtors & HomebuyersProfile of Realtors & Homebuyers
    37. 37. Shift from Dependence to Choice•More choices: accessed more easily•Smart devices and tablets•More kinds of choices•Not just when and how but increasing variety of features•Great ease of use•Voicemail vs. Text/Facebook•Choice not to commit•They expect an option to make full commitment•Increasing sense of entitlement•As each new generation is offered choice, their standards go upand brokers and agents must respect the new standard
    38. 38. Shift from Dependence to ChoiceSuccess means giving up the habits ofthe old uneven power relationships andforming a new more equalpartnership/relationship.Success means giving up the habits ofthe old uneven power relationships andforming a new more equalpartnership/relationship.
    39. 39. ………………becomes King!!becomes King!!ContentContent
    40. 40. Content……..becomes King!The Internet makes its possible for buyers and sellers to find information andeach other without the middleman.Consumers have little reason topay for delivery that isn’t digitalanymore, and digital deliverydoesn’t create comparablemonopolies to support content.
    41. 41. Content……..becomes King!
    42. 42. Where Can You Get The Stuff??
    43. 43. Apps
    44. 44. Managing Information OverloadManaging Information OverloadCurationCuration
    45. 45. Curation“Often what I need toknow before I use anyof their expertise ismore about myself andmy community,meaning the people Itrust.I could figure it outmyself, but so oftentime is exactly what Idon’t have.”~ The ConsumerWhat consumers trust has changed:Instead of an expert, they want to hearfrom the source –•The person who stayed in the room•Ate the meal•Drove the new car•Got the home loan•Bought the house
    46. 46. Who is Your Competition?
    47. 47. The Forms of CommunicationConvergenceConvergence
    48. 48. Convergence• Platforms that seemimportant today will likelybe replaced in a few years.• Convergence oftechnologies, media formsand other aspects of ourlives will continue tointensify.
    49. 49. Convergence• To focus on who will win is to miss the point about convergence:The new doesn’t replace the old; the new and the old combine.
    50. 50. Disruptive Business ModelsDisruptive Business Models
    51. 51. The Definition:The Definition:Disruptive business models focus on creating, refining, reengineeringor optimizing their products/service, role/function/practice, orindustry.The most successful companies incorporate disruptive thinking to gaindistinctive competitive value propositions.
    52. 52. Disruptors
    53. 53. Disruptors
    54. 54. Disruptors
    55. 55. Are You Disruptive?•When was the last time you embraced change and did somethinginnovative?•When was the last time you rolled-out an off the wall serviceoffering?• Is your client base void of youth?•When was the last time you sought out a strategic partner toexploit a market opportunity?
    56. 56. Are You Disruptive?• Do you focus more on process than success?• Do you settle or are you inspired to become an innovator?• Have you embraced social media?• Does you have a coach or mentor?
    57. 57. “We cant solve problems by usingthe same kind of thinking we usedwhen we created them.”Albert Einstein““BeingBeing DisruptiveDisruptive helps to keep us off thehelps to keep us off theBullet Train andBullet Train and RelevantRelevant””
    58. 58. Riding the Bullet Train toRiding the Bullet Train torrelrrele v ae v a nn cc e ?e ?II