Luxury real estate is a growing niche in an uncertain market according to Coldwell Banker and WealthEngine’s State of Luxury report. Marketing strategy for luxury real estate needs to be as diversified as your clientele. Understand market trends and leverage data to refine your strategy. In doing so, you can increase your conversion rate while lowering costs.
Who is Your Next Millionaire Buyer?
Your next millionaire buyer could already be in your database. Understand UHNWIs and HNWIs who are interested in their next luxury real estate investment. Look for these signs in order to deliver results:
- Luxury today is defined by hyper-personalization. HNWIs are investing in properties that now feature everything from personal recording studios to in-house art galleries.
- Interest rates and price stabilization make luxury real estate less appealing to investors.
- Finally, UHNWIs decide based on value, not price. So even when the market indicates a downturn, offerings that are unique and personalized can be seen as highly valuable.
How Your Marketing Strategy For Luxury Real Estate Can Mold Itself to These UNHWIs
The trends described above mean that you need to offer a unique property to each prospect. Further, it also means that you need a clear understanding of what they value. Here is how you can shape your marketing accordingly.
Find Specific Buyers for Unique Homes
Now that you have understood the importance of personalization, you need to do a deep-dive into your database. This should show you what features and specifications each prospect values.
In other words, no two luxury home buyers are the same. You can reduce your time prospecting for your next sale by segmenting your audience. Customer segmentation needs to go beyond demographics. WealthEngine models can segment your lead list based on lifestyle, interests, and affinities.
For instance, you can target yacht owners to lead them to their next waterfront beach home. Similarly, your marketing strategy could focus on investors who are looking to expand their portfolio. You can then reach them via a direct mail or email campaign based on their preferences.
Match Buyers With the Right Locations
Location is critical in luxury real estate selling. Therefore, you can use the geographic characteristics of your listing to identify new qualified prospects. These prospects should be the top segment to target in your marketing efforts.
To illustrate, WealthEngine can help you identify key million-dollar neighborhoods.
You can go a step further to learn where your specific top segments live. Then, you can use this data to create brand recognition through marketing efforts in these areas.
Take Out the Guesswork- Use Data to Drive Your Marketing Strategy
Your lead list is long, and your time is short. Imagine, for instance, if you didn’t have to guess someone’s net worth based on their zipcode or car?
Understanding real estate buyers beyond their zip code is important. A holistic prospect list should show you exactly who to focus on through key wealth indicators. You would then be able to use this data to find the right potential buyers for your next luxury property.
WealthEngine data includes 250+ attributes that paint a descriptive picture of your prospects. These indicators include estimated net worth, total assets, investments, and cash on hand. Moreover, wealth indicators are combined with lifestyle, interest, and affinity data to create a 360-degree view of prospects.
Wealth Insights for Luxury Real Estate Marketing
Use wealth and lifestyle insights to discover more about your potential buyers. You can then leverage these insights to personalize your marketing and sales efforts. Highly personalized campaigns drive engagement and increase customer lifetime value (LTV).
How WealthEngine Empowers Marketing Strategies for Luxury Real Estate.
1. Screen customers and prospects- Learn more about your existing customers and your leads. WE profiles can provide a rich canvas of information to help you fill the gaps. Get access to data on net worth, income, assets, real estate, stock holding. Further, data includes charitable contributions and actual business and personal contact information.
2. Analyze your database- WE Analyze can create a descriptive, look-alike model. This means that you have the means to understand what makes your customers unique. You may find that luxury homebuyers in Miami differ from those in LA. This will help you understand what makes them tick. You can then create campaigns that resonate in each market.
3. Model your data for actionable insights- Go beyond a descriptive image of your customers with data modeling. WealthEngine’can segment your leads through Big Data analytics. This means the model can segment your pipeline to show you the top 10% of leads. The model helps you answer a specific sales or marketing question. For example, you could identify the top 10% of leads for vacation home purchases. It could be the top 10% of leads for something specific such as water-front property in Long Island City, etc.
4. Find new prospects– Your customers are a treasure trove of insights. WealthEngine’s analysis can help you understand what makes them unique in each market. You can use these insights to find new leads who look just like them. The greater the similarity, the more likely they are to exhibit the same behavior.
Plan Your Personalized Luxury Campaign
WealthEngine houses 250M WE Profiles and 125M households. This helps you create ultra- segmented audiences. When you look for new prospects, you can add various filters to refine your segmentation. Niche segmentation then enables personalized communications. Personalization is what will lead to long-term engagement and increased LTV.