|
Jan 28
2010
|
|
We all cope with aging in different ways. In my case, I have always taken solace in the fact that I don't quite look my age.
But this week, I got a rude awakening. I had a few headshots taken for a speaking engagement, and in one of them, I look ten years older. The photo captured every wrinkle and every uneven spot in my complexion. I look in the mirror every day, so to me, my appearance doesn’t seem to change. But seeing the truth captured in print was a wake up call that my perception was not in alignment with reality.
This same type of shift—a slow erosion that's unnoticeable month to month but adds up over the course of a year—is happening in the online advertising space. During the past year, it's likely that a combination of the economy, a proliferation of new sites, and your own improvements to your website and internal web marketing have reduced the number of leads you are getting from paid advertising sources (although not all sources are experiencing declines) . Renters are being more careful than ever, which is also decreasing the average closing ratio.
But has this shift changed your thinking about the standards by which you measure your ILSs? Some marketing managers are very realistic, but many are still expecting to pay less than $10 per lead. In most submarkets, you'll be cutting off your nose to spite your face. Sure, you’ll still get some leads, but if you cut all advertising that doesn't meet this standard, you'll lower your cost per lead but you won't have enough leads to work with.
Although it's tricky to measure where leases come from, it's not difficult to look at year over year changes in aggregate data. Take a look at your lead data for the past three years to make sure that your expectations are not outdated. You can also ask ILS vendors to identify overall trends.
Like me, you might not like the year over year picture. But the best decisions can only be made if you are armed with the facts, so it's best to just take a deep breath and take a closer look.
-
- +0
-
-
Subscribe to this comment's feed
There’s an old saying that “if you live by the sword, you die by the sword.”
Old sayings get old for a reason…because they are usually right. Industry professionals have so many advertising options and no One answer is right for every property.
Every situation is an only. That's why it's important to sit down with your marketing partners on a regular basis and share and review results.
"Transparency" is a heavily overused buzzword these days...probably close to a Buzkill word, BUT transparency and two-way dialogue is the only way to ensure your ILS partners are doing their jobs and aiding your leasing teams in working with only THE most qualified leads.
As Bob Dylan says, "The Times They Are A-Changing".
Every day is a progressive one in technology. Amazing tools are coming along.
Arm yourself with facts. Partner with partners who are nimble and flexible and eager to live and die by the sword they wield.
"No-contract-come-and-go-as-you-please-and-only-pay-for-legit-reviewed-renter-leads" models are gamechangers and have definitely disrupted traditional advertising options, forcing the companies who have been comfortable increasing rates on the same product year after year to work hard on their product and their spin.
Structuring a marketing strategy relying on 3 year old lead data can be misleading and dangerous.
I encourage you to engage in the conversation with your marketing partners ILS - or other - and be brutally honest with them while looking at facts.
As you've said in your post, a close look in the mirror is eye-opening.
A company who wants to serve their customer will not shrink away from hard truths. Not everything you'll find is going to be positive. Instead of looking at poor results as bad, a partner to you will see the results as an opportunity to listen, learn and grow. They'll take their own medicine and devise a solution.
Industry professionals have so many options and no One answer is right for every property. Every situation is an only.
But as Dylan says, "The Times They Are A-Changing".
Arm yourself with facts. Partner with partners who are nimble and flexible and living and dying by the sword.
Healthy conversation and review of facts leads to resolution.