Who Is My Seller? – Five Important Questions To Ask

Regina Brown | January 27, 2015 | Marketing

By Regina P. Brown
Who Is My Seller? - Five Important Questions To Ask“The purpose of a company is to create a customer. The only profit center is the customer,” Peter F. Drucker states in his best-selling book, “The Five Most Important Questions You Will Ever Ask About Your Organization: An Inspiring Tool for Organizations and the People Who Lead Them”. Although this book focuses on non-profit organizations, its basic theories can be applied to any type of entity or company. Including your real estate business.

Sometimes we get so focused on advertising, marketing, promoting, and branding, that we forget who our customers really are. Drucker, widely respected for his “Leader to Leader Institute” outlines why it’s critical to know our primary customer and supporting customer. Also he emphasizes that we need to anticipate how our customers will change.

When You Try To Impress Everybody, You Impress Nobody

Sometimes we use the “machine gun spray” approach to try to get as many home sellers and listings as possible. We try to mow down everything in sight with our mass-market approach, trying to sell to everyone. But in reality, that method is not very effective. It’s much more productive to select a few seller profiles and win them over with focus and certainty.

In the story of David and Goliath, the boy David knew exactly who and what his target was. Because he knew his subject intimately, he felt confident with only 3 rocks for his slingshot. If he missed, he knew it would be sure death. He didn’t get out there and try to mow down the entire army. Instead, he focused all of his time, effort, and energy into conquering one person.

Who Is Your Ideal Seller? 

Your seller profile should be like Goliath: focused on one type of seller whom you study and become an expert on. The more you can focus on a specific customer, the better your business will perform. Only by defining your exact customer profile will you understand your prospective clients and their needs. Focus on a niche seller. For example: probate sellers, FSBO sellers, owners of rural property on acreage, sellers of historic homes, or luxury property sellers. Learn who your sellers are and what they want.

On page 32, Philip Kotler advises to start by defining your target customer. He explains how customers often have several people who help make the purchase. Nowhere is this truer than a real estate purchase. Think about it: A couple decides to move because they need a bigger house for their growing family (initiated by pregnancy). Their friends (influencers) recommend the ideal neighborhood to consider. The wife (decider) selects a house based on the layout, kitchen, bathrooms, and closet space. The husband (buyer) agrees to purchase the house, even though it’s above their budget.

“We must master our knowledge of who are the target customers, who and what influences them, and how to create highly satisfying customer experiences. Recognize that today’s customers are increasingly buying on value, not on relationship. Your success ultimately depends on what you have contributed to the success of your customers,” says Kotler.

The 5 questions that each of us should ask ourselves about our real estate businesses are:

  1. What is our mission?
  2. Who is our customer?
  3. What does the customer value?
  4. What are our results?
  5. What is our plan?

By working ON our business, instead of IN our business, we can begin to understand our customers and the big picture. Our sellers will relate to us when we have taken the time to know them.

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Regina Brown