In many of my past posts I have emphasized what I strongly believe to be the two most powerful dynamics in residential real estate brokerage today.
And they are, presence and choice.
Any study of consumer behavior will indicate that choice plays a very significant role in the decisioning behind which service or product provider the consumer ultimately engages. Even a specialty store offering a certain category of product understands this dynamic and will offer choice in the specialized category of a product or service in order to secure a transaction. The very last thing any one who offers a product or a service wants is for the consumer to leave their “store” without a transaction due to the lack of choice.
The best example of this may be the shoe section of Neiman Marcus. Especially in that section of the store, but in fact in all sections of the store, the retailer offers a multitude of choice in brands all under one roof. While right down the way in the Mall, each brand offers the same product in a store that only offers a single brand choice. If the consumer is sold on a particular brand, and does not want to shop across many brand choices, the single brand store usually wins the business. But without question, the majority of the consumers desire to compare and see many choices and usually, the department store wins the business.
One stop, with the choice of many brands to shop.
In real estate a similar dynamic is exists. While all of the brokerage brands offer a similar services product, namely traditional brokerage, the consumer now has choices but must essentially shop for those choices in separate places. Until only recently, they did not exist under one roof. If you want a services offering that involves open houses, for sale signs, random processes, lock boxes and other types of traditional marketing, that is the only offering most brokers have today for the consumer. Take it or leave it, like it or dislike ti, that’s what we are offering.
But now things are changing. And they are changing very, very quickly.
With the onset of the iBuyer, and most importantly the resulting iSeller, the offer made by traditional brokerage is being challenged. Companies other than the traditional brokerages are offering a choice. A new specialty, a different way of doing the same old thing. If the consumer prefers to simply "sell and go", they have options now that they have not had before. They can now engage the services of an iBuyer, that up and util this time has been seen as a preference provided by an iBuyer rather than as a choice offered by the traditional brokerage industry.
That is up until now.
With the announcement of the deal between KW and Offerpad things are changing quickly. This deal is precisely how KW’s immense presence as a “specialty store in traditional brokerage services” will be transformed into a “retail store of choice” for the consumer. The presence that KW has with the consumer through its agent network are now being leveraged for its future success. And in doing so two things are happening here simultaneously.
KW with its KW Offers will soon become known as "the brand of choices" in real estate services in the eyes of the consumer. And Offerpad will be able to accelerate the offer they have crafted as they now leverage the installed presence with the consumer created by the immense network of 150,000 KW agents. Brilliant. The power of presence and choice, realized.
So what does this all mean to you as the leader of your own brokerage services business? And here’s my very simple answer to that question.
Am I to assume that you will not answer this strategic move with your own brilliant strategic designed to preserve your company’s presence? And the straight answer to that question is, not only no, but hell no.
You’re a proven, strong leader. You have weathered many changes in this business over the years. This move should ignite your desire to win now. And there is nothing that you cannot do if you set your mind and apply your resources to it. Nothing.
This is only one of many changes that are yet to be made in our industry and right now, you are the pilot of the ship that should be setting its course for a new a strategy designed to fully engage, offer choice and continue to win the business of the consumer.
Right now is the time to begin that process. Leverage your presence with the consumer and create new choices for your customers. Assemble the greatest minds in your organization and let’s by all means get started. And once you have started, do not stop that process until the job is done. And then once it is done - then immediately start that process all over again. That is the key, the process of reinventing your company never, ever ends.
Why? Because now more than ever, time is of the essence. And as my good fried Tom Ferry has asked and challenged tens of thousands of industry participants over the years he has served as the #1 coach in residential real estate, are you all in?
Have a great day!