As your business grows, natural attrition becomes a strategic problem. Compound on top of that the business growth goals, and you now have new business targets that require a real strategic plan, with multiple playing points. Managing your lead database in one such play.
Leading Property Managers Association (LPMA) conducted a landlord research project, interviewing over 1,000 landlords to learn more about what they require from a property management company. From the data collected, they were able to profile four different landlord types and gain an understanding of what drives their decision to select a property management company. What this allows us to do, as property management businesses, is to segment our database allowing us to market directly to each of these segments. Marketing relevant content to each segment significantly increases the conversion rate of leads. Usually available as an exclusive member resource, LPMA has allowed me to share the results of this research and outline the four landlord types to you.
The ‘Silent Majority’ make up 38% of managed landlords. They are considered the mainstream client and are generally quite loyal to a business, provided they receive reliable, competitive price service with minimal fuss. They prefer to be low contact, but like to be kept updated and are more comfortable with the property manager taking control. Having an online portal where they can keep track of events at arm's length, would be a big attractor for the ‘Silent Majority’ landlords.
The ‘Outsourcer’ makes up 21% of managed landlords and are generally busy professionals. They generally require minimum levels of communication and prefer that the property manager looks after matters, as outlined in the management agreement. They would prefer only to be contacted when things go wrong and carry no offense if they don’t hear from you for an extended period. Saying that a check in from time to time will keep them loyal. They are however financially savvy and expect the property to perform well as an investment. An online portal would be of great benefit to the ‘Outsourcer.’ You can reinforce the relationship with mortgage health checks, depreciation schedules and a proactive approach to preventative maintenance.
The ‘Private Client’ makes up 13% of the managed landlord market. They have the most positive attitude towards property managers; however, they are also the most likely to shop around. They see the property manager as an industry professional and advisor. The ‘Private Client’ tends to trust the knowledge and advice of the property manager, however, would prefer consultation on decisions. The ‘Private client’ may prefer to know their property manager intimately so proactive communication and consistent updates on events is key to securing this segment.
The final segment, the ‘At Risk’ landlord, makes up 28% of the managed landlord market. They are the least optimistic of the landlord segment and would require a hands-on, tailored service. Transparency is key for these landlords so the more you can offer them in technology and online portals so that they can stay present, the more confident they will be as a client. The easiest way to capture an ‘At Risk client is with the promised of individualized service and complete transparency.
The key to engaging with your lead database, and converting them to paying customers, is to know more about them. The best way to do this is by running a call campaign, driven by your growth team, or sending out a survey, to obtain enough information to segment them in your database. Once you have done this, the business can then target marketing to appeal to each segment.
If you would like a summary of the LPMA landlord research, send me an email, and I will drop it back to you