Web is Not Important for Purchase

A new study by the Pew Internet & American Life Project tracks the decision-making processes for buying music, purchasing a cell phone, and buying or renting a home.

Even though many buyers use the internet research products, surprisingly few say online information had a major impact on their behavior. Only 7% of music buyers, 10% of cell phone buyers, and only 11% of those who bought or rented a home in the prior year say that online information had a major impact on their decision.

29% did say they thought online information helped them save money on the house they bought or apartment they rented.

My Take:

I have helped to market many websites that have in my opinion the best out of the box CRM functioning in the business. However, I do not believe that any of these real estate agents, (my clients or those I have witnessed) really use the CRM functions at any level of sophistication, basically turning it on with plug n' play pre-written letters.

I believe with all the leads captured, agents could have created relationships thru a good CRM system. Instead these prospects are obviously harvesting the Realtor websites for all the market information, and then buying offline from someone else. Rendering the websites as charity cases. They didn't even send those agents flowers.

It is for this reason that I believe that the anemic consumer loyalty to the source of their online real estate education is as high as it is.

I also believe that it will only get worse as the noise continues to play out online.  The home sale takes place offline and the vast majority of your prospects are not conversing online and hanging out in realty forums and blogs.

They are at Soccer practice, at work and their real community. The conversation that matters to you, if it is happening at all online is in local oriented groups of blogs and forums. Not at yours or someone elses website. So if you are not capturing them, and then engaging them with more email marketing, is it any wonder such a small percentage buys because of their online research?

Trash the Pre-Written Systems

If you are capturing leads (if you are not, why not?) then for goodness sakes create direct response marketing sequences that engage and enthuse your prospect to use you.

I know this is the opposite of what the gurus are teaching about web 2.0 and such. But the numbers listed above are what they are.

Comments

[Missouri Real Estate]

The low percentage of buyer stating the internet played a significant part in the purchase could also be attributed to how significant is defined. If a buyer goes to an agent and stated I saw these homes on-line and I wish to tour them - I define that a significant. Afterwards, the buyer may state that they based their purchase on the home tours, when in realty what they toured was influenced strongly by the internet search.

[Coach Tim SEO]

For sure I think we all agree that- what is the number used so often-79% start online?
The problem with real estate is that by its nature they do not finish online.
Until you can put a purchase contract up on the web and negotiate online, there is no online sale, like say Amazon.
So your website is the beginning, it is no way the middle or end.
That is where people are screwing up royaly. Thinking a site is a replacement. I see so called gurus saying the lead is dead. Bull Tookey!Its about the relationship sure. But unless you ask the girl out on a second date you ain't going out on a second date. Period.

Unless you are having a relationship thru a chatroom which I doubt you can do with a real estate prospect, you will not get very far online.

The motivator is the repulsion to sterotypical salesmen. But that has always been that way. That is why you get paid so damned much per deal. But when you take on a fiduciary realtionship with the prospect then they are in your care, and it does not feel like your are pushing them into anything but what is best for them.

If there was a giant consumer movement to buy online, then the consumer groups would demand it.

But they are not are they? They are starting online then going offline.

And based on my own numbers the amount buying from the site owners/agents are pathetically low. Why is that? IT is because most salespeople are afraid to ask for a commitment. They are afraid in traditional belly to belly to close. And now web 2.0 and such is an excuse to not have to do what a salesman does or is supposed to do. Sell.

[Joseph Ferrara.sellsius]

My evidence, although limited, supports this.
http://tinyurl.com/3w4u5e

As you say, folks start on online but finish offline.