Have you ever heard of the jam problem? For those of you who are as in the dark as I was, this has nothing to do with the rising prices of Smucker’s to mirror our peanut butter shortage. Instead, it refers to a psychological understanding of choice and how people will behave in different scenarios, whether you are following this advice for your real estate marketing efforts or any other industry.
Although we may all have a cognitive awareness of the following truths, I think that the actual statistical data will have a much greater impact on how each of us chooses to communicate with our audience in the future. So let’s dive into a study conducted by Sheena Iyengar, and how this applies to your real estate business (if you want to follow along, I suggest starting at around minute 2 of the video below).
When it Comes to Real Estate Marketing, is Less More?
When Sheena was still attending school, she decided to conduct a study on the impact of offering too many choices to consumers at a local grocery store. This chain was known for offering loads of variety on various items from everything under the sun.
A booth was setup near the front of the store, and the station alternated between offering 24 choices and only 6 options of jam. Surprisingly, approximately 60% of customers stopped at the table when there were more containers, but only 3% of these people actually bought.
On the other hand, when there were only 6 options, 40% of people visited the table, yet a whopping 30% of this group made a purchase! Put simply, more choices commanded greater attention with less action, whereas the most significant ROI came about when fewer options were available!
3 Steps to Improve Your Real Estate Marketing Plan
- First, consider starting out each new client with only a few choice properties to view. Discover what it is that each person is looking for and then target approximately 3 top opportunities to begin with. Give each prospect the time to review all the details before setting up a bunch of additional showings.
Another thing that will stop a prospect dead in their tracks is by having very cluttered web pages. When there are redundant social media badges, sidebar widgets, opt in offers, and other unnecessary bells and whistles, this can quickly send clients for a tailspin. Instead, hone in on a single opt in offer, the hottest deals, and your real estate blog’s top performing content to help strip away confusion.
- Furthermore, it is vital that you break down your lead capture into categories. In essence, every real estate professional is focusing on 2 main groups: buyers and sellers. Therefore, your next step is to begin building category pages and offers for specific key niches that speak the language of your target audience. These categories could include:
- Distressed sellers
- Moving out of town sellers
- Moving on up sellers and buyers
- First time home buyers
- Townhome buyers
- Foreclosure buyers, etc.
- Finally, Sheena’s study teaches us to start on the lower end first and work our way up. For example, let’s say that you enjoy focusing on foreclosure properties for your real estate marketing. As you probably have found in your own experience, many of these potential buyers don’t actually pursue one of these deals, yet they can always be converted into a purchasing a newer home instead.
Rather than starting people off with the best of the best, choose a modest option within their category and then move up to properties with additional features and benefits if your client so desires. Based on this study, you will have a much higher likelihood of selling and helping your clients to be more satisfied.