Transcript a short 30-hour project

Introducing a Full-Suite Approach to
Sales & Marketing in a Changing Landscape
May 16, 2013
Agenda
Who We Are
Consumer Behavior Has Changed
The Market Has Changed
Technology Has Changed
The Paradigm Business Model
Conclusion & Discussion
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Who We Are
Full-Service Real Estate
Sales and Marketing Firm
Proven Results:
Over $1 Billion in Real Estate
Operating in the U.S.,
Australia & Asia-Pacific Region
Real Estate Disposition Expertise
Single Family
Urban
Resort/Hospitality
Commercial
Disposition Experience
Over $.5 Billion Sales Revenue
More Than 500 Units Sold
Over 35 Successful Projects
In the Most Challenging Market
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Who We Are
Mission Statement
We deliver proven results for the most profitable
disposition of real estate assets in these changing
markets by combining the art and science of sales
and marketing with talent, expertise and
leading edge technology.
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Who We’ve Helped
Partial Client List
Bayrock Residential
Classic Communities
DeNova Homes
Hearthstone
Lane Development
Lubert Adler
Canyon-Johnson Urban Funds
The JBG Companies
Phoenix Capital
Schnitzer West
Stanford Carr Development
Starwood Capital
Thomas Properties Group
Corus Bank
Fifth Third Bank
iStar Financial
PNC Bank
Recap Partners
Rockpoint Capital
Rockwood Capital
Trammell Crow
Tricon Capital Group
Union Bank
Vornado Realty Trust
Wood Partners
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Consumer Behavior Has Changed
The Problem? The Internet Is Increasingly Used As a Tool by Home
Buyers
# of Searchers
Now Using
Internet
Internet is #1 most useful
information source for
home searchers
www
79% of home buyers
used the internet to
search for homes
(up from 69% in 2011)
Agent
Print
Other
42% of home buyers
purchased a home
they found on the
internet.
(Source; NAR 2012)
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Consumer Behavior Has Changed
The Problem? Consumer Expectations Are Higher, and They Are Not Being Met
% of online buyers expecting
a response within 4 hours
96%
% of online buyers receiving
a response within 4 hours
< 50%
Of those, 74% of responses are
considered “Non-Responsive”
Only 14% received
received “Relevant” Responses
37%
7%
Sources: NAR, Qgenisys / Red Tree Research
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The Market Has Changed
The problem?
Historical marketing tactics “Place, Wait
and Hope” become less effective as
consumers turn to the internet.
Shrinking marketing budgets
require new strategies
Lack of information to
measure effectiveness of
marketing campaigns
The historical business model lacks synergy,
communication, information and collaboration
between all necessary elements critical to success.
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Technology Has Changed
The problem? There is no one technology that:
Integrates all elements critical to success that address
changes in consumer and market behaviors
Evaluates consumer behavior on a
subjective and non-subjective basis.
Provides through an online managed portal
transparency, accountability, collaboration and accessibility
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In A Nutshell …
The Historical Sales and Marketing Model:
• No longer meets home buyers on their terms.
• Loses home buyers to competition
• Causes poor home buyer experience
• Lacks synergy, communication and collaboration
• No real time information and analytics
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Strategic Expertise
Introducing The Next Generation of
Real Estate Sales & Marketing
The Paradigm Business Model
“Addressing the change in Consumer Behavior”
Paradigm’s digital marketing strategies are designed to
attract, engage and incubate the emotional connection
of buyers through our online and on-site sales staff.
Paradigm captures leads that traditional methods
miss by implementing permission-based digital
marketing.
Buyers receive frequent, relevant and high quality
responses that often exceed their expectations.
Proprietary algorithms both subjective and nonsubjective are then used to prioritize personal
follow-up by the sales team to ensure no lead is
lost.
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The Paradigm Business Model
“Addressing the change in the Market”
Paradigm’s digital marketing strategies
are designed to attract, engage and
incubate the emotional connection of
buyers through our online and on-site
sales staff.
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The Paradigm Business Model
“Addressing changes in the market”
Paradigm implements a robust web presence which
behaves as an “Online Sales Center” to attract, engage,
and convert leads.
Our proprietary technology records this lead activity on
a quantitative and qualitative basis.
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The Paradigm Business Model
“Addressing changes in the market”
Paradigm reduces costs of ineffective marketing
through real-time analytics
Efficiencies of our collaborative approach between
marketing, online and onsite sales teams reduces
staffing requirements
Access to analytics in real time allows sales and
marketing team members to focus their time and energy
on the most productive actions.
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The Paradigm Business Model
“Addressing changes in the market”
MSP is architected to collect data from the sales funnel,
concierge, Google analytics, social media and
prospects which is then compiled, analyzed and
provided in a plethora of user friendly real time reports.
In addition, Paradigm interprets buyer data through a
set of proven proprietary algorithms that rate buyer
actions determining their likelihood to perform. This
qualitative information is used in a series of predictive
reports to guide sales and marketing decision making.
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The Paradigm Business Model
“Addressing changes in the market”
Paradigm MSP provides a transparent platform for all
sales and marketing team members to collaborate in
the implementation and execution of all sales and
marketing deliverables.
Paradigm’s approach and corporate culture brings team
members together in weekly tactical and monthly
strategic meetings to optimize our programs.
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The Paradigm Business Model
“Addressing changes in the technology”
Marketing Success Portal® puts our clients ahead of the
competition by providing unrivaled business intelligence
and real transparency that tracks and qualifies potential
buyers in ways no other sales and marketing firm can
match.
Marketing Success Portal® is a fully managed, multi-tenant,
permission-based web portal designed to facilitate, analyze,
and track the performance of real estate marketing
campaigns, sales programs and buyer activity in real-time.
Marketing Success Portal® creates a true virtual computing
environment for all marketing and sales personnel involved
in our client's disposition programs to operate in a
synergistic environment and is hosted within a secure SAS
70 Type II certified data center.
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Case Study
Kehalani MAUI, HAWAII
300 unit Master Plan slows to 1 sale
per month, leaving a standing inventory
of 30 units, halting future construction.
Developer: Stanford Carr
Financed By: Hearthstone, Inc.
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Proven Results - Case Study
Kehalani MAUI, HAWAII
Strategy
• Re-position for Second Home
and Retirees Buyers
• Digital Marketing outreach to
inter-Island and Mainland US
• Complete new digital presence
Results:
5,000 Unique Website Visitors
600 Registered Agents
600 Registered Buyer Leads
140 Onsite Visitors
29 Total Homes Sold in 19 Months
• Re-train in-house sales staff
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Case Study
Blu CitySpaces ST. LOUIS, MISSOURI
Sales of this 13 story condo
conversion stall with 69 remaining
units at 12 units per year. Units are
being leased due to lackluster sales
and marketing.
Owner / Investor: Hearthstone, Inc.
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Case Study
Blu CitySpaces ST. LOUIS, MISSOURI
Strategy
• Implement Digital Marketing
Campaign
• Re-Launch with One Day
Sales Event
• Target First Time Home Buyers
• Target Parents Assisting
Purchase for Students age 23+
Launch Event Results
1,200 Unique Website Visitors
800 New Leads
160 Unique Onsite Visitors
9 Units Sold in 1st Sale Event
On-going Conventional Results
7,000+ Unique Website Visitors
300+ New Leads
121+ Unique Onsite Visitors
15+ Units Sold over 8 months
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Case Study
Southgate PETALUMA, CALIFORNIA
Launch of a 96 single family home
subdivision in Petaluma, Ca. Limited
construction financing required presale of production homes from a
model complex.
Developer:: DeNova Homes
Financed By: DeNova Homes (Client)
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Case Study
Southgate PETALUMA, CALIFORNIA
Strategy
• Re-brand 2 communities and 9
plans into single community with
7 plans.
• Launch pre-sale digital
marketing campaign
• Build lead base through Internet
sign-up incentives and
promotions
• Phased construction releases
tied to buyer absorption
Results
12,000+ Unique Website Visitors
720+ New Leads
250+ Unique Onsite Visitors
Sales Velocity 5.16 / Month
Sellout in under 36 months
Sales Person Won Numerous BIA Sales
Awards
DeNova Homes was Awarded Builder of
the Year 2012
2 of 9 non-performing plans proactively
deleted as a result of analytics
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Case Study
Soul SURFERS PARADISE, AUSTRALIA
77 story high-rise with 288 luxury
apartments. Economic downturn and
construction delays cause more than
40 buyers to back out, with little or no
new sales velocity.
Developer: Juniper
Financed By: NAB, Morgan Stanley, and ING
Receiver: PWC (Client)
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Case Study
Soul SURFERS PARADISE, AUSTRALIA
Strategy
• Re-defined Target Market and
created new Brand
• Extended Marketing into Asia
Pacific
• Created a new Strategy and
Budget for Traditional and
Digital Outreach
Results:
6,500+ Unique Website Visitors
More than 732 New Leads
429 Unique Onsite Visitors thus far
31 Offers within 180 Days
29 sales Average price of $1,300,000.
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Case Study
Eight Orchids OAKLAND,
CALIFORNIA
A two-tower mid-rise with 157 units
amidst an urban environment of 15
competing projects with 1,100 units of
inventory. Total sales of just 15 units
in 18 months.
Developer: Bay Rock Residential (Client)
Financed By: Rockpoint Capital (Client)
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Case Study
Eight Orchids OAKLAND,
CALIFORNIA
Strategy
• Re-Launch thru Auction/Grand
Opening Event
• Expanded Target Market
• Create a Special Event and
Value Proposition
Results:
Grand Opening Auction Event:
3.5 Weeks Marketing
790+ Site Visits
91 Registered Pre-Qualified Bidders
21 Homes Sold
$3,897,000 Achieved at Event
Conventional Sales (12 Months)
51 Homes Sold
• Leverage Digital Marketing and
Concierge to incubate large
lead base.
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Case Study
Atwater Place PORTLAND, OREGON
An upscale luxury 23-story high-rise
completed in 2008 with 212 standing
inventory. 50 units sold, but failed to
close. Highest priced units in a
declining market with 8 competing
properties.
Owner/Investor: Westport Capital (Client)
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Case Study
Atwater Place PORTLAND, OREGON
Strategy
Results:
• Utilize Auction/Event to Create
Urgency in an Over-Supplied
Market
Accelerated Event:
4.5 Week Marketing Period
840 Site Visits)
118 Registered Pre-Qualified Bidders
Conventional Sales (90 Days)
12 Homes Sold
• Provide Transparency in Pricing
Model
• Limit the Number of Homes
Offered in Order to Optimize Price
• Prove Price Points Throughout
Building/Stacks
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Case Study
The Gallery SEATTLE, WASHINGTON
12-story tower with 233 units
completed in 2008. 170 available
inventory with 23 open escrows since
sales opened in 2006. Below average
sales absorptions in a declining
market against 15 competing
properties.
Developer: Schnitzer West (Client)
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Case Study
The Gallery SEATTLE, WASHINGTON
Strategy
•
Utilize Auction/Event to Create
Urgency and Standout in an OverSupplied Market
•
Provide Transparency in Pricing
Model
•
Sell a Selected 44 Homes to ReEstablish True Market Value and
Create Sustainable Momentum while
Preserving Values and Optimizing
Price
Results:
Accelerated Event:
4.5 Week Marketing Period
518 Site Visits
81 Registered Pre-Qualified Bidders
Conventional Sales (120 Days)
29 Homes Sold
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Tomorrow, all
developers
will do this
Paradigm
differently
does it
differently
today.
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