Strategies for Growing Market Share Through Customer Segmentation

By: Gonzales Group

Growing your business in the midst of a major economic correction is not the first thing that comes to mind for most real estate organizations. Organizations often take a defensive approach and adopt a "preserve and sustain" mindset that ignores or discounts the opportunities that present themselves. Pinpointing external change and detecting customer patterns allows you to make sound judgment about where the world is going and putting your business on the offensive to capitalize on changes, according to Ram Charan, author of Execution: The Discipline of Getting Things Done.

Many in the industry tell us that they are experiencing a transformation in the profile of the homebuyers coming through the door. This new homebuyer is not receptive to existing sales techniques and traditional marketing approaches do not seem to do much to bring them through the door. The solutions require some getting back to basics. Here are four tips for growing market share through multicultural markets.

1) Capitalize on the demographics of your local market.

Understand the new economic powerbase that is the multicultural consumer. If you see growth in the Asian-Indian, Hispanic or African-American populations in your community, identify their sub-segments (i.e., Mexican or Puerto Rican, Chinese or Korean), examine their age groups and median household incomes and identify qualified home buyers to begin formulating a marketing plan that accommodates the needs of this home buying segment.

2) Develop products and services that meet the needs of the multicultural consumer.

Deliver services that take into account the characteristics of your multicultural consumers. Multigenerational households, religious practices or varying levels of language proficiency call for different approaches. Know that in some cultures, certain colors and numbers can be offensive or have religious implications. Work to understand the nuances of your new customer base. Using mainstream marketing and advertising tactics can have little relevance if the multicultural home buyer has no point of reference for U.S. real estate and business practices.

3) Get the right infrastructure in place.

Multicultural consumers and real estate professionals require language, religious and philosophical considerations if you are going to win them both as customers or team members. Make sure your sales team, receptionist, lender and title partners share the same commitment to the multicultural home buyer to make certain you maintain your role as the trusted advisor.

4) Market your message.

The one-size-fits-all approach to marketing worked great 20 years ago -- but the world has changed. Understand and address your target audience using the communication vehicles they prefer. Carefully research which media work best. Some cultures prefer print while others prefer radio or television. By strategically utilizing your marketing dollars you can avoid missing out on qualified homebuyers.