Marketing has changed over the past couple of decades for all businesses. The internet has revolutionized B2C and B2B marketing. Now more than ever, you have a world of marketing methods at your fingertips. As with all forms of marketing though, unless you track your progress, real growth isn't possible. For property management companies, it is essential to create a realistic and trackable marketing plan for the upcoming year.
Keep reading to learn how to create a solid marketing plan for your property management company, including what methods to use and which metrics to track.
Create S.M.A.R.T. Goals
S.M.A.R.T. stands for Specific, Measurable, Attainable, Realistic, and Timely. Let's take a closer look at what this means for property management companies.
Your property management marketing goals need to be precise. With specific goals in place, they become easier to accomplish. It will outline clear expectations, why it's essential to achieve it, who is responsible and involved in attaining it, and how to reach your goal.
A general goal for a property management company is to rent more properties. A more specific goal is to rent at least three more properties in 14 days.
Outline the goals you're measuring and how you'll assess them. If your goal is too difficult to measure, you should consider creating a different one. Always ensure the indicators of goal measuring are quantifiable. By measuring the progress of a goal, it becomes easier to achieve it.
If the goal seems too extreme, create a different one. Setting goals that are unattainable will result in a waste of time and resources. It's common sense that attainable goals can be achieved while unattainable goals cannot.
Set objectives that your team can work toward achieving. Everything from the timing of the goal to the availability of resources must be realistic. It's also important to align your goals with any other objectives you have in place.
Lastly, the goal must have an established time frame. By setting a completion date, your team will be more motivated to achieve the objective. Time-bound goals also have a sense of urgency placed around them, which ensures other efforts are properly scheduled to align with one another.
Metrics to Track
You don't have to wait until the end of the year to start planning marketing goals. It's never too early or too late to create a solid marketing plan for your property management company. You'll need to refine your strategies, goals, programs, and prices to ensure you have a successful rest of the year. Here's a look at a few metrics to focus on within your new marketing plan.
Lifetime Customer Value
Calculate this by considering the average length of time a client is with your company, and multiplying it by your average management fee then adding ancillary service fees. This is your average lifetime customer value.
Always set goals to increase the lifetime value of your clients. The longer you get a client to stay with you, the higher the lifetime customer value becomes. To achieve this goal, you'll need to push services that lock in clients for extended periods.
Acquiring New Clients
As part of your new marketing plan, focus on setting goals regarding the number of new clients you want to secure with a contract. Put your marketing goal in writing, and share it with your sales team. The size of your sales team will significantly impact whether the goal is realistic.
A sales team of five people should work toward gaining 12 to 30 new clients per year. A sales team of 20-plus should set a higher goal of attracting anywhere from 40 to 100 new clients over the next 12 months.
Even well-established property management companies should think like a startup, especially when it comes to unit economics. Once you have your goals in place, you'll need to focus on creating a budget that allows you to achieve those goals. Ideally, you'll consider your budget while creating your goals. After all, you can't set a goal of securing 100 new clients if you don't have a large enough budget to hire a sales team. Fortunately, as a property management company, you have a source of recurring revenue to lean on while achieving your new goals.
Your goals must be in place to refine and allocate your budget properly. As an example, you plan to spend $400 to acquire a new customer. If your goal is to obtain 100 new clients over the next 12 months, this means you need a $40,000 marketing budget. Well-established property management companies will have referrals coming in, which will reduce the amount of money spent on acquiring each new customer.
Location and Competition
The location of your property management company significantly impacts all areas of marketing. Larger cities, like Atlanta, are expensive locations to secure new clients. Smaller cities, like Portland, are much more affordable when it comes to acquiring new customers. It is essential to consider the location of your company when allocating your budget toward goal completion.
It's also important to look at your competition. How much are they allocating toward specific marketing methods? Why are they are spending more on these marketing strategies? Should you spend more on those same marketing tactics? Is a competitor finding little success with a particular marketing method? If so, investigate why, and use your findings to refine your marketing strategies.
Putting Your Marketing Plan Into Action
It is usually best to allocate 85% of your marketing budget toward digital marketing. Why? Because online marketing works, especially for property management businesses. Put the other 15% toward local marketing tactics, such as attending chamber events, snail mail, and even flyer marketing. Don't forget that successful property management companies have strong ties with the communities they serve; this makes attending local events all the more critical.
Your refined marketing plan will work as long as you approach it from the bottom up. You need a consistent sales process in place along with reliable service support. A consistent sales process is crucial to the success of your property management company because it ensures all inquiries from existing and prospective clients are handled promptly. It also guarantees you're paying attention to the right leads. Without a defined sales process, your marketing efforts will go to waste.
Strong service support regarding the technologies you are using is crucial, as well. There are specific technologies created for property management companies, and you need to make sure you're taking advantage of them to your fullest potential; this becomes possible with strong service support.
Contact Rent Bridge Today!
Our success here at Rent Bridge depends on your success as a first-class property management company. Contact Rent Bridge today to learn more about creating a solid marketing plan for the upcoming year.