Real Estate Brand - By Any Other Name Would It Smell As Sweet?
With the newer franchises having gained market share so quickly, we are asked to wonder if the older brands are indeed that strong in the mind of the consumer. And it's not necessarily a discussion of "brand loyalty" alone, but possibly also involves services delivered and delivery methods.
The internet, increasing transparency, and lower costs for technology solutions are leveling the playing field a bit. Assume, large branded or small independent, that services delivered begin to move toward equalization. Do we find that the differentiation ends up being the money available to the larger franchises to buy internet exposure?
If so, then do we also find that the "generic" brokerages are able to deliver equivalent services at lower costs? Will the consumer seek them out, even if they're not able to buy first page search position? What do you think?
REALonomics is addressing the business modelling aspects of the industry and we believe that the Third Economic Wave of the real estate industry is underway, the Consumer-Centric Era, which will redefine much of what we thought was sacred and impenetrable. REALonomics.net enables industry leaders to discuss cutting-edge real estate operating models. Thanks for the post, REALonomics Founder, Donald Teel.
Brand loyalty is a thing of the past. New products come out everyday and become the next big thing. Advertising dollars are what counts. The problem for the small brokerage firms is that they do not have the money to keep up with the big names in real estate. The newer players in the field are mostly backed by larger companies. I am all for the little guy, but it seems to get harder each year to start anything from scratch. The internet still has some opportunity. The key is being original.
This is an interesting topic. IMO, branding still holds sway in some older markets, perhaps in luxury markets (?). But the behavior of an agent will either hurt or help the brand. It comes down to service. Those who have built a brand must be very conscious of maintaining the level of service to maintain the brand loyalty.
As always, the Sellsius take on a topic is thought-provoking. If the prevailing belief of the franchisee and their agents is that brand will keep them in business, is the top-down nature of this belief possibly destructive in itself.
If there isn’t a dedication to service to differentiate the brand locally and outside of advertising, will the value of the brand erode?
Thanks for the comment.