Suggest that the world’s most recognized real estate brand should be retired — laid to rest next to Oldsmobile upon the meadow of exhausted icons — and you open yourself to a lot of criticism.
My post last week made that clear. I received tons of feedback, both on this blog and in private conversation. Some agreed with my assessment. But many told me I was crazy or naive.
Could be. But I am going to stick to my guns on this one. Here’s why. A brand properly conceived is a unit of meaning. It’s something imbued with values and associations. The best, in time, convey a distinctive and believable promise — one that is kept.
Meaning is a different thing than mere recognition. Being recognized is great, but only gets your so far. There’s still a lot of explaining to do. Selling. Marketing. Advertising. A full realized brand, on the other hand, makes things much easier. Few people walk into a Mercedes dealership needing to be convinced that they are looking at exquisitely engineered automobiles. Walk into a Century 21 office. What should you expect?
I can tell you that RE/MAX means 100% commissions, Keller Williams means profit sharing and EXIT Realty means residuals, but that’s just for us in the industry. That should be only half the story.
Take this quiz: Describe the meaning of each of the brands below in three words of less. Do this from a consumer perspective.
- Apple
- Starbucks
- Volvo
- Motel 6
- Nordstrom
- Honda
- Southwest
- Redfin
- EXIT Realty
- Century 21
My answers:
1. Great design 2. Good coffee 3. Safety 4. Cheap and clean 5. Great service 6. Reliability 7. Value and freedom 8.Technology and savings 9. ???? 10. ????
Answers one through eight are all things that are either manifestly true, or that I believe to be true due to direct or indirect interaction with the brand. I am completely stumped by nine and ten. And that’s the problem. Century 21 would like me to believe that they are real estate’s Gold Standard, but not only is that not self evident, it is actually contrary to my experience with the brand in my market. EXIT Realty does not even try to cultivate a meaning for consumers, something I think it ignores at its long-term peril.
Today, as consumers question real estate brokerage value and new entrants chip it away, the industry is in dire need of brands that mean something. That simplify, promise, and abide. Not just to those inside the industry, but to the people who might become their customers as well.
Making that happen is not easy. The industry is a spongy layer cake of franchisors, broker owners and independent contractors. My advice: start small. Do what you can. GMAC’s Premiere Service program is a good example. It may seem a little fluffy, but it nonetheless communicates — indeed promises — something to the customer that can be delivered on consistently by far flung franchisees and agents.
It is a small unit of meaning.
— Brian Boero
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There is a simple fix for large real estate brokerages/franchises. It would put you out of business though 1000Watt. Brokerages/Franchies need to stop trying to compete with their agents brand. They should give their agents training, info, guidance, support etc. Then…get out of the way. On my blog for agents, I wrote about this problem, "I guarantee you there are agents inside your brokerage that don’t share your values and ideas. I bet there are agents that don’t return phone calls or emails as promptly as you do. I know there are agents that don’t provide the same customer service that you do to your clients inside your own office." "Branding is how you treat, relate and interact with the consumer. Brand has nothing to do with logo or vendor partnerships." "If an agents brand is how they treat, relate and interact with the consumer, then a brokerage’s brand should be how they treat, relate and interact with their agents."
Hello ALL!
Great topic. I am sure it will create lots of traffic.
I am a self procalaimed bradning guru. I read with more interest the posters repsonse to the original topic.
I personally am of the opinion that we are all in for a very significant change in the world of Real Estate and it is happening right now.
I am in the process of opening a new real estate office will all salaried licensed Agents we have coined Client Advocates. The starting salary is $30K annually and we only hire people with high end food service backgrounds.
Most damage to brands is done by ignorant agents and being ignorant isn't a cut on anyone. Being ignorant is simply that, ignorant. By controlling the Agent you control their actions. In my experience over the last four years less than 10% of the agents I have done business with should probably not be in business for themselves. If you really want your Brand to shine you better make sure its in your control.
The perception the public has for real estate brands has more to do with their personal experience on the local level. You indicated you had a bad experience with CENTURY 21, so your perception of the overall brand is not that good. In my market, it is ERA that has a less than stellar perception. Someone moving to my area might not consider using CENTURY 21 because of a similar experience as yours, while we enjoy a very good reputation locally.
Maybe the thing to do is not consider CENTURY 21, Coldwell Banker, Exit, etc. a brand at all. I agree with edyn's comments, that the branding is done on the local level. Think of these as strictly franchises, with each broker/owner creating his own brand.
Question: What is the meaning of *realliving* ?
I have to agree with Steve deGuzman on this. For a brand to be successful it must have two critical things; meaning and consistency. These two elements provide brand equity.
When you hear the name Coca Cola you immediately have a picture in your head. This picture may not be identical for everyone but it is consistent and it does have a consistent message.
Now I have used an example of one of the greatest examples of a strong brand that happens to be a consumer brand but the principle is the same.
Build your brand and give it meaning. If you are going to be the family broker, stick to that. If you are going to be the retiree broker, stick to that. With the market going through so many changes these days and brokers constantly being forced to prove their expertise you cannot afford to flounder on this message.
Once you have the message solidified you have to make sure that your agents and brokers adhere to your brand standards from the letterhead to the dress code to the attitude.
What a national broker must do is deliver that consistency time after time after time. That is the competitive advantage that they wield. It is powerful if you respect it; if not you might as well be an independent. Being a national franchisee is representing a larger organization not about doing whatever you want to do whenever you want to do it.
Good article. I Wonder how many women will leave Century 21 for the new Franchise or will they have a means to prevent a mass exodus ? I agree on the consensus. Here in the Tampa Florida market, if you ask anyone what Century 21 means, you would get deer in the headlights look. I can tell you from my experience the Gold Standard is not what comes to mind. Since we are now well into the 21st Century, it is like MS changing their OS from XP. It's a tired brand with very little if any meaning and if I was a betting man, I would say that Century 21 is gone by 2010…to me morphed into or gobbled up by the new H&G brand. Check us out at the GreaterTampaBayRealestate-Blog-
@Edyn,
I have to agree with your thoughts regarding your relationship with your agents. Brokerages should not compete with the agent's branding and should help them build their own.
I encourage my agents to put an emphasis on personal promotion. The bulk of business comes from the agent's efforts and has very little to do with what company they work for. Buyers and sellers choose agents because of the person, not the company.
As a result, I do not spend much marketing money on consumer awareness, house ads or expensive campaigns. Instead, I tell my agents how to incorporate RealBird into their websites. I show them how easy it is to use WellcomeMat and expose them to the benefits of blogging.
I want them to create their own brand, because that is what the buyers and sellers ultimately respond to.
You are so right about brokerage's brand being how they treat, relate and interact with their agents. I view my agents as my customers, and my goal is to train and retain them and show them better ways to build their individual businesses.
@Kevin
Love your enthusiasm for technology. I would argue, though, that you are leaving a lot of brand equity — and cash — on the table by encouraging the primacy of individual brands.
Brian
@Brian,
It has been my experience that market share is equal to the agent share. If a company has 15% of the agents, chances are it will have a 15% market share.
If that is true, then my model may work. Let the agents brand themselves, work their spheres, be as productive as other agents and I don't leave money on the table. The money I could spend on house ads can be spent instead on training.
Anywho, thanks for the constant stream of inspiration from the 1000watt guys.
The perception the public has for real estate brands has more to do with their personal experience on the local level. You indicated you had a bad experience with CENTURY 21, so your perception of the overall brand is not that good. In my market, it is ERA that has a less than stellar perception. Someone moving to my area might not consider using CENTURY 21 because of a similar experience as yours, while we enjoy a very good reputation locally.
Maybe the thing to do is not consider CENTURY 21, Coldwell Banker, Exit, etc. a brand at all. I agree with edyn's comments, that the branding is done on the local level. Think of these as strictly franchises, with each broker/owner creating his own brand.