Mindset Secret - What is the Lifetime Value of a New Conversation

 

Today's topic is mindset, and more importantly how does that relate to what we're talking about with our Omnichannel Chatbot marketing messages.

 

There is always going to be a fancy word for what marketing is using depending on the era that you're living in. There's always going to be buzzwords, but the one thing that should never change is the mindset and how you should approach the problem or solution at hand.

 

Mindset is all about how you attack your day. Everybody has the same 24 hours.

 

Think about what marketing actually is and how chat marketing plays into this. Chat marketing is not just a buzzword, but the way to help you get into the right mindset is conversational marketing.

 

With conversations, you have characters, you have stories and you have the deliverables.

 

Always ask yourself the questions: Am I selling you something? Do I want you to feel a certain way or am I precipitating this moment to be something better the next? Do I want you to follow me along a path? Do I want you to hang out with me one day and then I never want to talk to you again? Do I want to give you this amazing thing and then let you go do your own? Do I want to educate you over the course of years? Do I want to nurture this relationship?

 

That's what marketing is.

 

When we talk about the mindset secret, what is the lifetime value of a new conversation? It's a whole lot, because conversations are everything.

 

If you can't have the right conversations with your audience, you're not going to be able to sell them. Above that, if you're not having conversations in the place that your audience is, where their attention already is, you're going to have this great message that nobody hears.

 

It’s all about timing.  That's where we want to get the mindset shift.

 

Where do you find your audience? Where are they hiding out? What are you going to tell them? How are you going to tell them? What's the outcome?

If you can nail those four things down, you'll be marketing for the rest of your life. At the end of the day, it doesn't matter what people call it, what platform you're using, or what systems or technologies your using.  It's all going to work. You have to nail that down.

 

It's all about the conversation. The conversations used to happen in person or over the phone, then they happened over email. Now consumers are opening up to text.

 

Gary V. recently said that in the last 18 months people have finally opened to receive SMS or Facebook Messenger marketing from brands to their cell phones. This is a BIG deal.

 

When consumers opened up their email inboxes, brands ruined the opportunity by spamming, purchasing lists of email addresses that never opted-in, and battling for attention with headlines and content. Email was not regulated well enough and now even the best real estate email marketing campaigns see under 20% open rates.

 

What I love about these new mobile-first marketing channels like SMS and Facebook Messenger is they are much more regulated. First of all, it is impossible to buy a Facebook Messenger list of profiles who have not opted-in to receive messages from your business page (and that is a very good thing). Open rates for our real estate lead nurture campaigns through Facebook Messenger are currently 97%. They have learned from the mistakes made with email and plan to maintain trust from user’s so that the open rates remain that way.

 

The question of this whole topic is what is the lifetime value of a new conversation?

 

With that being said, we need to break down lifetime value of a conversation. Most people don't know what lifetime value is. Most people, especially realtors when you think about marketing, think "I'm going to go knock doors, send postcards out or go on the radio.”

Although, none of them consider what can they afford to pay to gain a customer. What I mean by this is it's not just the first commission of the first sale.  Lifetime value considers how many referrals this new person gives you once you close them, or even if you don't close them. It also incorporates multiple factors like the average age of your client. It also includes multiple sales. What's the chance that they re-buy or sell from you?

 

If we use a lifetime value calculator (this is from a top producer). The lifetime value of a client in California, in San Diego with the home price of $590,000, commission rate at 3%, broker split at 10%.  The lifetime value is $66,000 of income to you as the agent. That's not one commission on the first sale. $66,000 is the lifetime value. If you have a younger demographic, say in their 30’s, your repeat business game is really strong, you do a lot to retain your clients.

 

With all the above in mind, this is how marketers look at advertising.

 

Once you know the lifetime value of your customer, you can now see how much you can pay in order to close them.

 

If we took one percent, then that would mean that of 100 leads that you generate, one would turn into a home buyer and that home buyer's lifetime value would be $66,109.

If we take $66,109 and divide it by 100, that is $661 per lead. If you have really good systems in place and you're only spending $7 for a Facebook lead, you have much more room in that lead's lifetime to help maximize and nurture it because $661 is the budget you can afford to pay.

 

You identify how much you can afford to pay to gain a customer. After that you figure how many customers can you can gain for less than $661 per lead.

 

Also, if someone's going to bring me a referral, I'll pay him $500, because they just saved me all that marketing expense. I also do this because the lifetime value of a client for the months they're with us, plus referrals, plus the brand awareness of having them as a client and any other influence, helps me to get introductions. There's so much more to it. That's what I want to encourage you guys to think about.

 

The next level is to not think of the lifetime value of a conversation. If we're talking about the lifetime value of a lead, that's one thing. Or the lifetime value of a customer, the $66,000 once they actually become a customer.

 

Some of the leads turn into quality conversations and some of the quality conversations then turn into customers.

 

What's the lifetime value of that?

 

If you're talking to just 30% of the 100 leads then the lifetime value of a conversation is around $2,000.

 

What I mean is you should keep a large focus on how much a conversation is worth.

 

Think of it this way, when someone texts you back through ManyChat bot, you may think to yourself sometimes it is a bad lead.  No, that's a lead that's engaging with your brand, asking you to help them buy or sell a home. If the lifetime value of a client is $66,000 then the lifetime value of a conversation is $2,200, based on those numbers.

 

We want to get you to think differently about the value of a lead conversation. The conversation is the bridge between a lead, a sale and a closed client. Not a lot of people think about lifetime value, so always keep it in mind.

 

We can talk all these crazy fancy numbers, but at the end of the day, the conversations are what's going to be telling that story and selling homes. It's not just about the message that you're putting out there, it's how you communicate that and that's where the attention comes into play.  

 

There are all these different strategies that you can go through. At the end of the day you have to look at what is the objective? What are you trying to do? What are you closing on? What are you selling? Are you selling that you're an expert?

 

As I said before, the systems will change. The attention of your audience will not be on Facebook or social media forever. It's always migrating.

 

If you guys are familiar with Russell Brunson, his whole system is that he creates an attractive character. He creates a soap opera story where he gives you 90% entertainment, 10% sales. Then, at the end of that is the sale.  It's not just a direct sale, but its more of a story, and you start with the punchline. You don't ease into the sale at the beginning because the beginning isn't interesting, it's the meat and potatoes that's going to get people's attention.

 

Whatever those situations are, you tell a story, you have the sale at the end and you give them a link. The catch is that story continues to the next one.

 

Storytelling is like starting with a hook, then telling the plot. There's drama, something unfolds, there's a story and then the resolution. Hook, plot, resolution. That's what conversation is all about, it's about storytelling. That's also what sales and marketing is all about, it's about storytelling.

 

So with that being said, just really consider the lifetime value of every single lead and every single conversation that you have. Once they become a customer, then you're going to inherently have repeat customers, you're going to have referrals, you're going to have all this extra stuff come from putting in work five years ago that is now paying dividends.

 

That's where your lifetime value comes in.

 

Consider this when you guys are generating leads, implementing the system and nurturing them. The value is so much more than just today. So leverage that.

 

Lastly, you live in a day and an age where you may be bad at storytelling and you believe in all of these concepts, but you just don't know where to start. Guess what? This bot is going to tell those stories. It's going to nurture those relationships and tee you up. So all you have to do is be standing at home plate when the guy with the walk-off comes in and you shower them with the Gatorade and you get to reap all the benefits.

 

You don't have to be great at storytelling, you just have to know how to use the system and to put people in the right place at the right time and just do everything else that I’ve been talking about.

 

With all that said, Real Nurture 2.0 is coming out on November 1st.  Get ready for Omnichannel, get ready for a new concierge experience and get ready for updated videos in the back office.

 

So if you have any questions, the RealNurture.io page has everything that you need to know. Just know that Facebook messenger is not only the future but it's also right now for real estate and people are closing hundreds of millions and billions of dollars in real estate through Facebook messenger. Believe it or not. If you aren't on it, take advantage of this special offer.

 

Have you signed up to be an affiliate yet? We offer a 25% per month affiliate payment forever. Here's the affiliate link.

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