Every product comes with a price, and so affordability is referred to as whether the leads in the pipeline are able to pay the price of the product, in this case, property. But affordability has two dimensions – economic affordability and psychological affordability.
Economic affordability refers to whether the potential customers in the target market have sufficient economic resources to pay the price of the house. Psychological affordability refers to a customer’s willingness to pay, which is primarily determined by a customer’s perception of the value they will obtain from a property, related to the cost of it.
But that doesn’t mean that the cheaper plots must be marketed at all times. In fact, it’s about understanding how to reach the right buyer and satisfy their needs. In doing so, you reach budget-qualified leads at the right time in their journey, effectively reducing your cost-per-lead (CPL).
Multidimensional insights for unpredictable times
The market has been through a period of shifting, so it’s no wonder that buyer behaviour is more unpredictable. In the climate of instability, it can only be expected that customer decisions have become more complex, and the need to capture motivated, financially ready buyers more vital than ever before.
These days, one dimensional data, like the demographic ‘who’ or ‘what’ are no longer enough. To uncover relevant insight, housing developers need to integrate insights such as ‘how’ and ‘can’ into the mix. Brands can now scrutinise a lead’s key information before getting in contact, which means sales teams save time, fall-throughs are slashed and sales targets are met ahead of time.
Segmentation tools for financial planning
Affordability is a key factor when selling properties. You need to know that a lead can realistically afford the plots you’re selling. Talking to leads that don’t qualify can be seen as wasted time – wastage that you can’t afford to spend when you’re up against sales and financial deadlines.
With the right solutions, house developers will have a segmented list of leads that can afford to buy their plots. There’s no additional segmenting to do – you can get the full scope of first-time buyers, homeowners, age, affordability, deposit and income automatically.
Connect with buyers at the right time in their buying lifecycle
Knowing the affordability of a buyer optimises communication strategies throughout the customer lifecycle. It informs the delivery of the best plots at the most appropriate price point, with the most relevant and engaged message, down to the right medium in which to contact. This helps reduce the CPL by connecting with the right home buyers at the right time in their journey through streamlined strategies and smart tools.
With additional insight, you can optimise marketing budgets and communications:
- Segment buyers according to their current levels of affordability and deposits
- Track changes over time to identify buying potential
- Create meaningful communications to send to each segment
- Add more weight to transaction-based customer analysis
- Optimise marketing spend to reduce CPL and improve ROI
Include affordability into your communications
With our prospecting solutions, you get to talk to leads that are budget-qualified, so you know they can afford your plots from the first conversation. Save time, optimise your marketing budget and close more deals.
Book a demo of our tools to get started.
