10 Steps to Building our Consumer’s Confidence
My Broker clients often say to me they don’t know how to effectively network. But I think the reality is they know what they should do, they are not comfortable doing it or aren’t sure of the right path. Fear of embarrassing ourselves or being ignored or of failing lives in our heads rent-free. We also often use the ‘not enough time’ excuse. It’s all about having the confidence to own our missteps and forge ahead no matter what happens.
I’m never going on ‘Wheel’
When I think about my small arsenal of strengths, one immediately comes to mind. I am good at solving word puzzles. I can pretty much get the answers on Wheel of Fortune faster and more accurately than the average person on the show. I like Wordle and I am pretty good at that too. So whenever I brag to my family about how good I am, they challenge me to go on the Wheel of Fortune. But I would never do it. I am too afraid that I would freeze up or say something dumb and embarrass myself. The fear of something that might not even happen keeps me from doing it. I could win a lot of money and be the greatest player of all time. Doubtful, but not impossible. But I just don’t have the confidence to do it. With coaching and lots of practice, could I build the confidence to do it? Absolutely.
I think that is the way with a lot of things in life. We go to the darkest place instead of focusing on what great things might happen. It all comes down to having the confidence to put ourselves out there.
Lifting our consumer’s confidence
Consumer confidence is a perfect example of fear on a grand scale. We tend to go to the darkest place with often only minimal information. But once it is shaken, it is hard to regain our confident footing.
As an economic indicator, consumer confidence measures the degree of optimism that consumers have regarding the country’s economy and their financial situation. But many consumers only see part of the information to determine their level of confidence. For example, if you want a job, you can pretty much find one right now. That may change in the future. Employers are desperate for skilled talent, so that is one positive economic factor that may go ignored. We have jobs and we have home equity, both positive indicators at this moment in time.
Recent events have shaken consumer confidence in a big way. The most obvious indicator happened as a result of the Feds raising interest rates in an attempt to slow inflation. That caused the screeching of the brakes that took place a couple of months ago when real estate sales virtually came to a standstill almost overnight.
We have to be the voice of reason
Consumers take information from the media or unreliable sources and take it to heart no matter whether it’s accurate. The general public doesn’t typically take the time to validate the information from the sources closest to the data. Since we can’t change interest rates and inflation, we have to attempt to build consumer confidence and trust in a different way, in our own way.
There is absolutely no way to know when interest rates might go down or what the economy is going to do. So while the consumer’s buying power may have been reduced overnight, there is no reason to dwell on it. And the seller will not get what they might have gotten six months ago on their property, so let’s focus on today.
Real estate economists are saying that once the economic uncertainty settles down, buyers and sellers on the sideline will jump back into the market. As local experts, we must provide information that helps consumers and our sources of business see why making a move now might be right for them, even though that may feel counterintuitive. It is the ultimate form of networking; providing value by building confidence.
To build confidence with our customers, we need to get them to a place where they Know, Like, and Trust us by:
Being transparent
Getting them out of the past
Establishing the new normal
Making the process easier
Communicating often
Being certain about the market
Offering something of value
Being empathetic
Being solutions oriented
Delivering as promised
Take it one step further by:
Helping them sort through the noise
Determining their motivation
Making it personal to their situation
Educating them that inventory is still historically low
Reminding them that homeownership is a long game
Pointing out the benefits of a slower market
Providing current and historical data so they are dealing with reality
Discussing the amount of equity the average homeowner currently has
Reminding them of the joys of homeownership
Networking isn’t a thing, it is the label given to the act of engaging with our customers to provide valuable information and resources. So don’t think about it like a task, think about it as our mission.
“Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence.” ~Helen Keller, American author, disability rights advocate, political activist, and lecturer.
