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Online Communications and PR Cut Costs, Not Results
 With the economy and real estate in a down cycle, more and more companies involved in new-home sales are moving their marketing efforts online and using public relations, rather than advertising, to cut costs while still being able to successfully connect with customers.
Jim Adams, CEO of NewHomesDirectory.com, an online new-home listing service headquartered in Murrieta, Calif., switch to public relations last year after reading an article in Sales +Marketing Ideas magazine that assessed the advantages of public relations compared to advertising. He hasn’t looked back since.
“I didn’t use PR in the past because I didn’t understand it,” he said. “But after reading that story, I realized that PR offers a far more credible way to tell our story than a self-serving advertisement. With PR, when I’m quoted in an article, people in the industry view me as a trusted expert.”
Well-written stories provide readers with content they want, and the author and sources quoted in them are seen as leaders in their field.
PR Helps Make Connections That Generate New Business
Adams discovered that public relations activities helped him establish connections with influential people in the industry. PR also worked to build a reputation for quality and expertise — both of which are critical to growing business.
PR first began to work for Adams when, during a conference, he was interviewed by Sarah Yaussi of Big Builder magazine. That resulted in Adams being featured in a blog that attracted critical exposure and helped him make new connections that brought him new business ever since.
The blog caught the eye of Jeff Shore, a new-home sales trainer with clients across the country, who validated the effectiveness of the NewHomesDirectory.com service. This third-party endorsement, Adams said, helped build his reputation.
Shore’s endorsement helped Adams build a working relationship with Epcon Communities, a developer and franchise operator of single-story, residential condominium communities operating in 24 states.
“Trust is really the foundation of commerce, and people trust third-party testimonials far more than a self-serving promotion,” Adams said.
PR Helps Tell a Complete Story
Dave Clements, CEO of Lasso Data Systems, a provider of customer relationship management (CRM) software for the real estate industry, said public relations helped grow his business through introductions to industry prospects and media contacts that resulted in positive news articles about his company in magazines and online, raising his profile in the industry.
The public relations firm Lasso hired developed case studies from a variety of client experiences and perspectives on how the software was leveraged to meet specific objectives. The firm then coordinated media interviews with clients to get the story told, which folded perfectly into Clements’ marketing strategy.
“Our overall goal is to connect new customers with knowledgeable users who can provide expert information that helps them make informed purchase decisions and get real ‘how to’ support,” Clements said. “People don’t want to be sold something. They want to understand what to buy. We want to give them high-quality information through collaborative relationships with our expert industry users.”
Strengthening Connections Through Social Media
To achieve this, Clements is developing a strategy for using online social media — such as Twitter, Facebook, MySpace and LinkedIn — along with public relations, to connect new clients to expert users and to drive industry traffic to the Lasso Web site.
Adams, who is already using social media to build relationships with potential customers, said his company has embraced this medium as part of its culture.
“It’s a place where we can connect and talk with customers, listen to what they have to say and get their feedback,” he said.
Unlike advertising, social media is interactive and enables businesses to have a two-way conversation with their customers, which can lead to stronger bonds, trust and sales.
“People don’t like to be sold to but they do like to buy — and they want to do business with people they feel comfortable with and trust.”
Adams said that social media provides a perfect platform to meet people with similar interests, open up a two-way conversation and build a customer base or network of people with a positive impression of the home product — who, in turn, tell friends, family, clients and coworkers.
“Going to MySpace is like going to a bar and hanging out to see who shows up,” said Adams. “The goal is to connect with individuals, not the masses.”
He established an online community for new-home marketing professionals at Newhomespro.net, where participants discuss market issues and current events and share information.
He also initiated a blog on LinkedIn.com to provide a virtual meeting and networking space. And while Adams admitted that virtual meetings cannot replace face-to-face contact, they do enable participants to connect with more people and share a broader range of ideas and facilitate relationship building. His network now includes about 250 new-home marketing professionals.
“A blog’s purpose is to build relationships, not sell something,” he stressed.
Adams pointed out that Dell Computer was able to reduce the cost and workload of its customer service staff by launching a network where users helped each other to solve their problems.
“Dell customers are becoming customer service foot soldiers, helping each other with questions and problems,” he said. Such a networking strategy produces satisfied customers and translates into more sales
Adams suggested that blogs by home builders can create foot traffic at projects or improve customer relations. A blog by an executive in charge of customer service, for example, could provide new-home buyers with feedback and assistance with construction follow-up.
Feedback from customers is essential to improving the product, but opening a direct line of communication between the customer and top management will help to limit a company’s liability and protect its brand and reputation, Adams said.
Adams does have one warning that builders should consider when developing an online PR strategy. While a negative article in a newspaper is forgotten over time, what appears on the Internet can stay there forever.
Still, Adams and Clements believe solid public relations strategies bring quantifiable results.
“I spent thousands of dollars on advertisements not knowing whether or not it was generating any business at all, but after just four months of PR, I was able to track media placements to sales,” Adams said.
“There’s no question in my mind that PR has generated business,” said Clements. “PR involves various forms of communication and gets much more personal than advertising, offering people information they can relate to and use to make good decisions and improve business.”
Carol Ruiz is vice president of public relations for red rocket LA, a marketing and public relations firm based in Culver City, Calif. that delivers targeted and integrated communications for clients ranging from small businesses to Fortune 500 companies. Ruiz has nearly 20 years experience in real estate-related public relations. For more information, e-mail the company, call 310-841-0994, or visit www.redrocketla.com.
This article originally appeared on the NAHB Sales and Marketing Channel.
 Tax Credit Web Site Looks at Opportunity of a Lifetime
Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama.
Consumers can use the Web site to find information on the tax credit – including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.
Spanish Version Also Available Online
A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers.
Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market.
 Subscribe to Sales + Marketing Ideas Magazine for Cutting-Edge Information
For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas magazine (www.smimagazine.com).
Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing.
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