Why A Small Database May Be Better Than A Large One
When it comes to databases, bigger isn’t always better. In a recent article by Seth Godin, it states that, “Direct marketers don’t care how many people they reach. They care what percentage take action”.
I found this statement very interesting considering developers, in my experience, love big databases, but do very little to nurture them.
A large database is worth nothing if you’re not actively trying to convert these leads into sales. With that said, it’s also important to segment your audience to ensure you’re talking to the right people at the right time. What’s the point of sending someone an EDM promoting your current promotion if they aren’t ready to buy yet? You’d be better off educating them on the area(s) you’re building in, the advantages of purchasing a house and land package, and information on current and planned services and amenities. You have to know your audience to market to them effectively!
It’s a challenge for most marketers to be nimble and attract the attention of a niche market, but as Godin mentions, when it comes to numbers, a larger dataset isn’t necessarily the best indicator of performance. For the property industry, the average conversion rate is 1%. That means, for everyone 100 people visiting your website, 1 person will leave their contact details. While this sounds low, these are the customers you want to work with most since they’ve already expressed their interest and are self-qualifying.
As Godin so wisely concludes, “Small numbers are specific, and specific increases your percentage”. Focus on the customers who’ve already expressed their interests, and you shall receive!
At Property Republic, we’re experts at lead generation. If you need help implementing an effective consumer experience for lead conversions, get in touch!