The impact of wasted marketing spend on BTR developments
Marketing is an essential component of any successful Build to Rent (BTR) property development project.
However, wasted marketing spend can have a significant negative impact on the success of the project. In this blog post, we will explore the impact of wasted marketing spend on BTR property developments.
We saw how important making full use of marketing is to the BTR industry in our 22/23 hereSAY benchmark report where mystery shoppers responded to over 100 questions across eight categories after visiting schemes around the country.
When asked about Brand and Marketing in the developments, this is how they responded:
Wasted marketing spend often happens in developments where a large investment has been made in the marketing services, but the sales response does not see an increase due to the customer service and sales falling at property level.
Customer insight is vital to increasing sales and understanding your audience and what they are ultimately looking for.
Consider whether the investment in your marketing is being wasted by asking yourself these questions:
- Why aren’t the services and amenities being promoted accurately on the website?
This could be by not including images of key amenity spaces around the development on the website or social platforms. By not presenting these features in their deserving light, your target audience miss the appeal of the development which highlights it against your competitors.
- Is there a national marketing team who are remote and don’t visit the properties?
For your marketing team, it is essential that they visit the properties in your portfolio to completely understand the developments and build a relationship with the sales team.
- Is enough investment being made in the photography?
Photography and videography are important investments to encourage sales in your development which will last for years if done correctly. For many viewers they might make the decision to buy or rent without doing an in-person viewing and will definitely judge whether to view the development based on what they see on the website and social platforms.
- Is there robust sales and marketing training in place to link these two functions and achieve cohesive results?
How are your customers being serviced once they get to the point of arranging a viewing? All the marketing spend and investment could be wasted if the visual representation falls short due to a poorly trained sales team.
The impact of wasted marketing spend can be substantial impact on a development which can result in increased project costs and reduced profits. For property developers, this could mean lower returns on investment or even losses.
Wasted marketing spend can have a significant impact on your BTR portfolio. It can result in increased costs, reduced profits, delays in the project, and damage to the reputation of the property developer.
To avoid wasted marketing spend, property developers must ensure that their marketing strategies are effective and targeted, and that they regularly monitor and evaluate their campaigns to ensure a positive ROI.
Visit our hereSAY page to find out more about our BTR mystery shopping findings here, https://sayproperty.co.uk/heresay/.
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