4. The Proposition A Perfect Storm Economic: Recession Commodity: Prices, Oversupply Demographic: Four Active Generations
5. So get ready to boldy go where nobody has gone before!
6. The Key Question How will Gen X and the Millenials Change Real Estate?
7. ! Real estate today was built by Baby Boomers, for Baby Boomers. The next generation of buyers and sellers aren’t Baby Boomers! What they value is a lot different than what we have been prepared to sell.
8. The purpose of a business is to create a customer. Peter Drucker
9. Create a Customer? Different than “serve” customers To satisfy a particular market desire Must start with the desire, not the product/service (contrary to current)
10. It is the customer… … who determines what a business is. It is the customer alone whose willingness to pay for a good or for a service converts economic resources into wealth, things into goods. What the customer buys and considers a value is never just a product. It is always a utility, that is, what a product or service does for him. - P. Drucker, Effective Executive
11. So what do we know about customers... … and what is of value to them?
12. 62% 31% Gen X Baby Boomers Silent Gen Y - Millenials
33. What constitutes their value set? Individualists, Competitive “Question everything, ” skeptics Distrustful of authority Prefer / “Certain” in own beliefs Information age mentality, skills Image Conscious
38. Gen X’ers Value what’s Behind the Curtain What they want WebMD experience: Extensive, accurate, engaging Information on market/services before any consideratoin of personal authority Consumer Reports level of Process Transparency Customized to individual needs They must be “in charge” of the outcomes
41. Gen Y (Gen We) Critical Facts 78 million U.S.; 2b worldwide Real Estate positioning: Significant portion of FT and move-up populations 6 - 12 transactions lifetime
42. Gen Y (Gen We) Critical Facts What’s their value set? Group Oriented Close to Boomer parents Highly structured lives Consume/d by entertainment Technology Normal (Integrated)
50. Social Networking = Mind Meld v 1.0 Gen X and Y are constantly “broadcasting” what’s happening in their lives… You just have to be there, listening, watching for those life-changing moments that are associated with real estate needs!
51. How to Connect with Gen Y’ers Use technology to establish relationships Tether then to the process, but not to a computer (wireless) Decisions must be validated by the network Future luxury looks more like the rooms at the Encore than at the Ritz.
52. ? Now that we know more about the Zebra, how shall we catch it?