Advancing Your Brand Through Diversity

As the U.S. continues to diversify, the real estate industry becomes increasingl
y fragmented and specialized. However, just like the country where you can have
a Native American, Asian American, African-American, Hispanic American, or any
other combination of ethnicity followed by "American," any well-run firm would b
enefit to have a diverse staff to operate well in a diverse community. Diversif
ication is a natural progression and not an option, particularly where it prevai
ls.
Here in San Francisco, California where Anglos (or Euro-Americans?) represent a
slight minority, and the rest of the population represent the proverbial melting
pot of ethnicities (the diversity that makes this area an exciting microcosm of
cultures, languages, traditions and international flavors), companies embracing
diversification tend to thrive, while those that don't, with the exception of b
igger companies with a history, are either adapting or will disappear under the
weight of the economic changes that continue to affect our industry.
For instance, those firms that have adapted typically have teams of one ethnic g
roup or another, e.g., one office in the geographic area popular among Asians ha
ve a contingent of agents that not only speak the language but share the culture
and are effective at serving that community, thus creating alternative income f
lows to the firm as a result. They accomplish this by specifically targeting bo
th the public as well as the agents they need to attend to that public. Some co
mpanies embracing this mindset in the heyday of the first-time buyer, no money d
own frenzy established groups deliberately catering to buyers that were targeted
by the language or the ethnicity, rightly or not. The idea of diversification
isn’t to single out a community for questionable purposes, but rather to cater to
the existing needs of the same.
As a former manager in a firm in the San Francisco bay area I witnessed how the
company’s culture would spill over to the clients they attracted and served, albei
t in a haphazardous fashion as opposed to a planned strategy. However, a compan
y must establish a clear objective in undertaking any strategy to reach a specif
ic niche, and what it is prepared to do to make inroads therein.
For starters, a company with such a marketing plan would do well to determine th
e size, customs, nature and shopping trends of the target group; not unlike the
demographic studies done by any major franchise organization prior to undertakin
g a new location. Alas many real estate companies leave most of these sorts of
investigative steps to random samplings, if done at all. A good broker/manager
or company leader reviews where business is coming from and goes about creating
paradigm shifts either in the recruitment or in the outreach, e.g., marketing, p
romotions, etc., for such endeavors.
One company where I witnessed this type of insight was a firm that catered to t
he Latino community in their midst by hiring predominantly Latino agent, in spit
e of the owner of the company being of Asian decent! Another firm that was loca
ted in a predominantly Asian community focused its marketing campaigns in that c
ommunity by placing strategic billboards in the language of choice and attractin
g that populace to the firm. Another firm run by a middle-eastern gentleman att
racted his client base through television advertising catering to “his” community th
rough targeted ads in the language of choice.
This is a smart approach, albeit, as I pointed out earlier, haphazardous. A fi
rm looking to stay viable in a changing economy needs to create an environment w
here such creative outreach isn’t left to whim or accident or worse, to the imagin
ation of a well meaning agent or group of agents in the office. I recall a majo
r franchise attempting to do something along these lines early on. They went ab
out it in a way that seemed to be right – they even bought a magazine in the targe
t market’s language! However, without a guiding principle, or someone who underst
ood the niche well enough, this quickly went down a predictable path. The compa
ny shut down the magazine and all but abandoned their drive to attract the commu
nity they targeted.
This diversification isn’t solely about producing marketing pieces in the native
language – something that can backfire due to poorly translated concepts if not wo
rding. Rather it is about developing a complete strategy and creating the right
venue to accomplishing this – from marketing materials to appropriate disseminati
on points, e.g., radio, print, flyers, to telecommunications and websites and ha
ving the right, trained personnel, including a leader, to complement that effort
.
If done properly a company will reap a greater benefit from this type of divers
ification and keep greater control of a changing market and the niche it is crea
ting or attracting. And it isn’t about leaving any one agent or group of agents t
o their own devices because this leads to losing control of the very vehicle tha
t is being developed.
Presently there are numerous companies following this trend. However, many of
them are doing so through the efforts of an agent or two, who, with some insight
s have stumbled upon virgin, and potentially lucrative territory. Lets face it,
many non-traditional markets lack of information and leadership that is prevale
nt elsewhere, so it isn’t too difficult to see that one well heeled agent can capt
ure a greater share of a given market. A company could do much more if they cre
ated the right approach with the right resources – and it isn’t about investing a gr
eat sum of money, after all, look around and see how many banks; title companies
, home warranty companies, and other service providers now provide gratis many m
arketing materials in different languages. What it does require is someone to t
ake the lead to create the right blend of resources, facilities and opportunitie
s to attract the (untapped or under served) group(s) you see, through your inves
tigations, as a viable source of your future business. Oh, and remember to brin
g on the right people to help you serve them properly – in their language where ev
er possible.
There are numerous example of how effective this strategy is throughout the cou
ntry. Some companies have grown to become larger firms just following a simple
approach – find a need and fill it, oh, and you don’t have to speak the language, bu
t having the right key people who do is the way to go.