Their Web sites no longer serve as a simple online location for advertising contact information. They have transformed into sophisticated gateways offering prospective home purchasers an array of services including virtual tours, online reservations, and even the opportunity to view, browse, and select upgrade option purchases online. To achieve success, a builder/developer must provide a forum to showcase and educate their purchasers on the ever-increasing abundance of upgrade options available in today’s marketplace. These are just a few examples of what a virtual sales center can offer today’s builder/developer.

The Various Types of Virtual Sales Centers

With the advent of the electronic age, more of the real estate industry’s leading names have turned to the online marketplace to virtually showcase their projects. Although one market- leader’s perception of what a virtual sales center should be can differ from the next substantially, one thing holds true: All virtual sales centers serve as an integral part of the sales and marketing process.

Stan Kates, president and CEO of Kates Marketing has been successful in generating online sales for the past several years. Kates employs a model whereby he utilizes modern-day ‘offline’ selling principles and adapts them for use online. Through the use of this model, he has “pre-sold over 55,000 homes and condominiums in over 500 projects across North America valued at well over $5 billion.”

Jim Ritchie, director of marketing at Tridel Canada, incorporates a different approach to the online sales environment. “A large part of our success with (our) recent developments can be attributed to the full integration of our site with our entire sales and marketing objectives,” says Ritchie. Via the company’s corporate Web site, Tridel makes pertinent purchasing information available to potential customers online, thus enabling them to peruse a multitude of new floor plans and pricing sheets, allowing them to make an informed and unrushed purchase decision without ever stepping foot in a bricks-and-mortar Tridel sales center.

Patti Grimes, vice president of marketing for Carl M Freeman Communities, takes yet another approach to the virtual sales center format. “Providing floor plans and virtual tours of our homes online greatly assists our homebuying prospects in selecting the home type that best fits their lifestyle in a timely and user-friendly manner,” said Grimes. Grimes and her team at Carl Freeman use their virtual sales center to aid and facilitate the sale of units in their communities. Through the use of prospect registration via their company Web site, a potential purchaser’s data is captured and stored in a database. From this database, the company managed to target their ideal consumer effectively, individually, and on a personal basis, resulting in greater awareness of their communities across the board.

Integrating Your Virtual Sales Center

Like any core marketing component, your virtual design center should not be relied upon as a ‘magic bullet’ that will single- handedly change a builder/developer’s fortunes. To achieve the goals your company has set for itself, the virtual design center must be embedded within both the physical sales center, and also be engrained into the core fabric of the company’s identity as well. The reason why Stan Kates Marketing Group achieved such phenomenal success with their online venture is because they took a proven formula which already worked for the company and adapted it effectively for use in the online world. The core principle of the strategy remained constant; however the scope of coverage and magnitude of exposure were significantly increased, allowing for sales to customers in distant locales that might not have otherwise been possible.

The creation of a virtual sales center should not result in a disregard for your existing bricks-and-mortar sales center. In fact, the exact opposite holds true. The two sales centers should not only complement one another, but they should also reinforce and convey the same message to prospective purchasers. A conflicting message can lead to consumer confusion and a good way to avoid this type of problem is to ensure that all communications to prospects via either sales center be uniform, constant, and deliver the exact same message. Also, allowing each sales center to shoulder more responsibilities at different parts of the sale process encourages a consumer to pay closer attention to each when it matters, allowing your company to have full control over when and how their message is delivered.

Think Beyond the Payment

A virtual sales center is an integral part of any marketing plan, but it doesn’t have to be your only marketing and sales tactic. It’s been said that 99 percent of a home purchase decision revolves around convincing the purchaser your development is worth his or her investment. If you manage to accomplish this task using your virtual sales center, it has more than paid for itself. Don’t allow yourself to get caught up in the transaction process of a sale. The fact a sale is made online doesn’t mean that the tried-and-true physical transaction or face-to-face communication is in danger of being eliminated. Effectively integrate your virtual sales center into your existing sales and marketing channels and watch your sales multiply.

Frank Guido, President and CEO of Aareas Interactive (www.aareas.com), has been at the forefront of merging technology and sales strategies in the home, condo and resort building industry for more than 15 years. His expertise has led to the creation of such revolutionary products as the 24/7 Sales Center and the Virtual Design center, a completely online based options selection program for new home buyers. Most recently, Frank received the prestigious IRETO Award for best use of technology.  Aareas Interactive’s offices are located in Toronto Ontario and Fort Myers Florida. 

This article originally appeared in the September/October 2006 issue of Sales + Marketing Ideas. [ return to top ]