Ever wondered why you suddenly started seeing ads for that new housing development popping up everywhere you look?
The marketing teams behind those big residential projects are strategic masters employing clever tactics to get their development at the front of your mind. As a homebuyer, it pays to understand the methods being used to market to you so you can make the most informed choice for one of the biggest purchases of your life.
In the marketing world, the strategy employed is known as a 'funnel' approach, moving potential customers through stages from initial awareness at the top of the funnel, through interest and desire, to the final purchase at the bottom. Over the following paragraphs we'll explore how the top of funnel, middle of funnel and bottom of funnel techniques are being used in residential property marketing and why it's so important for you as a buyer to go beyond the buzz.
What Is TOF, MOF and BOF Marketing?
TOF, MOF and BOF refer to the top, middle and bottom of the marketing funnel. As a homeowner, you will experience these marketing strategies from builders and real estate agents.
TOF or top of funnel marketing casts a wide net to capture as many potential leads or interested parties as possible. Things like social media ads, blog posts, and email newsletters are common. The goal is to drive lots of traffic and generate initial interest.
MOF or middle of funnel marketing nurtures leads to determine who is genuinely interested. More targeted content like video walkthroughs, pricing documents or scheduling a call are used here. The builder is trying to learn more about you and sees if you’re a good fit before investing heavily.
BOF or bottom of funnel marketing focuses on hot leads primed to buy. Personalised site visits, finalising contracts or incentives to act fast are common tactics. The builder believes you’re strongly interested and tries to convert you into a customer.
Understanding this funnel process will help you spot the types of marketing aimed at you as a homeowner. You’ll know the builder’s motivation at each stage, from sparking initial interest to sealing the deal. And you can determine how receptive you are to their messages which ultimately helps in making one of the biggest purchasing decisions of your life.
Top of the Funnel (TOF): Casting a Wide Net
When companies first launch a new product or service, their primary goal is to spread the word and get as many eyeballs on it as possible. This is known as top of the funnel or TOF marketing.
For residential construction companies, TOF strategies focus on casting a wide net to capture the attention of potential first-time homeowners. Things like:
- Running ads on social media, search engines, and home improvement sites.
- Sponsoring local events like home shows, food festivals, and charity drives.
- Launching an engaging social media campaign across platforms like Facebook, Instagram, and Pinterest.
- Starting a blog, email newsletter, or podcast to build an audience and spread your message.
The key is to use multiple channels and mediums to increase your reach and get as many people as possible into your sales funnel. Don’t worry too much about conversions at this stage - the goal is simply to build awareness and collect contact information from interested prospects.
While TOF marketing spreads a wide net, the key is to provide value to your audience. Educate potential customers on the home buying process, what they can expect, questions they should ask, and how to spot a reputable builder or developer. Share photos of model homes and communities to give people an idea of your style.
With an effective TOF strategy in place, you'll have a solid pool of promising leads to nurture through the rest of your funnel. And the great thing about digital marketing is you can track exactly how people find you – then double down on what's working!
Middle of the Funnel (MOF): Nurturing Leads
Once you’ve generated some leads, it’s time to nurture them into potential customers. This is the middle of the funnel, or MOF, where you provide value to leads through relevant content and build trust and interest in your product or service.
Stay in Touch
Reach out to new leads regularly through -emails, phone calls or both. Introduce yourself, reiterate your key offerings and find out if they have any questions or need more details. Let them know you’re there to help as they work through the homebuying process. Consistent communication at this stage is key.
Educate and Engage
Develop content like blog posts, videos, infographics or podcasts to share helpful information with leads about the homebuying journey. For example, explain the difference between builders and developers or walk through the steps to get pre-approved for a mortgage. This content should be informative but also speak to your key selling points.
Address Concerns
Many first-time homebuyers have worries or feel overwhelmed. Reach out to leads to see if they have any concerns you can help alleviate. Be willing to hop on a call or meet in person. Discussing concerns builds trust and shows you genuinely want to help them achieve their goal of homeownership.
Make an Offer
When leads express serious interest or their needs align with a current project, present an offer for them to consider. Walk through floorplans, amenities, pricing and incentives. Be transparent about what’s included and available to help them make the best choice for their needs.
The MOF is all about nurturing relationships with leads through helpful information and personal interaction. With the right approach, many leads will become eager to learn more about your offerings and take the next step toward becoming homeowners.
Bottom of the Funnel (BOF): Closing Deals
Once potential buyers have been nurtured through the top and middle of your marketing funnel, it’s time to seal the deal. The bottom of the funnel (BOF) focuses on converting leads into customers. For home builders, this means getting buyers to sign on the dotted line.
Follow Up and Close
Now is the time for focused follow up. Call or email interested leads to answer any remaining questions, address concerns and reiterate the benefits of purchasing a new build with your company. Explain the next steps to make an offer and provide resources to help them prepare. Arrange another site visit if needed. Your goal is to move buyers along to making a final decision.
Negotiate and Sign
When an offer is made, be ready to negotiate in good faith. Explain your reasoning behind any prices and be willing to compromise when possible to come to an agreement. Have all paperwork ready for signatures as soon as terms are settled upon. The less delay at this critical stage the better. Once papers are signed, congratulate your new homeowners and keep the lines of communication open as construction begins.
Continued Engagement
Even after the sale, stay engaged with your customers. Keep them up to date on the building process and address any questions or concerns right away. Consider a welcome package or small housewarming gift once they take possession. Happy homeowners can become brand ambassadors, so exceeding expectations and providing amazing service long after the sale will benefit your business for years to come.
The bottom of the funnel is where all your hard work pays off. While the sales process differs for every customer, focusing on follow-up, negotiation and continued care will turn more of your leads into lifelong clients and turn them into advocates for your building company. Keep your funnel full by starting the whole process over again at the top, and watch your business grow.
How Project Builders Leverage TOF, MOF and BOF Strategies to Market New Homes
As a homebuyer, it’s important to understand how project builders market new properties so you can make an informed decision. Their strategies often leverage the top, middle and bottom of the marketing funnel.
Top of Funnel (TOF)
At the TOF, builders cast a wide net to raise awareness and interest, potential buyers. They may use social media, email campaigns, and search ads to promote an exciting new development. The goal is to generate leads by getting people to visit the website or sales centre.
Middle of Funnel (MOF)
For those showing interest, the MOF focuses on educating and nurturing leads. Builders provide detailed information about floorplans, amenities, pricing and incentives. They aim to build trust and enthusiasm through personalised communication and events like webinars or open houses.
Bottom of Funnel (BOF)
At the BOF, builders actively convert qualified leads into sales. Their marketing targets serious buyers ready to make an offer or put down a deposit. Exclusivity and urgency are emphasised through limited time offers and the dwindling inventory of homes still available.
Project builders invest heavily in data-driven marketing strategies tailored for each stage of the buyer's journey. By understanding how they attract and guide customers through the sales funnel, you can make a more informed choice about if and when to proceed to the next stage. Ask questions, compare different developments, and don’t feel pressured into a purchase until you’re 100% sure it’s the right home for you.
In summary, be aware of how project builders leverage multi-channel marketing across the sales funnel. Their job is generating sales, while your job is finding a place you’ll love calling home for years to come.
Conclusion
And there you have it - the not-so-secret world of marketing funnels decoded. Now you know what's really going on behind the scenes and can spot the strategies a mile off. Whether you're about to embark on your first property development or just curious about the inner workings of marketing, understanding TOF, MOF and BOF is invaluable. Now you've got the knowledge, use it to your advantage.
Pay attention to how companies try to grab your attention, nurture your interest and eventually convert you. See through the hype and make empowered decisions.
Most of all, go into your next property purchase or build with your eyes wide open, aware of how brands are targeting you and ready to filter out the noise. You've got this! Stay sharp and don't get sucked in by the buzz.
