A few days ago someone from a well-reputed company rang me and was telling me about their shortfall and hurdles for lack of revenue, someone who had 221 crores of the portfolio according to the current market scenario. I asked him 4 questions, and all the answers proved to be substandard.
Question 1: What is your monthly marketing budget and how do you spend it?
Answer: Our marketing budget is Tk. 4 lakh per month and we spent on Facebook marketing and newspaper classified ads.
Question 2: If you had spent tk. 4 lakhs in a month then 48 lakhs in a year, so when do you expect the inventory to be sold out?
Answer: Our expectation is within June 2022.
Questions 3: What is the size of your sales force and marketing team?
Answer: We have 26 salespeople including a General Manager, one person is to take care of Facebook marketing, and another one is to create a design.
Question 4: So, what is your plan now? How do you want to wrestle the adversity?
Answer: We are thinking of reform the sales force and we want to amendment the whole team.
Now let me explain how the answers ought to be shoddy to me and why. Firstly, an amount of BDT 4 lakhs is a good number for a month who is having around 221 crores of inventory. But doing only Facebook marketing and classifieds is not enough to touch the customer segment for this type of portfolio. The whole budget could be split up into 4 parts. But before explaining the split-up process, I would like to ornate a little about digital marketing since it is a common phenomenon for everybody that when it comes digital, it means Facebook boosting to everybody. Wrong! If we think of a human body, then every part has an important role to play, but everything is controlled by the brain. So a company’s brain is the strategy to acquire customer leads, and the heart is the website. If Google is the Lungs, then Facebook is the liver. Without having an SEO-friendly website, Facebook or any other social media marketing is meaningless. Newspaper classified can attract a very niche and specific segment but not all. So the company is off beam in terms of reaching out to their customer segment.
The expenditure of the total monthly marketing budget could be Website SEO – 40%, Google – 20%, Facebook – 20%, and for the Rest – 20%.
The sales forecast could be evocative if they had ready products, or they had enough sales leads. Then again the forecast should have been converted into units. This is the only target measuring area where most of the company’s policymakers make the mistake. They are overwhelmed by the revenue forecast, and by the 10 digit numbers. Instead of fraction or skeptical numbers, the unit-based forecast is easier to focus on by the sales force.
The size of the sales force for such a company is already justified, but the size of the marketing teams is more like folly. Who to take care of the website's regular maintenance, who to create contents, who to analyze competition, who to do the copywriting, and one designer for such a company is not enough. Rather I would recommend the company engage a real estate-based marketing agency that can take care of all.
It is another common dialect by the owners/chiefs/sales heads that if the sales target is not achieved then the entire sales force or certain groups are held responsible. The churn of sales professionals in the real estate industry is much higher than in any other industry in Bangladesh. Every year an average company’s churn for the sales department is as high as 44%, which means out of 100 people 44 people either switch their company or have asked to leave. I worked in 4 different real estate companies and I found 3 of them not doing the right training for their salespeople. The intimation for a salesperson is his project, product, features, and other insights along with the corporate culture and policy of the company. But the companies expect the newcomer to be a hero and perform right away! Oh my GOD. These people are dreamers from fairyland. [to be continued…..]
In 2008 a new business code was implied by RAJUK, and all developments were in effect right away based on the FAR rules. In that building code, the only missing string was the height of the building which I presume...