Personal Relationship Management (PRM)
There is a new class of relationship management tools that have started popping up in the last few years that we believe have strong applicability in real estate and could change the way agents market and cultivate referrals. This set of tools fall under the term, Personal Relationship Management (PRM).
PRM solutions are different from their cousin, CRM (Customer Relationship Management) solutions, in the sense that PRMs are about cultivating and engaging one’s network over a period of time while CRMs are principally sales though it does also include marketing and support integrations. When fully developed, PRMs take into account all of user’s communication methods (e-mail, social networks, phone and in-person meetings) to track those relationships and then smartly alert the user when a change has happened in his/her network. For example, imagine if someone in your network changes jobs on LinkedIn and you, as a real estate agent/insurance broker/financial planner/etc, got an alert your weekly digest as a reminder trigger to congratulate that person. While this is a simply gesture, it is sure to keep you top of mind as that person looks for a new home purchase/ car insurance/ home insurance/ investment strategy/ etc – all of which are common after changing jobs.
Fundamentally, real estate and the other example industries listed above are relationship businesses. On average in Real Estate, over 40% of an agent’s business is based on referrals and repeat business. Hence, as an agent, staying top of mind when life events happen is key. Often times I see even top agents do this trigger based marketing manually - PRM tools could help them to be more efficient. I used to get all sorts of calendars, magnets and notepads in the mail from local agents but honestly it was not that effective as we never moved so being able to predict who in one’s network is likely to move could dramatically improve the efficiency of a Realtors® marketing efforts – making sure to target them when they are about to move.
While PRM has strong applicability in real estate there are other relationship-based businesses that could also use these set of tools including those in career planning, business development and insurance industries. While no PRM company has stood out as one targeting the real estate market specifically, there are a few solutions we think could be targeted towards the real estate space.
Some companies we have noticed include: