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Audience Segmentation: 5 Revenue-Increasing Tips for Property Managers

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Audience Segmentation: 5 Revenue-Increasing Tips for Property Managers

Competition in the rental market is intensifying every day. As such, marketing your property management business can be daunting and strenuous. You have to find creative ways to cut through the noise, attain competitiveness, and reach the right audience with the right message.

Forward-looking property management companies are turning to audience segmentation to stand out from the pack and reach the right audience with customized messages and strategies. One such strategy is segmentation.

Utilizing segmented audiences helps property managers optimize their marketing and communications efforts; effectively driving revenue and saving their bottom line.

What is Audience Segmentation?

It involves organizing people into meaningful and manageable groups — segments —  to meet their needs and preferences better. Audience segmentation assumes that different groups of people have different needs and characteristics. Therefore, it is vital to segment audiences to satisfy their needs.  

Audience segmentation uses specific criteria to group people. The common criteria include age, address, gender, income, location, interests, and attitudes. In property management, you can segment your prospects and current residents for marketing purposes. This way, you send relevant messages to your audience and attain business objectives.

Benefits of Audience Segmentation

Increase Open and Click Rate

Segmentation increases your messages’ open and click-through rates significantly. According to MailChimp, segmented campaigns increase open rates by 14.37% and clicks by 64.78%. Email segmentation, for example, boosts email open rates by 203%.

Improve Personalization

Audience segmentation facilitates the personalization of messages. You send messages that meet your prospects and current residents' needs and preferences.

Enhance Communication

A tailored and personalized message communicates better than mass marketing. When the recipient feels that a message is written for them, they are more receptive. 

Promote Relevance

In marketing, relevance is vital. You must ensure your messages are relevant to the recipients. Knowing and understanding your targeted segment ascertains that you deliver relevant messages.

Attain Resource Efficiency

Audience segmentation ensures that you allocate resources more effectively. Instead of targeting everyone in your marketing efforts, you focus on a particular niche that is likely to convert.  

Increase Revenue

HubSpot affirms that marketers who employ segmented campaigns increase their revenue by up to 760%.

Tips for Segmenting Audiences for Property Managers

1.  Understand Your Target Audience

Most likely, you have information about your renters, such as age, gender, income, marital status, occupation, family size, and vehicle ownership. Use this data to identify the demographics of your current residents.

Apart from demographics, use psychographic data too. You can survey your renters to learn the leisure activities they engage in and the amenities they use. Also, consider asking residents why they chose your property. This way, you understand the things that pulled them into your property. Consequently, you can use this data to create personas for your ideal tenants. While accepting all applicants fairly, it's good to know who is attracted to your property and create messaging for them.   

2.  Evaluate Your Property and Neighborhood to Identify Potential Renters

Knowing where your property fits in the rental marketplace is fundamental to defining your target renters. While many renters consider the location of a property, it’s not the only crucial factor. Renters also consider the security, interior decor, amenities, parking situation, storage, and floor plans.

While different tenants care about different things, you should find those that care about the things you offer. The ideal renter will be looking for precisely what your property offers. Knowing what you have to offer helps you identify and target your ideal market, which will increase your ROI.     

People do not move into houses or apartments. They move into neighborhoods. Every neighborhood has its attractions, ranging from good schools, hiking trails, shopping malls, or community centers. Each amenity speaks to a different demographic.

For example, a parent with a school-going child will look for good schools in a neighborhood. A neighborhood with a community center for seniors would attract an older demographic. Knowing your neighborhood mix allows you to target prospects effectively.

3.  Segment Your Audience to Achieve Business Outcomes

After you have identified who your renters and prospects are, it’s time to segment them. You can segment them according to their geographic, demographic, psychographic, and behavioral traits. In property management, geographical and demographic segmentation are most relevant. You can segment residents and prospects based on their location and characteristics like age, gender, family size, and income.

Then, identify your target renters in these segments. For instance, you can target students, first-time buyers, or older homeowners intending to sell their properties. Segmenting your audience allows you to better meet their needs and achieve business outcomes.

4.  Communicate Using the Right Medium to Attract New Leases

In property management, communication is critical. The type of communication channel to use depends on your current residents and prospects. For instance, if your property targets elderly adults, your communication strategy will be different than if you were targeting millennials or students.

Seniors may respond well to print ads in newspapers, while millennials will respond better to social media posts. Regardless of the audience you target, the bottom line is to identify the communication channel that resonates with them. This will help you attract new leases.

5. Use Effective Messaging to Drive Business Outcomes

Segmenting your audiences allows for effective messaging. Your messaging depends on the recipients. When targeting millennials, you can use energetic and playful messaging. However, the same will not apply when targeting an older demographic.

Also, it is best practice to ensure that your messaging stands out from the crowd. Other property management companies are competing for the attention of your prospective renters too. You must differentiate yourself from them through effective messaging.

The Takeaway

The secret is out. Segmenting audiences is the way to go in property management. When property managers use this marketing technique, they attain a higher return because the messages are more relevant and personalized. Audience segmentation can also increase open, click, and response rates for messages while enhancing your bottom line.

Use the tips outlined above to improve your marketing efforts and scale your business to the next level with Notifii Connect. The platform's dynamic grouping feature allows you to set parameters to group contacts by unit number, lease start date, or created time, and more. Learn more about Notifii Connect here