E-Commerce in Apartment Marketing - Part 2: decision factors that impact apartment renting
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This is part 2 of 3 from our series on marketing apartments using powerful e-commerce tactics, discussing factors at play in e-commerce purchases and how they translate to apartment marketing.
You can read part 1 here.
An online purchase decision is influenced by a unique set of factors, which combined can offer a positive shopping experience that builds loyalty and drives sales. When the decision is to rent apartments those same factors are at play.
Here they are:
Convenience
The ease of browsing, purchasing, and getting products delivered is a major factor in the decision to make an online purchase.
Convenience is so powerful that it inspired Amazon to create the "1-Click" buying experience more than 20 years ago, followed by their famous "2-day shipping" policy. Well, they recently took it one step further with overnight delivery ??.
For renters, convenience means the ability to go through the apartment shopping experience in a way that gives them access to all the information they need to make decisions, followed by an easy way to lease online, fast.
Here are some ways apartment marketers can create convenience for renters:
- When syndicating listings: post the actual available units instead of evergreen listings, and include relevant unit description and apartment photos.
- When promoting specials & concessions: ditch the "call for details" tactic and be specific about what you are offering; bonus points if your website can show updated pricing, deposits and fees when impacted by specials (think about how e-commerce discount codes work during checkout).
- When managing lease renewals: Add a personal touch to those renewal reminders, and call, text, or meet with your residents in person. Do an informal lease end interview to understand what your renters loved and didn't love during their last 12 months with you, and fix the little things - immediately. Your renewal rates will soar and your residents will stay happy.
Price comparison
Online shoppers can easily compare prices from multiple retailers and choose the best deal.
Renters need transparent pricing information too, to make informed decisions. Some apartment websites still show "Contact for pricing" instead of actual rent, hoping to persuade renters to contact them. While this hinders comparison and may drive prospects to competitors that display pricing openly, it also puts significant burden on the team handling inbound inquiries, who now may have to spend their time with unqualified leads.
Remember the complaints Airbnb received for not being transparent about pricing and how they've decided to fix it when it started to gain traction and threaten revenue?
Displaying transparent and complete pricing information allows renters to self qualify and benefits properties as well, saving time and resources. And it's the right thing to do.
Product information
Online shoppers have access to a wealth of information about products, including product specifications, customer reviews, images, and videos, all in one place.
Renters need access to comprehensive apartment information, not just basic details such as unit descriptions, amenities, photos, and floor plans. They need to see:
- typical costs of utilities
- information about the application process
- qualification criteria, income and credit requirements
- information about the on site staff they might be interacting with regularly (property manager, maintenance staff, etc.)
- real resident reviews (and why not switch to video)
Such details are often omitted from property websites or shared late during the application process.
Security of personal information
Consumers are concerned about the security of their personal and financial information, and online retailers must provide a secure payment process to build trust with customers.
Trust badges are common in e-commerce and are an effective way to increase trust and conversions where it matters the most: during checkout.
Renters' concerns about the sensitive data collected during the application process add an extra layer of identity theft risk, beyond just payment information and can detract potential applicants from moving forward due to trust issues.
Being transparent about data usage and protection can ease the application process and boost completion rates.
If you or your providers have achieved certain levels of compliance & certifications, now is the time to show it off to renters in a way that helps them understand you are committed to protecting their personal information - during the application process.
Delivery options
Online shoppers want convenient and reliable delivery options, such as free shipping and fast delivery times.
Resident onboarding, or the move-in experience (the equivalent of delivery in shopping), is crucial for renters and can impact their perception of the brand.
64% of renters cite moving as their number one stressor, according to Moved
Marketers can use superior resident onboarding as a differentiator in marketing messaging and campaigns. And while it's not the sole responsibility of apartment marketers, they can also support operations and leasing teams to ensure the brand promise is upheld during the move-in process.
Return policies
The return policy of an online retailer can impact a consumer's decision to make a purchase, as online shoppers want to be able to return a product easily if necessary.
Breaking a lease, the equivalent of e-commerce returns, incurs high costs for renters, but property management companies who offer flexibility can benefit greatly.
By promoting this through marketing and during the application process, apartment marketers can increase conversion rates and reassure their future residents that they can change their mind.
Social proof
Online shoppers may be influenced by the opinions and experiences of others, as evidenced by customer reviews and ratings.
Renters usually seek reviews on Google or specialized websites, and won't find them on ILSs. Companies like Bozzuto invest not only in being transparent about reviews on their master brand website, but are intentional about encouraging resident reviews: bozzutolistens.com
This works so well that technology providers like Rentgrata have made it their business to help apartment communities build trust and show social proof by facilitating conversations between prospects and loyal residents.
Conclusions
Make this article actionable and set a goal to address the influencing factors listed above one by one with your teams over the remainder of 2023.
Take another look at the capabilities of your technology providers - get them involved and ask for their help to tackle some of the items above.
Did you find this content useful? Let us know in the comments below, we'd love to hear your feedback.
Part 3 and the last of our series will be focusing on e-commerce marketing tactics with the most impact on apartment marketing. If you're not following us yet, please do so at Multifamily Marketers.