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In today’s hypercompetitive business environment, building a strong brand is crucial for attracting and retaining customers. As the unique identity of your company or product, your brand consists of more than just a name, logo and color palette. It also encompasses your corporate values, your brand promise, your voice on social media and more.

It’s crucial to get these right, because with a strong brand, a business can remain competitive in their industry, increase customer retention, and command a higher price for its products or services. So how can you become a brand that customers love?

1. Identify—and Communicate—Your Brand’s Values and Mission

Having a clear sense of mission or purpose can help guide decision-making within your company and differentiate it from competitors. It can also help you attract like-minded customers and employees. I’ve noticed that the best brand advocates tend to have an alignment with the brand values. I remember speaking to the CMOs of one of the largest beverage companies in the world, and I learned that they weren’t having to pay for influencer marketing campaigns. This is due to the fact that influencers were actually volunteering to get behind the brand because of its values and mission.

Say your mission is to make financial services accessible to younger consumers and other investment newbies. To define your brand’s values and mission, consider your company’s unique strengths and what sets it apart from your rivals. You may have financial advisers who can explain complex concepts in easy-to-understand language and make recommendations that give fledging investors a sense of confidence. Your website may be chock full of informative content that makes the stock market a less scary place and empowers customers to invest for themselves.

Use your brand’s values and mission to inform the language and messaging that appears in your marketing materials. Stuffy Wall Street jargon won’t align with your mission and values. Speaking in terms your customers can understand and addressing them as a confident yet down-to-earth friend will.

It’s just as important to communicate your company’s mission and values internally as it is externally. Doing so will enable your employees to align their work with these principles. When employees embrace your company’s mission of bringing financial savvy to the masses, it will influence everything from the inclusive copy your marketers write to the welcoming tone of your customer service reps.

2. Prioritize Customer Satisfaction

Providing excellent support is crucial for building a positive brand reputation. It’s hardly rocket science: Satisfied customers are more likely to recommend a company to others, while dissatisfied ones will shred you on social media. With any company I’ve been involved in, I’ve always emphasized the importance of having a sense of pride in your service. I’ve witnessed a clear difference in employee loyalty to companies that prioritize customer service. Employees seem to want to naturally add value for people, because it can give them a sense of self-worth in their position.

Customer satisfaction begins, of course, with delivering the product or service you’ve promised at the agreed-upon price. If you can do this with notable speed or an uncommon degree of friendliness, so much the better. Yet ensuring customer satisfaction doesn’t end there, since mistakes will inevitably occur. Your employees are only human, and your business is just as subject to the whims of the global supply chain as any other.

When hiccups happen, it is essential to respond promptly to customer inquiries and complaints. Customers appreciate quick responses, which shows that you value their time. While chatbots are available 24/7 and can handle many minor customer issues, be sure to offer multiple channels for customers to get in touch with your company. Providing email, phone, web and social media options can make it more convenient for customers to reach out to you. This allows them to choose the method of communication that they feel most comfortable with.

Your goal in these interactions should be to find a resolution that satisfies the customer in a timely way. A brand that’s willing to go the extra mile to address customers’ concerns and make them happy is one that will earn their trust and loyalty.

3. Foster Trust Through Transparency

People are more likely to do business with companies they trust, which is why trust is an essential component of any customer relationship. Building it requires transparency about your business practices. If you’re a manufacturer, for example, this means being open about how you source materials. You can back this up by obtaining your industry’s responsible sourcing certification—they exist for everything from agricultural products to concrete.

Customers also want you to be honest about your products or services, including any potential limitations or drawbacks. By all means, tell them if a killer feature is in development—just don’t claim to offer it now. You should also be clear about your privacy policies and how you use customer data. Customers are willing to provide personal data to obtain better service if they’re confident you’re using and storing it appropriately. When you are transparent, customers can trust that they are getting the full picture and can make informed decisions.

One of the biggest things to be transparent about is pricing. I have a rule with my sales teams that they must disclose the pricing over the phone or in person, then in writing, and also in the agreement. It’s a three tier approach to transparency in pricing. This includes disclosing any fees or additional charges that may be associated with your products or services. It also means being clear and concise with pricing information so it’s easy for customers to understand. Not only will transparent pricing build trust with your customers, it will help stave off misunderstandings or frustrations that can arise when pricing is unclear. When consumers get what they pay for, and they know how much that is, they’re far more likely to come back—and tell their friends.

A strong brand, built on a foundation of trust, transparency and excellent customer service, can lead to a loyal customer base and long-term success. But as with most things in business, brand building is not a one-and-done deal. Rather, it’s an ongoing process that requires regular adaptation to changing market conditions and customer needs. You’ll constantly need to solicit feedback on customers’ expectations of the company and how well their experience aligned with those expectations. By acting on their feedback, you can continue to improve and maintain a strong, recognizable brand that customers will return to again and again.

Ashley:
This is Real Estate Rookie, episode 252. Another thing you can do, too, as a landlord is look into different kinds of funding, state funding, county funding, for the tenants. There are a lot of resources, even small non-profit organizations, that will help people who need help to subsidize their rental income. Especially since COVID and during COVID, there was a lot of programs that were put out that helped people get caught up on rent that you could apply to as the tenant, and even the landlord could apply on the tenant’s behalf. My name is Ashley Care, and I am here with my co-host Tony Robinson.

Tony:
Welcome to the Real Estate Rookie Podcast, where every week, twice a week, we bring you the inspiration, motivation and stories you need to hear to kickstart your investing journey. Today I want to shout out someone by the user name of Agboola5252. I’m just going to call you Boola, all right? But Boola left a five-star review on Apple Podcast that says, “I’m a real estate agent in Minnesota looking to invest in real estate, and I think I found the perfect virtual mentor to help get me started. This is the best place to learn if you’re feeling overwhelmed.” Boola, we appreciate you. For all of our rookies that are listening to this podcast, if you have not yet taken the two minutes to write an honest review and help us reach more people, I’m asking you, I’m begging you to do that. The more reviews we get, the more folks we reach. The more folks we reach, the more folks we help. That’s what we’re here to do.

Ashley:
I have to say, some of these user names for your guys’ Apple reviews are quite entertaining. We had, what, Milkman, recently?

Tony:
We had Milkman earlier.

Ashley:
Honestly, I don’t even know what mine is, how to even set that into my [inaudible 00:01:45].

Tony:
I think mine is actually the name of my podcast that I started when I was 22, called Do Really Good. I think that’s still like my Apple podcast review name.

Ashley:
Yeah. I’ll have to look what mine is. But today we have a great show for you. We are live, in person. We love recording in person, and we hope you guys do, too. Please leave us a comment on the YouTube videos, or if you leave us a review on your favorite podcast platform, let us know what city you guys want us to come to next. We have Alex on the show today. She is a dentist and started investing in real estate to help pay down some of her student loan debt, and she does reveal, after continuously saying many times it’s a large amount of debt, she gives us what that amount is.

Tony:
It’s a mind-boggling number. But Alex has a really cool backstory too, right? Because she, like most people that become health professionals, her and her husband both are in the medical field, a lot of them never really even think about investing in real estate as a full-time thing. It’s just something they kind of do on the side. But she’s really taken a more active approach in building her real estate portfolio, and we kind of get to hear the why behind that.
We’ve got Alex coming up. Alex. You guys want to clap it up for Alex?

Ashley:
Woo, Alex.

Tony:
Alex actually hopped on a flight from Fort Lauderdale this morning, so she-

Alexandra:
4:30 a.m.

Tony:
4:30 a.m., and she’s still going. Clap it up one more time for Alex. That’s an early flight.

Ashley:
Alex, tell everyone a little bit about yourself and how you got started in real estate.

Alexandra:
My husband and I are healthcare professionals, and being in school our whole lives, we didn’t know a lot about finances, truthfully. We didn’t really work while we were in school. And so I’ve seen a lot of healthcare professionals who have a high income, but they’re still living paycheck to paycheck or they’re burnt out from work, and we just didn’t want to be like that. And so I researched a lot on how to not do that, and, obviously, real estate was one of the top ones.

Tony:
But outside of real estate, you looked at some other things beforehand.

Alexandra:
Yes.

Tony:
What were some of those other options, and maybe, why didn’t they work out for you?

Alexandra:
I did everything. I dove in, I took the Dave Ramsey Financial Peace University. I tried to study a little bit on stocks and day trading. Please don’t ask me anything about those things. I don’t know anything. It just didn’t interest me. Of course, real estate investing was one of the top things online, and so I just researched real estate investing for beginners. BiggerPockets came up, and I started listening to the OG podcast, and that’s how it started.

Tony:
If you can, tell us just what does your portfolio look like today? How many units? Where are those units located at?

Alexandra:
We have three in Kansas City, and we have one short-term rental here in Phoenix. We have a new build here in Surprise, Arizona, as well.

Ashley:
What was your big motivator for getting into real estate investing?

Alexandra:
Truthfully, I just did it. We see a lot of the people in our profession burnt out, and we just didn’t want to be like that. We do like what we do. We love what we do, and we want to have a choice of going to work and not have to go to work to pay off our student loans, and have to go to work to live up to this lifestyle or anything.

Ashley:
You already told us earlier, but I just want to see everyone’s jaw drop when you tell us what that student loan debt is.

Alexandra:
I don’t know the exact number, but my husband and I combined in student loan debt, just student loans is over $750,000.

Tony:
But-

Alexandra:
Man, I wish we had a camera on this side. Why has no one been recording?

Tony:
But can you tell them what you and your husband do for a living? They went to good use, I would say.

Alexandra:
My husband is an orthopedic surgeon, and I’m a general dentist. It sounds like, yes, high income and all that, but, again, $750,000. If I listened to a lot of the people in our lives who tell us, “You can’t invest, because look at your student loans. You have no money to do that. You need to pay the student loan off,” we would not be in the position we are, and we would not be able to do that.

Tony:
I know you’re taking real estate investing super seriously and there’s a big change coming next year. Can you share that with everyone and what the motivation was behind that?

Alexandra:
Our third deal was a seller-financed deal. For 2023, I’m going to take a year off of dentistry and try to see how many creative financing deals I can get in that year. I am not quitting dentistry, but I’m just going to take one year off.

Ashley:
I mean, you guys have to clap for that. I mean, that’s amazing, being able to have that option to do that. Tell us what your goal is for the next year.

Alexandra:
My goal is to try and get 12 creative financing deals. I mean, I don’t know if I’m shooting for the moon or not, but we’ll see. That’s a goal that I have.

Tony:
All right. Last thing before we get into the question here. What is some advice you can give to a new investor if they were looking to get started today? Based on your experiences, based on everything you’ve done.

Alexandra:
I would say invest in yourself and take action. Like I said, a lot of people in our lives, my close friends, my family, they literally told us, “You shouldn’t do this.” They kind of tried to steer us away from it. But if we didn’t take action, we wouldn’t be able to have had the five properties that we have now, and, hopefully, scale from here. I would just say try and network as much as you can. By the way, this is my first networking event ever.

Tony:
This is her first meet-up ever.

Alexandra:
Take action, because, again, if you listen to all the other people who say don’t, don’t listen to the people who aren’t doing it.

Ashley:
Okay. For our question, what is a healthy return for a buy and hold in Phoenix? What is attractive about the Phoenix market to you? You have your short-term rental here. I mean, technically, your short-term a buy and hold. You’re holding it. What made you want to come into the Phoenix market and why are you going to continue to invest here?

Alexandra:
I think it’s because I’m from Phoenix. My family still lives here. So I was familiar with the area, and because we are out of state, I was able to use that second home loan, the vacation. But I love the Phoenix area. Everyone still comes here to vacation. There’s a lot of snowbirds. There’s a lot of hospitals. There’s a lot of growth. Even though the market is what it is, there is so much growth in Arizona, and I’m sure everyone here knows that, with all the big companies coming here. You still have to look at the numbers, though. Don’t do something that’s going to make your wallet cringe. You need to make a return, still. With a short-term rental, it’s a little higher than a long-term rental. Ours right now, it’s a little lower than I thought. It’s about 23%, I would say. But it just started, so I’m-

Tony:
23% is still pretty good.

Alexandra:
Yeah. I still think the Phoenix market is a great area to invest in. So look for growth and make sure you do your homework with the numbers. Make sure the numbers work. And network. I would say network. Our places in Kansas City, I’ve never been to them. I managed two rehabs at the same time while being a full-time dentist. Even though I didn’t network in person, all the groups online, BiggerPockets, the forums, were so helpful. That’s how I met so many people, and I trust them. Obviously, that’s how we were able to finish those projects and scale, I guess.

Ashley:
Okay. We’re going to start with our first rookie reply question, and this question comes from Tim Reese. If you own multiple properties, what’s your backup plan if your tenants stop paying rent all at once and can’t be evicted? I think a lot of investors saw this during COVID, whereas there was the moratorium where you could not evict tenants, and there was tenants who really could not afford to make payments at that time. And then there was some, and I’m not going to name names of my tenant that took advantage and didn’t pay the whole time. I think this is definitely a risk as a landlord and something that new investors are very scared of. Alex, what would be your advice to get over that fear of that happening or something they could implement in put in place to mitigate that risk?

Alexandra:
That’s a challenging one. He means if all of them stopped paying?

Ashley:
Yes.

Alexandra:
That is a challenging one. I would first talk to the tenants. I mean, they’re human, you’re human. I would try, maybe, if they really can’t pay, try to come up with a payment plan or something. Like, “Hey, I know you can’t pay the full amount, but can you give me 50% of this month, and then try to ease your way back into it somehow?” That’s tough. I haven’t had that situation, thank God, so far.

Ashley:
Well, I think that part of that reason it’s so tough is because I think the chance of that happening is rare. Unless maybe you have two or three units, then the less units you have, the more probable that’s going to happen. But as you grow and scale your portfolio, there’s kind of that less chance of every single unit being non-paying at the same exact time. But this is where your cash reserves come in, is having those three to six months cash reserves for each unit set in place, so you can at least cover those expenses and get a game plan in place for those three to six months. Especially if you have a smaller portfolio, highly recommend starting out with six months. That covers your mortgage, your property taxes and your insurance for those upcoming months.

Tony:
That’s a great answer. The only thing I would add to him is, like Ashley said, is that I do think that unless there’s a global pandemic that happens again, probably super rare that you’re going to see a point where all of your tenants aren’t paying. If there isn’t a major health scare or something that’s preventing people from paying, and your tenants just decide not to pay, then you might need to do a slightly better job of screening your tenants. That would probably be my advice back to you. If you’re nervous about that, spend a little bit more time up front on the screening process to make sure you get the highest quality tenant.

Ashley:
Another thing you can do, too, as a landlord is look into different kinds of funding, state funding, county funding, for the tenants. There are a lot of resources, even small, nonprofit organizations that will help people who need help to subsidize their rental income. This is completely different than Section 8, because Section 8, you can be on a waiting list for three years to get assistance. But there are smaller organizations, and especially since COVID and during COVID, there was a lot of programs that were put out that helped people get caught up on rent that you could apply to as a tenant, and even the landlord could apply on the tenant’s behalf. That would be something to give your tenant, some of these programs that they may not even know about where they can get that assistance, and that’s going to your local housing authority and organization website.
For example, in Buffalo there’s HOME NY is one of them, and then there’s also Belmont Housing. That would be the best resource to find out about these kind of programs that can help your tenant get caught up on rent.
Another favorite is doing cash for keys. If your tenant is paying, instead of waiting the three months until you can do an eviction or whatever that waiting time period is, maybe just offer them, say, ‘You know what? I’ll give you $500, I’ll give you $1,000 if you move out by next week. I’ll come here, all your stuff is gone, you hand me the keys, and I will hand you a $1,000 check or $1,000 cash, and we’ll part ways.” That may be enough for them to go and get another unit and start over.

Tony:
You took the words out of my mouth. That was the next piece I was going to land on, as well.

Ashley:
I read your mind, and I was like, “You know what? That’s a great idea. I’m going to say it before he does.”

Tony:
That telekinesis.

Ashley:
Okay, let’s check out our next question. This one is from Brian Cavalier. Is it a bad idea to lower the rent if no one is applying for a unit? Plenty of showings and interest, but no one is following through. Alex, what would you think about that?

Alexandra:
This actually happened to us. The first unit we turned into long-term rental, and it actually rented out for $200 more than our goal was. And then that tenant, when they moved out, they moved out in the middle of winter. It’s snowing. No one really moves at that time. We knew that we wouldn’t get a renter for that amount that we were going to get in the summertime. We actually did have to lower it a little bit, but we were still cash flowing a little bit. As long as you’re not negative, I think, cover what you need to cover and still have a little bit of reserves, I think you’re okay. Ashley, what you always harp on, always make sure you have reserves, just in case. But we had to do that, and we’re still okay. I mean, we still have those tenants there. They signed an 18-month lease, so it’s a little lower than the first one, but, hey, we got someone in there for 18 months.

Ashley:
Sometimes that’s better is not having that turnover, is taking a little bit off the monthly rent to have somebody there longer, because turnovers can be expensive.

Tony:
I briefly worked for this massive property management company when I graduated from college.

Ashley:
I feel like today I’m learning all of these new things about you.

Tony:
I was there for six weeks, and I’m actually non-rehireable there, because I didn’t give them a full two-week notice when I left. But, anyway, I learned a few things while I was there for that month and a half.
One of the things they did was they adjusted the pricing based on the term of the lease. Say that someone was signing a lease in June, and they know that December is a difficult time to relist a property. They would give you the option of having a six-month lease, but it would be significantly more expensive than a 12-month lease that would expire in June, and they did that for all of their properties. These are massive apartment complexes, a hundred units, but that’s how they tried to decrease the number of move-outs during the slow season when they would have to charge less and increase the number of move-outs during the peak season when they could charge more.

Alexandra:
We negotiated with them to do the 18-month lease instead of a 12-month, because if we did 12, we would have another turnover, potentially, in the wintertime. We added a couple more months to the lease, so if they did turnover, then it would be in the spring/summer where it’s more demand.

Tony:
Have you ever done that for your listings? For your listings. Sorry, short-term mental brain talking. For your long-term rentals?

Ashley:
Actually, no, I haven’t. And you would think in Buffalo nobody wants to move in the snow, which is completely true. I think that’s a great idea.

Tony:
All right, this next question comes from Shauna Garnett, and Shauna’s question is, what’s everyone’s thoughts on doing a six-month lease and then moving to month-to-month? I hate the idea of being stuck with a bad tenant for a full year. I feel like we just kind of touched on this a little bit, but I mean, I don’t know, what are your thoughts, Alex, on a shorter lease to get around the potential of having a bad tenant?

Alexandra:
They just nervous, then, for the tenant?

Tony:
That’s what it sounds like, right?

Alexandra:
I mean, I would say vet your tenant as best as you can. There’s certain criterias that you can find out from BiggerPockets, forums, and things like that, from property managers. Screen them really heavily, so you can at least trust them. You might get a bad tenant even if you have a six-month lease. They might stop paying after a month, but you really have to just vet them really well. I don’t think I really answered it, sorry.

Tony:
No, that’s a great answer.

Ashley:
I do think that is a fear. Especially if you are in a state where it is more tenant-friendly, where it is harder to evict a tenant, especially if they’re locked into a lease. I’ve actually been more favorable to being month-to-month, because instead of doing an eviction for non-payment, you can do an eviction for non-renewal. When they’re month-to-month, you have to give certain notice. If they’ve lived there less than a year, it’s 30-days notice. If they’ve lived there, I think it’s up to two years, then it’s 60 days. And then over two years, it’s 90-days notice. You give them notice stating that you’re not going to renew their lease, and then you have those three months, and then that’s when you can either increase the rent or offer that non-renewal. It’s an easier way to evict in New York State right now doing the non-renewal process than the actual non-payment process. That would be one benefit, I guess, if you are in a state where it’s more tenant-friendly, the laws, than it is landlord-friendly.

Tony:
Yeah, Shauna, I think, like we said, sometimes turnover is more expensive, so if you have all these month-to-month leases and you’re allowing people to swap out every six to seven months, it could end up costing you more money in the long run. To your point, Alex, I think spending time vetting upfront could be better.

Ashley:
Too, how easy is it for a tenant to actually get out of a lease? Because, in New York State, it is very easy for a tenant to kind of get out of their lease. They can maybe lose their security deposit, but still move out. It’s very hard to, if you do put the stipulation in their lease that, okay, if they move out, they lose their security deposit and they pay rent until a new tenant is put into the property. But you have to actively search for a new property. So they have a very good case, “Oh, well, you didn’t find a tenant for two months. It was your fault. It was too slow.” Things like that. So it’s very hard to actually get that money out of the tenant and to get them to continue to pay for that vacancy until it is filled.

Tony:
I don’t know how you-

Ashley:
Or, even if it is filled right away, you still had that turnover cost that you’re not recouping.

Tony:
Just one other piece on that. The way that that same property management company I was talking about that I worked for, that’s how their lease was set up, that if you broke your lease, you were responsible for the rent until someone else moved in. And if you didn’t pay, they would send you to collections, and they would let collections kind of chase after you. I don’t know if you want to do all that, Shauna, but we’re just talking [inaudible 00:20:36].

Ashley:
Okay. Our last question is from Matt Pauls. How do you determine rental rates in an area? Thanks in advance.

Alexandra:
There’s a lot of websites, platforms that you can use. You can even search Zillow, honestly, and just look at the neighborhood that you’re in or that the property is in, and look at what the comps are in the area and what they’re going for, for rent. But Rentometer is a great website, as well.

Tony:
The BP rent estimator is actually pretty spot-on. I bought my first rental property before the rent estimator rolled out, so just out of pure curiosity, I went back and plugged that address into the rent estimator, and it was spot-on to what I was charging my tenant. Or, I think it was off $25 bucks, something like that, but it was pretty close. So if you’re looking at markets trying to understand what that rent could be, I think the rent estimators a great tool.

Ashley:
The only trouble with some of those tools is that when you get into rural areas where I invest, there’s not enough data for them to actually pull information. That’s where going to Facebook Marketplace, even Craigslist, and seeing what properties are listed at, and then just checking every week. If there was a listing there last week, and it’s gone the next week, then most likely it was rented for what the asking rent was, and you can use that as a comparable. Then, also, calling property management companies in that area, and you can even just pretend you’re looking to rent an apartment, even if they don’t have anything vacant. Just asking, “What size are your one-bedroom apartments, and what do you currently rent them for? What’s included?” Things like that, too.

Tony:
Going back to that same company, that was actually part of my job as the leasing agent was to call other apartment complexes just to get rental estimates on comparable units so we would know how to price, so it is a common practice.

Ashley:
Okay, cool. Well those are our rookie reply questions for you guys today. Alex, thank you so much for joining us.

Alexandra:
Thank you so much for having me. It was so fun.

Ashley:
Can you let everyone know where they could reach out to you and find out some more information about you?

Alexandra:
Yeah, on Instagram, I’m AK_Burnham, and then on Facebook, Alexandra Burnham.

Ashley:
Okay, cool. Thank you so much. I’m Ashley @WealthFromRentals, and he’s Tony @TonyJRobinson on Instagram. Thank you guys so much for listening, and we will be back on Wednesday with a guest.

Speaker 4:
(singing).

People often rely on digital means to find solutions to their problems. This applies to every industry, but to some more than others. For example, one in 10 Americans use social media to find information regarding healthcare, and 66% use the internet to research specific medical issues.

Although many people use the internet to research the challenges they face, a majority of them do not find online advertisements relevant, which is a missed opportunity for marketers. In order to better reach these potential online clients, industries are turning to inbound marketing techniques to find leads.

Inbound Marketing Explained

For years, outbound marketing was the dominant way to find leads who turned into customers. Outbound marketing involves the process of chasing down potential clients. This included cold call techniques and direct sales pitches.

In contrast, inbound marketing takes a more personal approach. Hubspot defines inbound methodology as ‘the method of growing your organization by building meaningful, lasting relationships with consumers, prospects, and customers. It’s about valuing and empowering these people to reach their goals at any stage in their journey with you.’

This approach is more popular with younger generations, who prioritize personalization and being treated individually, rather than as a number. It’s also a preferred marketing strategy in industries where personal relationships truly matter, such as within healthcare.

According to Bob McIntosh, the personalization of digital marketing as a whole is required. He said, ‘Simply presenting a broad-based digital ad or piece of content with mass appeal to a generalized audience now tends to be ineffective. The most successful businesses and marketing professionals understand that digital marketing works much better when personalized for the target audience.’

There are three ways to apply this inbound methodology: attract, engage, and delight.

Attract

Conversational marketing is an inbound marketing strategy that allows businesses to attract potential clients by interacting directly with them.

While live chat and chatbots are the first methods of conversational marketing that generally come to mind, any other tool that facilitates real-time conversations also applies. This includes the use of email, social media, and text messaging tools.

Conversational marketing is especially relevant to the healthcare industry. Health is a personal matter, and having the ability to communicate effectively is vital to potential patients. According to a 2019 study by Accenture, 69% of patients indicated that they were more likely to select a healthcare provider that communicated with them through email. Another survey by Redpoint Global revealed that almost half of respondents prefer digital communication with their healthcare providers.

Creating a personal connection through conversation humanizes marketing. Rather than pushing a product or service, marketers who use this dialogue-driven approach create a relationship with customers. And that relationship becomes a foundation for trust as connections transform into leads.

Engage

Engage is in this second step of the inbound marketing methodology. This is where lead generation comes into play. Once a company has attracted and interacted with a potential lead, sales become involved and work to engage the potential client by providing relevant information.

At this point, these individuals are pointed toward a call to action that will lead them to an offer. An offer may look like a landing page, an ebook, or a class that directly solves their personal needs. Once the potential client has provided their information using a form, they have officially become a lead.

Co-founders Bradley Rand Martin and Theo Nguyen created Client Connection Group to link dentists with new patients. They use a multi-platform approach that includes Google, Instagram, Tik Tok, and Facebook to turn potential clients into leads.

Nguyen said, ‘We create campaigns across multiple channels using pre-qualifying campaign workflows that walk potential patients through a funnel packed full of information exactly relevant to their needs. Once they’ve provided us with their information, we are able to strategically reach out over the next 60 days using text and email. We are careful to make sure the information stays relevant and applicable.’

While this example showcases how the healthcare industry is mastering inbound marketing, other industries can use this approach to generate their own leads. And once leads are generated, this strategy can help them follow through with their specific call to action and keep customers engaged along the way.

Delight

Keeping potential customers happy after they’ve interacted with your brand is a crucial part of the inbound methodology. Chatbots again become effective ways for former clients to stay in touch with you and build continual connections.

Interacting with former clients provides you the opportunity to issue surveys and ask questions that will allow you to gain more information on how to alter your lead generation flow to make it more applicable and effective. By responding to feedback, you demonstrate listening skills and a willingness to change, which is a significant way to delight former clients.

Amanda Brinkman, Chief Brand and Communications Officer at Deluxe, says, ‘Your main objective should be listening to your consumers — getting to know them better. It doesn’t cost you anything to listen, and the insights you gather can be invaluable.’

Aside from surveys and questionnaires, social media is a great way to hear the needs of former and current clients. They’ll often post complaints or praise, and both forms of feedback are extremely valuable. If your clients exist on a certain platform, you need to be there as well, whether it is Instagram, TikTok, or Snapchat.

Inbound marketing is a noteworthy approach for all industries. As personalization becomes a higher priority for consumers, inbound marketing will need to become a standard marketing strategy. Taking examples from industries that are already adapting to this change can put your company on track to adapt, but don’t wait too long to try this technique.

On January 12, new Consumer Price Index (CPI) data was released for December, showing falling inflation rates across the board. The headline CPI, the broadest measure of inflation in the U.S., dropped to 6.5% year-over-year (YoY), down from 7.1% a month earlier. The “core” CPI, which excludes volatile food and energy prices, also fell to 5.7%, down from 6% in November.

While it’s encouraging to see the inflation rate drop on a YoY basis, the more relevant numbers from the CPI report come from the monthly data. Year-over-year data is inherently backward-looking, and I’m assuming everyone reading this is most interested in knowing what’s likely to happen over the course of 2023. The data there is a bit mixed. 

Breaking Down The Numbers

When we look at the headline CPI, this month’s report is very encouraging, showing that prices actually fell 0.1% from November to December. Meaning for the broadest measure of inflation in the U.S., prices actually went down. This is a great sign for the CPI going into 2023. For inflation to get under control, the pace of price gains only needs to slow, but prices going backward like last month is even better. 

The Core CPI tells a different story, with prices rising 0.3% in December, up from 0.2% in November. This is obviously not great, as the pace of inflation went up monthly, and the Federal Reserve is very focused on the Core CPI. 0.3% monthly inflation is still way too high. 

Still, when looking at the last few years, there is a clear sign that things are heading in the right direction. Throughout 2021 and 2022, Core CPI growth was regularly above 0.4%, so seeing it come down to about 0.25% over the last three months is encouraging. But there’s still work to do. Personally, I’m optimistic things will keep trending in the right direction—mostly due to one part of the CPI that I am intimately familiar with—housing prices. 

One of the major things keeping the Core CPI high is “shelter” inflation, which measures the cost of housing (both for renters and homeowners) in the U.S. As measured by the CPI, shelter costs rose around 0.7% last month alone! 

What’s the deal with that? Anyone who looks at data knows that the cost of housing in the U.S. is falling, not rising! Rents and home prices are declining modestly right now, yet the CPI still shows them going up!

The reason is because the CPI measures of shelter lag by 6-12 months (it’s terrible, I know). So, the December 2022 report shows housing and rental data for the Summer of 2022! That’s annoying, but since the housing and rental markets started to shift in June/July, it means that the CPI will start reflecting the reality of housing prices in the coming months. To me, this is a strong indication that the Core CPI will fall over the course of the next six months. I can’t see how much and when, but I think it will trend downward in the first half of this year. 

What Happens Next?

I wrote an article in November stating that I thought inflation had officially peaked and shared an analysis of monthly CPI rates and the reason for my belief. Here’s an update to that analysis. 

The chart above projects year-over-year inflation numbers based on what happens to monthly increases going forward. For example, if inflation continues to decline by 0.1% each month (like it did this month), then we’ll be below the Fed’s 2% annualized target for inflation by May 2023. 

I don’t think this is realistic, and we’re going to see modest monthly gains going forward. If we see an average monthly increase of 0.1%, we’ll be under the Fed’s target rate by June. If monthly inflation rises 0.16% (which is the average for the last six months), we can expect to be below the Fed’s target sometime over the summer. To me, this is a very realistic scenario. 

Of course, the inflation rate could pick up steam again, but that seems very unlikely. In almost every dataset, we see that inflation has peaked and is starting to return to earth. There is still a ways to go, but it seems like we should have inflation under control sometime this year. That is fantastic news. Lower inflation is good for the economy and for every American who has been hurt by higher prices over the last few years. 

What Will The Fed Do?

Despite this encouraging news, I expect the Fed will raise the federal funds rate at least one more time. But, I think we’re approaching the terminal rate (the rate at which the Fed stops raising rates), and we could see the end of this tightening cycle soon. 

Pausing rate hikes does not mean falling rates, though. The Fed recently issued guidance saying they don’t intend to lower rates in 2023. Many investors think that’s a bluff, but personally, I take the Fed at its word and then hope I’m wrong. The Fed is dead serious about controlling inflation, and although I believe they’ll stop raising rates soon, they won’t lower rates at least in the next six months to be extra sure the risk of resurgent inflation is low.  

Paused rates are still a good thing, though! So much of the economic turmoil we’re experiencing right now is due to uncertainty about Fed policy. If they stop raising rates in the next few months, it should give the entire economy some sense of stability and hopefully lead to a clearer and more optimistic economic outlook. 

What do you think will happen in 2023 based on this inflation data? How will it impact your investing decisions? Let me know in the comments below.

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Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.

By Candice Georgiadis, social media influencer and founder of Digital Day Inc, a social media and marketing agency in California.

All startups face challenges when first setting out. Whether it is funding, hiring the right employees or marketing their product, every startup will experience obstacles. However, the most successful startups are those that can identify the challenges they are facing and put a plan in place to overcome them.

The following is a list of the top challenges faced by startups and some advice on how to overcome them.

1. Access To Finance

One of the biggest challenges startups face is access to finance. Getting a bank loan can be difficult, especially for early-stage startups with no track record or collateral. And even if a startup can get a loan, the interest rates can be prohibitively high. This is where governments can help by providing risk capital through venture capital funds or loans at preferential interest rates.

Overcoming This Challenge

1. Angel Investors

One way to raise funds for your startup is through angel investors. Angel investors are individuals who invest their own money into startup companies in exchange for equity.

Another way is through venture capitalists. Venture capitalists are firms that invest money into startups in exchange for equity and a share of the profits.

2. Crowdfunding

You can also raise funds for your startup through crowdfunding. With crowdfunding, startups solicit small investments from many people, typically through an online platform. In exchange for their investment, backers typically receive rewards such as products or experiences related to the startup company.

2. Lack Of Talent

Another challenge startups face is the lack of talent. With limited resources, it can be difficult for startups to attract and retain top talent. This is where government programs that provide training and mentorship can be helpful. By investing in the talent of tomorrow, governments can help ensure that startups have the skilled employees they need to succeed.

Overcoming This Challenge

One way to attract top talent is by offering stock options. Stock options allow employees to purchase company shares at a set price in the future. This gives employees an incentive to help grow the company so that they can profit from their investment.

You can also offer flexible work hours and remote work options. This can be especially attractive to Millennials who value work-life balance and flexibility in their careers.

3. Red Tape

Government regulations and bureaucracy can be a minefield for young companies trying to get off the ground. This is why many governments have programs in place that help startups navigate the regulatory landscape. For example, Startup Canada offers free advice and support to Canadian entrepreneurs through its network of mentors and experts.

Staying Regulation-Compliant

1. Stay Informed

Make sure you are up-to-date on all the latest government regulations and policies. You can do this by subscribing to relevant newsletters, attending industry conferences or reading online resources.

2. Get Help

If you are struggling to understand or comply with government regulations, don’t be afraid to ask for help. There are many organizations out there that offer free advice and support to startups. You can also consult with your lawyer or accountant for guidance on how best to comply with the law.

3. Keep Track Of Progress

Document everything you do in relation to your business—from the amount of funding you raise to the number of employees you hire. This can help ensure that you meet all the requirements set out by the government.

Conclusion

Overall, startups face many challenges. From raising capital to complying with government regulations, it can be difficult for startups to survive and thrive in a competitive market. However, by taking advantage of resources such as angel investors, crowdfunding platforms and government programs, startups can increase their chances of success.

New data from Redfin shows that seller concessions, such as mortgage rate buydowns and cash credits for repairs and closing costs, are becoming increasingly common as high mortgage rates curb demand for homes. This may be keeping housing prices artificially elevated while the actual cost of buying a home falls—the Case-Shiller Index has been modestly declining since July, but the situation could be worse than it looks for sellers. 

Concessions were popular before the pandemic, but at the peak of the homebuying frenzy, sellers had all the power. Buyers pounced when new homes hit the market, sometimes offering to waive the inspection, while sellers fielded multiple over-asking offers and asked buyers to cover appraisal gaps. Now, as buyers pull back due to affordability concerns, homes are sitting on the market longer. It’s sellers who are looking desperate, while buyers expect to be persuaded.

How Common Are Seller Concessions?

In the fourth quarter of 2022, 41.9% of home sales involved concessions, a record high since Redfin began tracking concessions in July 2020. It even surpasses the portion of homes that sold with concessions during the three-month period ending in July 2020, when homebuying activity hit a wall due to the onset of the pandemic. And it’s a significant increase from the trough. Between April 2021 and September 2022, sellers offered concessions in only about one-quarter to one-third of home transactions. 

The data comes from buyer agents across the nation, who reported to Redfin when a seller offered something to reduce the buyer’s total purchasing cost. Cash credits for repairs, discounts on closing costs, and offers to buy down the mortgage rate were all considered concessions. Lowering the listing price was not considered a concession—but some sellers had to reduce their listing price or accept offers under-asking in addition to offering concessions. 

In fact, in 11% of home sales, sellers dropped the price, offered a concession, and still sold below asking. 19% of home sales had a concession and a price drop, and 22% of homes sold below asking even with a concession. 

Which Markets Are Most Impacted?

In San Diego, California, sellers offered concessions to buyers in 73% of home sales in Q4, an increase of more than 20 percentage points year-over-year. Phoenix and Seattle saw the biggest increase in the share of transactions involving concessions, exhibiting 29.7 percentage points and 25.6 percentage points, respectively. 

This is consistent with predictions from Redfin, Moody’s Analytics, and other analysts, which suggest the markets that experienced the most rapid increases in home values during the pandemic will be the most vulnerable to price declines. Concessions are becoming more popular in many of the cities that are expected to have the steepest corrections, including Phoenix and Seattle, where home prices have begun cooling—but there are outliers. 

For example, concessions have become slightly less popular in Austin, Texas. About one-third of home sales in Austin involved concessions in the fourth quarter of 2022, down from 38.1% the year prior. The trend of concessions concealing an actual decline in the cost of housing transactions may not be occurring there—but sale prices in the Austin market are cooling faster than in many other metros. 

Metros Where Most Home Sales Now Involve Concessions

Metros Where Concessions Have Increased the Most

How Can Investors Benefit?

If you asked a seller for concessions in the summer of 2021, you might have been laughed out the door. But it’s no longer unreasonable to expect mortgage-rate buydowns, warranties on home appliances, and cash credits for repairs or closing costs, even if you’re making an offer that’s less than asking. Keep in mind that homeowners made vast equity gains over the last two years—many are in the situation to be able to fund concessions without losing money on their homes. And the more you can reduce the cost of the transaction through concessions, the more you can increase your return. 

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Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.

Everyone is talking about an economic crisis and asking how it will influence tech investments.

The good news is we’ve seen those kinds of crises in 2008. Before that, in 2000, in 1984, and a flash of it in 2020 (Covid19), and survived.

The bad news is it is painful. It was painful back then and painful today.

The ugly part with the bullish market in 2020-2021 and way over-inflated valuations, is that it will be very hard to return the investment to those who invested in an over-inflated market.

The pretty part is that those who raised a lot of money and have figured out a way to keep it or reach profitability will win big time.

To understand the startup funding challenges, you need to start with basic investors’ mentality. If you invested during 2020-2021 and in particular beforehand, then you have seen the value of your investment going through the roof, regardless if it was S&P500, Nasdaq, startups, or even more extreme cases like cryptocurrency, NFT, or any other mind-fart.

If you weren’t part of it, you have seen others making fortune through investments that perhaps didn’t make sense. That drags people into the always-up bearish perspective of “I’ve made tons of money in investing – therefore I’m a genius and I should be investing more into even more risky investments.” Or “everyone is making money, I want it too.” Or the most common approach of all, “I’ve made 20-30-40-50% on the stock market, I should take some profit and allow myself to invest in high-risk investments like startups or VC.”

Unfortunately, the bullish market era ended with a splash, and a bearish market took its place. Together with it a bearish market mindset. The profits people meant to use for investing in startups disappeared, or lost 25% on the S&P500 index fund. The investors don’t want to sell while losing, or more commonly, they thought that startups are risky and dound out that S&P can be very risky.

Add to that the inflation and higher interest rates, and all of a sudden for potential investors getting a 4-6% interest rate on USD is not that bad, and it is risk-free.

The result is people are inclined to invest in a startup in a bearish market, and even those who made commitments to VCs prefer not to invest. I’ve heard some VC partners quoting their LPs, saying that in the case of a capital call, they will keep their commitment, but prefer that you don’t call them.

VCs on their side realize that, preserve cash for the existing startups, and refrain from investing in new ones.

For entrepreneurs – it is winter time. Raising capital is harder, longer, and results in way less during the winter. The good news is that there is always spring after the winter.

But investors are right. Winter is a bad season to invest in. In fact, the return on investment during other seasons is higher than the investment made in winter time, and the reason is the next round.

The next round is still going to be in the winter time or just at the beginning of the spring and insufficient traction (due to insufficient funding in the first place) will make it harder to raise capital and in many cases that will slow down the startup journey.

What Can Startups Do? Go Back to Basics

· Solve a problem – solving a problem is the best way to create value. You need to create value in order to justify your existence. Your investors will give up on a company whose value is unclear.

· Focus – do one thing and one thing only, don’t spread. If you are trying to demonstrate product-market fit, don’t try to build a business model at the same time, or don’t try to go global. Serve the business, not the investorץ

· Adjust objectives and in particular adjust the organization to the objectives. At the end of the day, the most expensive part of the journey is the next month, when your organization is overinflated. It is still overinflated this month, in the next month, and the one afterwardץ

· Aim for profitability faster. It may be your objective if it is feasible, but the closer you get there, the less burn you carry with you, and the available cash will last longer.

Think of the burn and run rate again. If your revenues per month are $200k and your expenses are $600k, and you have $5m of cash, your run rate is a year. This may not be enough to get out of the winter. But if you can turn revenues to $400k a month, then you have two years of run rate.

Adjust quickly, don’t wait.