How Can Brokerages Leverage Data When There’s So Much Of It?
In the last couple of decades, the sheer volume of data has skyrocketed. But for real estate agents, is this abundant wealth of data a blessing or a curse?
Are we ready for big data?
We know data is valuable, but extracting value from data is highly complex. Big data particularly, requires sophisticated tools to manage larger, more complex data sets that contain greater variety, ever-increasing in volume and velocity, (the three Vs). These data sets are so voluminous that traditional data processing software aren’t able to sufficiently manage them.
That being said, industries today are becoming increasingly digitally mature, realizing they must leverage the power of data to expand business opportunities and grow revenue.
But with such information overload, and data coming from so many data points, is there such a thing as too much data for digitally driven brokerages (and organizations in general) today? Is big data becoming simply too big?
The problem with (big) data in real estate
A recent OpenText survey of over 27,000 global consumers revealed
- Less than half of respondents felt that the digital tools they were provided with to deal with data were the right ones
- 41% of US respondents said they spent an average of one or more hours per day searching for the right information or file location due to data often being siloed or fragmented
What brokerages should actually be concerned about
(hint: it’s not Big Data)
What should real estate firms and agents be working towards, especially if constantly gathering ubiquitous data is actually raising more issues than solving them?
To name a few:
- Adopting better data capture workflows
Clearly there isn’t an issue with lack of information or data sources. Brokerages and agents are already aware that there are potentially thousands of data points that they are not currently equipped to capture, or utilize effectively.
This can lead to paranoia that they are missing opportunities to generate or capture new leads. It’s why we’re seeing more technologies that utilize machine-learning algorithms to transform and more efficiently capture data, and analyze it while drastically minimizing the risk of errors.
- Establishing better data management systems
Poor management and fragmented access to large volumes of information are some of the top concerns for brokerages when it comes to data. There is also a misconception that processing and categorizing such vast amounts of data would require dozens of data analysts and additional staff (incurring additional costs), in order to tap into maximum productivity and profit.
Thankfully, the industry now has a number of digital tools and platforms to help manage data, from property management software used to handle property details, maintain agreements and tenant information etc, to analytics tools that help in data analysis and provide insights into current markets. These tools help brokerages save on costs and time without needing to hire additional teams, while also helping them identify trends and patterns, which can be utilized to make informed decisions going forward.
- Fostering agile client relationships
Powerful CRM software exists today that helps real estate companies manage and track client interactions, such as phone calls and emails, and provides a central location for storing client data. This data is then used to provide better services to clients, meeting them wherever they are in the funnel, with personalized recommendations based on their preferences.
However, the capabilities of CRM software are likely only to expand, since major real estate tech trends in 2023 continue to highlight the need and preference for industry-specific CRM systems, property management platforms, and data management tools. These trends also coincide with the rise of tokenization technologies, and GreenTech becoming more prominent in the field.
From real estate laggards to leaders
As an award-winning real estate technology innovator, Realforce has worked with some of the world’s biggest and best real estate firms in addressing the ‘data question’.
Our real estate-specific, ready-made Customer Data Platform is wholly designed to cut through the noise and get right to the crux of the matter. How?
- By categorizing each data point, whether it’s an on-the-market buyer, a potential buyer, local resident ready to sell, or a friend’s friend merely thinking about selling in the future.
- By storing these data points safely for future marketing opportunities.
- By reacting appropriately to leads in a timely fashion. This could mean helping firms build their brand, sharing local success stories, publishing promotional opportunities, etc.
- By offering (automated) scheduled reminders or best-recommendation content that will nurture and nudge the customer relationship over time.
It removes the need to trawl for hours, hoping for scraps of data that might be helpful. Instead, it enables brokerages to create hyper-targeted marketing campaigns that don’t require coding knowledge or algorithms - a major constraint for stakeholders when it comes to adopting new tech.
With the constant need for ‘guesswork’ and data silos removed, the Realforce CDP unifies customer data for truly personalized marketing, optimizing lead management and customer retention and ultimately, increased profitability and better decision making.
Further reading
Good data management was one of the key drivers behind our recent rebrand from Adfenix to Realforce, and the acquisitions that preceded it. See this article for more: