Not so long ago, the bulk of decisions made within the real estate industry relied heavily on anecdotal information and gut feeling. Not surprisingly, some of these decisions didn’t hit the mark and proved costly.
These days, thanks to big data and advanced data analysis, the decision-making process is transforming the industry. In combination with a variety of applications and the internet itself, cutting-edge technologies have created an entirely new landscape for collecting and analyzing data that can then be leveraged to great effect.
The property sector is more customer-centric than ever, using valuable data insights to assist in meeting the ever-evolving needs and expectations of clients and investors.
Leveraging real estate data
Both residential and commercial real estate data is big business. The internet has created such a fundamental shift in the way people search for property, leading to the development of big data – extensive, complex bodies of data that require a sophisticated CRE platform and software to process and analyze.
From there, real estate agents can choose from hundreds of application options that utilize Application Programming Interfaces (APIs) to transfer data from Multi-Listing Services (MLS) and use software tools to leverage those data insights to improve their business performance.
In just a few clicks, these APIs furnish agents with valuable property data that can be harnessed for a variety of benefits, including:
- Simplified evaluations – big data allows for far more accurate, fair, and speedy evaluations
- Risk mitigation – predictive analysis can assist buyers and investors in making more calculated moves
- Technology management – smart home applications can assist agents in optimizing the management of properties
- Locational intelligence – pertinent information regarding a particular location can help agents to assist home buyers when * location scouting for property
- Marketing strategizing – data analysis can be used to accurately predict consumer needs and trends to significantly enhance marketing effectiveness
How is property data being leveraged to improve real estate marketing?
In such a competitive field, it is essential to leverage insights from big data to create successful real estate campaigns. Here are five ways in which the property industry is using data analytics to enhance its marketing efforts.
1. Identifying potential clients
Property data analytics can assist real estate agents in more accurately identifying potential customers. By leveraging this data, property purchases, prices, and other trends can be identified, as well as specific opportunities like foreclosures. These insights enable agents to focus their marketing resources far more effectively. Marketing to a whole community is a considerable waste of time and money, while pinpointing which potential clients to market makes for a far more effective use of marketing resources.
2. Enhancing targeted campaigns
The more a real estate agency can understand about a potential client and their home or property needs, the more effectively they can market to them. By leveraging data analysis regarding such areas as demographics, financial information, loans, property particulars, and more, agencies are creating highly targeted marketing to relevant audiences for maximum impact.
3. Improving precision
Better precision in marketing campaigns leads to better results. For example, when an agent takes data-driven automated valuation modeling into account, they can more accurately estimate a property’s worth, which can then be used within their marketing approach to particular home sellers. Real estate agents must always be up to speed regarding local price data and trends to remain competitive. Using this information to deliver highly accurate marketing messages further enhances their chances of conversion.
4. Doubling-down on marketing relevancy
By drilling deeper down into a consumer’s position, data can assist in creating more relatable marketing content. Marketing is far more effective when it is relevant to a potential customer’s circumstances. Therefore, understanding at what stage a consumer is at regarding their financial and home-buying journey and what their next moves may be, can assist in creating more personalized marketing content that lands more effectively.
5. Honing in on niche audiences
Niches can provide great opportunities, and using property data to determine new real estate niches is an effective way of uncovering new avenues for marketing. By determining significant subgroups of consumers, further options can be explored and targeted. For example, higher-income households, new homeowners, those with better credit, or homeowners more likely to refinance soon can be specifically marketed to based on their unique needs and trends to create new opportunities for profit across more segments of the real estate industry.
How to leverage property data
Modern data analysis assists professionals across all industries improve the effectiveness of their target marketing efforts. Building more relevant products and creating more precise, targeted marketing campaigns helps increase ROIs for businesses.
Property data can undoubtedly play a significant role in determining marketing strategies, but it must be based on the right data, and leveraged correctly for accurate insights. Failing to effectively leverage the right data can significantly impede any hopes for successfully driving more traffic and converting more leads for any business.
If you are looking to leverage property data to improve your marketing, be sure to research a variety of platforms and test them thoroughly before relying on any subsequent data. It’s vital that any data analysis used is of benefit to your customers as well as you. For example, you can use data insights to best design a website that optimizes consumer experience while increasing the likelihood that your calls to action will be effective.
This process may take some trial and error, but successful data leverage is key to remaining competitive in today’s data-driven, highly digitized world.
Targeted marketing is the new normal.
With so many industries leveraging data to optimize their targeted marketing campaigns, consumers now expect any commercial messages sent their way to be tailored and relevant – so much so that they will easily overlook anything too general in favor of what speaks to them more personally.
By leveraging property data, professionals in the real estate industry can focus their marketing efforts and resources in a much more deliberate way for maximum results. Highly targeted marketing leads to greater conversion rates, resulting in greater profits.