Between success & failure: data is the decider
The narrative goes that data is more valuable than oil, but it isn’t just Google and Facebook that need market analytics to stay on top. In the competitive world of real estate, data-driven prospecting isn’t only essential to get ahead but for business survival as well. In fact, Joe Rossi, National Training & Customer Engagement Manager at CoreLogic, says he’s already “been seeing businesses closing their doors over the last three or four years, so it’s not happening in ten years; it’s right now.”
According to Rossi, a changing market is necessitating alternative approaches. “Those who are doing the same thing they’ve always done are not winning,” he further explains. “Data utilisation is vital, and those who aren’t doing it are not surviving in the industry.”
CoreLogic categorises agencies based on their uptake of data-driven marketing strategies. What they’ve discovered is a clear pattern emerging wherein those in the advanced category, labelled ‘G’ (for growth), consistently possess a higher market share. “But when we look at people who aren’t fully utilising data, in most cases they’re in low market share,” adds Rossi.
Such observations are alarming to those yet to enhance their prospecting, with evidence borne from data. The good news is it isn’t too late; the bad news is it soon will be. Current CoreLogic observations show that, right now, “underutilisation is huge.” That represents an opportunity, even if fleeting, for agencies to capitalise on a slow-to-react market.
Something agencies can do immediately is focus internally on existing databases. CRMs are filled with valuable market stats that can be very useful in steering business strategy. For example, if a database shows that most vendors in the area are young families, agents need to better target that demographic with their marketing material. “Working your own database is a classic example of efficient and regular use of data,” says Rossi.
It doesn’t take drastic changes to see noticeable increases in market share either. “Let’s say your conversion rate is 30%, then a 3-4% change could be as much as 10-15 sales over a year,” Rossi points out. For more substantial gains, agencies will need to employ wider reaching datasets for deeper insights such as city, state or even nation-wide trends. Such knowledge not only drives business strategies; it also speaks to credibility.
To learn more about why you should better utilise data and how to approach it, attend Joe Rossi’s presentation at Summit 2020. Secure your tickets now at Summit2020.com.au