Even though real estate is a lot about socialization and about agents communicating effectively with their prospects, leads, and clients; it is also very important to focus on data and make insights based on them to further each section of the business.
Real estate businesses rely on a bunch of different avenues to help the business grow by creating a continuous stream of leads and converting them into clients.
This article will delve into the importance of data-driven insights which are extremely useful in helping real estate agents grow their business, by finding more leads and clients.
What is Data Analytics in Real Estate?
There are various lanes that need to be managed in real estate businesses. Starting from the initial lead generation process at the start of the funnel to the end of the funnel deal completions, a lot of different areas need to be managed and optimized.
Data analytics refers to a nuanced process of understanding all the complexities involved in each of these sections to help create the best possible deals for real estate agents.
The real estate market can be a very tricky environment to navigate properly with all the different trends that affect it, alongside other factors. However, being able to fully jot down all the necessary factors that create lasting effects on a real estate business and being able to improve them helps a business grow in the long run.
How to Use Data-Driven Insights to Grow Your Real Estate Business
There are fundamental aspects that need to be focused on when trying to improve a real estate business, and they occur on two different levels:
- Marco aspect
- Micro aspect
To fully understand both these aspects, we need to dive into what comes with them.
Macro Data Analytics Insight In Real Estate
Property Management Strategy Optimization
By using data-analytics and insight into how properties are managed, real estate agents can optimize their own property management strategies. This can be done by looking at the areas they have properties in and finding out information for various factors. An example can be looking into a similar property in the area and finding out tenant residency longevity and rent estimations.
Forecasting Investment Profitability
Diving into historical data, even in recent years for the area an agent has properties in, can help lend a lot of information about how to invest, where to invest, and how much to invest. To go even more in-depth, finding areas with more foot traffic such as near local grocery shops or supermarkets, real estate agents can pinpoint which areas would attract more people to live in, in the long run.
Marketing and Tenant Acquisition
With marketing being where it is now, real estate agents can use a lot of data to be able to market their ads and campaigns to specific types of people to whom they want to cater their properties.
For example, a luxury property would be marketed and catered to higher-income people, and vice versa. This is further helped by the ability to utilize AI (artificial intelligence) with ease, and ensure they have all the numbers and data to help create the perfect stuff with the perfect methods.
Micro Aspects
Using CRM for Marketing Tracking
While speaking about marketing and how to cater to different audiences, it is also key to mention that some of the best real estate CRMs on the market can help pinpoint other micro information that helps real estate agents in their business.
Utilizing a real estate CRM will allow agents to conduct their marketing campaigns and receive all information for them on their CRM platform. Thus, having all this information can allow them to realize the best marketing methods, areas, and time periods.
Being able to figure out which methods are good for which areas helps real estate agents figure out everything about their campaigning, ultimately leading to a higher number of leads generated and more growth.
Team Tracking Using CRM
Data analytics does not only help in the real estate aspect, but it also comes up a lot when trying to optimize the workflow of a real estate firm. For example, many real estate CRMs allow KPI tracking for the team, work assignments, and hours logged.
This allows clarity for the whole team to know where and what everyone is working on, and when to get it done. On top of that, being able to assign employees to work specifically on the areas that they are required to work on helps them not be distracted by an overload of information. For example, if someone in the acquisitions side needs to check leads generated from the real estate website, they do not need information on other campaigns.
A team that works properly and on time will not only grow but will be able to raise more employees who go on to become successful real estate professionals themselves. People often think utilizing CRMs means itβs real estate CRMs vs traditional methods, but oftentimes they go hand-in-hand to build the business.
Conclusion
Overall, data-analytics and having an insight on them is very necessary for every business, real estate included. Real estate agents can not only implement them for the betterment of understanding the real estate market, but to directly impact their own business and create employees who understand everything about the real estate market.
Implementing a CRM system into a real estate business can be a very good start to ensuring the business grows, and to help in tracking various KPIs that can affect the business from revenue to team performance.