Why Builders and Realtors Need to Analyze Big Data

Big data has suddenly become big business. If you are a builder or a realtor, how can you benefit by gathering and analyzing big data? Will data help you sell more homes?

Yes. You might assume that only big organizations need to harness the power of big data. Far from it. Both small and large real estate companies can run their businesses better by analyzing customer data. However, a good understanding of how big data helps your business is essential to develop a suitable business strategy.

Data becomes valuable only when you analyze it. And proper data analysis helps you know your customer better.

Data analysis helps you gain an edge over your competitor

Several builders and agents still don't take the time or trouble to gather data about their target customers. By simply gathering and analyzing data, you can gain an edge over your competition.

By analyzing data, a real estate company can find out what kind of homes sell well in a particular locality. This knowledge will help the builder launch the right project in the right locality.

Data also helps builders and realtors find people who are more likely to buy or sell homes in the immediate future. This will help them create a marketing strategy that targets the right group of buyers.

Data gives you more comprehensive demographic information. It also shows you why certain category of homes sells well in certain localities.

Launch better marketing strategies

After analyzing big data about your customers and the real estate industry, you can use that information to expand your business. One advantage of using big data is that it helps you improve your marketing strategies.

If you run a website, by simply looking at who is visiting your site, you can create a marketing strategy tailor-made for them.

When you have access to data which shows you who your target customer is, you will have no difficulty launching a more personalized marketing strategy.

This kind of analytics is useful for several types of businesses. Data also helps you adapt your marketing strategies for future buyers.

Data helps you decide whether you should implement a marketing strategy or not

By simply analyzing the data gathered by your analytics software, you can decide whether or not you should implement a new marketing strategy. If you market your homes or services to people who are not interested in being a buyer or seller anytime soon, you are simply wasting your time and resources.

When you have real data about your customers and the real estate industry, you can find out whether you should expand your business to other markets.

Realtors sometimes make business decisions with no reason. However, when you work with data analytics, you can make sound business decisions with a reason. A well-thought out business strategy will only benefit you and your company.

How to gather data

It is not difficult for a real estate company to gather data. Most of them already run websites. By simply analyzing the key phrases that attract people to their website, a builder can find valuable information about their potential clients. Both free and paid data analytics software solutions are available.

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The Growing Importance of Data Analytics

It seems that retail is fast emerging as the biggest adopter of big data. Nearly every global retailer is exploring how big data analytics can help to decode consumer behaviors and penetrate segments that have traditionally remained outside their reach. However, this doesn’t mean that other sectors aren’t sensitized towards the growing importance of big data.

Retail Might be Leading but Real Estate is Driving the Big Data Wave Too

Healthcare is aggressively pursuing the path of digitization and big data plays an important role in this journey. Real estate institutions are increasingly acknowledging big data capabilities which give them a better chance to evaluate risk and add more value to customer services. Real estate firms are using big data to re-assess traditionally unserved consumer demographics and create more sustainable customer relationships.

Real estate has always been among the biggest creators of consumer data. Somehow, this fact wasn’t widely acknowledged until recently. Even when retailer activities were limited to merely creating summarized bills, real estate was creating lots of useful consumer data. This included details about household incomes, bill payment patterns, and credit history.

Data Analysis Driving Real Estate Decisions

Today, realtors understand that their consumer facing activities need to imitate the big data efficiencies that retailers have gained. This means capturing, storing, cleansing, indexing, and analyzing data for better outcomes. The role of traditional data centers has changed. Earlier, consumer interaction wasn’t as conclusive. Now, consumers review, recommend, and emote about nearly every product/service. This includes conversations about brand loyalty or buying preferences. These conversations provide valuable insight into how geographical and regional demographics affect property buying or refinancing decisions.

Contemporary data centers need to be more proactive to consistently stream the web for such meaningful data. From time spent per webpage to the number of clicks per banner ad, and daily webpage views, most types of browsing patterns can be quantified. Once expressed numerically, they can be further analyzed. The analysis yields actionable information—this kind of data helps managers to take decisions with more confidence.

Using big data analytics, real estate businesses can optimize their products, services, and even webpage layouts and promotional messages. The idea is to be in sync with the mindset of consumers. Some other benefits of an effective data analysis team include:

• Ease of conducting market segmentation studies
• Identification of points of losing consumer interest
• Evaluation of efficiency of different points of sale
• Evaluation of consumer engagement efficiency across different channels like physical campaigns, calls, emails, and mobile offers etc.
• Gaining future readiness, i.e. being intuitive about emerging market trends
• Gaining insight about internal processes and staff performance
• Developing better, more sensitive competitor pricing strategies
• Local and regional market analysis for revenue growth forecasts
• Establishing seasonal patterns in revenue hikes or dips
• Ease of conducting consumer sentiment studies
• Real time monitoring of established and emerging consumer behaviors

Please understand that big data becomes fully useful when a business can gain multi-channel analysis and large scale improvement capabilities. A true big data infrastructure should drive improvement of internal processes like supply chain, recruitment, and even administration. Every internal dynamic of a business, ranging from logistics to warehouse optimization, can be enhanced with big data analysis.

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How Experimentation Can Fast Track Big Data Capability

As more businesses explore the vast expanse of big data utilities, it is becoming clear that big data delivers more when managers are ready to be a bit creative. For a real estate business, big data can provide many standard utilities. Standard because soon most of the real estate organizations will gain similar big data advantages—this trend is already underway. So how does a real estate business make itself unique and more competitive?

This is where experimentation comes to the fore. Big data analysis can yield lots of actionable information provided you are ready to take some chances, allow room for creative experimentation, and use data sources that seem irrelevant at first sight. Here we discuss more about how experimentation can drive better ROI for your big data investment.

Big Data is Being Widely Embraced, but Who Will Benefit More?

We understand that big data is still new for most organizations. They are approaching big data with some apprehension along with lots of enthusiasm. It is unfair to expect such businesses to get creative with big data at the outset. This doesn’t make sense, particularly when digitization hasn’t been associated with the real estate industry in a larger perspective. We realize that most businesses in this niche are finding it difficult to let go of their legacy protocols, wanting to hold on to the traditional methods of working. However, the big data voyage has begun, and soon most businesses will be at ease working in a data-driven environment.

There is another aspect to this realization—some organizations have adaptability as a part of their core skills. On the contrary, some are deep rooted in hierarchies and don’t venture beyond the realm of expected outcomes. It seems that the more adaptable businesses have a better chance of extracting better ROI from their big data adoption. The more established businesses will take time as their bigger teams and numerous offices multiply the hierarchy, breeding lesser elasticity.

Big Data can Look Ungainly, But Don’t Fret - Placate Your Team

Big data involves high volumes, mammoth disparities, and real time performance. This means lots of data is collated from various resources, including data that is highly unstructured and processed in real time. During the initial few weeks, you might feel that your big data team is trying to do too much. However, don’t have doubts about this—the typical big data environment is very challenging and to others, it can seem very perplexing.

Data analysts work together, forming strategies on the go, hungry for processing more data. Once you have established a basic level of understanding with your big data team, try to establish an experimentation policy. The idea is to make the team feel that you support a certain degree of experimentation. The team should know that running correlations or comparisons that don’t amount to any conclusive information will not be ridiculed. You can ask the team to allocate certain hours or weekdays for running experimental data studies. This is vital to discover unexplored market service combinations and unearth new consumer zones.

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Why All Businesses Should Embrace Big Data

Some industry analysts have made less-than-enthusiastic forecasts about the widespread adoption of big data. According to them, big data will take time to be adopted by businesses—this can be up to five years.

Is this mere speculation?

There is some truth to this viewpoint. It seems that even among businesses using big data, the zone of maximum productivity remains elusive. This is because some companies have adopted big data without the necessary introspection. It should be understood that big data can deliver only when the resources managing it are well equipped. This means having the technical expertise for data collation, warehousing, sharing, and analyzing. Secondly, some businesses have acquired the expertise but lack the right insight necessary for driving business decisions using big data. Overall, it isn’t the ROI of using big data being questioned — the issue lies with handling it effectively.

The Transformation is Underway

You might think that big data hasn’t really taken off. However, the truth remains that it is much more than just another transformational technology. Despite the slightly-pessimistic perspective, it would be foolish to deny the growing interest in big data. Businesses of all sizes are realizing that big data is a definite, mainstream reality. It is just a matter of time when businesses of all sizes will incorporate the skills necessary to use big data. Big data is here to stay and this realization is underlined by the growing urgency to employ data-centric skills. Some businesses are aggressively hiring manpower that specializes in handling big data. Even better, some companies are looking for trustworthy data solution vendors who can empower them with big data capabilities at much lesser costs.

There is no doubt that big data yields better correlations that drive smarter business decisions. When combined with advanced analysis, big data can help you improve customer service and design better products/services. Data analysis can help you resolve problems that seemed exceptional and unsolvable.

Some Big Data Dynamics You Should Keep in Mind

If you have already begun the big data journey or are on the verge of starting it, please read the following:

Data Protocols

Ensure that you have effective data strategies in place. This includes protocols for collecting, saving, indexing, sharing, and analyzing data. Data should be accessible, but not at the cost of compromising data privacy and security. Whether it is the sales department or CEO’s desk, data protocols should be implemented across the organization.

Expertise to Use Big Data

One huge benefit with big data tools is that they can provide immediate results. This refers to simple data sets. Using this, managers can make decisions that affect the current, internal processes, customer service methods, and marketing strategies. Therefore, ensure that you have the required personnel in place to use big data. You should have data experts or managers who can put actionable data in motion.

Don’t be Apprehensive about being Data-centric

Once you start realizing the benefits of big data, it is likely that you will seek a data-centric approach to regular business processes too. This might upset a few employees and challenge authoritativeness of some managers. Accept this unpleasantness as a part of the transformation that will eventually subside.

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Why your Big Data Analysis System Should be Insightful

There is a lot of emphasis on data and data analysis these days. However, data analysis alone won't deliver the desired results; companies should be able to turn the insights acquired by analyzing data into valuable actions.

Using data analysis, a real estate agent should be able to identify potential customers who are likely to move homes in the immediate future. Proper analysis of data involves asking the right questions. This will help realtors detect trends and adjust their business processes.

If you are an agent you could perhaps ask:

Why am I making fewer sales? Or how can I know what my customers want? Remember that the goal of data analysis is to change compelling insights into tangible business actions.

Companies should build a data-first strategy that will help them gather valuable data using their new products. Data analysts attempt this type of exploration to discover critical business insights. They will then present these insights to stakeholders, who after interpreting the insights will use them in making tactical decisions. There is one problem, though. Thanks to its broad nature, open-ended explorations may uncover insights that have little value.

On the other hand, closed loop data explorations are more focused. For example, a real estate company might ask: Are there any real estate investors who bought more than 5 properties last month? This information allows the company to flag that investor as a very important customer eligible for special offers. However, even closed-loop data analysis carries the risk of producing insights of little value.

Why it is important to take quick decisions

One of the biggest challenges of doing business is making great decisions. While professionals in the IT sector are quite comfortable delivering reports, real estate brokers are yet to get into that habit. It is even more difficult to take an action based on available information. And if a company fails to take decisions in spite of having lots of insights, its value will begin to erode.

You may have invested in information management tools and generated all kinds of reports and dashboards, but all of these are useless if you cannot convert your observations into actions. In order to benefit from data analysis, companies should be able to quickly and efficiently transform insights into actions.

This wouldn't be possible without investing in streamlined data collection technologies and decision-making strategies.

The need to adopt a "data first"strategy

When you design or launch a new product, data collection and analysis is probably the last thing you do. However, it needs to be the first. To have a 'data first' strategy is to have the right tools in place to gather insights that will greatly improve user experience.

Partnerships

Many organizations do not have the technical expertise required to gather and analyze data. In this case, they should consider bringing in outside expertise through partnerships. And when you have the right partnerships, you will be able to reach customers with deals, offers, content, and ads across different channels.

Why is data so big?

Big data analysis is a powerful tool that will significantly improve user experience and increase profits. But it’s critical that businesses are aware of the process, have the right tools, and realize the need to move quickly and decisively once they have gathered insights.