Look around you.
Every business that you see has turned to data to enhance its decision-making process.
Mix analytics into that, and you have stepped into the data-driven era that looks at numbers and gathers business insights to fastrack their decisions.
The real estate industry is no different. Real estate businesses, big or small, are now heavily dependent on an efficient tech stack - it gives them more visibility on their sales performance and goal tracking.
Broker owners now have CRMs, spreadsheets, and revenue management tools to drive key decisions.
Did you know, over 90% of business decisions in real estate are made based on data?
A gut feeling to draw hypotheses does not cut it anymore. The industry has moved on and is now adopting new technology to chase growth, better sales performance, and improved conversion rates.
Access to data isn't the end of the story; it is what you can do with the numbers that counts. Analytics Tools pull you out of the numerical mesh and help you clearly see what your data means.
It is the buzzword of every business, and we have 7 reasons why your real estate business needs an analytics tool.
#1 Being Data-Driven Helps You Be More Efficient and Successful
Businesses that are data-driven are 23 times more likely to acquire customers, 6 times more to retain them, and 19 times more likely to be profitable.
(Source: McKinsey Global Institute)
The goal of any data analytics tool is not to help you micromanage your agents' work but to increase transparency.
Data analytics as a tool isn't just a problem solver. It is a medium that increases overall effectiveness and helps you plan your next steps, the coaching requirements, and hiring needs for your real estate team.
#2 If You Are Not Tracking KPIs, You Are Losing Out On Your Business
The average ROI for real estate businesses that use analytics and business intelligence is 1300%.
(Source: Yellow Fin BI)
Tracking Key Performance Indicators can help you understand where the principal drivers of your business, your real estate agents, are lacking in their effort and decide on an action plan.
Are you spending more than what you earn? Have the sales in your business reached a plateau? When was the last time you checked your agent's sales pipeline, connectivity, and conversion rates?
Using a simple analytics tool can be the answer to all of these problems.
#3 Optimizing Sales Performance To Stay On Top Your Game
63% of organizations report using analytics has created a competitive advantage for their business.
Visibility and transparency in a business lead to accountability.
If you cannot identify the choke points in your sales pipeline and prevent leads from slipping through the cracks, you cannot take measures to improve the conversion rate.
Using an analytics tool gives you the edge over your competitors by ensuring that your real estate agents are accountable for every phone call that they make (or do not make).
#4 Increasing Focus on Data and Insights That Matter
Many real estate teams extensively try and test new tools to find the right fit for their teams.
But the training and onboarding can be so exhaustive that quite a few broker teams shy away from diving deeper into the world of analytics.
Rather than increasing the burden of more new technology, using an analytics tool can reduce dependencies on myriads of spreadsheets and collect all your data into one single platform.
#5 Conducting High-Impact 1:1 Meets
Real estate brokerages that conduct regular 1:1s notice at least a 20% increase in agent productivity and profitability.
1:1 Meetings are a high-leverage activity that is crucial for running a sales team. Using an analytics tool gives a detailed insight into your agent's performance and helps you know exactly where they need help and how you can coach them.
Real estate agents are the star of your business; if you're not actively driving their growth, you are blocking the development of your organization.
#6 Enhancing Customer Experience
One-third of industry professionals mention that data collection and analytics are essential to gain a better understanding of customers.
Using an analytics tool enables you to adopt data-backed methodologies to understand the needs of your customer. This is critical to make informed decisions that cater to the requirements of your potential customers and are profitable.
At the end of the day, it all boils down to improving conversion rates. Data analytics holds the lens for you to pay attention to the goals of your business.
#7 Predicting The Road Ahead
The most significant way to leverage an analytics tool is to understand the sales patterns of your business and the performance trends of your real estate agents.
By assembling data that reflects historic trends and outcomes of previous activities, you can set realistic expectations and goals for your business. It gives you a clear picture of what is possible with the current resources available and what you can target in the future.
Meaningful data allows you to take strategic actions and predictably improve conversion rates rather than setting goals based on guesswork.