Originally published on RISMedia’s blog, Housecall, written by Deborah Kearns, This is the third and final part of their predictive analytics series. This edition shares how brokers are using predictive analytics to create targeted
recruiting campaigns and retain the very best agents.
Real estate professionals might not have a crystal ball, but predictive analytics come pretty close.
Predictive analytics is used for a variety of hard-to-pinpoint tasks:
matching homebuyers with specific properties, showing a prospective
buyer how their investment will gain (or lose) value over time, and
identifying homeowners who might be ready to sell.
For brokerage owners looking to recruit and retain top talent, it’s a
competitive edge. Here are ways for brokerage owners to use predictive
analytics to stand out.
Providing Value to New, Existing Agents
Michael Hickman saw the value of offering predictive analytics as a way
to stand out in a competitive market. Hickman, CEO, president and broker
of Seven Gables Real Estate in Tustin, Calif., provides his 207 agents
with access to Totomic, which culls buyer and seller demographic
information across numerous consumer database platforms to better match
specific categories of buyers to specific properties. Offering this
insightful tool helps Hickman’s brokerage stay ahead of market shifts,
and, more importantly, appeal to younger, tech-savvy agents, he says.
“An agent with 30 years of experience isn’t going to respond the same
way to a recruiting message as a 25-year-old agent who’s in the know
about the latest tech offerings,” Hickman says. “I can use predictive
analytics to look up a prospect’s address and mine data about him or
her. That lets me tailor my [recruiting] message to be more authentic
and more likely to align with their interests.”
Macklin offers SmartZip, another predictive real estate tool that
identifies serious sellers through major life events (death, divorce,
marriage, etc.) in public records. Predictive analytics, he says, is
essentially a lead-generation program.
“It’s good for our revenue stream because agents are able to quickly
identify people who are more likely to raise their hand and sell a
home,” Macklin says, noting his agents earned 10 listings as a result of
using the predictive data in front of sellers. “That’s extra business
my agents wouldn’t have received otherwise.”
Hickman admits it can take time for a large brokerage to implement
and train agents on how to use predictive analytics properly, but it’s
well worth the investment. Hickman’s investment averages out to $10 per
agent per month, he says.
“My agents are saying time on market is shorter, and we’re hearing
that sellers are excited because they can see quantifiable metrics on
the marketing of their homes,” Hickman says. “If you’re not using
predictive analysis of some sort in your real estate business, you’re
missing the boat.”