At Real Estate Connect NYC 2015, SmartZip CEO Avi Gupta, NAR Data Analytics Group Managing Director Todd Carpenter, Referral Exchange VP of Product Myron Lo and Spark Tank Media Founder and CEO Jeff Lobb spoke about how actionable big data is revolutionizing the real estate industry.
What and how to use small data and big data:
Small data: Bits and pieces of information. Things we can pay attention to everyday. Example; you see that Amazon has dropped off a baby product on the step of a house. Or, you hear a friend has a kid who left for college. Small seller signals can be meaningful when you put them together.
Big data: 100s of pieces of information boiled down to small actionable data. This data can include homeowner equity in the house, buyer behavior, credit history, child ages, neighborhood data including move frequency, school reputation, air quality...
The job of big data is to boil it down to small data—the actionable piece that agents can use to find clients.
Actionable ways to find data:
Segment existing clients. Segment out public data to find a niche — like property sales/estate sales/inherited properties. And, look at them throughout their life events.
Consumers expect that anyone who services us, is going to be more informed than we are (as consumers.) So you have to make big data the center of your CRM.
Capture all your data on a daily basis, store it for eternity and add to it over time. Use apps including Excel or Connect 6 or Refresh. Search Twitter for details, LinkedIn for profiles and perform social searches on Facebook. Bring it all together, find patterns and store it in one place.
Sellers are especially hard to identify. Watch for subtle signals — a combination of them – determine patterns. Only when you put together all those patterns can you identify your potential sellers.
AVM services attract consumers looking for the value of their home and determine if it's a good time to sell
The Problem with CRM:
CRMs are too often used as data storage including name, address, birthday. Most CRMs don't have actionable prospect insight. The whole purpose of CRM is to send right message at right time. If you don't' have the right data behind it then you can't possibly target them.
Dripping to everyone. "Most industries send the same email to every person in their sphere of influence. It's brain dead." You want to use data to determine which person should get which message when.
Leveraging user behavior:
The amount of personal information that is available is spooky.
Amazon: ⅓ of purchases from recommended. We end up with products we never wanted to buy. Most homeowners who never explicitly want to sell their home have so many questions in their head: should we move, is it now, where will we go. So their big moment isn't about selling — it's about what's next for them overall. Selling is a factor in their new future or their current.
Challenges and frustrations:
Accessing the data. The average agent isn't' going to access a credit service. So, smaller brokers may not be able to afford a 3rd party option.
Pulling data is still very manual.
With data brings power and accountability:
Regardless of what data system you use to identify leads, it's what you do with your lead. It's critical to send the the right message to the right person at the right time.
Big data is there to help you work smarter, but doesn't do the work for you
Big data by itself is not sufficient. Data is the means to an end. The last mile. The final connection between deciding what data you have, and using it as a tool to leverage and have conversations. Make sure you say the right things and make sure it's not spooky! Data can be spooky. How you use the data is critical to making a transaction happen. You have the power with data to bridge the last mile. There's still a human factor that comes into play.
Big data is not a crystal ball but rather a compass to steer you in the right direction.