Photo by Ali Morshedlou on Unsplash
The realm of real estate is shifting at a frantic pace. Technologies, sales strategies, and the market are relentlessly evolving. In this quick report, we’ve covering three key topics to help you stay on the ball.
Proptech is a term used to describe any form of technology in the field of real estate. Unfortunately, the term is as vague as it is popular. In layman’s terms, Proptech is a collective term used to define startup companies that offer innovative technology, business models or marketing strategies for the real estate industry. In other words, small companies that do their diligence to stay in front of the curve at all times, subsequently marketing their services out to any interested parties.
As such, it’s no surprise that venture capital funding in Proptech has skyrocketed over the years; from $500 million in 2013, to an estimated $12 billion or more in 2017. Four Proptech companies achieved the hallowed $1 billion valuation mark in 2016: Compass, a real estate broker network; Homelink, a Chinese real estate portal; SMS Assist, a property management tool; and Opendoor, an algorithm used to buy and sell homes online.
Investors are showing more and more interest in Proptech as the years roll by, believing it to be a mostly underutilized market opportunity. Tech-savvy investors, agents and managers ought to keep an eye on Proptech and where its headed: inevitably for greatness.
Push technology has been around for a long time, and still continutes to excel at what it does - user retention. Push technology allows organizations to send notifications to clients’ smart devices, which ultimately increases and improves engagement time. A 2015 study by Kahuna suggests that push notifications have the potential to double retention rates, and can even help prevent app uninstalls. Highly-specialized mobile applications can even perform various other functions to save costs on both time and travel.
For example, Homepass is a mobile app that registers home inspection visitors with just a few taps, creates customer profiles and even allows follow up push notifications if desired.
Another key sales strategy being adapted by many is omni-channel marketing. This modern sales approach encompasses the entire customer retail journey, ensuring that the customer’s needs are readily answered on any platform; be it in person, or on mobile, desktop, tablet, etc.
A study by Harvard Business Review discovered that 73% of consumers use more than one channel during their shopping journey. By 2020, it’s estimated that 56% of all retailers will become omni-channel hubs. As such, it’s worth making sure that your website, mobile and tablet applications are user-friendly and constructed at a highly competitive standard. A little goes a long way in interface design and its correlation into the eventual user experience.
Real Estate Agents
Despite rising house prices, Forbes reports that millennials are predicted to make up the largest share of home buyers for the next decade. With that in mind, remember the most important weapon in your real estate arsenal: your agents. Employee churn is a glaring issue in the realty industry; the competition is fierce, and the talent pool is deep. Agents are under immense pressure to survive as a large portion of their income is commission-based. Depending on which study, locale, or statistic you look at, the turnover rates for new real estate agents range between a whopping 50 to 80 percent.
Decreasing employee churn should be one of your main priorities here - one of the most effective methods to retain your best talent is by establishing a positive workplace culture.
Workplace culture might arguably be the most impactful factor in your organization. Research from Deloitte shows that 94% of executives and 88% of employees believe a distinct workplace culture is critical to success.
There are a few things to consider when first establishing or rebuilding a positive workplace culture. A great onboarding program for new recruits is a fantastic place to start. For example, Twitter has an exemplary onboarding program. Before the employee starts their first day, they have a company email address, a company T-shirt, and a bottle of wine waiting. New employees even have breakfast with the CEO on the first day. Ease newcomers into their role and manage their expectations; new hires often leave due to their expectations not matching with reality.
Employee motivation and satisfaction is another element you should be on top of. A transparent pathway of progression is an excellent way to keep your best hires motivated. One of the leading causes for people leaving their job is a lack of career direction and growth. Once employees begin to feel stagnated in their role, boredom and nonchalance will begin to set in, leading to unproductiveness and a loss of work ethic.
When you engage your employees with the task at hand, what was once boring and mundane can generate new avenues for friendly challenges and competitions. Take team leader Ryan Ruehle from eXp Realty for example. Only 20 to 30 percent of agents were tracking their sales activities on a constant basis due to its tedious and repetitive nature. Since introducing Arcade, 100% of reps are now accurately tracking their day-day sales activities, and workplace culture has seen a substantial lift.
Last but not least, having the right support for your employees goes a long way in determining their long-term stay. An open-door policy is a great example of this. A culture of collaboration, communication and respect is eventually attained when employees feel safe to share their thoughts to their employers.
At Arcade, we’re here to help you establish these healthy workplace cultures at your organization. We want to make sure all your employees are motivated and performing at their best, even when the going gets tough. Click here to request a free demo.