Is it Time to Invest in a Real Estate CRM Software?
Everyone’s talking about the revolution that technology could possibly bring to real estate. The worldwide real estate industry is worth somewhere around $217 trillion in 2016 and has been experiencing tremendous growth on a yearly basis. By most accounts, the housing market has managed to recover from the 2007-08 crisis.
Yet, the industry still remains notoriously antiquated, especially with respect to technology. Compared to other industries, tech has not really been able to "disrupt" real estate as of yet. Many real estate firms are still only getting the hang of proprietary technological solutions. One of the easiest ways to get your real estate firm to incorporate more technological solutions is to start with a real estate CRM. No one can deny the tremendous benefits that a CRM (Customer Relationship Management) Software can have for a business, regardless of the industry it is in. This is the reason CRM solutions are becoming commonplace for businesses of all kinds. It’s no different for the real estate industry. An Active Rain poll found that successful real estate agents are twice as likely to be using a CRM than their less successful counterparts.
Real estate firms, agents (and ultimately their clients), have everything to gain when it comes to investing in a real estate CRM. Here’s why:
1. Industry-Specific CRM
A considerable percentage of the target audience for this article probably has this question on their minds right now: why not just buy a regular CRM software instead?
It’s a good question too, and if they’ve been in the business for even a while, they already know the answer. It’s simple. The problems faced by realtors when it comes to clientele and customers are very different from the ones faced by the users of regular CRM.
For one, the goal of business/retail oriented CRM functions to encourage and ensure repeat business. But in real estate, repeat business is a rare occurrence, and is hence, not an end goal. The focus shifts towards building better, long-term relationships with one-time customers in order to increase referrals and lead generation.
Similarly, the sales cycle is so much longer than in most other industries. It requires a completely different strategy for lead nurturing and involvement, which necessitates the need for a different tool.
As such, it is best for real estate firms or brokers and realtors to invest in CRM software that’s specifically meant for the real estate industry. It will save them the time, money, and effort that would otherwise be needed in order to adapt a general CRM system to the real estate industry.
2. Automated Marketing
Most real estate firms have relied on traditional channels such as advertising and word of mouth by way of marketing. It is only recently that mediums such as email marketing became prevalent in real estate. And now is the best time for firms to automate their marketing processes as much as possible before their competition catches up to them.
Corporate businesses have already adopted automated marketing with considerable success. With a real estate CRM, you have a centralized customer database at the tip of your fingertips, and you can integrate the data from this to be used in myriad functions. The CRM can keep track of important dates, meetings with specific clients, send out emails and reminders, file important documents, and so much more. As with project management systems, you can see the status of each lead/client. On this basis, you can formulate better strategies to connect with them and make a successful sale. Moreover, with automated marketing, you will have the power to broadcast the right message to the right customer, every time, even if it’s a routine email or a friendly reminder. It enables you to stay on top of mind, which is exactly where you want to be.
3. Robust Lead Management
This is the biggest qualm of real estate managers. Lead generation and nurturing is very different in real estate than it is in other industries. As mentioned before, repeat business in real estate is rare, especially when it comes to the average individual buyers/homeowners. A real estate transaction is usually one with extremely high value and uber low frequency. This makes it harder to generate leads and requires a much deeper involvement on the part of the real estate agent. Also, for real estate firms/agents the most commonly used avenues for listing is the IDX (Internet Data Exchange), which allows them to access the MLS (Multiple Listing Service). MLS is the lifeblood of real estate firms, and general CRMs do not have the capability to accept data from an MLS feed.
With a real estate CRM software, you can seamlessly integrate with RETS (Real Estate Transaction Standard) and MLS in order to get the most appropriate listings relevant to your client’s needs in a fraction of the time it would require if done manually. This obviously means realtors have one less thing to worry about and more time to effectively nurture the lead.
Bringing it Home!
When people enlist for a realtor/real estate firm’s services, they’re in it for the long haul. For many, it will be the biggest and most important investment of their lives. Realtors should treat it as such.
A real estate CRM comes to its aid by automating small but crucial tasks and maintaining a centralized customer database which will function as a goldmine of information and contacts for years to come. It allows for quicker searches, better documentation, and simplified communication for the user. With a real estate CRM, realtors have the capability to foster a relationship of trust with their customers, which most would argue, is crucial when they’re buying a home. It leaves the broker/agent/realtor with more time and energy to connect with and truly understand the needs of their clientele, who are making the most important investment of their lives.