Predictive marketing for estate agents – what it is and why it works
Big data. Predictive analytics. Artificial intelligence algorithms… Quite quickly, it all starts to sound like a game of buzz-word bingo between guys (or girls!) who like to attend Warhammer World conventions on the weekend and build computers in their bedrooms.
So, why does it matter for estate agents, particularly when you’ve got by just fine without it!?
Predictive marketing, done well, enables businesses to identify and communicate with prospects that are most likely to need their product or service in the near future.
By identifying who (and where!) their most valuable prospects are, and marketing directly to them, estate agents can consistently generate more vendor listings every month.
Not surprisingly, predictive marketing is being embraced by businesses across the board – a recent report revealed that 98% of marketing professionals using Customer-Related Marketing reported that they already use predictive marketing or are committed to using it. (For details, see the 2015 State of Predictive Marketing Report).
Applications across multiple sectors
As well as marketing, predictive analytics has applications across many different sectors:
- Financial services – in areas like credit risk insurance and underwriting.
- Publishing – moving from traditional print to digital (who is receptive and what they’ll pay)
- Healthcare – including predictive medicine (what will work best for different patients).
- Human resources – managing workforces and their differing needs and reducing churn.
- Manufacturing – reducing machine downtime, improving quality, forecasting demand.
- Government – detecting and reducing fraud, disaster response, general intelligence.
It’s already being used, and making a big difference in these areas. But there’s one industry in particular where predictive analytics and marketing is now making a huge difference – the property sector.
Home movers and predictive marketing
Marketing to potential home sellers tends to be both expensive and difficult. At any one time, only about 1 in every 40 homeowners is likely to sell in the next 6 months. Identifying them, talking to them and persuading them use your service can take a lot of time and money. And that’s before you factor in the competition from other agents.
This is where predictive marketing comes in. In the USA, thousands of real estate agents use it to target the most likely potential sellers, to build relationships, and to convert them into paying customers. All the while, generating a far higher return on their marketing spend.
Why SmartScope’s predictive marketing service can make a big difference to your bottom line
Here in the UK, SmartScope is pioneering the way forward for British estate agents. Our founding team of data scientists and marketing experts spent over a year fine-tuning our predictive algorithms (analysing over 350 variables on every individual household in the UK) before launching in 2016.
The result is a data-driven direct marketing platform that means you no longer have to target the whole market in your quest to find the 1 in 40 homeowners who will actually be moving in the next 180 days.
By targeting those identified as most likely to sell, agents are able to reach more than 5x the number of households that will move in the next 180 days. For example, where a typical mailing campaign of 1,000 letters might reach 25 households which are soon list, the same campaign, sent through SmartScope, would reach approximately 125 ‘high probability movers’.
In addition, SmartScope’s vast database contains information about each UK property as well as their owners, so every direct marketing communication can be personalised.
In a highly competitive market, SmartScope offers a significant edge. A way to get more listings each month without the associated cost.
Try SmartScope now
Our turnkey package, offers bespoke copywriting, multi-channel campaign management and your own dedicated Customer Success Manager.
It’s easy to try out SmartScope with a free, no-obligation demonstration.
Why wait? It really could grow your pipeline of vendor instructions, reduce the amount of time you spend on marketing activity and make a massive difference to the return on your marketing investment.
By Astrid McGuire, (SmartScope - Business Development Manager)