Notes from my presentation on ROI at the recent Inman Real Estate Connect conference:
Issue: What are the first steps real estate firms should take to get a handle on their data to enhance near-term and long-term ROI on this data?
- Since 80%+ of all originating real estate transactions begin on the Internet, firms should consider utilizing proven Internet analytics engines;
- Firms should create an existing consumer data warehouse that accepts data from whatever format and whatever source, normalizes this data, hygiene this data, to net down to a single record per consumer data set;
- Firms then should segment this data, overlay this data (e.g., with demographic or lifestage data), score and profile this data, and then model this data; this gives firms insight into their existing consumer data;
- This data warehouse then is used to drive marketing decisions pertaining to existing and emerging or new consumers.
VisiStat is a program to understand broad as well as locally-specific Internet use traffic that real estate firms can employ to make more informed decisions about how to manage their Internet resources, agent base, franchise locations, etc. The same can be said for Google Analytics, HitWise, etc.
But if we’re really focused on ROI, the key is consumer-specific data and the analysis of such. Accordingly, if one only looks at Internet based, or Internet derived traffic, it’s largely like looking at the top crust of an apple pie…the filling is where the substance is. And in the case of ROI that substance is a carefully constructed marketing database and marketing data warehouse where each consumer data record has been individually segmented, scored, and overlaid with demographic, psychographic, and lifestage data.