Know Your Customer: Using Data to Build Trust and Advocacy
In a slowing housing market, relevant data can be a valuable asset to both real estate professionals and their clients says CoreLogic CEO Lisa Claes.
In a notable change in direction to the spiraling property values of late, the latest CoreLogic data has revealed a 1.1% drop in dwelling values across 5 capital cities in the past quarter, with Sydney down further at 1.6%.
It’s only a small decline, yet at a time where housing affordability challenges, home loan interest rate rises, and tighter lending regulations have hampered activity for many downsizers, upgraders, investors and first time buyers, it throws another shred of uncertainty into the mix.
As a rule, people tend not to make big decisions on a whim. They want to make informed choices: Is it better to buy or rent? What are the trends in my area? Should I extend or upsize? Where should I invest?
So, as consumer sentiment declines, and the market shows signs of slowing, how can the industry build trust and confidence in the real estate process?
The data advantage
In an environment tinged with uncertainty, market data and insights can be an incredible resource for real estate professionals, as well as a powerful tool to advise and engage buyers, sellers and investors.
Property market data can help prospective buyers and sellers identify growth opportunities and mitigate risk, and track market trends over a prolonged period using personalised digital alerts that are relevant to them.
It’s well known that the cost of acquiring new clients far outweighs the cost of keeping the ones you have. A retained client has a greater share of wallet – they will come back to their broker next time they want to re-mortgage; they will remember and recommend their agent next time their friends and family are in the market; and they will use that same buyers agent who helped them successfully the last time.
So during periods of instability and change, data can be a real differentiator for brokers, real estate agents, buyers’ agents and lenders to inform clients appropriately, help them make their decisions, and in turn build trust and advocacy.
Know your customer and your market
Data has the potential to be an indispensable asset in the decision making process, so it’s important to get the formula right. Think about it from your clients’ perspective – how can you make the property market easier for them to navigate and succeed in?
Speak to your clients so you know what they are looking for, analyse market trends to create insights you can share, and make the most of digital technology to alert yourself and your clients to changes that may have an impact on the buying and selling process.
When the stakes are high, the market competitive, and the environment uncertain, data, knowledge and client advocacy will help you stand out from the crowd.