Future of real estate marketing: predictive analytics
20 April 2020 | 6min read
The last 2 decades alone, there was a massive revolution of innovation. Artificial intelligence is gradually changing the world and how people run their lives. Machine learning, an application of AI, is already being used in email spam filters, facial recognition and translations.
Predictive analytics might sound like a futuristic tool from a science fiction movie. But today’s marketers are using it to deliver what their clients want before they even know it themselves.
Several predictive analytics tools are helping businesses like the furniture retailer, Room & Board, to reach their customers more effectively. For example, they implemented Salesforce’s Marketing Cloud technology. It analyses customer traffic data, gives predictive analytics and suggests additional purchases to clients in real time. The result: 2900% ROI.
Topic in this article:
- What are predictive analytics
- Predictive analytics is changing B2B marketing
- Predictive analytics in the real estate landscape
- The future of the online real estate sector
What are predictive analytics?
Predictive analytics is a marketing strategy to deliver unique experiences to each user. The marketeer has the ability to observe customer behavior and build a profile of customer preferences. That information is used to deliver specific content in real time.
It uses algorithms to deliver content based on certain estimates of what the customer wants. Predictive analytics can actually anticipate the intent of a user and provide unique recommendations based on real time behavior.
Predictive analytics are changing B2B marketing
Marketers used to determine which stage certain prospects were at in the customer journey manually. For example, manual leads happens when a marketer assigns a certain value to leads based on their analysis.
Predictive intelligence uses a prospect’s behavior and past history to predict what they are looking for and when they will likely buy. This all happens through big data where the AI engines determine which leads are most likely to convert and sales reps can focus on leads that will provide the business most value.
This technology is making it possible, even for small B2B companies to grow very fast and expand their potential faster than traditional methods.
Predictive analytics in the real estate landscape
Predictive analytics is transforming the future of the real estate landscape. Traditional analytical methods and data sources aren’t suitable for quick, actionable insights. However, new methods are emerging to identify valuable insights that benefit both real estate professionals and consumers.
Big data on real estate has a big impact. According to Dave Garland (National Association of REALTORS), predictive analytics is historical data, extracted to predict the future. The big difference now is that they have new data points to apply to the real estate industry. They are moving from the idea of insight to foresight.
An example of how predictive analytics is changing the real estate industry:
Improve house hunting experience
When people are looking for a new house, they usually begin their search online. By using predictive analytics, real estate websites can use visitor data to understand the customer journey of the user.
Tools like this give them the power to predict which consumers are most likely to purchase a home and reach them with the right message, at the right time.
Similar to Amazon’s product recommendations, real estate portals are implementing the same concept by offering suggested properties. Additionally, listing recommendations can also show visitors certain houses that match their lifestyle instead of their search criteria. This way, new types of homes can be introduced of neighborhoods they may not have considered otherwise.
Listing recommendations may reduce the amount of time a property sites on the market and save buyers a lot of time of going through hundreds of property listings.
The future of the online real estate sector
AI technologies such as predictive analytics are barely scratching the surface of the real estate sector. This technology will change the landscape of the real estate industry on the buying and selling side.
It’s important to understand how this technology works and it’s potential is crucial moving forward. Predictive analytics tools will become so common that they’re no longer only available to data scientists. Technology like this is growing rapidly in accessibility which is why it will change the real estate market even faster.
Reach out to us to get a free 30 min call with one of our experts and learn more about the possibilities of real estate technology. Contact us today.