Today’s revolutionizing game changing technology has a lifespan of about one year. Within those 12 months competitors, tech- hubs, students and amateurs will have hundreds and thousands of different systems who will be 3, 4, 5 and 10 times as powerful as systems who retails for a million today.
What kind of technology are we talking about? According to Petter there are some machine learning algorithms that will identify everyone due to sell their properties in the next 18 months. There are new forms for artificial intelligence who can predict consumer behavior and potential triggers, value propositions and probable call to actions. There are dynamic digital media who adapt and change its setting depending on the visitors digital behavior.
In short, machine learning will find those homeowners most likely to sell their property. Then the artificial intelligence will design an outreach for each prospect based on their digital profile and behavior. When the prospect is triggered to visit a digital platform, the design and presentation and value proposition will be customized to that visitor’s expected needs and wants.
Why don’t estate agents implement such technologies asap? According to our sources there are several challenges related to implementing new technologies. For one every agency in a franchise must have access to the same technology ensuring the customer experience is the same no matter where. Another reason is difficulties in identifying what technology to go for. However, the most common reason was that they saw no need for it. At least there was no need to do anything before a competitor did it first.
What happens when estate agents leave their technological development to third parties? According to Arvid there are thousands of companies internationally making a fortune on doing the technology development for estate agencies. Marketer sells a simplified Facebook business manager to estate agencies for millions. Eiendomsmegler.no (estateagents.com) developed a good SEO site and campaign and kept selling customer leads back to estate agents for millions. This is money out of pocket for estate agents and their agencies.
What is the significance for estate agents, agencies, and franchises? For the estate agents it means that there are available technologies out there who would help them find and close more assignors. For the estate agency it means that there are available technologies out there which would increase the number of sales and the profitability of the agency. For franchises it means that there are available technologies out there who would increase sales and profitability for their agencies, increase the overall profitability and develop brand valuation.
How does today’s situation impact the market? If estate agencies were to utilize available technology. The technology would make their agencies more profitable. Homeowners would get a much improved service and user experience. And it would, to some degree, close up shop. Meaning it would create an effective barrier for new entries into their respective markets.
It is difficult to imagine a near future where some agencies without any agencies decide to take a leap of faith and try to implement some of these new technologies available. These agencies will most likely experience massive growth and disrupt today’s market and how it’s divided. That will probably force other agencies to follow suit. Some will manage and some won’t. But as they said in Westeros the winter is coming. You can prepare and thrive or ignore and disappear gently into the night.