A proptech provider has acknowledged the difficulties agencies and agents are facing when it comes to servicing clients well at scale.
ActivePipe has acknowledged that the booming housing market has led many agents to overlook longer-term database opportunities, which they said are now slipping through the cracks.
Backing up its claim with findings from its own research, The Trust Report, it said that 39 per cent of leads are lost in a typical real estate agency.
In a typical database of 3000 contacts, this is equivalent to 60 listings. Based on the median Australian house price and a commission of 2.5 per cent, ActivePipe flagged that it is the equivalent to $1.4 million in commission being lost per agency.
It’s led to ActivePipe’s development of Grow, which looks to enable agents to maintain many client relationships at scale while also recognising a contact’s digital behaviour to identify the best opportunities in their database.
With Grow, ActivePipe is now offering three separate but linked products: connect, nurture, and grow.
CEO Ashley Farrugia considers Grow “an all-in-one lead generation system designed to unlock the millions of dollars of commission sitting in agents’ contact database by identifying and activating the opportunities ready to act”.
It works by identifying high-value contacts through online behaviour and tailors communications to suit their property objectives.
At present, Mr Farrugia said, “inside every agent’s contact list, there are hundreds of leads and untapped potential commissions that most agents and agencies struggle to tap into,” he said.
Considering technology as the best way to combat this untapped potential, ActivePipe highlighted new research by Accenture, which found 83 per cent of consumers are willing to share their data to receive a more personalised experience.
It also found that consumers who don’t feel they are getting personalised service are not shy about switching to competitors that use technology to deliver a more relevant and useful experience.
According to Mr Farrugia, this means real estate agencies are no longer just competing against the agent down the street.
“They’re now competing with every other experience that their customer has along their journey of buying or selling property. Forward-thinking agencies are using this to their advantage to create positive experiences that their clients want to talk about to others.”