Data can help your agency to:
…and more!
Name an agency that isn’t striving for all of the above.
The best agencies understand the benefits of data, and that’s why they prioritise it.
Have you thought about how your agency is using data? Are you data wizards, soaking up every bit of info you can get your hands on and making decisions based on data? Great! Your agency is data mature. Or is your agency data-blind - making decisions based on gut instinct rather than insights? Your agency may be data-immature. Or perhaps you’re somewhere in the middle, dipping your toes in the data ocean but not going all-in. Not sure? Take our quick quiz to find out:
If you’re data mature, this blog isn’t for you. If you’re somewhere further down the scale, read on to find out how to become a top-performing data-mature agency – one that makes intelligent data decisions.
Data maturity measures how well a company uses data to make decisions. A data-mature firm is one with reliable data. They collect, store, manage and utilise the data effectively.
Data is a valuable strategic asset for all businesses that drives growth and helps guide decision-making with confidence. Competition is tough, the property market is tough and finding vendors is tough! It’s a tough gig all around. You need help – and data is that lifeline.
To get on board with data, you need to first understand the importance it plays in your agency. Insights from McKinsey found that data-driven organisations are:
The danger of being a data-immature agency is that you may make poorly informed decisions, risking the success and integrity of your agency. Picture the scene; you are setting prices based on intuition or outdated pricing models. You are unaware of a recent market shift. You may end up pricing too high and having stock languishing on the market. On the flip side, you may price too low and miss out on potential profit. Meanwhile, a data mature agency knew about the market shift and changed its valuations accordingly, so they were able to close deals quickly at the right rate.
With data, you can build trust with your vendors. Imagine a potential client calls about viewing a three-bed semi, but your records mistakenly suggest they already live in a similar property type. When you ask why they’re interested in moving to the same type of home in the same area, and they have to correct you that, in fact, they live in a two-bed terrace, it undermines your credibility. Instead of presenting your agency as knowledgeable, the vendor may question your competency. To win listings, you need accurate, up-to-date data for genuine insights into your clients’ situations and needs.
Finally, smart data use can help you proactively target properties that are not even on the market yet. In 2023, 82% of instructions were brand new to the market and never listed before. Using predictive AI and mature Machine Learning methodologies allows you to predict which properties will be coming to market with an accuracy of up to two months ahead, so you can proactively reach out to vendors to secure instructions ahead of your competitors.
The data you obtain must be accurate, complete and consistent. How do you know your data provider offers the most trustworthy dataset? Investigate the sources they obtain data from, how broad is their market coverage of listing? How many high-profile reputable businesses use and quote the data? The devil is always in the small detail or print.
Is your agency equipped with the right tools? If not, the consequences can be significant. Poor data or off-market blind spots can cause your agency to make decisions based on incomplete or inaccurate information. You may misprice properties, misunderstand market trends or miss opportunities. If you want to read more about the danger of inaccurate data, give our blog on the subject a read.
Think about how you manage your data and what your data processes are. Consider the techniques and methods that you use to analyse the data and what results or insights you obtain from it. It’s also crucial to have data-literate staff. Ensure everyone is understanding and using the market data to the fullest potential. You may have invested in a software tool, but are you checking if your agents are using it? Train every agent up so your agency can get the most from the data. Make sure you also know which data set will give you the best ROI.
You may be investing in advanced marketing software or tools whilst relying on incomplete or inaccurate underlying data. In other words, garbage in, garbage out.
Are you ensuring your data is easily accessible to the whole team? Don’t hoard it, keep it in the secret spreadsheet or locked in the board room – share it out. Leaders must also create a culture where data is valued and prioritised. They must advocate for data so that everyone understands its worth. Make a habit in your weekly team catch-ups of sharing insights that agents can use when talking to clients.
Data can form your strategy, helping you to make informed decisions. It can be used to communicate with vendors, as content for your social media or in your marketing collateral. How data literate is your marketing team? Can they draw insight from data to craft interesting and valuable communication? Training your operational teams in using data insight correctly is vital to ensure the trust of vendors and the wider public. The key is to use data insights wherever and whenever possible to give your agency a competitive edge.
Data is a powerful tool. It can help you build trust with vendors. In this blog, we highlight how an agent who fumbles over numbers or shares incorrect information erodes the confidence of the vendor. Clients will list with someone they trust and someone who keeps their ear to the ground.
If you want to boost your data maturity, you need to think about the providers you’re using. Don't put up with data that’s sub-standard. Demand a data provider that’s accurate, reliable and thorough.
It’s important to note that data alone is not enough. It's about data insight. A strong data provider will help to present the data to you in an easily digestible way. We have been working with our clients and partners to ensure they have a suite of tools fast which allows them to quickly and accurately gain the necessary understanding of what is happening on the market at any given moment. The data that powers our tools is highly accurate as we track 99.6% of the market – the most market coverage of all the providers. We’ve been doing this for almost two decades, so you can count on us to provide you with accurate and reliable UK residential property data. If you need help to improve your agency’s data maturity with property data for estate agents, give us a shout.