Eeeee-Buyer Brought to you by the Real Estate Buyer’s Agent Council Version 2.0, May, 2004.

eeeee-Buyer

Brought to you

by theReal Estate Buyer’s Agent Council

Version 2.0, May, 2004

Electronic commerce is accelerating the shift of power to the customer.

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Introduction

• Who is the e-Buyer• Just what is e-Business• How do we find e-Buyers and acquire their

business?• What is the status of the online transaction

• How do we transition all customers into the For Life Mode

What are the opportunities, and associated challenges, for real estate professionals in this constantly evolving business environment?

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Waddya Know?

• How many current Internet users have connected using WiFi or other wireless applications?– 1 in 2 (50%)– 1 in 6 (17%)– 1 in 12 (8%)– 1 in 23 (4%)

Seventeen percent have logged on using a wireless device, and those under 27 were nearly twice as likely to have done so.

Reuters, Tue Apr 13,2004

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Waddya Know?

• What does the following emoticon represent?

(:)-)

Scuba Diver

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Waddya Know?

• Which of the following are considered to be the least patient and desire instant gratification?– Baby Boomers – 1946 - 1964– Gen Xers – 1963 - 1978– Gen Yers – late 70’s – mid 90’s– Seniors – 55 and older

These are the kids of the Baby Boomers, and they grew up with latchkeys, fast food, remote controls, automatic teller machines and microwave ovens, all of which provided instant gratification.

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Waddya Know?


:-D

Talks too much

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Waddya Know?

• On average, how long did e-Buyers search for a home in 2002 using the Internet before contacting a representative?– 1.8 weeks– 2.5 weeks– 3.6 weeks– 4.5 weeks

e-Buyers averaged 4.5 weeks investigating homes and neighborhoods before contacting a salesperson versus 1.8 weeks for Traditional Buyers

(California Association of REALTORS® study – 2002).

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Waddya Know?

• On average, how long did it take e-buyers to purchase a home after contacting a salesperson? – 2.0 weeks– 3.2 weeks– 4.0 weeks– 6.6 weeks

After contacting a salesperson, e-Buyers spent an average of 2 weeks in a search, visiting an average of 7.5 homes, opposed to 6.6 weeks and 15.2 home for t-Buyers.

(California Association of REALTORS® study – 2002).

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Waddya Know?


}:- >

little devil

11

Waddya Know?


# - )

partied all night

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Activity: Brainstorm

• List skills and strengths required of successful real estate professional:

• How does technology effect the strengths and value of a real estate practitioner?

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e-Buyer

• Electronic buyer

• Consumers who conduct research/purchase via the Internet

• Customers the real estate industry has always worked with, just better informed

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What e-Buyers Want

• Consumers desires in the purchase of a home:

• Price• Personal touch• Customer service

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Internet User Driving Forces

1996-2001 2002-2007

Email proliferation Free web browser Content explosion Low-cost PCs Intranets for business users Web hosting services Business-to-consumer e-commerce PC purchase rebates from ISPs Business-to-business e-commerce “Free” ISP rates in international markets Web-driven productivity gains Internet/cyber cafes

Web cellular phones Pre-paid Internet access cards Broadband Internet connections Wireless Internet access Un-metered Internet access fees M-commerce (mobile devices) Business-to-Business e-commerce Wireless web content M-commerce (E-commerce for mobile devices) Internet cafes in developing countries Declining & fixed ISP rates outside the U.S. Hardware costs bundled in ISP rates Web appliances

Technology is constantly evolving – changing the way we do business.

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What e-Buyers Want

• Make the home buying/selling process

• Easier– Access to information

• Quicker– Communications with Broker, mortgage Broker,

etc.

• Cheaper– Focus on value – not cost of the property

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e-Buyer versus t-Buyer

E-Buyer T-Buyer

Access to information Dependence on salesperson

Be involved throughout the transaction

Be involved in the selection process only

Desire exceptional customer service

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Consumers Desires and Needs

• They wish to save time,

• They are techno-savvy

• They have high expectations

• They are loyal – to an extent

• 1st contact online must meet expectationsSuccess in this (automobile) area will depend on dealership personnel, the dynamics of which are changing right along with the dealership Internet operations landscape. Polk Automotive Internet Study

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Consumers Desires and Needs

• Access to product information • Control of the buying process • Quick response to inquiries• Efficient use of buyer’s time • Product choice • Quick, friendly customer service• Ease of transaction • Resolving problems quickly is the

factor that will lead to future business

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Why Buy Online ?

• Value: product quality/support & customer service weigh heavily one-Buyer’s decision to purchase.

• Control: e-Buyer will most likely obtain information before contacting you.

• Time: e-Buyer wants information provided quickly & accurately.

• Anonymity: do not push e-Buyers to reveal themselves sooner than they're ready

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Continued Need for High Touch

• Incorporate technology into high-touch customer service – Determine for each customer/client how

and when communications are to take place….

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• What “high-touch” customer services do you now offer to your buyers?

• What are other successful real estate professionals doing that you would like to implement?

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The New e-Buyer - Demographics

• Of all the demographic data – this is the most telling…– 77% say that the Internet influences

their purchases more than any other media.

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How do they React and Transact

• …these online customers are more regular visitors to brick-and-mortar stores than are their counterparts.

• In a recent survey, 74% of respondents reported that they had visited a department store recently, while only 61% of offliners had.

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R.E. e-Buyers

• What real estate e-Buyers are generally looking for is a “live person” to:– Interpret information– validate and supplement information– negotiate terms and conditions– help guide them through the process of

buying a home

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CAR Study

• 70% of all dissatisfied t-Buyers were dissatisfied because the salesperson failed to communicate effectively

• 87% of the e-Buyers commented that the salesperson was always quick to respond. Good News…e-Buyers look at approximately 50% fewer homes before purchasing than do traditional buyers.

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Distinctive Audiences

• As we discuss the research results of the following generations, consider the following:– What is unique about their

communication preferences?– What unique ways can I market to these

groups?

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Distinctive Audiences – Baby Boomers

• Born between 1946 & 1964 • 76 million strong • 52% of all online shoppers in 2000 • Account for 50% of all Internet users• 27% percent of boomers use the Internet

for financial news at least 1 or 2 times per week, with 8 percent checking the Net every day.

• 62% made at least 1 online purchase• Image is everything

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Distinctive Audiences – Generation X

• Born between 1963 & 1981 • 50 million strong • Kids of the Baby Boomers• Grew up with instant-gratification & quick

response conveniences– fast food, remote control entertainment, ATMs

& microwave ovens

• The generation that brought e-Business into the mainstream

• Time is of the essence

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Distinctive Audiences – Generation Y

• Born between the late 1970’s to mid 1990’s

• 60 million up & coming consumers• Selected the Internet as medium of choice • Estimated that almost 80% were online at

the end of 2000• Instant gratification buyers & like

the social aspect of shopping with friends• Possible first time home-buyers

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Tomorrow’s Home Buyer

• (IDC) (www.idc.com) noted that; “many in this group already take the Internet for granted and in five years they’ll expect it to be as reliable as electricity, the telephone, and running water”.

• Generations X and Y could spend approximately one-third of their lives on the Internet

• Generation Y likes to window-shop online & purchase in person. Verify exam

That’s good news for real estate professionals!

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Distinctive Audiences – Seniors

• Fastest growing group of Internet users

• Expected to grow 50% as compared to 3% for the 18 – 40 year olds.

• This group likes the Internet to connect to loved-ones.

• Importance of ease of use in your web-site (large text, easy navigation)

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Distinctive Audiences – Seniors

• Top 5 uses by Seniors– Using email– Looking up hobby information– Seeking financial information– Reading the news– Checking weather reports

• These should be included on your marketing plan

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• How do successful communication methods differ to meet the needs of the demographic groups? – Baby Boomers: Image is everything!– Gen X: Now!– Gen Y: Possible first time home buyers– Seniors: Ease of use

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Representing the e-Buyer

• Agency Laws still apply

• The potential for undisclosed dual agency still exists, particularly if you list properties on your site.

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What is e-Business?

• Collective term to describe business & business services that use the Internet as a transaction medium.

• Integration of people & business processes with technology & the internet

• Use of electronic information to conduct business

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Section II. E-Business

• “Old Economy values . . . still hold true in the New Economy.”

- Elizabeth Heichler, IDC

- What do these companies do wrong?

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E-Business – Still a Sound Business

• We learn from others’ mistakes– Original e-Businesses failed because

they compromised price for customer service.

– Make it easy for consumers to find and contact you.

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• What are some of the frustrations you have had shopping/looking for information online?

• What are you doing to ease your online consumers’ experience?

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Changing Role of the R.E. Professional

• To succeed in the new world of e-Commerce real estate professionals must move:

fromgatekeepers of the information

tostewards of

the transaction

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The shift of Power to the Consumer

• Do not expect the transaction to take place entirely online– complex process– infrequently conducted– heavily regulated– saturated with many different

participants

Internet Business Models

Things in motion tend tostay in motion, things at rest tend to stay at rest

•Sir Issac Newton•English Physicist•1642-1727

E-Business is constantly evolving as a result of two key factors, Economics and Natural Law


New E-Business Models

Economics Natural Law

Supply and Demand

1st Law of Physics

Invisible Hand of Incentives

Internet Business ModelsAdvertising Model

Consumer

MLS

Aggregator (REALTOR.COM))

Broker

Unqualified Leads

Internet Business ModelsAdvertising Model

•Centralizes audience building

•Provides a brand

•Centralizes content control

•Unifies the consumer experience

•Generates unqualified leads

Internet Business ModelsIDX Model

Consumer

MLS or Aggregator

Broker

Selling Agent Website

• Provides localized branding

• Decentralizes content control

• Difficult to police

Note: IDX does not preclude those without listings from displaying others’ listings.

Internet Business ModelsReferral Model

Consumer

MLS or Aggregator

Referral Agent Website

Broker

• A blend of IDX and advertising

• Can blur the focus of the business

Internet Business ModelsVOW Model

Consumer

MLS orAggregator

Broker

Selling Agent Website

Business Relationship

•Re-establishes the consumer-agent/Broker relationship

•Operator needs to supply incentive to the consumer

Internet Business ModelsIDX vs.VOW

IDX VOW

addresses Internet advertising

establishment of broker-consumer relationships

Internet Business ModelsLead Generation Model

Consumer

Broker

Lender Website

Leads

Financial Incentive

Compensation

Incentive to the consumer to provide the consumer’s information, thereby establishing a relationship. This information is then sold to the broker as a qualified lead.

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• If you don’t market to the e-Buyer, someone else will

• - for a fee

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Types of Products & ServicesStandard Commodities

Choice Commodities

Intangible Commodities

Unique Commodities

(such as homes, but most homes are not sold online)

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Standard Commodities

• Mass-produced

• Multiple purchases by multiple consumers at the same time

• Uniform pricing structure

• Products are easily packaged/shipped

• Example: Books

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Choice Commodities

• Involve non-physical products, like offering a service

• Uniformity of purpose• Distinction & variation in each customer’s

use• Purchase or use is frequently singular• Varied pricing structure• Time sensitive

• Example: Airline Tickets

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Intangible Commodities

• Personalized to accommodate the needs of consumer

• Customer’s profile (creditworthiness, financial history) are importantas features of product

• Example: Mortgage Loans

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Unique Commodities

• Difficult to “web-ize”

• Not standard – no two are exactly alike

• Cannot be owned by different people at the same time

• Buyer choice & circumstances are factors

• Example: Purchasing a Home

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Unique Commodities

• Why is your web-site not considered selling a unique commodity?

• Hint: What are you actually selling?

• Answer: Your services…

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• Name some traditional businesses that have made successful transitions to e-Business.

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What Customers Want

• One-stop shopping

• A totally managed transaction

• All property, community & related information updated in “real time”

• A faster & more pleasant experience

• Overall transactional savings

• Regular & complete communication

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Predictive Modeling

• Quantifying those known parts of the home-buying cycle that can be anticipated & thereby present opportunities to communicate with the customer & generate value-added revenue.

• Lawfully target your customer

• Lawfully target your market

• Determine your options

Facets of the Home Buying Process

FACETS OF THE HOME-BUYING PROCESS Property search

Contract negotiations Transaction coordination:

Closing file Insurance Online document execution

Mortgage Services

Title Document execution

Recordation

Funding Document distribution

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• What other examples can you provide that demonstrate how predictive modeling may help in assisting clients in the entire home ownership cycle?

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Section IIICommunication Objectives

• Provide better customer service

• Provide direct response to the customer

• Cross-sell company products & services

• Close more sales

• Simplify marketing

• Acquire new customers

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All Channel Partners Want:

• Customer acquisition

• Customer retention throughout the Home Ownership Lifecycle

• Customer cross-selling

© RealSure, Inc. 2000

Customer-Centric Communication

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Targeting Your Customer Lawfully

• The salesperson wants to know what customers are doing when online – Survey your customers– Focus – lead with client needs

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Finding the New e-Buyer

• The search process ties in with:– Pre-qualification– Online value opinion – Online appraisal– Closing process

• If this what they are looking for, are you there?

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Targeting Your Customer Lawfully

• . . . simply means taking what a good salesperson already does to the next level.

• The key to success is tied to the quality & quantity of data held for each customer or property.

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Fair Housing

• CAUTION:

• In targeting your market or customers, always remember that under Fair Housing statutes it is unlawful to “profile” or otherwise discriminate on the basis of race, color, religion, sex, handicap, familial status or national origin.

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To provide optimum customer self-service online, offer the following services

– An automated or personal response system

• Drip e-mail, Auto responders,

– High level of customized response for customer inquiries

• Third-level domains

– Integrated online communication with offline human communication

• Chat or VoiP

– Marriage of all communication channels

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The International Market

• Physical facilities, geographical location & time zones are no longer obstacles.

• With the onset of nearly-instant global communication through the Internet, people can now conduct business from anywhere at anytime.

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International Consortium of Real Estate Associations

• Ultimately, ICREA looks to set international real estate standards based on a common code of ethics and to facilitate referrals and related payment of fees among ICREA member constituents.

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• What are some needs/information that international and/or multicultural clients are seeking. Is your website meeting these needs?

New Way of Communicating & Managing Business

Obsession with technologicaladvancement and “nowness”

makesutility hard to derive

•Harold Innis•Canadian Historian•1894-1952

Don’t invest in new technologies because you need the “latest and greatest” and you need it now.

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e-Mail

• e-mail has already surpassed telephone & voicemail as the #1 method of business communication.

• Are you using e-mail effectively & to your best advantage?

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Managing e-Mail

• E-Buyers want information and they want it quickly…

Customers' Timing Expectations for

E-mail Resolution

Longer than 48 hours 1%

Up to 48 hours 11%

Up to 24 hours 52%

Up to 6 hours 8%

Up to 3 hours 15%

Less than 1 hour 13%

Source: Jupiter/Ipsos-NPD

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Managing e-Mail

• 150+ messages per day! How do you read & respond appropriately?– Sort & file your e-mail with filters per

client, geographical farm, mortgage company, etc

– Organize e-mail with a comprehensive filing system

– Be aware of viruses– Use customized signatures

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Activity: Self-Assessment

• Do you communicate differently with e-Buyers & t-Buyers? List how. Be honest.

• How can you use technology to improve how you communicate?

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Mobilemediary

• The Mobilemediary will be able to break into the value chain at any point, bringing information & transaction capabilities to customers whenever & wherever they are ready to buy a product or service.

• Test?

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Mobilemediary

• Successful buyer representatives will be those who learn how to use technology to manage the key element in the real estate transaction . . . INFORMATION.

• Gaining knowledge of how to get information to the customer timely & efficiently is the job of the Mobilemediary – and the buyer representative.

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Broadband Technology

• High speed internet access:– Cable Modems– T1 Lines– Digital Subscriber Lines (DSL)– Satellites

• The number of households with high-speed Internet connections in the US grew:– From 10.4 million in 2001 to 26.7 million

in 2004

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Wireless Communications

• Wireless is rapidly becoming the medium of choice for many businesses & the customers they serve. One in six U.S. Internet users have logged on using "Wi-Fi" or another wireless technology.

• For them, it’s “Business as usual.”

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TELECOMMUNICATION TOOLS

Online Collaboration Live, text-based chat between you and the customer over the Internet (includes instant messaging).

Voice Over Internet Protocol (VoIP)

Allows your customers to connect with you instantly by voice over the Internet.

Unified Messaging One number to deliver all voice, fax and e-mail in conjunction with a call center … anywhere, anytime.

Integrated Voice Recognition (IVR)

Uses customer voice-activated commands to deliver desired information.

VoiceXML Interfaces voice-recognition software and web content using XML (Extensible Markup Language) for delivery over the telephone.

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Collecting and Processing Data

• Customer service … therein lies the key element to keep in mind as the era of e-business unfolds. Using customer information in a way that aids the customer and respects them as a person is the high road to take.

Tracking Data

In the business world, the rearview mirror is always clearer than the windshield

•Warren Buffett•Investor•(1930 - ?)

In order to see where you are going you must see where you have been and how you got there.

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Consumer Information

• Personal Data - consists of names, addresses, credit card numbers & purchasing history – use only in conjunction with specific buyer’s transaction

• Collective Data - concerns the overall demand for a given product or service & how that product or service should be priced and/or delivered

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Confidentiality

• If you fail to convince customers that their personal data in your possession is confidential & secure you risk that they will go somewhere else.

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Tracking Data – What do you measure?

• What is your product?– Listings or services, other?

• What is your goal?– Acquire direct communication with the

consumer

• How do you accomplish your goal?– E-mail communication, online forms, toll-

free number

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• Can consumers easily access your communication vehicles?– Data tracking

• Are consumers finding your site?– Track number of “hits” – wrong

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• List ways that you currently track your traditional methods of marketing

• List ways you can track the success of your e-marketing efforts

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• Units to consider tracking– Unique visitors – Page views – Referring page – Search Engines – Search Engine key words– Operating Systems – Who's online – Languages

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Forecasting, What’s realistic?

• Ask Your Web Hosting Vendor

• Relate Your Estimate to Your (offline and online) Marketing

• Ask Experts

• Expected/anticipated ROI

Web sites

“The value of goods are derivedfrom its utility to the user, not the labor spent in producing it.”

•Jean-Baptiste Say•French Economist•1767-1832

Consumers don’t care that you spent $XXX designing your web site two years ago, they care how functional it is today.

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Your personal website should:

• Be the centerpiece for all online advertising & communication

• Have access to search data

• Contain tools necessary to locate property & financing are key elements

• Follow good design principles

Web Sites

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• If customers rarely search for a specific real estate salesperson, what are some keywords you have used/can use so that your name will come up as home buyers search for information online? Hint – include multiple ways a word can be spelled or misspelled.

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Web Sites – Tools for consumers

• Mortgage information

• Market/home information

• Area information

• Moving tips

• Contact information

• Other???

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• What other information would you provide?

• List the top 5 and the next top five priorities. – These should be made available

throughout your site. Track how users are finding these areas through your web stats.

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Activity:

• List five things you should do on your web site

• List five things you should not do on your web site

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Driving Traffic to your Web Site

ONLINE METHODS OF DRIVING TRAFFIC TO YOUR WEBSITE

Expanding your website… Use a good website software program such as www.WebTrends.com to

analyze the traffic on your site. Register your website with as many search engines as possible.

List your properties with major real estate portals.

Place your company/personal profile with real estate portals.

Add/create real estate/home ownership/community-related links to your site.

List your website with other search engines. Create and distribute e-Newsletters to past and potential clients

Undertake e-mail campaigns to lawfully target your farming area. Promote your URL as widely as possible. And, of course, use many real estate-related keywords that consumers

would use in a property search.

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• What additional methods would help drive traffic to your website?

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Promoting your url

PLACES TO PROMOTE YOUR URL

Business cards All your advertising

Voice mail Newsletters

E-mail All directories, rosters, etc.

Marketing pieces All your press releases

All your listings All promotional giveaways

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Voice Over Internet Protocol

• Benefits– Customers never have to leave your site

to reach customer service rep– Reduced long-distance costs– Customers add “high-touch”

when/where they want– Customer service can up/cross-sell

other products & services

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e-Newsletters

• Replace direct mail counterpart

• Cost-effective

• Can be more target specific

• Can be automated

• Can carry imbedded photo tours & direct links to specific information

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Moving Non-Internet Users Online

• Identify who is online & who isn’t, then:– Offer a neighborhood e-Newsletter with

handy information– Post a neighborhood calendar on your

website with links– Send out a direct mail piece offering

assistance in getting online

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5 Cs Of Doing Business Online

• Contact – continue with existing customers & attract new customers

• Capture – after contact create a relationship

• Cultivate – convert contacts into customers

• Close – convert customer into cash

• Continue – keep your customer For Life

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• Develop business strategies that will be addressed by the Web strategy, e-mail strategy, and service delivery (what services you will make available and how often). Be sure to include measurable objectives with the frequency that they will be measured. For the web strategy you will be asked to design you home page plus identify how you will market your web site.

107

Value Through Integration

• As the individual parts of the transaction become individual commodities, tomorrow’s real estate professional is going to have to become an aggregator of services.

eeeee-Buyer

THE END

Eeeee-Buyer Brought to you by the Real Estate Buyer’s Agent Council Version 2.0, May, 2004.

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Transcript of Eeeee-Buyer Brought to you by the Real Estate Buyer’s Agent Council Version 2.0, May, 2004.