Business intelligence software such as predictive modeling tools continue to change the way we do business by crunching numbers and anticipating problems and outcomes. These solutions have already made an impact on the hospitality and health care sectors by helping them gauge the need for services, so they can be prepared at all times instead of short staffed.
However, one trade that might not come instantly to mind when considering the power or technology is real estate. Of course, if you're looking to purchase a new home, you most likely check out listings online. Big data and predictive analytics affects you and your neighborhood whether you know it or not, as real estate agents put the software to use to make important, better-informed decisions.
"Data analytics give real estate agents better insight into changing neighborhoods."
Location, location, location
Both residential and commercial real estate agents use predictive analytic algorithms to scan reams of information on buyers and property including market rates, average home loans and the size of a family. Taking all of these and much more into account, firms can then get a better picture of people and businesses they should approach.
According to CIO, Colliers International, a commercial real estate company, used data analytics to better serve their clients' needs. When a law firm contemplated moving its offices to new building, Colliers helped the organization in more ways than one. The law office already had trouble retaining its top talent, so the real estate agency asked to track the movements of the firm's employees. Collecting the data from each employees' commute to and from the building proved invaluable. Colliers mapped out a better location for the firm's offices to cut down on commute time and be more equidistant to everyone's home.
Who's selling and who's buying
Data analytics also give real estate agents better insight into people who are more likely to sell their homes by taking multiple variables into account, Business Observer noted. Armed with this information, an agent can make a smarter game plan and the agency as a whole can work with greater efficiency. The data means a firm knows how to better allocate its money and resources notice which customers to devote time to and which ones are least likely to respond to their marketing efforts.