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Estate agents have been accused of being behind the times in how they use the detailed information they have about buyers.

Chris Owen, a PR consultant working for Octopus Group, says Amazon uses information it knows about its users to recommend them to buy related products, while individual apps track user behaviour and make appropriate recommendations based on what users do.

Owen says agents could do the same thing, but don't.

They know the buyers' budget; preferred areas; number of bedrooms needed; style of house; whether they want a garden; the preferred proximity to the station; Christ, they should know whether you want a catflap he has written in a blog for the Daily Telegraph.

But all this is ignored in lieu of just a single point of differentiation: price.

He says instead of using big data' - the technical sector's buzz-term for information about user behaviour - agents simply send out emails showing properties around one particular price point, even if its other characteristics are far removed from the buyer's requirements.

It's really not that difficult he blogs. People have been spying on our data for decades; why can't estate agents do so when we actually want them to Everyone else selling stuff has worked it out, why haven't they

EAT doubts that Octopus Group will be winning many estate agent clients anytime soon.

Comments

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    In my 17 years in this industry I have come across countless examples of the buyer that registers wanting a '4 bed close to the town centre' only for them to end up buying a gorgeous 3bed along a country lane. The heart vs head dynamic is different with property buying because people are often enthused by different, unforeseen things.

    Chris Owen makes a fair point except that estate agents keep their criteria loose, just in case. Buying a house is not like buying a book.

    • 31 January 2014 07:37 AM
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    What rot. The article merely highlights the difference between a good agent and a not so good one. You don't need infinitely technical analytic data on the buyers requirements, you just need a good set of ears and some probing questions.

    • 30 January 2014 15:15 PM
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    Use the right software to keep your data easily accessible, then when you do sit down for your face to face conversation with your client, you'll have access to all the important details from your last conversation which are impossible to remember. Any agent who still believes that personal service WITHOUT access to detailed information on all clients can be better than personal service delivered WITH unhindered, mobile access to all records, details and previous conversation notes will be struggling to compete with those agents who do combine intelligent use of data and software with ever higher levels of face to face personal service.

    Don't be afraid of technology. Competing in this marketplace without good technology because you are a very experienced estate agent is like a very experienced warrior going into battle with no weapons, when his adversary has perhaps less experienced soldiers, but with up to date weaponry.

    Its not either/or folks!

    • 30 January 2014 10:54 AM
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    We live in a country with a housing shortage and a damaged economy. Estate agents are busy people and as much as they should use the data they have to find the perfect house for their clients, they don't have the properties available or the time. There are more and more unaffordable properties appearing on the market and a bombardment of people looking for the cheapest/ best deals, therefore estate agents have no choice but to depersonalise their sales. Plus, I'm sure if they did use the data available, the public would find a problem with it. It's a lose-lose situation.

    • 29 January 2014 17:52 PM
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    To be honest, I think he has a point, if you don't use the data to your advantage, it's a wasted opportunity. The other advantage of pulling that information together is it can also help get you coverage in the media. All sorts of statistics can be gained from customer wants and needs, for instance; How school rating can affect the price of a property in your area or what is the most sort after features that people are looking for in the area you selling/letting. This can help not only prospective customers looking for properties but the vendors themselves. All this information can be gained from the initial interview, collated and used to generate stories that could highlight your company over a competitor. Obviously, you have to have a credible sample size but its worth considering as a good bit of editorial can generate business for very little effort on your part. From another PR ;)

    • 29 January 2014 15:47 PM
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    surely there is a data protection issue here if the agent is thinking of passing on client details

    • 29 January 2014 12:56 PM
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    Hey Afronted - he's right

    The amount of data that agents hold on their customers is absolutely incredible - we just don't know how to use it.

    If you're good at what you are doing (as an estate agent) you will have a name, address, telephone number, email address, age range, job title and an idea of the deposit levels (and therefore salaries by calculations of mortgage affordability) of every single buyer and seller you register. Tenants and landlords too, actually.

    The value of this data depends on who wants to buy it, but it is estimated at between 30 pence per person (random marketing company) up to hundreds of pounds (for more targeted companies).

    Let's face it though, www.homemovebox.co.uk make a business out of you giving just a name and address.

    I also have Virgin Media reps in the office monthly trying to get the negs to sell their internet.

    The problem is that you should never get a sales or lettings neg to try to deal with these linked sales (I used to work for Sequence and I remember my commission deal - you will only get 100% of your commission if you can prove you have given over so many leads for this and so many leads for that - back in 2003).

    A separate person should be employed to do all of this - if it's worth that much outside of your office, consider how much it could be worth inside.

    • 29 January 2014 11:22 AM
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    An interesting point, I'm sure there is value in these ideas.....but I'm not sitting around with my feet up, reading the paper - I'm valuing/viewing/following-up all day!

    • 29 January 2014 11:03 AM
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    DAMM! and there's me sitting down with buyers and having lengthy conversations with them about what they actually want and then phoning them when the right property hits the market. To think I've been doing it wrong all these years.
    Thank you Mr owen, for showing me the way.....pillock

    • 29 January 2014 10:58 AM
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    Very scathing Mr Owen! How does he know every single agent is not doing that

    • 29 January 2014 09:56 AM
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    Mr PR Consultant - if you are bothering to follow up on reactions to your claims and opinions then;

    1. You are comparing an FMCG type business [Amazon] with an industry where buyers make a purchase once every five to six years. A ridiculous comparison.

    2. Your comparison appears to be derived from either ignorance or deliberate provocation. I am not sure which is worse

    3. The budgets available to these widely differing markets, to employ and/or develop such technologies are miles apart.

    4. If you're going to make such comparisons in the future may I suggest that you choose markets/targets that are similar in nature, scale and profitability.

    • 29 January 2014 09:45 AM
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