Clive Humby of Dunn Humby (the Mega Minds behind the Tesco Clubcard) declared that "Data is the new oil" in 2006. Since then, the property sector has emerged as a hotbed for rapid evolution in the use of data.
Proptech, or Property Technology, is transforming age-old traditions, setting new standards for effectiveness and precision.
Through my industry vantage points at Countrywide, Knight Frank, Keller Williams, and Fine & Country, alongside my time in media, financial services, automotive, venture capital, and sustainability, I've had a firsthand glimpse into this transformation across different sectors and continents. Obviously, the UK but also the USA and South Africa.
The common thread weaving through these diverse anglospheric geographies? An intensified focus on data analytics and customer profiling.
The transition has been particularly significant in an age where consumers are increasingly savvy about the power and usage of data. Most are concerned about privacy (GDPR and PECR) but are willing to share personal information for specific benefits, like personalised experiences. This has significantly changed the relationship between brands and consumers. The brands that understand this new dynamic - those that invest in trust and respect -will be the ones to thrive in this changing landscape. Once a luxury, trust has become a requirement as consumers demand greater openness from property agencies.
Data analytics has evolved from a valuable tool to an industry cornerstone in the UK since about 2015. AI and machine learning allow property agencies to interpret current consumer behaviour and predict future trends with uncanny accuracy. As market participants become increasingly data-savvy, businesses must listen to and empower their customers. They must offer end-to-end control over how data is collected, stored and used - embracing responsible data practices to meet elevated consumer expectations.
Core operations
The USA, a proptech behemoth, is home to giants like Zillow and Keller Williams, companies that have seamlessly integrated data analytics into their core operations. With cutting-edge algorithms, these platforms are personalising the customer journey to an extent never before possible. It's not just about the property anymore; it's about the entire experience, curated to the individual.
While still a fledgling in the Proptech scene, South Africa shows incredible promise. Navigating a troubled history, this burgeoning market is beginning to leverage digital tools to provide clarity and direction. While the focus is still national, the rising importance of data management and customer profiling suggests South Africa will soon join the ranks of its more technologically advanced counterparts.
The evolution of proptech has not just been technological but experiential, as we blend physical and digital into phygital with augmented reality (AR) and the interactive nature of ever more powerful smartphones and tablets. The days of in-person viewings and paper brochures are giving way to virtual walkthroughs and augmented reality experiences.
As we look ahead, Proptech is setting the stage for an exciting future driven by data-rich, personalised experiences. Regulatory frameworks are likely to catch up eventually, ensuring that as data becomes more integral to the industry, ethical practices will govern its use.
In my view, the Proptech narrative is a book still being written. This is chapter one of an epic novel, but it's already clear that the symbiosis of data and technology is transforming the property market in irreversible ways. Be it the UK's pioneering spirit, the USA's expansive data-driven models, or South Africa's emerging potential, Proptech is proving to be revolutionary and essential for the future of real estate.
One final point, all technological innovations have given us tools, from the stylus to AI. Technology is only ever as good as the user and their creativity in its application. Author William Gibson once wrote, “The future is already here - it's just not very evenly distributed.” Tomorrow’s leaders in the industry have already adopted Proptech, understood data, and are now mastering their combined power.
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Agree that data should be the focus, I created the vision for Single Customer View in Lloyds Bank in the late nineties, and subsequently they have spent over £1bn on data analytics before Dun Humby statement. Until more PROPERTY DATA is digitised progress will be greatly stunted. A bit like the internet in the nineties was by poor bandwidth. Adoption of standards being created by the Open Property Data Association is a great start to unlock the wheels of innovation and bring about real transformation in the industry. The key point is real transformation can't be driven by one company, but by many that collaborate to drive openess, which drives competition which drives customer choice...
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