The property industry is experiencing rapid change, creating a volatile, crowded and highly competitive marketplace. It has been a wake-up call for all estate agencies, encouraging them to rethink their ways of working, exploring new ways to adapt their business to stand out from the competition. Technology has been a huge part of this journey, acting as both an enabler of business transformation and helping them to stand out from the crowd by differentiating their offering.

In its predictions for 2016, Forrester (a research organisation in Massachusetts) CMO Victor Milligan outlined a number of priorities that companies need to consider if they are to remain competitive in markets driven by the value of customer experience.  All were highly relevant to the estate agent of the future. The DNA of any company, let alone an estate agency, needs a human and digital touch – however, third-party research conducted by Loudhouse on behalf of Dezrez highlighted that 67 per cent of consumers feel estate agents aren’t yet using technology to the best of its ability. In fact, traditional estate agents are behind other industries when it comes to taking advantage of technological innovation.

To survive, agents must have the tools available to remain competitive.

There’s an imbalance in tech-savviness across the property industry, which is driven by the individual agent. Some want freedom and flexible software, others want process-led software that is functional. What’s more, one branch may know technology inside out, and another may be slower to adapt. The general consensus is that they know they need to change, but need clear guidance and advice on how they get there.

ONLINE OFFERINGS

Online estate agents currently account for between 2-5 per cent of property sales, but this is likely to increase. Organisations like PurpleBricks, easyProperty, Tepilo and eMoov have proved popular in recent years, promising to help consumers buy, rent or sell, at a fraction of the price of traditional high street agents. They also offer value-add services such as arranging floor plans, photos and viewings for a flat fee, as well as listing the property on the popular portals.

The rise of such offerings has certainly left many traditional agents concerned about their ability to keep up and compete with the online world which is accessible 24/7. The younger generations making their first step onto, or moving up, the property ladder have high expectations and naturally believe they’ll have instant access to a wealth of choice when purchasing a property. Estate agents must embrace the technology available now to help them remain relevant. Understanding why people may favour online tools, considering how to match up to this via technology, is key.

CLOUD-BASED SOFTWARE

Cloud-based software is still relatively new to the industry and more needs to be done to help estate agencies fully embrace it. There are some clear benefits that adopting cloud-based software can offer estate agents – in practices of all sizes – on their journey to digital transformation. First, it offers accessibility and freedom, particularly when enhanced by an open Application Programme Interface (API). It provides the ability to mould multiple systems around the individual agent’s needs, enables them to work better with third parties and helps them quickly adapt to market changes. Key benefits of using internet-based technology over the old server-based systems, include working on the move, automated processes, increased collaboration and adapting to market trends.

AN END-TO-END SERVICE

There’s a lot to be said for providing an end-to-end service for consumers, especially as 52 per cent of home hunters don’t have the time to spend on themselves that they did 12 months ago. Many rely on estate agents for help throughout the entire property purchase cycle, which has pushed estate agents to recognise that using technology to marry up the house buying process from start to finish can be extremely beneficial. For example, open API means estate agents can connect different softwares and run workflows across them to do anything from sending out automated texts asking individuals to feedback on a house they’ve seen through their mobile, to sending out letter packs congratulating house buyers when they move in. It is this personalisation which can help to differentiate themselves from the competition and give them control over the way they run their business.

THE FUTURE

There’s a breadth of technology that can help transform the property industry and enable agents to deliver a professional and personal service across human and digital touchpoints. To survive and thrive, agents must recognise – and remain confident – that they too have the tools available to remain competitive. The forward thinking estate agencies that are already embracing technology are clearly reaping the benefits in terms of customer satisfaction and business results, a vital step in order to remain competitive in the market.