Carpenter said NAR’s new Predictive Analytics group is moving forward in three phases. They are currently in the experimentation phase, analyzing the data to find trends and patterns. He said the next two phases are to develop partnerships with other data providers, and then to begin designing and building products for members.
REALTOR® Ted Loring, chair of NAR’s Data Strategies committee, said real estate is all about relationships; the goal of predictive analytics is to figure out how to add value to the relationship to make it stronger.
“By applying predictive models to data, an organization can uncover behavioral patterns and develop models to guide targeted interactions, and ultimately achieve overall operational effectiveness and higher marketing return on investment,” he said.
Loring said traditional analytics collect propriety big picture data and analyze it to give retrospective insight into what happened; customer relationship management tools look at the little picture and analyzes proprietary data that support current activities. Big data looks at both the little and big picture and analyzes public and proprietary data to determine patterns that can predict the future.
“Linking information can give you an incredibly detailed picture,” he said. “NAR’s strategy going forward is to determine the strategy and initial objective, identify models worth emulating, assess existing REALTOR® resources, acquire and develop missing capabilities, run a pilot project, and then scale up.”
For more information, visit www.realtor.org.