Predictive analytics can be used to foretell who in your neighborhood is most likely to sell their home this year. Leading companies in this field have a 70% accuracy rate or more when predicting future listings. And REALTORS® who employ this technology know who is likely to sell their property.
SmartZip Case Study: How to Improve Your Real Estate Farming Results by 4.6X
What is predictive analytics?
Predictive or advanced analytics is a technique that uses historical and real-time data to predict future events. For the real estate industry, it provides info about the likelihood of a house being sold. The technology proves its worth by helping with lead generation and targeted advertising. SmartZip is a real estate farming tool that combines big data with proprietary algorithms and machine learning to accurately predict which homeowners are likely to list their properties.
Why use predictive analytics?
Using predictive analytics during the geographical farming process will give you an enormous edge over your competitors. Once you have selected your list of people who are most likely to sell using predictive analytics in your area. The proprietary algorithm looks at hundreds of data points for every homeowner on that list. Then, based on past data, predicts who is most likely to sell in 12 months. It then narrows this down (ex. 1,000 homeowners in your area, down to the top 250). The narrowed-down list contains 70% of the listings that will occur in the next 12 months.
Saves valuable time
No more scouring the internet or MLS to find information about each homeowner. When using this software, a high-quality list of verified addresses is uploaded to your SmartZip profile once you select your territory. SmartZip produces and delivers accurate data to your computer screen in an efficient way and will be delivering the necessary data you need to boost your ROI and save on marketing.
Targeted marketing
Predictive analytics allows you to hone in on the people you want to target. For this example, we will use the average cost of a postcard/direct mailer:
Cost to mail 1,000 homeowners: 1,000 x $0.70 (price of mailer+/-) = $700/per month
Cost to mail 250 homeowners: 250 x $0.70 (price of mailer+/-) = $175/per month
Total savings per month using predictive analytics: $525 (x 12mths = a savings of $6,300)
Better ROI
It’s not magic; it’s math.
The average turnover rate is about 5% per year. This means 95% of the people in your neighborhood are NOT going to sell this year. Invest in a predictive analytics platform and get in front of the 5% who ARE going to sell and get rid of the 95% who are NOT. This is how predictive analytics not only saves you money but increases your ROI.
How to get started with predictive analytics:
Schedule a demo
SmartZip has a highly experienced team that is educated in the real estate market as well as predictive analytics technology. A sales rep will reach out to overview the product and create a custom plan and marketing strategy. To lock down your area today please email sales@smartzip.com.
Select your area
Most agents choose a territory in an area where they already work and want to further establish themselves in that area. Other agents choose an area in which they don’t currently work but want to establish themselves there and need a competitive edge.
Marketing
Begin marketing to your territory via direct mail, ads, email, and more!
How much does advanced analytics and automated marketing cost?
The price varies but on average, it costs between $500 to $1,000 monthly.
Advanced analytics has drastically changed the landscape of the real estate industry. Now is the time to join and make 2022
Robert Reardon is the General Manager, Constellation Data Solutions. Reardon is an entrepreneur and operator with a background in finance and technology. He is passionate about building real estate technology products that bring together real estate professionals and consumers in meaningful, new ways.
