07 Aug What if the New Uber of Real Estate was coming from Google or Facebook ?
The idea of an Uber of real estate has already had its day. We are realizing that no one has revolutionized the real estate trades as it has been done in other sectors. Probably, the next wave of technology of the smart contracts and the blockchain will influence to reshuffle the cards.
Technology is underused in property management but has the potential to drastically reduce expenses while improving the quality of service. Every tedious process should be streamlined or automated.
To start, leasing is a time-consuming process. Posting advertisements, responding to leads, handling showings, collecting and processing applications, and eventually preparing a lease, all require lots of manpower. This process would benefit from automation, but where do you draw the line between automation and human-centric customer service?
In waiting for this “big bang” which seems more or less distant, what to think of these new offers of 1st generation real estate agents such as Purplebricks.co.uk or emoov.co.uk and what about commercial real estate ? knotel.com or wework.com ?
The new offers have the power of enchantment! They delight their customers with a much more ambitious CARE!
Whether you call them a hybrid agent, an online trustee, an online agent or a virtual asset administrator, these new offers have all been designed to make it easier for our trades to be used at a lower cost. They have all succeeded in creating a new market segment that lies between the individual and the professional.
The striking common points: they delight their customers with a much more ambitious care. Care is at the heart of the customer experience: it is the attention given to the customer, how we exceed the expectations and terms of service in relation to the needs expressed. Supported by digitized attention that is executed and scripted.
Hence the importance of customer feedback and customer reviews. That is why their communication is also very focused on the customer experience, which helps to reassure and overcome the psychological barriers.
Faced with the difficulties of traditional models, the new offers, even if they do not have the traction expected by their promoters, create a new market and are a new competition. They anchor a low-price level, very low for consumers. And this, not to mention a Facebook or a Google that will one day make a place in the real estate business and take the intermediation margins of another segment of traditional customers.
Google already has entered tourism market with “google trips app” and Facebook competing ebay with “market place” soon to be charged most probably.
Under the blows of tech and the attempts of these marketing offers, profitability and market shares of old and traditional models will continue to decline. At a much slower pace than expected, but their margin and segment will shrink structurally. It’s a certainty.