eeeee-Buyer
Brought to you
by the
Real Estate Buyer’s Agent Council
Version 2.0, May, 2004
Electronic commerce is accelerating
the shift of power to the customer.
Introduction
• Who is the e-Buyer
• Just what is e-Business
• How do we find e-Buyers and acquire their
business?
• What is the status of the online transaction
• How do we transition all customers into the
For Life Mode
What are the opportunities, and
associated challenges, for real estate
professionals in this constantly evolving
business environment?
3
Waddya Know?
• How many current Internet users
have connected using WiFi or other
wireless applications?
– 1 in 2 (50%)
– 1 in 6 (17%)
– 1 in 12 (8%)
– 1 in 23 (4%)
Seventeen percent have
logged on using a
wireless device, and
those under 27 were
nearly twice as likely to
have done so.
Reuters, Tue Apr 13,2004
4
Waddya Know?
• What does the following emoticon
represent?
(:)-)
Scuba Diver
5
Waddya Know?
• Which of the following are considered
to be the least patient and desire
instant gratification?
– Baby Boomers – 1946 - 1964
– Gen Xers – 1963 - 1978
– Gen Yers – late 70’s – mid 90’s
– Seniors – 55 and older
These are the kids of the Baby Boomers, and they
grew up with latchkeys, fast food, remote controls,
automatic teller machines and microwave ovens,
all of which provided instant gratification.
6
Waddya Know?
• What does the following emoticon
represent?
:-D
Talks too much
7
Waddya Know?
• On average, how long did e-Buyers
search for a home in 2002 using the
Internet before contacting a
representative?
– 1.8 weeks
– 2.5 weeks
– 3.6 weeks
– 4.5 weeks
e-Buyers averaged 4.5 weeks
investigating homes and
neighborhoods before contacting a
salesperson versus 1.8 weeks for
Traditional Buyers
(California Association of
REALTORS® study – 2002).
8
Waddya Know?
• On average, how long did it take ebuyers to purchase a home after
contacting a salesperson?
– 2.0 weeks
– 3.2 weeks
– 4.0 weeks
– 6.6 weeks
After contacting a salesperson,
e-Buyers spent an average of
2 weeks in a search, visiting an
average of 7.5 homes,
opposed to 6.6 weeks and 15.2
home for t-Buyers.
(California Association of
REALTORS® study – 2002).
9
Waddya Know?
• What does the following emoticon
represent?
}:- >
little devil
10
Waddya Know?
• What does the following emoticon
represent?
#-)
partied all night
11
Activity: Brainstorm
• List skills and strengths required of
successful real estate professional:
• How does technology effect the
strengths and value of a real estate
practitioner?
12
e-Buyer
• Electronic buyer
• Consumers who conduct
research/purchase via the Internet
• Customers the real estate industry
has always worked with, just better
informed
13
What e-Buyers Want
• Consumers desires in the purchase
of a home:
• Price
• Personal touch
• Customer service
14
Internet User Driving Forces
1996-2001
Email proliferation
Free web browser
Content explosion
Low-cost PCs
Intranets for business users
Web hosting services
Business-to-consumer e-commerce
PC purchase rebates from ISPs
Business-to-business e-commerce
“Free” ISP rates in international markets
Web-driven productivity gains
Internet/cyber cafes
2002-2007
Web cellular phones
Pre-paid Internet access cards
Broadband Internet connections
Wireless Internet access
Un-metered Internet access fees
M-commerce (mobile devices)
Business-to-Business e-commerce
Wireless web content
M-commerce (E-commerce for
mobile devices)
Internet cafes in developing
countries
Declining & fixed ISP rates outside
the U.S.
Hardware costs bundled in ISP rates
Web appliances
Technology is constantly
evolving – changing the way
we do business.
15
What e-Buyers Want
• Make the home buying/selling
process
• Easier
– Access to information
• Quicker
– Communications with Broker, mortgage Broker,
etc.
• Cheaper
– Focus on value – not cost of the property
16
e-Buyer versus t-Buyer
E-Buyer
T-Buyer
Access to information Dependence on
salesperson
Be involved
throughout the
transaction
Be involved in the
selection process
only
Desire exceptional customer service
17
Consumers Desires and Needs
•
•
•
•
•
They wish to save time,
They are techno-savvy
They have high expectations
They are loyal – to an extent
1st contact online must meet
expectations
Success in this (automobile) area will depend on
dealership personnel, the dynamics of which are
changing right along with the dealership Internet
operations landscape. Polk Automotive Internet Study
18
Consumers Desires and Needs
•
•
•
•
•
•
•
•
Access to product information
Control of the buying process
Quick response to inquiries
Efficient use of buyer’s time
Product choice
Quick, friendly customer service
Ease of transaction
Resolving problems quickly is the
factor that will lead to future business
19
Why Buy Online ?
• Value: product quality/support & customer
service weigh heavily on
e-Buyer’s decision to purchase.
• Control: e-Buyer will most likely obtain
information before contacting you.
• Time: e-Buyer wants information provided
quickly & accurately.
• Anonymity: do not push e-Buyers to
reveal themselves sooner than they're
ready
20
Continued Need for High Touch
• Incorporate technology into hightouch customer service
– Determine for each customer/client how
and when communications are to take
place….
21
Activity: Brainstorm
• What “high-touch” customer services
do you now offer to your buyers?
• What are other successful real estate
professionals doing that you would
like to implement?
22
The New e-Buyer - Demographics
• Of all the demographic data – this is
the most telling…
– 77% say that the Internet influences
their purchases more than any other
media.
23
How do they React and Transact
• …these online customers are more
regular visitors to brick-and-mortar
stores than are their counterparts.
• In a recent survey, 74% of
respondents reported that they had
visited a department store recently,
while only 61% of offliners had.
24
R.E. e-Buyers
• What real estate e-Buyers are
generally looking for is a “live person”
to:
– Interpret information
– validate and supplement information
– negotiate terms and conditions
– help guide them through the process of
buying a home
25
CAR Study
• 70% of all dissatisfied t-Buyers were
dissatisfied because the salesperson
failed to communicate effectively
• 87% of the e-Buyers commented that
the salesperson was always quick to
respond.
Good News…e-Buyers look at
approximately 50% fewer homes
before purchasing than do
traditional buyers.
26
Distinctive Audiences
• As we discuss the research results of
the following generations, consider
the following:
– What is unique about their
communication preferences?
– What unique ways can I market to these
groups?
27
Distinctive Audiences
– Baby Boomers
•
•
•
•
•
Born between 1946 & 1964
76 million strong
52% of all online shoppers in 2000
Account for 50% of all Internet users
27% percent of boomers use the Internet
for financial news at least 1 or 2 times per
week, with 8 percent checking the Net
every day.
• 62% made at least 1 online purchase
• Image is everything
28
Distinctive Audiences
– Generation X
•
•
•
•
Born between 1963 & 1981
50 million strong
Kids of the Baby Boomers
Grew up with instant-gratification & quick
response conveniences
– fast food, remote control entertainment, ATMs
& microwave ovens
• The generation that brought e-Business
into the mainstream
• Time is of the essence
29
Distinctive Audiences
– Generation Y
• Born between the late 1970’s to mid
1990’s
• 60 million up & coming consumers
• Selected the Internet as medium of choice
• Estimated that almost 80% were online at
the end of 2000
• Instant gratification buyers & like
the social aspect of shopping with friends
• Possible first time home-buyers
30
Tomorrow’s Home Buyer
• (IDC) (www.idc.com) noted that; “many in
this group already take the Internet for
granted and in five years they’ll expect it to
be as reliable as electricity, the telephone,
and running water”.
• Generations X and Y could spend
approximately one-third of their lives on the
Internet
• Generation Y likes to window-shop online
& purchase in person. Verify exam
That’s good news for real estate
professionals!
31
Distinctive Audiences
– Seniors
• Fastest growing group of Internet
users
• Expected to grow 50% as compared
to 3% for the 18 – 40 year olds.
• This group likes the Internet to
connect to loved-ones.
• Importance of ease of use in your
web-site (large text, easy navigation)
32
Distinctive Audiences
– Seniors
• Top 5 uses by Seniors
– Using email
– Looking up hobby information
– Seeking financial information
– Reading the news
– Checking weather reports
• These should be included on your
marketing plan
33
Activity: Brainstorm
• How do successful communication
methods differ to meet the needs of
the demographic groups?
– Baby Boomers: Image is everything!
– Gen X: Now!
– Gen Y: Possible first time home buyers
– Seniors: Ease of use
34
Representing the e-Buyer
• Agency Laws still apply
• The potential for undisclosed dual
agency still exists, particularly if you
list properties on your site.
35
What is e-Business?
• Collective term to describe business
& business services that use the
Internet as a transaction medium.
• Integration of people & business
processes with technology & the
internet
• Use of electronic information to
conduct business
36
Section II. E-Business
• “Old Economy values . . . still hold
true in the New Economy.”
- Elizabeth Heichler, IDC
- What do these companies do wrong?
37
E-Business – Still a Sound Business
• We learn from others’ mistakes
– Original e-Businesses failed because
they compromised price for customer
service.
– Make it easy for consumers to find and
contact you.
38
Activity: Brainstorm
• What are some of the frustrations you
have had shopping/looking for
information online?
• What are you doing to ease your
online consumers’ experience?
39
Changing Role of the R.E.
Professional
• To succeed in the new world of eCommerce real estate professionals must
move:
from
gatekeepers of
the information
to
stewards of
the transaction
40
The shift of Power to the Consumer
• Do not expect the transaction to take
place entirely online
– complex process
– infrequently conducted
– heavily regulated
– saturated with many different
participants
41
Internet Business Models
Things in motion tend to
stay in motion, things at
rest tend to stay at rest
E-Business is constantly evolving
as a result of two key factors,
•Sir Issac Newton
Economics and Natural Law
•English Physicist
•1642-1727
Internet Business Models
New E-Business
Models
Natural Law
Economics
1st Law of
Physics
Supply and
Demand
Invisible Hand
of Incentives
Internet Business Models
Advertising Model
Unqualified Leads
Aggregator
(REALTOR.COM))
MLS
Broker
Consumer
Internet Business Models
Advertising Model
•Centralizes audience building
•Provides a brand
•Centralizes content control
•Unifies the consumer experience
•Generates unqualified leads
Internet Business Models
IDX Model
Selling Agent
Website
Consumer
• Provides localized branding
• Decentralizes content control
• Difficult to police
MLS or
Aggregator
Broker
Note: IDX does not preclude those
without listings from displaying others’
listings.
Internet Business Models
Referral Model
Consumer
Referral Agent
Website
• A blend of IDX and
advertising
MLS or
Aggregator
Broker
• Can blur the focus of
the business
Internet Business Models
VOW Model
Selling Agent
Website
Business
Relationship
Consumer
•Re-establishes the
MLS or consumerAggregator agent/Broker
relationship
Broker
•Operator needs to
supply incentive to
the consumer
Internet Business Models
IDX vs.VOW
IDX
addresses Internet
advertising
VOW
establishment of
broker-consumer
relationships
Internet Business Models
Lead Generation Model
Financial
Incentive
Lender
Website
Consumer
Leads
Compensation
Broker
Incentive to the consumer to
provide the consumer’s
information, thereby
establishing a relationship. This
information is then sold to the
broker as a qualified lead.
Internet Business Models
• If you don’t market to the e-Buyer,
someone else will
• - for a fee
51
Types of Products & Services
Standard Commodities
Choice Commodities
Intangible Commodities
Unique Commodities
(such as homes, but most
homes are not sold online)
52
Standard Commodities
• Mass-produced
• Multiple purchases by multiple
consumers at the same time
• Uniform pricing structure
• Products are easily
packaged/shipped
• Example: Books
53
Choice Commodities
• Involve non-physical products, like offering
a service
• Uniformity of purpose
• Distinction & variation in each customer’s
use
• Purchase or use is frequently singular
• Varied pricing structure
• Time sensitive
• Example: Airline Tickets
54
Intangible Commodities
• Personalized to accommodate the
needs of consumer
• Customer’s profile (creditworthiness,
financial history) are important
as features of product
• Example: Mortgage Loans
55
Unique Commodities
• Difficult to “web-ize”
• Not standard – no two are exactly
alike
• Cannot be owned by different people
at the same time
• Buyer choice & circumstances are
factors
• Example: Purchasing a Home
56
Unique Commodities
• Why is your web-site not considered
selling a unique commodity?
• Hint: What are you actually selling?
• Answer: Your services…
57
Activity: Brainstorm
• Name some traditional businesses
that have made successful transitions
to e-Business.
58
What Customers Want
• One-stop shopping
• A totally managed transaction
• All property, community & related
information updated in “real time”
• A faster & more pleasant experience
• Overall transactional savings
• Regular & complete communication
59
Predictive Modeling
• Quantifying those known parts of the
home-buying cycle that can be
anticipated & thereby present
opportunities to communicate with the
customer & generate value-added
revenue.
•
Lawfully target your customer
•
Lawfully target your market
•
Determine your options
60
Facets of the Home Buying Process
FACETS OF THE HOME-BUYING PROCESS
Property search
Contract negotiations
Transaction coordination:
 Closing file
 Insurance
 Mortgage
 Services
 Title
 Document execution
Recordation
Funding
Document distribution
 Online document execution
Activity: Brainstorm
• What other examples can you provide
that demonstrate how predictive
modeling may help in assisting clients
in the entire home ownership cycle?
62
Section III
Communication Objectives
• Provide better customer service
• Provide direct response to the
customer
• Cross-sell company products &
services
• Close more sales
• Simplify marketing
• Acquire new customers
63
All Channel Partners Want:
• Customer acquisition
• Customer retention throughout the
Home Ownership Lifecycle
• Customer cross-selling
64
Customer-Centric Communication
© RealSure, Inc. 2000
Targeting Your Customer Lawfully
• The salesperson wants to know what
customers are doing when online
– Survey your customers
– Focus – lead with client needs
66
Finding the New e-Buyer
• The search process ties in with:
– Pre-qualification
– Online value opinion
– Online appraisal
– Closing process
• If this what they are looking for, are
you there?
67
Targeting Your Customer Lawfully
• . . . simply means taking what a good
salesperson already does to the next
level.
• The key to success is tied to the
quality & quantity of data held for
each customer or property.
68
Fair Housing
• CAUTION:
• In targeting your market or
customers, always remember that
under Fair Housing statutes it is
unlawful to “profile” or otherwise
discriminate on the basis of race,
color, religion, sex, handicap, familial
status or national origin.
69
To provide optimum customer self-service
online, offer the following services
– An automated or personal response
system
• Drip e-mail, Auto responders,
– High level of customized response for
customer inquiries
• Third-level domains
– Integrated online communication with
offline human communication
• Chat or VoiP
– Marriage of all communication channels
70
The International Market
• Physical facilities, geographical
location & time zones are no longer
obstacles.
• With the onset of nearly-instant global
communication through the Internet,
people can now conduct business
from anywhere at anytime.
71
International Consortium of
Real Estate Associations
• Ultimately, ICREA looks to set
international real estate standards
based on a common code of ethics
and to facilitate referrals and related
payment of fees among ICREA
member constituents.
72
Activity: Brainstorm
• What are some needs/information
that international and/or multicultural
clients are seeking. Is your website
meeting these needs?
73
New Way of Communicating &
Managing Business
Obsession with technological
advancement and “nowness”
makes
utility hard to derive
Don’t invest in new technologies •Harold Innis
because you need the “latest and •Canadian Historian
greatest” and you need it now. •1894-1952
e-Mail
• e-mail has already surpassed
telephone & voicemail as the #1
method of business communication.
• Are you using e-mail effectively & to
your best advantage?
75
Managing e-Mail
• E-Buyers want information and they
want it quickly…
Customers' Timing
Expectations for
E-mail Resolution
Longer than 48 hours
1%
Up to 48 hours
11%
Up to 24 hours
52%
Up to 6 hours
8%
Up to 3 hours
15%
Less than 1 hour
13%
Source: Jupiter/Ipsos-NPD
76
Managing e-Mail
• 150+ messages per day! How do
you read & respond appropriately?
– Sort & file your e-mail with filters per
client, geographical farm, mortgage
company, etc
– Organize e-mail with a comprehensive
filing system
– Be aware of viruses
– Use customized signatures
77
Activity: Self-Assessment
• Do you communicate differently with
e-Buyers & t-Buyers? List how. Be
honest.
• How can you use technology to
improve how you communicate?
78
Mobilemediary
• The Mobilemediary will be able to
break into the value chain at any
point, bringing information &
transaction capabilities to customers
whenever & wherever they are ready
to buy a product or service.
• Test?
79
Mobilemediary
• Successful buyer representatives will be
those who learn how to use technology to
manage the key element in the real estate
transaction . . . INFORMATION.
• Gaining knowledge of how to get
information to the customer timely &
efficiently is the job of the Mobilemediary –
and the buyer representative.
80
Broadband Technology
• High speed internet access:
– Cable Modems
– T1 Lines
– Digital Subscriber Lines (DSL)
– Satellites
• The number of households with highspeed Internet connections in the US
grew:
– From 10.4 million in 2001 to 26.7 million
in 2004
81
Wireless Communications
• Wireless is rapidly becoming the
medium of choice for many
businesses & the customers they
serve. One in six U.S. Internet users
have logged on using "Wi-Fi" or
another wireless technology.
• For them, it’s “Business as usual.”
82
TELECOMMUNICATION TOOLS
Online Collaboration
Live, text-based chat between you and the customer
over the Internet (includes instant messaging).
Voice Over Internet
Protocol (VoIP)
Allows your customers to connect with you instantly
by voice over the Internet.
Unified Messaging
One number to deliver all voice, fax and e-mail in
conjunction with a call center … anywhere, anytime.
Integrated Voice
Recognition (IVR)
Uses customer voice-activated commands to deliver
desired information.
VoiceXML
Interfaces voice-recognition software and web content
using XML (Extensible Markup Language) for
delivery over the telephone.
83
Collecting and Processing Data
• Customer service … therein lies the
key element to keep in mind as the
era of e-business unfolds. Using
customer information in a way that
aids the customer and respects them
as a person is the high road to take.
84
Tracking Data
In the business world, the
rearview mirror is always clearer
than the windshield
In order to see where you are
•Warren Buffett
going you must see where you
•Investor
have been and how you got there. •(1930 - ?)
Consumer Information
• Personal Data - consists of names,
addresses, credit card numbers &
purchasing history – use only in
conjunction with specific buyer’s
transaction
• Collective Data - concerns the overall
demand for a given product or service
& how that product or service should
be priced and/or delivered
86
Confidentiality
• If you fail to convince customers that
their personal data in your
possession is confidential & secure
you risk that they will go somewhere
else.
87
Tracking Data – What do you
measure?
• What is your product?
– Listings or services, other?
• What is your goal?
– Acquire direct communication with the
consumer
• How do you accomplish your goal?
– E-mail communication, online forms, tollfree number
88
Tracking Data – What do you
measure?
• Can consumers easily access your
communication vehicles?
– Data tracking
• Are consumers finding your site?
– Track number of “hits” – wrong
89
Activity: Brainstorm
• List ways that you currently track your
traditional methods of marketing
• List ways you can track the success
of your e-marketing efforts
90
Tracking Data – What do you
measure?
• Units to consider tracking
– Unique visitors
– Page views
– Referring page
– Search Engines
– Search Engine key words
– Operating Systems
– Who's online
– Languages
91
Forecasting, What’s realistic?
• Ask Your Web Hosting Vendor
• Relate Your Estimate to Your (offline
and online) Marketing
• Ask Experts
• Expected/anticipated ROI
92
Web sites
“The value of goods are derived
from its utility to the user, not the
labor spent in producing it.”
Consumers don’t care that you
•Jean-Baptiste Say
spent $XXX designing your web •French Economist
site two years ago, they care how •1767-1832
functional it is today.
Web Sites
Your personal website should:
• Be the centerpiece for all online
advertising & communication
• Have access to search data
• Contain tools necessary to locate
property & financing are key
elements
• Follow good design principles
94
Activity: Brainstorm
• If customers rarely search for a
specific real estate salesperson, what
are some keywords you have
used/can use so that your name will
come up as home buyers search for
information online? Hint – include
multiple ways a word can be spelled
or misspelled.
95
Web Sites – Tools for consumers
•
•
•
•
•
•
Mortgage information
Market/home information
Area information
Moving tips
Contact information
Other???
96
Activity: Brainstorm
• What other information would you
provide?
• List the top 5 and the next top five
priorities.
– These should be made available
throughout your site. Track how users
are finding these areas through your
web stats.
97
Activity:
• List five things you should do on your
web site
• List five things you should not do on
your web site
98
Driving Traffic to your Web Site
ONLINE METHODS OF DRIVING TRAFFIC TO YOUR WEBSITE
Expanding your website…
 Use a good website software program such as www.WebTrends.com to
analyze the traffic on your site.
 Register your website with as many search engines as possible.
 List your properties with major real estate portals.
 Place your company/personal profile with real estate portals.
 Add/create real estate/home ownership/community-related links to your
site.
List your website with other search engines.
Create and distribute e-Newsletters to past and potential clients


 Undertake e-mail campaigns to lawfully target your farming area.
 Promote your URL as widely as possible.
 And, of course, use many real estate-related keywords that consumers
would use in a property search.
99
Activity: Brainstorm
• What additional methods would help
drive traffic to your website?
100
Promoting your url
PLACES TO PROMOTE YOUR URL

Business cards
All your advertising
Voice mail
Newsletters
E-mail
All directories, rosters, etc.
Marketing pieces
All your press releases
All your listings
All promotional giveaways
101
Voice Over Internet Protocol
• Benefits
– Customers never have to leave your site
to reach customer service rep
– Reduced long-distance costs
– Customers add “high-touch”
when/where they want
– Customer service can up/cross-sell
other products & services
102
e-Newsletters
•
•
•
•
•
Replace direct mail counterpart
Cost-effective
Can be more target specific
Can be automated
Can carry imbedded photo tours &
direct links to specific information
103
Moving Non-Internet Users Online
• Identify who is online & who isn’t,
then:
– Offer a neighborhood e-Newsletter with
handy information
– Post a neighborhood calendar on your
website with links
– Send out a direct mail piece offering
assistance in getting online
104
5 Cs Of Doing Business Online
• Contact – continue with existing
customers & attract new customers
• Capture – after contact create a
relationship
• Cultivate – convert contacts into
customers
• Close – convert customer into cash
• Continue – keep your customer For
Life
105
Activity: Brainstorm
• Develop business strategies that will
be addressed by the Web strategy, email strategy, and service delivery
(what services you will make
available and how often). Be sure to
include measurable objectives with
the frequency that they will be
measured. For the web strategy you
will be asked to design you home
page plus identify how you will market
your web site.
106
Value Through Integration
• As the individual parts of the
transaction become individual
commodities, tomorrow’s real estate
professional is going to have to
become an aggregator of services.
107
eeeee-Buyer
THE END