The Real Estate Industry Can Gain a Competitive Edge with Data Validation
Data-based marketing, outreach and lead generation isn’t only for cutting-edge B2B companies anymore. Data runs the world these days and successful businesses in every industry can benefit from using verified, validated data in smart ways.
Working with generic data isn’t enough, either. It can be inaccurate and out of date, making it as useful as no data at all—worse, even, if you’re relying on this information. That’s why smart real estate organizations—from large firms to independent agents—are investing in data validation services.
Data validation verifies that the information you’re working from, whether about a specific lead or regional demographics, is accurate and up to date. Validation can be as simple as verifying correct names, phone numbers and current addresses, or can be as nuanced as geo-targeting, IP address validation and reverse phone lookup discovery. No matter the level of data verification, the results are the same: correct information can help you make better-informed decisions and accurately target your audience.
Clever and industrious people in the real estate industry can benefit from just about every type of data validation; it’s all about keeping an eye on trends and getting the right message to the right people at the right time.
This is simple but crucial for real estate agents, who still spend a considerable amount on direct mail marketing. Getting a personalized mailer in the hands of the right person is important. RealTrends found that targeted direct mail pieces had a 2-5 percent response rate, versus the 1 percent rate when real estate agents mailed the piece to everyone without specific targeting.
Address Validation before a direct mail send can help ensure that you have the resident’s correct name (“Current Resident” makes the piece seem extra promotional and impersonal), the correct gender salutation, and helps make sure that the target actually lives at that address.
Image via Evil Mad Scientist
Using a data validation service that has access to the USPS National Change-of-Address database can help further refine outreach. If a new family just moved into the address you’re targeting, they’re probably not looking to move again soon, so strike that address off the list for now.
Taking address validation a step further with geocoding validation can help real estate agents get a jump on hot trends and growing neighborhoods. Cross check a list of addresses against a trending neighborhood’s longitude and latitude to make sure the addresses you have really are in the hot spot. People currently in this neighborhood might want to capitalize on the new demand and sell their home at a profit, making them prime contacts for savvy real estate agents. Extend your validation and outreach efforts to the surrounding neighborhoods to get a leg up on the competition.
Reverse Phone Look-up enables companies to put a name and current address to a phone number. This is particularly useful since many people now move but keep their original cell phone number. This trend makes phone numbers alone a hard way to target people, especially with the declining use of landlines. According to Time, 41 percent of homes were landline-free as of 2014 and 60 percent of adults ages 30-34 exclusively use a mobile phone. With the average age of first-time home buyers currently sitting at 31 and expected to climb to 32-34 in the coming years, this makes reverse look-up validation an invaluable resource for real estate agents.
This type of validation will tell you if the people on your list of phone numbers truly do live in your territory. Plus, it will give you their most current address and name. National real estate companies can use this validated data to send location-specific messaging to everyone on their list, based on the person’s current location.
A core premise of marketing, no matter what industry, is “know your audience.” Demographic data validation can help real estate agents get an accurate and intimate understanding of the areas they work in. Gut instincts are essentially gambles, whereas using validated data ensures you have reasonably accurate and updated information. By working with US census validated demographic data, real estate agents can change and target their messages based on location.
- Spanish-language ads can be placed in predominately Hispanic neighborhoods
- First-time homebuyer messaging can be sent to areas with a high concentration of young adults reaching the pivotal first-time homebuyer age
- Direct mail pieces discussing downsizing can be targeted to areas with mostly older adults
- Target small business owners in the area about property opportunities in the up and coming business district
Understanding the population make-up of a particular area can also help influence how you market properties. Areas that are mainly suburban are likely to connect more with family-oriented messages while urban areas probably want to hear more about high-end home features and nearby amenities. By using a combination of demographic validation and geocoding validation, agents can perfectly target each area.
This level of data also provides insight into the average income and spending of nearby households, which is helpful when pricing houses and projecting commissions.
Many real estate agents work independently and cannot afford to waste time, resources, and money on misguided marketing and outreach efforts. This is where a commitment to clean data and consistent data validation can provide a competitive advantage. Committing to using validated data as a key business tool can help real estate firms accurately focus efforts and spend smartly with better response rates.
Data can be intimidating, but with good data validation the return on investment is well worth it. Look into the different features and options offered to begin cleaning up your data and deciding which level of data-based targeting will work best for you. Go beyond just address validation and get creative if you want to pull ahead of the pack.