Demystifying Real Estate CRM Adoption Rates
Digital strategies have already delivered a major blow to businesses slow to respond. The very concept of work-strategies are being redefined as different generations enter and exit the workforce in the thick of a rapidly changing technological landscape fueled by startups.
An area of technological interest for the better part of ten years has been customer relations management platforms, or CRM. During that time, nearly half a billion dollars have been invested in some of today's leading CRM real estate tech startups globally. However, as investors and real estate firms our capital to find the "Salesforce of real estate," a question remains, do CRM's lead to sales?
Based on a RE:Tech study, real estate organizations and brokerage professionals have access to a CRM system. In fact, 85% of real estate professionals said they have access to a CRM. But, of more than 500 survey respondents, 45% said they use some sort of CRM to manage their business. However, only 25% of respondents stated that having access to a CRM has lead to sales.
Has having access to a CRM lead to sales?
This trend in real estate seems to be backed by a larger macro trend in the CRM industry. Based on a CSO Insight study, 80% of the more than 1,000 companies surveyed have a CRM solution. But only a 1/3 have adoption rates of at least 90%.
The sentiment amongst real estate professionals has been, CRM's at best are considered a waste of time, at worst hinders production. "CRM's aren’t embraced by real estate professionals because, frankly, they don’t think it gives them a good return on their investment," according to a real estate broker in New York.
Additional research by Accenture reveals that:
- 59 percent of global sales executives say they have access to too many sales tools and are bombarded by too much-disaggregated customer data to be effective.
- 55 percent of sales representatives consider their sales tools to be more of an obstacle than a facilitator of sales performance.
- Sales productivity has decreased from 41 percent five years ago, to 36 percent today.
- 58 percent of sales executives are concerned about achieving this year’s sales targets.
It seems that many real estate professionals are struggling to drive value from their CRM tools. However, CRM is showing the highest growth of all the sub-segments of the cloud-computing industry, according to Gartner.
In the business of real estate, data is vital to sales and future sales. But statistics show that there’s a huge gap between gathering information and transforming it into meaningful and actionable to achieve sales objectives.
The Solution: Customer Relationship Automation bridges the gap. CRA transforms data into information that sales and business-development professionals can easily understand and take action on. Additionally, real estate professionals won’t be tied down mundane activities such as data entry.
As a result:
- Time: CRA saves the average real estate professional an estimated 5 hours per week.
- Accuracy: CRA's eliminate human error, such as data entry errors.
- Efficiency: CRA's eliminates the time spent on activities such as downloading data or figuring out how to use it.