Study (updated by ChatGPT): Digital disruption and transformation in the property industry (eBook)

Update 24.02.2023: ChatGPT in the property industry

ChatGPT is an advanced artificial intelligence (AI) tool that is increasingly being used in the property industry. It is a natural language-based chatbot that allows customers to communicate with estate agents in a simple and intuitive way. ChatGPT can help to increase the efficiency, productivity and customer satisfaction of estate agents.

One advantage of ChatGPT is its 24/7 availability. Customers can communicate with the chatbot at any time, even outside business hours, which leads to higher customer satisfaction. ChatGPT can help automate repetitive tasks such as answering standard questions from customers. Estate agents can instead concentrate on their core tasks such as searching for properties or looking after customers.

Another advantage of ChatGPT is its personalisation. Chatbots such as ChatGPT can respond to the individual needs of customers and provide personalised answers. By using natural language and the ability to respond to individual needs, chatbots can also increase customer engagement.

ChatGPT can also help reduce costs by automating repetitive tasks and allowing agents to focus on more productive tasks. Real estate agents can work more efficiently, which can lead to increased productivity.

To summarise, ChatGPT is a valuable tool for real estate agents that can help increase efficiency, productivity and customer satisfaction. By using ChatGPT, estate agents can improve their business and become more competitive.

Best practice: ChatGPT for marketing automation in the property industry

I used ChatGPT to automate marketing for one of my clients (a property agent). Here is the analysis of what led our client to big jumps in the search engine and more customer contacts via social media within a month, while at the same time reducing marketing expenditure:

ChatGPT can also be used for SEO (search engine optimisation) to increase the visibility and findability of estate agents in search engines. Here are some ways ChatGPT can be used for SEO:

1. Keyword optimisation: Estate agents can program ChatGPT to use relevant keywords in the responses. This allows chatbots to be found more easily in search engines and appear higher in the rankings.
2. FAQ optimisation: ChatGPT can also be used as a FAQ (Frequently Asked Questions) to provide answers to frequently asked questions. By using relevant keywords in the questions and answers, ChatGPT can also help to increase the visibility of estate agents in search engines.
3. Linking: Estate agents can programme ChatGPT to include links to relevant content on their website. This allows chatbots to help increase traffic to the website and improve search engine rankings.
4. Content optimisation: ChatGPT can also help to provide valuable information and content that is useful to clients and prospects. By providing high quality content, ChatGPT can help to increase the visibility of estate agents in search engines and strengthen their positioning as experts in the industry.

In summary, ChatGPT can be a valuable tool for SEO in the property industry by providing relevant keywords, FAQs, links and high quality content. By using ChatGPT, real estate agents can increase their visibility in search engines and improve their marketing.

What the property industry says about me:

10 advantages of chatbots and AI for estate agents

1. Time savings: AI and chatbots such as ChatGPT can save estate agents a lot of time by automating repetitive tasks, such as answering standard questions from customers. Instead, estate agents can concentrate on their core tasks such as searching for properties or looking after customers.
2. Improved communication: Chatbots such as ChatGPT can respond quickly and accurately to customer enquiries, leading to improved communication with customers. Through the use of natural language and the ability to respond to individual needs, chatbots can also increase customer engagement.
3. 24/7 availability: AI and chatbots such as ChatGPT are available around the clock and can answer customer enquiries even outside of business hours. This increases customer satisfaction and can lead to more business transactions.
4. Personalisation: Chatbots such as ChatGPT can respond to the individual needs of customers and provide personalised answers. This increases customer engagement and can lead to higher sales.
5. Scalability AI and chatbots like ChatGPT can also scale with a growing number of customer enquiries, allowing estate agents to expand their business without having to hire additional staff.
6. Data analysis: AI and chatbots such as ChatGPT can collect and analyse data from customer enquiries, which can give brokers valuable insights into the needs of their customers. This data can also help to better understand customer needs and thus optimise marketing strategies.
7. Cost efficiency: AI and chatbots like ChatGPT can help reduce costs by automating repetitive tasks and allowing brokers to focus on more productive tasks.
8. Increased productivity: AI and chatbots like ChatGPT can help estate agents work more efficiently, which can lead to increased productivity. Agents can complete more tasks in less time, which can give them a competitive advantage.
9. Brand awareness: AI and chatbots like ChatGPT can help strengthen a real estate agent's brand. ChatGPT is an advanced technology that will play an increasingly important role in the future. Estate agents who use this technology are well positioned to be successful in the future.

I have already introduced ChatGPT for some estate agents - with corresponding success in search engine optimisation and customer acquisition. If you would also like to benefit from all the advantages as a real estate agent, simply register now. Contact up to me!

Complete study as eBook:

Introduction

The digital transformation is already well advanced in many sectors, such as banking and insurance. It is also an important topic in the property sector. Despite its importance, digital disruption is still being treated very hesitantly by many companies in the property sector.

Digital disruption offers a real estate agent or estate agency the opportunity to improve communication with customers and reach new target groups. If you want to bring your company to the forefront of the property industry, then you shouldn't wait too long to plan your digital transformation. Otherwise, you could find yourself being overtaken by the competition.

First of all, you should think about where your company stands in the area of customer communication. How well positioned is your company in terms of digitalisation? A considerable need for adaptation is expected in the property industry in the future. Despite this, many companies involved in the sale or letting of property are still adopting a very wait-and-see approach.

The only thing that has already changed for many companies is communication. However, digital disruption should not be underestimated by a real estate agent or property management company. The upheaval can no longer be stopped in any industry. Digital disruption refers to a transformation or disruption. This refers to the corporate strategy, which is also very outdated in the property sector.

Normal changes, for example due to new computers or systems, are normal in any industry and in most cases do not require a great deal of planning. Changing systems does not take much time and is simply part and parcel of every company. However, digital transformation is a completely different story.

Thanks to the latest technologies, customers have the opportunity to use many of the services offered by estate agents or property management companies themselves. Many online and offline channels are available for this purpose. With digital disruption, it is also important that great importance is attached to clarity and transparency.

If you are already transforming your company now, you have the opportunity to overtake many of your competitors on the market. The transformation will result in a completely new business model. But all employees will also have to completely reorganise themselves. The aim of the change is to focus more on all customers in the property sector.

You should replace your old, outdated business model sooner rather than later. In many other sectors, such as insurance, banking or the automotive industry, digital transformation has already been one of the most important topics for many months. The digital tsunami is slowly but steadily spreading across all sectors. In the property agent start-up scene, there are many providers who have launched directly onto the market with a digital approach.

This gives them the advantage that customers are more likely to choose this estate agent or a property management company for the sale or letting of properties than an old-fashioned company.

Of course, the transformation also entails a lot of work for your company. If you have an IT department, then you have the advantage of being able to involve this department in the planning and implementation of digital disruption. Otherwise, it makes a lot of sense to put together a professional team that primarily takes care of planning and change. Of course, the top management should also be kept up to date on all steps, plans and thoughts or a digital transformation. This is particularly important as digital disruption will shatter the entire previous corporate model.

A whole new system needs to be set up, which in some cases can result in high costs. If you as a real estate agent do not start planning the transformation in the near future, you will lose some of your customers to modern competition.

In many areas, digitalisation has not passed without a trace. Just think of the transformation in the music and video store industry. It used to be common practice to buy music in a music shop. Today, music lovers can download any music they want from the comfort of their computer. Nowadays, it is common practice to stream music and films.

As a result, many local branches of the film and music industry have closed. Hardly any internet users would bother to visit these branches today. These examples can also happen in other areas. In the estate agent sector, too, a new system will soon have to be used in order to avoid being swept off the market by the competition.

At the time, the music industry had underestimated the danger. They didn't think that the switch from discs to CDs would be more than a minor trend. In fact, what happened was that the entire record player sector was literally swept off the market. Many companies that used to specialise in the manufacture of record players were unable to change their corporate strategy and rethink quickly enough.

If the company had thought about how strong the CD market really is in good time, then many of the pressing plants would probably have been converted accordingly in order to produce modern CD players in future instead of obsolete record players.

Of course, such a changeover is not possible overnight. It is therefore always important to keep an eye on the market. The example of the music industry should give every other sector food for thought. Real estate agents and property management companies should also keep their finger on the pulse.

At the time, many artists were allowed to offer their music for sale with or without a record label. This made it easier for anyone interested to use the videos or music indefinitely. Dealers and pressing plants only had a small disadvantage in the area of records and record players. The basis was completely destroyed by the new technology.

The emergence of disruption

How does a disruption occur?

The principle of digital disruption was brought to life 20 years ago by a Harvard graduate. He was Clayten Christensen. He made it necessary for many companies to change their corporate policy. Many companies are already ready to develop further in their industry.

Traditional companies have completely changed their business model, which has attracted many new customers. In contrast, all companies that have shied away from change up to now have been left behind. In the worst case scenario, digital disruption could mean the "end" of these companies.

This does not even depend on the market value or size of the company in question. There are also many pioneers in the field of estate agents and property management who have already almost completed the planning phase.

Start-up companies that started directly with the right expertise are primarily the young companies that still opted for the old business model. They now face a double challenge.

All new companies have already made large investments, some of which they still have to pay off. In addition, new companies usually do not yet have a large customer base. If new companies are now expected to rethink and reinvest, this will hardly be possible. But even for companies that at first glance think that a digital transformation is impossible, they can certainly find ways and means to implement the transformation cost-effectively. Some examples of technically assured and customer-friendly customer service can be found in the banking and insurance sector. Here, too, there are of course many pioneers for companies in the property sector, as it is very important to be at the cutting edge of technology. This is why many digital products have already been converted to the latest technology. This is mainly due to the fact that many customers demand this service from their providers and customer wishes should generally always be taken very seriously.

Customers expect nothing but advantages from a digital transformation. This also affects people who have already become very accustomed to the old system. Companies therefore need to rethink their approach as quickly as possible so that all customers will be delighted with the results. Digital disruption makes it possible for all customers to conclude contracts themselves, for example. This advantage also benefits the sale of property or the letting of property. At the same time, customers can contact an experienced customer advisor at any time if they wish.

In some areas, for example, employees from the Hotline Service can be deployed. The hotline service can take over this part. However, for many real estate agents, a call centre does not immediately make sense. In this area, it is much more important for a customer to be informed about the sale of properties or the letting of properties, to be informed about current offers at any time and to be able to take advantage of the opportunity to look around at prices in peace.

Customers should only be advised directly by an employee if they so wish. Otherwise, many customers get the feeling that certain properties are being pushed on them like a shoe salesman. Many people find it much more pleasant not to be persuaded to make a purchase, but to be advised if necessary. It should therefore be possible for a customer to opt for advice. This can take the form of an online chat or a video conference, for example. At the same time, customers have the advantage that they only need to contact a real estate agent or property management company if they really want to do so themselves.

Digitalisation in the real estate industry

Digital transformation has been on everyone's lips for many years now. It is considered to be cross-industry and has been unstoppable for many years. Every technology has continued to develop over the past few years. As a result, it is no longer possible for any company to ignore digital disruption. The new technologies also bring many benefits to companies and not just to customers.

As a real estate agent, you can benefit greatly from this when selling property. Whereas in the past, paper was used predominantly and a punch system or stamp cards were used, all systems have gradually been changed and modernised. Today, digital time clocks and computers are the normal standard. One major advantage is that less paper is needed and therefore there is no longer a need to store a huge amount of files in cabinets. As a result, employees have more space and room on their desks. The vast quantities of copies are also no longer necessary. In most cases, internal correspondence or advertising is distributed digitally.

This is not only particularly cost-effective, but also much faster. The new environmental awareness is well received by customers and employees. Compared to a letter, e-mails have the advantage that they are distributed to all employees at the same time. This means no costs are incurred. At the same time, all employees have the same up-to-date information. In future, customer data will also be handled in the same way. Of course, data protection must be guaranteed here.

All offline and online channels should be linked together. This creates a completely standardised picture. Customers can also view their own data at any time using special programmes. The new technology makes it much easier to communicate, work and interact. To achieve this, it must be clarified in advance which data is important for the individual areas.

After all, a wide variety of data is used in the sale and letting of property, which also needs to be analysed. More and more people are using the Internet almost every day. They use it to get the information they need, chat with friends or do business. Many internet users use their own smartphone or tablet for this. This allows them to use a wide variety of apps to process all orders or contracts. Every real estate agent should bear this customer behaviour in mind.

When setting up a website, care should always be taken to ensure that the pages are clearly organised. Clear navigation, lots of images or videos and little text can help customers to find their way around a website much more easily. A well-structured estate agent website is much more suitable for many customers than a site that is prettily styled. The simpler and easier on the eyes a system is for customers, the longer they will stay on it.

This is particularly the case when selling or letting property. Customers must be able to look around at their leisure in order to decide on a suitable property. However, customers will certainly not want to spend ages searching for suitable properties.

The best thing is that they can see the latest offers or the most lucrative properties at a glance. At the same time, customers like the fact that they can see which offers they have already viewed at any time. For your company, this means that you have to store customer data for a while. Many customers use the Internet for the majority of their orders or services. After a long day at work, they don't feel like visiting a property management company or a property consultant.

The Internet offers customers an alternative that allows them to look for property offers at their leisure. This avoids a long search for a parking space or a long journey. Customers also do not have to put up with long waiting times. Customers can obtain the information they need at any time of day or night via a property management website.

At the same time, customers may find that there is no estate agent on site. Without the internet, they would only have the option of travelling to the nearest town to look for a suitable property. With the help of digital disruption, customers should be guaranteed a wide range of services. They no longer have to go to great expense. Instead, all customers can make better use of their free time.

This customer demand is forcing the property industry to rethink. The digital transformation is encouraging an entire industry to apply the simplified system to the entire corporate structure.

Comparison portals offer many advantages

Many customers no longer want to have to put up with having to pay more for a service. Even if they have been loyal to a company for many years, it can happen that they decide in favour of the services of another company out of convenience. They do not want to have to pay a higher price for a service. For this reason, many customers use comparison portals. These portals make it possible to differentiate between products or services directly. Special offers can be recognised immediately.

To do this, it helps customers if they can compare all prices and extras. If you want to focus on certain properties that have a favourable price via your online shop, then they must not be more expensive or cheaper via the branches.

This means that you have to adjust all the data for this offer at the same time. However, many users don't just use the comparison portals to find prices. Rather, these options are also used to read customer reviews. Many customers who have had a good experience with you are happy to pass this on to other customers.

This means that your satisfied customers are advertising for you. The price portals do not impose specific offers on customers. Instead, they can take their time at home or on the move to find out whether a particular property rental or property sale is suitable for their needs.

Comparison portals allow all the advantages and disadvantages of certain objects to be recognised directly at a glance. Customer reviews always reflect the honest opinion of customers. In addition to comparison portals, social networks such as Facebook, Twitter, Linkeding, XING and Google+ are also very popular with many customers.

Customers meet friends and like-minded people on these platforms. In addition to many private individuals, there are also many companies on the social platforms. This is why the range of offers and information is so diverse.

Of course, digital disruption in the property sector does not mean that a pure social media presence is enough for a company to make progress in the market. Rather, it is much more important to reorganise the company's entire business model, operational processes and value chains. After the digital transformation, the corporate structure is usually unrecognisable.

If you want to continue to be very successful as a real estate agent or property management company, then digital disruption is very important. Only those who take a closer look at the topic of digital transformation in the property sector in the near future will be able to set themselves apart from the competition.

Digitalisation can be explained very easily using the example of 3D printing. A classic 3D print is a modern, digital technology that is popular with many people.

Many experts and specialists are convinced by this innovative system. Gradually, special printing has also become established in the industrial sector. Of course, it doesn't really matter which product or service it is exactly.

It is important for every industry to present its own product in such a positive light that customers are enthusiastic about it. 3D printing is just one example of how a change or innovation can be cross-sectoral. If a new system has been developed and is very well received in a wide variety of sectors, then it will also be possible to generate many new customers from other sectors. A new development such as 3D printing enables other companies to change their existing structures and plan customised use in their own company.

As a company, you should now ask yourself in which area it should change in the future. How can digital transformation have a positive impact on the property sector and how quickly can it actually be implemented? Do you need certain resources for this? However, one of the most important questions is also which steps should be taken first in order to avoid being overtaken by the masses on the market.

The goal of a real estate agent should always be to offer your clients the best deals and a comprehensive service. The goal of your business should be that your technology and service is even better defined by the new digital age.

A cross-industry impact of the digital transformation

To make it easier for your company to initiate digital disruption, you should first determine the current state of your company. You should then define all the goals that are very important to you as a real estate agent or property management company.

To avoid any nasty surprises when implementing digital disruption, a special team should be tasked with planning and implementing the transformation. The exact scope of the work always depends on the extent to which you have already modernised some areas of your company in the past.

If you have already invested in new technology in recent years, the costs of a transformation are usually manageable. You should discuss all the implications of the new company structure in relation to your customers with your IT experts and management in advance. As the transformation will take many months, it is not possible to disregard day-to-day business during this time.

For this reason, it is all the more important that you put together a dedicated team for the digital disruption tasks. This team should be given time off so that it can fully familiarise itself with the new task. In the beginning, it is of course very important that the team sits down with all the experts and the IT department. This allows a rough timetable to be drawn up and the transformation can be planned much better.

Don't underestimate how much work you or your company will have to do. If you have done your work in advance by clearly defining all your goals and recording the current situation, you will be able to better fulfil your customers' wishes in the future.

As the insurance or banking sector is not similar and hardly any property consultants have started with digital disruption yet, you have a good chance of being able to plan and implement everything at your leisure. This should take some of the time pressure off you.

Depending on the size of your company, you can expect a period of 3 to 5 years until the transformation is complete. Only then can you be sure that all errors in the system have been rectified and all eventualities ruled out. You should also be prepared for the fact that not all employees will be immediately enthusiastic about the idea of a corporate structure change. You must therefore be prepared for some resistance.

It is also not enough to retrain your employees for the new technology with the help of internal training. Rather, your employees must be able to understand and implement the idea. It is often possible that employees will have to be transferred to other departments. This is also the reason why many employees are opposed to such a change.

Don't let this impress you. Experts are certain that even the last few sectors, such as consulting firms, will not be able to protect themselves from digital disruption. When it comes to transformation, remember that you need to develop your very own corporate strategy for the property sector. This is an opportunity for every company to develop further. However, it also involves a lot of work to completely restructure a company. A dedicated IT department or individual IT employees can be very helpful in determining exactly which measures are important for the digital transformation.

Do not prioritise your needs over the needs of your customers. Nevertheless, you should never lose sight of the costs. A transformation should help your company to shake off competitors and not damage them financially. For many companies, it is advisable to look for an experienced and competent partner. At the same time, you should acquire a certain level of expertise yourself. This will make it easier for you to keep pace with the digital age in the future.

With the right partners, you will be able to achieve all your plans faster and in a more targeted manner. A digital disruption is not the end of a company, but a new beginning. Technology will continue to advance and will continue to push you to the limits of your possibilities in the future. But if they always keep their finger on the pulse, then such major changes will no longer be necessary in the future.

As a real estate agent, you should always appear competent and modern to clients. This means that you cannot avoid constantly reinventing yourself and always remaining open to change. Your behaviour will show customers that you always respond to their wishes and are the most innovative of all your competitors.

A traditional company needs to reinvent itself

For many traditional estate agents, digital disruption is a particular responsibility. As they have remained loyal to one line for many years, they find it very difficult to change completely. Many of these companies have been working with employees for decades. Some were even involved in setting up the company.

In this case, one of the most important tasks of the management team will be to convince employees of the digital transformation. They need to understand what customers want and be prepared for a major change in their work. Therefore, let all employees know in good time what consequences digital disruption will have for their company.

After all, they need time to adjust. Out of loyalty to your employees, it will not be possible for you to leave the company structure as it is due to the changes and advances in the digital world. Many customers simply no longer want to visit your shop in person for every question or order. They want to be flexible and mobile. Customers only want to contact you in person when they feel it is appropriate.

One of many examples is customer behaviour towards an insurance agent. Hardly any customer today wants to invite an insurance agent for coffee in their own home to explain the benefits of individual products. In retrospect, many customers do not feel comfortable with their decision to buy a particular product. Rather, they have the feeling that they were talked into something.

In the insurance industry, this has often led to subsequent cancellations of orders. However, cancellations do not occur so frequently if a customer has opted for a specific product of their own accord.

Before placing an order, they will have used many options, such as your website or social media platforms, to find out more. They will certainly have taken enough time to carefully weigh up all the pros and cons. For a long time now, insurance consultations have rarely taken place in people's living rooms.

Customers very often decide in favour of a particular insurance policy online. Other policyholders have probably contacted a branch directly if they have any queries. However, this is the free will of the insured person. This example can often also be applied to the property sector. If a property is to be sold or rented out, the customer will also obtain sufficient information on special platforms on the Internet.

The property sector offers all customers many opportunities to search for specific properties or to offer properties themselves. The right system makes it easy for customers to handle many transactions themselves. As a partner to your customers, you can offer your assistance through an online chat or communities. Many customers will gratefully take advantage of this when needed.

Simply changing your website will not be enough to inspire your customers. Rather, you need to create completely new value chains or a new business model so that they are not lost on the market in the future.

A change in operational processes means that you can save a lot of time when processing orders. Order processing in particular is much easier digitally if all data is made available transparently to every employee. It is therefore all the more important that all processes are precisely planned and professionally implemented in advance. Many companies need several months for the planning phase alone.

If a company has completed digital disruption, then it can be proud of itself. It has the best chance of differentiating itself from its competitors in the property industry in the future. Some companies have a small head start in moving up the market due to complex property industry regulation. Digital disruption means that all barriers to market entry can be lowered. New companies and start-ups have clear advantages here. They can compete at a faster pace as they do not have to invest as much time in digital disruption due to the latest technology already in use. Customers will certainly reward the rapid transformation with loyalty.

Competition in the property sector is being fuelled by digital disruption. Some companies are taking advantage of customers' ever-growing desire for proximity and individualisation. They are able to develop their very own solutions and can clearly split some areas and segments of the company.

If, for example, a real estate agent or property management company has a direct banking partner, then it is easier for customers to plan their financing. A good example of this is the popular Otto Versand. It has a special finance portal for female customers. All female customers can use the website www.einfachanders.de to manage and process the financing of their orders at Otto.de themselves. With its partner Sijox, Signal Iduna also has a strong partner at its side. This partner makes it easier to appeal to younger customers.

Customers use aggregators

Digital disruption is causing many companies throughout Germany to break out in a sweat. The penetration of new providers is having a massive impact on the market. Aggregators in particular have many advantages from the digital transformation. Transparo, Check24 and similar platforms are among the best-known aggregators.

On some platforms, a wide variety of aggregator providers can be linked directly with each other. If you want to book a flight online, you can start several search pages at once via one platform, such as fluege.de, opodo or swoodoo.

This means you receive the most favourable offer within a short period of time. Other providers have taken advantage of this to rely on the utilisation of leads that can be generated on a platform.

Many customers find it very interesting to observe the property market. They can use search engines at any time to obtain comprehensive information about the properties currently available. This results in a specific requirement from a product provider.

Proptech founders have good opportunities

Gone are the days of sluggish companies in the property sector. Proptech start-ups are challenging outdated processes. The sector is facing a revolution in the near future that will make it very easy for start-ups.

Structurally, the property sector is slowly getting down to business. The housing shortage and prices are rising and the laws in the sector are also constantly changing. More and more people are looking to sell property or want to rent out property.

Hardly any property owner has the time or inclination to take care of the sale or letting themselves. The main reason for this is that it takes a lot of time and requires a lot of experience. Developments in recent years have made a change in innovative processes essential. Many proptech start-ups are taking matters into their own hands and are overtaking conservative companies as a result.

Modern companies have long been working on their digital solutions, which are shaking up the current property world. It is only a question of how long the established companies will be able to resist not being able to fulfil customer wishes. New sales channels and new products are attracting customers to proptech start-ups.

A lot has already happened in some areas. More and more customers are using online marketplaces to find a new home via the search engine. As a result, more and more estate agents are being relieved of their work.

A digital control centre makes it easier for people to do business with property. Property crowdfunding platforms make it easier for them to make investments. Investments totalling billions have already been made. The trend continues to grow.

Digital disruption in the property industry offers many companies the opportunity to make huge efficiency gains. More and more resources can be freed up and utilised more effectively elsewhere. For example, they can be used for value-added services or for more sustainable processes. Of course, freed-up resources are also always very helpful for developing new innovations that have not even been thought about today.

A very important point for an innovative and modern company is its transparency. A proptech startup is able to structure an overview of the market at any time. Professional and intelligent networking of the ERP systems means that up-to-date information on rental prices, vacancy rates and fluctuation rates can be passed on at any time.

This is an important basis for decision-making in order to be able to implement a housing policy measure. The ever-widening gap between vacant housing in rural areas and the ever-increasing housing shortage in larger cities should be considered.

Transparency can often be a decisive factor in how living spaces are better distributed and how prices can be better adjusted. Networked solutions will continue to dominate the property sector in 2017, as they can provide better insight.

In the property sector, only companies that are well networked have really taken off. The networking of wealthy private investors and major investors plays a major role here. They are always in a position to participate in interesting property projects.

New and existing crowdfunding projects can thus be organised much more democratically from an investment for an investment. Environmental protection and sustainability are also major issues for proptech.

The many smartphone apps that make it possible to make a house much more energy efficient have already taken a big step in the right direction. However, this does not mean that the market has already been explored.

The proptech scene has much more to offer. It is possible for any company to improve existing products. In addition, new applications can be developed for customers at any time.

An intelligent system can, for example, be a detailed trend analysis in the area of energy consumption. This system is particularly useful for homeowners. With the right system, every homeowner can keep an eye on CO2 emissions and the waste of resources at all times and counteract them if necessary. This can save customers a lot of money.

The pressure on estate agents is constantly increasing. Digital disruption is an important step in the proptech movement. More and more younger companies have made it their mission to help younger people find a home.

Matching functions or applicant profiles make it easier for people to find a suitable flat, just like in online dating. The situation is much trickier for traditional property management companies. Virtual flat viewings can quickly cost estate agents their jobs.

The up-and-coming proptech sector and the conservative sector are still operating separately from each other. The property sector lacks the start-up cooperation that is common in other areas. Trade fairs, conferences and networking events, which are attended by many interested parties, enable a shared culture of innovation that makes the entire sector even more customer-orientated and efficient.

In 2017, the CeBit industry supported the first attempts to bring together young entrepreneurs from the proptech sector and experienced property agents.

Until now, the property sector has not necessarily been part of the technology company's field of activity. At the end of July, Garrett Camp, the co-founder of Uber, had the perfect idea for a "house". This was actually just a kind of confirmation of the trend that has been emerging in recent years. Whether it's the property trend or proptech, it's about the introduction of technology into the otherwise stale property sector.

As a result, he has been able to help many providers with regard to digital disruption. He has summarised the 6 most important points for the next few years for any real estate agent or property management company. In the coming years, investment opportunities will rise sharply due to population growth and the favourable development of gross domestic product in the economically emerging countries.

The fast-growing cities provide a small risk and also bring with them new potential returns. Sustainability and the latest technology will be key drivers in the coming years. Another important success factor is the ability to cooperate with the government.

This is mainly due to the fact that the public sector is primarily driven by urban development. Due to the growing interest, competition for property gems will continue to increase in the interests of the growing economy.

Until now, it was somewhat surprising that the property sector has not received much attention from technology companies in recent years. Even today, many contracts are still signed physically or sent by fax. As the property management of many millions of properties is managed in traditional Excel spreadsheets, the property industry has not been bothered for years. Even today, the billing and processing of contracts is still carried out using folders in property offices.

Due to the digital disruption of other sectors, the property industry can no longer protect itself from change. The end of the paper and folder era has been particularly evident in recent months. This is mainly due to the fact that customers want more efficiency and new models.

Many customers have already taken part in an auction several times without success in order to win a potential home for themselves. However, many have also taken part in numerous flat viewings and had to vie with other competing tenants for the desired property.

Exploit your own possibilities

Some estate agents rely on the exploitation of leads for digitalisation. These leads can be generated via various comparison platforms. In addition, the desired aggregators are connected with each other. By using Google Compare, it is possible to increase the momentum even further.

Many customers use the service to keep up to date with the latest developments in the property sector. The search engine giants Google, Bing and Yahoo provide you with comprehensive information about the latest developments in the property sector.

Transparency is not only very important for private customers. Many portals have recently started to improve the market for business customers as well. A good example is simplybusiness.co.uk from England. In England alone, over 170,000 company owners have already obtained information about insurance, property and other sectors. Due to the great importance of the comparison portals, many companies cannot avoid taking a closer look at the topic.

They are forced to actively engage on suitable portals. It is not the aim of aggregators to distribute other sales channels. Fear of contact in this area is therefore completely unjustified. It is also in line with the wishes of many customers to be served via a wide variety of channels and platforms.

Redefining customer wishes

The property sector can be very diverse. While some customers are interested in selling properties, others are looking for property rentals. If you want to get ahead in the market with your own company, you should face up to the challenges of digital disruption in the near future. Remember to analyse the current state of your company in good time.

It can be very important for your company if all experts and IT specialists sit down with the management to assess the extent of the digital change. For every industry, it is important for a company to define its own corporate policy and set its own timetable.

The digital transformation should not only be seen as a challenge, but rather as a further development. In your industry, you have the advantage that digital disruption should not be implemented yesterday. You still have a large time cushion to focus intensively on the digital transformation of your company.

Sectors such as media, banking, retail and telecommunications had to start planning much earlier in order to avoid being overtaken by the competition. Many of these sectors were already made aware of the importance of transformation many years ago. Accordingly, they also had a much greater head start. Another important area alongside the property sector is the consulting and banking system.

Many start-up companies had the advantage that they had a head start in terms of time. Their changes to the system were not as extensive as those of companies that have to completely change their corporate policy. A good example of a successful start-up company is edX. This company comes from the education sector. But sharecare from the insurance sector and Kreditech from the banking sector have also relied on the latest technology right from the start.

In addition, of course, the know-how has also helped the companies to satisfy all customers through perfect digitalisation. Customer service can be very extensive in any industry. This naturally raises the question of how long-established companies can realise the changes as quickly as possible in order to stay on the market.

Over the next few years, you can assume that there will also be a significant upheaval in the last sector, the consulting industry, due to digital disruption. Therefore, not only the property industry, but also the consulting industry should start thinking about the digital transformation.

At the beginning of the planning process, it is very important to research exactly which alternatives can be used for your own company. After all, every company needs its very own system for digitalisation. What works perfectly for one company can lead to difficulties for smaller companies. It is highly advisable to look for a competent partner with whom you want to start your transformation.

This increases your chances of improving your competitive position. The following approaches are a great help for the management of many companies across all industries. The main focus here is on the different phases that your company has to go through during a digital disruption:

• Determination of the current status
• What challenges does your company face?
• Creating a good foundation for restructuring
• Ensuring constant change

Regardless of the industry, such a changeover of all systems will cause many employees a stomach ache. Many employees will be afraid that they will lose their jobs. Of course, these fears are not unfounded. Of course, some jobs can be saved through digitalisation. However, these employees can certainly be deployed elsewhere.

The change in the system can therefore also open a few doors for employees. Even if they are still a little unsure at first, they will quickly get used to the idea of taking on more important tasks. They should just be informed in good time and involved in some decisions.

A lot of customer data can be collected using the latest technologies. This has the advantage that the data can be used for personalised offers to customers. It also makes it much easier to process orders or contracts. The customer data allows you to get a much better picture of the customer.

The company receives so much data from customers that it first has to analyse it. Which data is actually needed for the day-to-day work of the property sector? All customers must be able to rely on the fact that the data is adequately protected against access by third parties. This means that all data made available via the system is subject to data protection.

For the initial phase of digital disruption, it is very important that all steps and measures are recorded in writing. Further changes can be expected at any time in the future. This means that you should not stand still even after digital disruption, but should always adapt to the changing times.

As a result, you will be better prepared for the next change in customer requirements and will be able to react immediately. One of the first important points in the planning phase should determine the form in which the company would like to present itself to its customers in the future.

The survival of the company must be ensured at all costs. For this reason, it is all the more important that you put together a dedicated team for digitalisation. Day-to-day business must not suffer as a result of the extra work.

Otherwise, too many customers would become dissatisfied and possibly avoid your company prematurely. So revenue must not suffer just because you have to take care of other important things at the moment, such as reorganising your company.

Another important item on your planning list is the value of your company. Nowadays, the intervals between technology cycles are getting shorter and shorter. To ensure that you can convert all of your company's systems in peace, you should plan for a period of 2 to 3 years before you can deliver a professional result to your customers.

In some sectors, such as the media industry or retail, digitalisation could be implemented much faster. But bear in mind that these sectors also had their planning time and were able to prepare sufficiently for the transformation.

One important factor for a positive result after the changeover is your employees. They must have understood the new system and pull together with the management. Only then will a company be able to satisfy its customers in the future. The management, on the other hand, must quickly agree on what structure the company should have in the future.

A change in corporate strategy can only be determined and defined by the boardroom. However, the bosses should consider bringing a digital leader on board.

What is a digital leader? This is a person who takes the lead in digital disruption. It is best to appoint them before the planning phase so that they can provide valuable advice. Such partners usually have a lot of experience in this field and have the expertise to support a company in the changeover of systems. At the same time, a digital leader acts as a buffer between management and employees. They must be competent, assertive and trustworthy.

In many companies, a digital leader is also responsible for training employees who are affected by digitalisation. Throughout the transformation, they will keep the management informed of all steps and decisions. In other words, they act as a kind of mentor.

A digital leader must be able to implement all of the changes discussed within a reduced time frame. To do this, it is important that they know the company's history, processes and structures inside out. At the same time, they must be influential enough to steer all employees and not lose sight of the company's goals.

Many digital leaders have a special charisma. Their strength makes it easier for any company to make digital disruption possible. They should also be involved in future projects, as they can step in again at any time if necessary to further improve and expand the systems.

Recently, numerous studies have been conducted on how successful other companies have been in implementing the transformation. What benefits have they realised from digital disruption? Many of the companies surveyed had already started planning.

Around 74% of all respondents had at least an idea of how they would like to turn digitalisation into reality. However, around 15% are only sure that they can actually implement the planned strategy. This is one of the reasons why a digital leader is very important. Once a company has decided on a strategy, it is the digital leader's job to achieve the goal on time.

The requirements for being appointed as a digital leader vary greatly depending on the type of industry. In many sectors, such as the property industry, it makes sense if the person appointed also comes from the industry. They should have a lot of experience in selling or letting property. This is the only way to ensure that they understand the company's processes and can familiarise themselves better with a company.

It is also possible that the digital leader can provide suggestions for improving the strategy. However, this is only possible if they have sufficient expertise. In the retail and marketing sector, a CMO is often chosen as the point of contact. For a technology-orientated and system-driven industry, a CTO or CIO is more suitable. In most cases, the top management is well equipped to deal with day-to-day business. Therefore, these people are rarely able to deal with digitalisation in the long term. Of course, regular consultation with the digital leader or CTO is necessary, but many tasks for digital disruption can be delegated.

The extensive research work takes a lot of time, but must take place in conjunction with the boardroom. It can happen to any large company that a Chief Digital Officer (CDO) is needed. In most cases, this is a person outside the company. The CDO must first be familiarised with the company policy. A CDO is also a useful helper in the digital transformation. They often have digital solutions that can be interesting for your own company. With a CDO, care should always be taken to ensure that the function is clearly separated from the area of responsibility.

This means that a third party, such as a CDO, cannot bear sole responsibility for converting the systems. Responsibility still lies with the company's management. However, a CDO is ideally suited to working closely with the boardroom. For example, they can be used to analyse all customer experiences, data, products and channels.

Assess your own abilities

Digital disruption is useful and necessary for every company in the property sector. It often makes a lot of sense if the task is passed on to a stakeholder. This person usually has a high level of motivation, leadership talent and expertise. The existing structures of your company must be completely broken up during a transformation.

This gives your company the opportunity to grow into a modern and transversal organisation. Your company can only be analysed by a third party if a considerable amount of time has been spent in advance explaining the existing company structure.

One of the CDO's main tasks is to pass on information to all employees. A special gift for motivation and eloquence is very important in this area. The position of CDO is often only needed for a digital disruption. They must bring all employees up to speed so that they can implement all new aspects of customer service 1:1. But even after digitalisation, it is important to have a competent contact person on site. It can always happen at the beginning that a system does not fit 100% or that small errors need to be corrected. Many errors only become apparent in day-to-day business.

Employees who are well versed in IT can be selected for the CDO area. In addition, these employees must have a certain amount of experience in creating strategies. Once the planning phase is complete, a CDO will be up to the task. The CDO employees will certainly be given other tasks after the digital transformation, but they can still act as a point of contact for queries. They should also always be involved in the future if there are new technologies on the market or any changes are necessary.

After all, technology is constantly advancing in the property sector too, so it is always important to stay on the ball. If a CDO has proven themselves well, they can even be entrusted with tasks such as setting up a new branch or new lines of business. In many cases, CDO employees go on to work in business development.

Disruption is slowly reaching the property sector

In the beginning, digital transformation was only very interesting for banks and insurance companies. Today, companies in all sectors are starting to improve or completely change their corporate structure. As a real estate agent or property manager, you should also think about how you can make your company more interesting and modern for customers. The sooner you start planning, the better. Keep an overview of your market value even during the planning phase.

Many companies in the property sector have been offering their customers apps for years that make it easier and quicker to sell or let properties.

This service offers customers the opportunity to take a look at the property market from anywhere. Some estate agents are also very active on social networks. Not only are they personally available to answer questions at any time via the messaging function, but they also inform all customers about new listings. A property marketing company or an estate agent who works very closely with customers is sure to be rated very positively on social networks.

Many suggestions and questions can be clarified directly using the messaging function. All customers always have a fixed contact person via Facebook or Twitter. If the presence in social networks is expanded even further, this will continue to have a positive effect on customer behaviour. However, this area is not enough for a digital transformation. As most people have to work until the evening, they hardly have a chance to visit a local estate agent. For this reason, customer behaviour has been changing for years.

Many things, including the search for new properties or offers, take place online. This saves time and gives customers the opportunity to view the offers at their leisure when it suits them best.

In a local branch, they would not have the opportunity to generate customer availability in the way that is possible via an online portal. Of course, an app is also very useful. It can be used to commission or monitor the sale or letting of properties.

A transformation should also enable customers to carry out a virtual property viewing. If many additional details such as size, cost, furnishings, location and neighbourhood are available, then customers can obtain sufficient information about each property.

By switching to a new technology, you will fulfil several customer wishes at once. In addition to a message function on Facebook or Twitter, the Internet can offer you even more advantages. Online chats or video chats are possible, allowing you to communicate with your customers at any time.

A community is also often a good option. To offer your customers maximum convenience, you should bring together all online and offline channels. Customers should always be able to do some things themselves, such as finalising contracts. But a transformation of your company can do much more. It ensures that many areas of work can be optimised.

Many employees are busy manually processing, entering and filing enquiries or contracts. This work is no longer necessary if all data is entered and filed directly. The digital process can reduce the costs of a real estate agent.

Costs for paper, toner, printers and their maintenance can be minimised. In addition, there can be fewer errors and misunderstandings if customers enter their data into the forms themselves. For example, if a customer is interested in renting a property, they can complete all the formalities conveniently from their PC. The data is managed centrally via a mainframe computer.

One advantage is that all customer data is updated promptly. This prevents employees from not being informed of changes in good time. Many old addresses can be updated by customers themselves. This also saves every company a lot of work. By customising the data, it is possible to put together individual offers for each customer at any time. Thanks to digitalisation, all employees are aware of the customer's current wishes and circumstances.

Many sales representatives have been equipped with their own smartphone by their company for years. This meant that they were always available and could contact the office at any time. Mobile devices for all field staff were therefore already very beneficial for day-to-day business.

However, customers' wishes have now changed to the extent that they no longer want visits at home. Instead, they want to decide for themselves how and when they get in touch with the company. They are no longer in the mood for long sales pitches, but would rather be allowed to take care of things themselves. This means that they want to be much more self-confident and mobile than they were a few years ago.

This is an important aspect that can only be considered during the digital transformation of a company. In addition, every company should give sufficient thought to its pricing and product policy. Is your company cheaper compared to other providers?

Many estate agents and property management companies still have no idea how they can change their business. They lack a so-called cross-divisional approach to be able to implement the required disruption. A simple start is to analyse the existing communication and sales channels. As customer behaviour has changed significantly in recent years, companies must also change. They need to open up the many communication channels and give all customers the opportunity to get in touch with you at any time. Many studies have taken a closer look at the wishes of customers.

More than half of the customers surveyed stated that they are active in the online sector. Surveys on whether your own customers are satisfied with the company's policy to date are very useful for every company.

Many customers want a more modern company policy. They would like to be regularly informed online about new offers from the property sector. At the same time, they would like all systems to be simplified. For them, it would be fantastic to have a contact person available 24 hours a day. Of course, this is not possible in a branch office. After all, you can't hire staff for the night shift to fulfil this wish for customers. Not only would this drive up costs, it would also not be effective enough. Instead, you can offer your customers online services that are just as competent and helpful.

If your customer is looking for a specific flat, they can start their search at home. He will search online for a good provider for this need. Even in this area, a new company policy makes a lot of sense. If you want to offer all customers a comprehensive service, then you should present yourself professionally online.

If you have a strong online presence, many new customers will certainly become aware of your company. Good SEO optimisation is very important for this. When customers enter certain keywords into their search engine, they will take a closer look at the top results and only search one page further if necessary.

For this reason, it is particularly important that the customer finds your company on the first page of results. Hardly any customers scroll to the back pages when making an enquiry. As a rule, customers use the search engines Google or Bing. In order for the customer to find you on the first page, it is very important that you enter the right keywords. However, other criteria also play a role in search engine listings.

It is also very important for customers to be able to find out about you from other customers. This is possible via Facebook or other social networks, for example. If you have many positive entries, you will soon be able to enjoy a larger customer base. For this reason, you must offer customers the opportunity to rate you. Don't be afraid of a bad review. This is how a customer draws your attention to any shortcomings. You have the opportunity to justify this bad entry via a wide variety of channels and ensure that customers feel well looked after and understood by you.

When creating your website, it is very important that you do not use too much long text. This only tires customers out while reading and keeps them from the essentials. A customer needs short sentences with clear statements. A few pictures and videos can sometimes be very useful.

If you have an integrated shop, you should structure it very clearly. This will also make it easy for older people to use. Offer your customers a comprehensive service. This should also be reflected in the payment methods. If you offer your customers a wide range of options for paying invoices or receiving information, such as newsletters, then you are offering an all-round package. Your customers will be very grateful.

But what does this have to do with digital transformation? Most customers in the property sector research the price of certain properties online. Be transparent at all times. This increases trust and ensures that your customers feel comfortable. Thanks to digitalisation, all prices for your flats are always adjusted promptly. It must not happen that a customer receives different prices for a particular property. If you can be found on comparison platforms, you must ensure that the prices are always up to date.

Digitisation can help here by directly adjusting all prices as required. At the same time, you should offer an eye-friendly design for your website. All areas must be clearly labelled so that your customers don't have to search for too long. If you have already designed your website in a very modern way, then you will already have lost one area of work during the digital transformation. After all, you will have enough work to do when all systems are converted. But it will be worth it for the future. If you equip yourself with new technology and show all your customers that you have modernised your systems, then your disruption will be successful.

Benefits of transformation in the property sector

With digital disruption, customer wishes are taking centre stage. Your aim should be to provide customers with the best possible advice and offer them a number of ways to get in touch with you. Even in the future, you will not have to do without your field staff completely. They must be available at all times to be called upon by customers when needed. The rest of the time, employees can support you directly on your premises. However, customers also expect a company to provide them with the same information on all channels. They don't have the time or inclination to spend a long time googling for specific information. When setting up your channels, make sure that you pay attention to the shift in volumes. This must also empower your own company network.

If necessary, choose a competent partner who is able to carry out a digital transformation. You should use the latest technology for the transformation. This is the only way to ensure that you offer your customers the best service. A new system gives you the opportunity to collect a wide range of customer data. With the help of technology, you can call up all customer data at any time or put together completely customised offers for customers.

If you have an IT department in your company, then you have a clear advantage over other competitors. Many solutions can only be found with the help of IT. Before digitising, you should think carefully about which services and functions your customers will be able to use in the future. A wide variety of data can be stored and used for this purpose. During the planning phase, you can determine exactly which areas need to be technologically reorganised.

Every step of the disruption must be carefully considered. Where does the changeover offer the greatest benefit for customers? Depending on the size and type of your company, you have a wide range of options for bringing all your systems up to date. It is often possible to save the old data and import it into the new system.

Customisation of all systems

Digital disruption requires the property industry to make many adjustments. You should define these adjustments as a kind of framework condition. Your main goal in the future should be to fulfil all customer wishes. Create a customer-centric organisation and website.

Senior management should always be kept informed about the changes to the systems and the next steps. If necessary, they can intervene quickly if problems arise. The project should only be offered to experienced employees. They must be behind digitalisation from the outset.

You cannot imagine a longer delay in the planning period. Remember that other companies in your sector are also busy with disruption. As a result, competitors in the market may pass you by, as they have already decided in favour of a certain system and are already using it.

References:

• "How Chatbots can benefit the Real Estate Industry" by Roos de Jong, published on Medium, https://medium.com/real-estate-tech/how-chatbots-can-benefit-the-real-estate-industry-6624a8a4af9d
• "How AI is changing the real estate industry" by Matt Leonard, published on CIO Dive, https://www.ciodive.com/news/how-ai-is-changing-the-real-estate-industry/526298/
• "Artificial Intelligence in the Real Estate Industry" by Jochen Hippel, published on the E&V website, https://www.engelvoelkers.com/de-de/mallorca/blog/artificial-intelligence-in-the-real-estate-industry/