Customers Don't Give a Shit About Data
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An exclusive presentation from Inman Connect in San Francisco on the power of data and the paradoxes of consumer engagement.
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Customers Don't Give a Shit About Data
- 3. Now it’s time for a breakdown
- 4. D I S T R A C T E D Overwhelming amount of ways to discover and consume content G R E AT E X P E C TAT I O N S We expect personalized, individual, unique digital experiences T H E A G E O F S E L F Putting self first, even when making purchase decisions
- 5. Machine learning analyzes food, exercise and sleep data with insights from other community members to provide custom, timely advice and motivation. YOUR BODY’S DASHBOARD 44 MILLION USERS A MONTH (NET REVENUE UP 26%)
- 6. Sales increase 20% when companies use personalized web experiences
- 7. Uses artificial intelligence to match consumer demand, predict catering needs, destinations, and flight times. THE FUTURE OF TRAVEL 74% OF SEATS BOOKED BY RETURNING CUSTOMERS (5TH YEAR OF RECORD PROFITS)
- 8. 74% of customers get frustrated when website content that has nothing to do with their interests
- 9. What does this have to do with real estate?
- 11. Commute Times 5 minutes 90 minutes School Quality Poor Excellent Walkability Poor Excellent Pet Friendly Poor Excellent Parks Few Many PriceNew York, NY Beds Type Create a property alert Save your Profile
- 12. Where would you like to go today? Explore ABOUT SEARCH Because you liked good schools and proximity to parks 100 Main Street 5 beds 3 baths Because you liked outdoor accessibility and family friendly 200 Main Street 4 beds 3 baths Because you liked houses near public parks Because you liked pet friendly and family friendly neighborhoods Because you liked houses in walking distance of local amenities Because you liked residents near bike paths and large kitchens 100 Main Street 5 beds 3 baths 100 Main Street 5 beds 3 baths 100 Main Street 5 beds 3 baths 300 Main Street 4 beds 2 baths
- 13. 1 10 Questions to your perfect home QUIZ ARE YOU A MORNING PERSON OR A NIGHT PERSON? MORNING NIGHT
- 14. 1 Start your profile by adding some basics. TAKE QUIZ YOUR PROPERTIES 100 Main Street 4 Bed | 2 Bath 100 Main Street 4 Bed | 2 Bath 100 Main Street 4 Bed | 2 Bath 81% Match 81% Match 81% Match
- 15. 100 Main Street 5 Bedrooms, 4 Baths Great for cooks, families, and pets. 30 miles from your current residence. Similar Homes Do you love this house? YES MAYBE NO Home’s Characteristics BedroomsBedrooms: 5 BathroomsFull Bathrooms: 4 Half Bathrooms: 1 Kitchen and DiningKitchen: Eat In Dining Rooms on 1st Floor: 1 Dining Room Type: Formal Dining Room Other roomsBasement: Full, Rec Room Office Total Rooms: 10 Laundry Family Room: Yes Laundry: Room Rec Interior FeaturesCable Hook-Up Security System Garage Door Opener Water Softener Humidifier High Speed Internet Acc Paddle Fan Gran/Solid Surf Counters Building and ConstructionHouse Style: Contemporary Above Ground SqFt: 3716 Exterior: Brick, Vinyl + Brick Attic: Full Roof: Asphalt Shingle $578,000 Rate this home to find better matches This house is highly recommended for you because: Proximity to Parks 20 minute commute Active Neighborhood YOUR PROPERTIES
- 22. The ability to take data – to be able to understand it, process it, to extract value from it, to visualize it, to communicate it – is going to be a hugely important skill in the next decades. - Hal Varian, Chief Economist, Google
Editor's Notes
- Let’s breakdown what we just saw. It’s probably nothing you don’t already know, but hopefully illustrated in a way that starts to pull things together. And what we’re pulling together here is the current consumer mindset.
- In general, we as consumers are distracted. We have an overwhelming number of ways to discover and consume content and billions of pieces to choose from every day. And because there is so much, there is a high bar set for that which rises to the top. The content we gravitate toward feels like it was created just for us. And that’s important, because we as consumers are prioritizing our “selves” more than ever – especially (and crucially) while making purchase decisions. It’s about me. What I’m feeling. Let’s pause there. Feeling. We as marketers have always known that purchasers are often about feelings – that in order to connect with a consumer in a way that makes them take action or build loyalty, you must do so on an emotional level. And in the past we connected in that way through branding. But today branding has taken a back seat. The way to make those emotional connections with this consumer is through personalization . And the companies that get that – Amazon, Netflix, Spotify – are rising to the top. But those are kind of the token companies in regards to recommendation engines and personalization. Let’s looks at a couple other examples of companies doing this well.
- This is and UnderArmour Product called UA Record. It’s an app that uses machines learning to analyze things like caloric intake and expenditure and sleep patterns. It then compares that with other community members so it can provide you timely advice and motivation. It claims to be your body’s dashboard. A funny thing about this product. It’s part of the UA Healthbox which promises to measure and monitor factors to tell you (and I’m quoting) how you feel. Not only is this product trying to connect with you on an emotional level – it’s also telling you what emotions you’re currently having. This app uses artificial intelligence and it measures not only your input, but cross-references that input to a larger community to feed you valuable information. Think people care about this? About 44 million do. And their net revenue on last reporting is up 26%. But actually….that’s not a surprise.
- On average. Sales increase 20% when companies use personalized web experiences. What do we mean by personalized web experiences. Anyone? Right. So the experience I have when I go to that site – Netflix, Amazon, the UA Record we just saw – is going to be different than your experience. It’s personal for me.
- Let’s take a look at another company using personalization. Easy Jet is a British low-cost airline. The use artificial intelligence to match consumer demand, create efficiencies, predict catering needs, destinations and flight times. So when I return to book a flight, they know I prefer a window seat and need a vegetarian meal. That kind of “natural” online an in-flight experience makes it feel like EasyJet “knows” me. And that level of intimacy builds loyalty. 74% of flights booked at EasyJet are booked by returning customers. Average in the US in 2015 was just over 40%. They also have just had their fifth consecutive year of record profits. This type of intelligence, custom engaging experience at this level and using AI is unique, but simultaneously (and paradoxically) it’s become the expectation of online consumers.
- The expectation is now personalization. Why don’t you know what I want?! But here we’ve given examples using artificial intelligence to create the types of experiences consumers want in travel and fitness….but what about real estate?
- What does any of this have to do with real estate? Everything.
- Here’s a typical online experience in real estate. Some of you may be familiar with this company. As a consumer, when I go to the site, I say what area I’m interested in. Here I put New York. And it shows me everything available in New York. I can then narrow this search down based on some standard attributes: geography, price, range, and size. I will then get fed back listings which meet my search. These listings are simply based on the structure and location each unit. There is a place to modify by the ratings of a school district, but that’s where additional customization ends. This experience is doing nothing to connect with me on a personal lvel. Now I know there might be a lot going on in the background with what they are recommending and why – and I don’t want to jump to any conclusions – but as a consumer – it’s not obvious to me. There is nothing this site or most sites are doing that clearly says: “We care about you. We want to know what’s important to you. We will create an experience that is uniquely yours.”
- This is essentially the same starting point, but here – it’s obvious that this site wants to know what I value and will cater my search experience based on that. Not only that – they’re saying if I invest the time to build a unique filter, they will send me property alerts based on that criteria and will create a profile so every time I come back, I can log in and only see those homes that are within 10 minutes of my work and a park. Now we’re getting somewhere. Not only that.
- When I log in, you will tell me that this is a search only for me. And you will explain to me why these particular properties suite me personally based on what’s important to me. I’m not saying that there aren’t elements of some of this in real estate today – but few if any are putting together this type of personalization in real estate search. You know who does this well? Dating sites. What would real estate look like with an OKCupid user experience?
- You would start by taking a quiz that was fun. That had nothing to do properties or beds and baths, but had to do with you as an individual.
- And then your matches would be ranked by how you answered those questions.
- And when you went to each listing, you had the option to rank them. That information would further the machine learning to progress my custom search experience. This is an individualized online experience that helps guide me to my purchase decision. But in 2016, this has to be mobile.
- In 2013 Trulia announced a geocoding element in their mobile app in an effort to move from “search” to “discovery”. With this enhancement, they could provide the nearest properties to where that mobile user was at that moment. A great start. But little touches could make this even better.
- Add a first name. Ad language that conveys personalization. Now I’m starting to feel something. Is this about your brand? No. It’s about me. There are real estate innovators moving in this direction.
- Casamatic is a real estate site out of Dayton, Ohio that describes itself as the eHarmony of real estate. But it is an experience that practically screams at the consumer: I care about what’s important to you. I narrow my search based on things well beyond beds and baths.
- And when I see the homes they’ve selected for me – it feels like they’ve curated these selections just for me. They inform me why these homes are selected. Where they meet my criteria and where they don’t. This personalization doesn’t just live on websites though. As we saw with Trulia’s mobile app, it lives everywhere. An easy example is with nurture.
- RealScout CEO was just on the Inman stage about 20 minutes ago talking about – I’m assuming – a lot of these same things. RealScout is a property search and alert platform that matches properties to consumers based on attributes of the home that go beyond beds and baths to things like natural lighting and big backyards. Their custom e-mails, like this one, addresses the consumer specifically and leads with content on why they might like a specific property – including things like how far the property is from their work. It’s personal – relevant – and engaging. According to their website 800% more engaging than other real estate nurture campaigns. And it’s no wonder. When you deliver what the consumers expect – you see results. Don’t believe consumers expect this? Discover Weekly from Spotify delivers a personal “mix-tape” to 40 million people every week. And think about this. There are 150 million properties in the US. Amazon sells over 200 million products. And their recommendation engines accounted for over $37billion dollars in revenue. That’s billion with a “b”.
- Openhouse uses a recommendation engine to match agents to consumers. This is essentially making a match –not unlike a dating site – based on your needs and an agent’s skillset or expertise. The nice thing about this site is the language that speaks directly to the consumer on a personal and individual level – “Carolyn is the best agent for you.” They are clear that they filtered through over 1,000 agents to find the perfect one just for you. This makes the user feel special – in good hands. And it turns this into more than just an online experience – it turns this into the start of a relationship where you are helping guide the consumer through their buying process. I understand there’s been some controversy with some of these types of matchmaking sites – like neighborcity – but bottom line is that the idea of using technology, transparency, and yes – data – to deliver experiences that feel personal to the consumer will yield rewards.
- Which brings us back to data. The ability to take data – to be able to understand it, process it, to extract value from it, to visualize it, to communicate it – is going to be a hugely important skill the next decades said someone from a small tech company. Data is the fuel that will drive these personal experiences. It starts with understanding our consumer. Clarifying their expectations and then – using data – exceeding those expectations. Customers care about themselves – as we’ve seen – and we must create an experience that caters to that tendency if we want to real estate technology to progress with the times. Yes – bottom line……
- Customers don’t give a shit about data. And that is why we MUST.