RealTrends

Today's market requires real estate professionals to use data more precisely than ever before. California-based RealAgile created a system of information that can more accurately predict which families have the highest likelihood of becoming sellers (and hopefully buyers as well.) REAL Trends reported on the success of a recent test run.

Using an initial direct mail sample size of 10,000 households, the test group, which RealAgile ranked and scored according to their inclination to sell in the near future. An additional 10,000 non-ranked names were selected as a control group to test against- called A-B testing.

The client mailed their standard direct mail offering to list properties: "We Guarantee to Sell Your House in 60 Days, or We'll Buy It!" They used a simple one-page letter in a windowed envelope and mailed it to a major metropolitan area where they had almost no market penetration. The creative content was identical for each group.

The results were:

RealAgile's ranked list, the test group, produced four times the results than the standard control group. The control mailing scored a .29 response rate--29 responses. The test mailing, using RealAgile lists scored a 1.17 response rate—117 responses.

This result was validated by repeating the mailing two times into the same group with almost identical results.

So, using an intelligent marketing approach with data supplied by RealAgile increased the response rate by a factor of four in a market with no prior market penetration or brand awareness of the company.

"Leading broker and sales professionals no longer have to use scatter guns or shotguns to find potential recruits and customers. These are just a few areas where new data mining tools and technologies have an impact in the important areas of brokerage. And while capital is critical the most important resource is still one's time." says Steve Murray, president of REAL Trends.