How Can Property Developers Take The First Step In Digital Transformation(一)

As the unique representative of the real estate SaaS field, Harry Peng, the CEO of IDEAMEKE, attended the first live public class, which hold by Tencent. He shared 9 years of practical experience and thinking with the presentation theme named how can real estate take the first step in digital transformation.

Let’s start with some statistics: new houses transaction of the real estate industry in the first quarter of 2020 decreased by 40%, and the maturity debt increased by 19%. What’s more, there were 98 real estate companies that went bankrupt and liquidated, 25% higher than in previous years. The impact of the COVID-19 on the industry is visible and devastating. However, we have also seen some real estate companies making a breakthrough during the coronavirus, such as TIMES CHINA. They held a coupon event: use 8 yuan to buy a voucher valued 30000 yuan launched on their mini-program: TIME+, meanwhile, they integrated all the marketing promotional channels from online to offline to enlarge the influence of the activity, and there have been 420 thousand people bought the voucher so far (the activity time: about a month). what is this concept?

Real estate is an industry with these features of high precision and high net worth for customers. Generally speaking, the acquisition cost of a single ordinary customer lead is about 200 yuan, and the high-attention customer lead is about 500 yuan, that is to say, the spending of 420,000 high-intention customers who are clearly willing to buy a voucher for a house is about 200 million with common marketing strategy. But TIME CHINA easily completed it by allowing customers to subscribe for 8.8 yuan coupons online.

Online House Selling: is a special phenomenon under special circumstances or future trends?

Many people want to ask a question: the coronavirus push the transformation for real estate: is temporary or permanent?

IDEAMAKE started to explore real estate online marketing in 2011, carry out implement project practice in 2017, establish “Phoenix Cloud Joint Laboratory” with Country Garden, the top 1 real estate company, in 2019, and they have cooperated with 80% of TOP housing companies in China so far. The company clearly witnessed the transition of real estate from the golden decade to the silver age, and also clearly saw the forerunners of developers, laying out online marketing before the outbreak.

The industry encountered new difficulties long before the coronavirus. The core of which is the reversal of the supply and demand relationship — real estate has changed from a seller’s market to a buyer’s market. When all developers are competing to accelerate more customers, marketing competition is already ahead.

For developers: The entire life cycle of real estate customers has also changed. The customer ’s first impression of a project is generated online, and the initial view of the project is also transferred online. The digitalization of the entire marketing process is gradually moving from the ERP to the CRM. In essence, all the online trials for developers is to make up for the changes of this link.

For customers: What does this process mean for customers? The average purchase cycle of each customer in Shanghai is four months. Among them, customers in the first three months screen and compare the information about the new houses online, and only go to visit offline sales gallery in the last month. This means that as customers move online, the main battlefield of real estate marketing has also moved online. If developers do not layout online marketing, it means giving up the opportunity to reach many customers, and they are not eligible to participate in the competition.

So, The wave of real estate digitization is not a special phenomenon under special circumstances, but it has amplified and bolded the pain points and needs that have always existed in the industry.

In the next article, we will continue to discuss the topic deeply. If you are interested in the theme or want to express your opinions, please leave us a comment below or email us:

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