Since US Congress passed a law permitting commercial activity on the Internet in 1995, the Internet has created a permanence of change not experienced since the Second World War. The impact of the Internet is so large that it has already spawned a new language of its own, created a new economy that has infiltrated the very fiber of society.
The confines of time and location are rapidly disappearing and previously defined business boundaries are blurring as the Internet creates a new "virtual location" where stores have no doors and malls no walls. The new generation of e-buyers wish to conduct business over the Internet, 24 hours a day, 365 days a year and in the short span of six years has already redefined the way we shop for books, CDs and airline tickets.
It really doesn't matter whether you think we are still in an old economy or in a new one, whether the Internet will dominate or not. We are all faced with the competitive realities that are changing the landscape. Customers are increasingly calling the shots and no longer wish to buy products or houses the same way they did two decades ago. Tomorrow's consumers will most likely be even more demanding, and so to understand how to transact with these new online buyers, it has become increasing important to understand the affect the Internet has on molding their behavior.
E-business and e-buyers
According to Stefan Swanepoel, author of the acclaimed "Real Estate Confronts" series, e-business is the collective term used to describe business services that use the Internet as a transaction medium. Buyers conducting e-business, he says, are generally technically competent people and as a result of having access to the Internet also have access to a vast amount of online resources. More so than traditional buyers they have an even stronger desire to be included in all the processes and decisions and expect all transaction related services to be at one location. E-Buyers tend to be extremely price sensitive to goods and services seen as commodities but they will pay a premium for those they perceive have a value added component to them. Swanepoel further says that consumers expect superb customer service, as well as a faster and more pleasant experience than the similar traditional service.
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Communication with a customer has always been an important element of a real estate transaction and now that the transaction is moving at a faster pace, communication is even more important. With general predictions that the Internet is poised to enhance and alter human communication, it is critical that real estate professionals focus on re-engineering their online communication.
According to Swanepoel there are numerous communication tools and services that real estate professionals could and should use to help them streamline and provide quality communication. When asked to name his most favorites he listed; wireless email, instant messaging, online collaboration, VoIP (voice over Internet), unified messaging and web-based IVR (Integrated Voice Recognition).
Doing business online
A good customer experience online is subject to doing many different things right, but in summary Swanepoel believes there are three basic conditions that stand out: Content, Usability and Accessibility. In converting the experience to a traditional transaction to a great experience, real estate professionals should follow the following basic 5C's of online business:
- Contact - Making contact. Strive to find new ways of attracting potential online buyers and sellers to you.
- Capture - Once contact has been made, move to capture the person as your customer, creating a relationship by serving their needs.
- Cultivate - Now you have to cultivate your relationship and convert your contacts into a true customer by offering them personalized quality service.
- Close - the next step is to convert your customer to cash. Remember you are no longer just a real estate salesperson. Up-sell and cross-sell the customer all the services they need in the entire home buying process.
Transacting online
The time has arrived for real estate professionals to move beyond static web sites, e-business cards and regular e-mail. Many of these are already rapidly becoming part of the "yesterday's" new economy. Tomorrow's new economy requires a more extensive and meaningful use of the Internet - one that re-engineers the transaction, simplifies the process and manages the relationship with the customer.
Whatever path is chosen to get to the market, offline or online, the transaction will in the end always remain personal. In many ways traditional offline information has been set free in an online environment, but there is minimal value in simply having access to it. Discounted prices online alone will not satisfy the customer as buying a home still remains a high touch business. The e-buyer still requires the interpretation and optimization of that information. According to Swanepoel, real estate professionals must focus on creating a consumer-centric model that allows them to act as a coordinator, counselor and facilitator, while giving the customer the freedom of selection, choice, transparency and speed.
Help for Brokers and Agents
REBAC and NAR recently decided to create of a cutting-edge, content rich, six-hour course entitled "e-Buyer." The course assumes that students have already mastered the basic PC skills and are Internet and email literate and focuses on advancing students to the next level in e-business by helping them better understand to deal and transact business with the emerging e-buyer.
To create this course REBAC turned to leading e-business authority and best selling author, Stefan Swanepoel. His most recent works especially relate to the impact of the Internet on our Industry and include the 1997 Amazon.com bestseller Real Estate Confronts Reality, the 1999 white paper Real Estate confronts Technology and the comprehensive 300 page Real Estate confronts the e-Consumer that was published late 2000.
