This past week, REAL Trends hosted the Gathering of Eagles, a conference where industry leaders from all over the United States join to share their real estate expertise and learn from highly knowledgeable speakers and real estate icons. Topics included leadership, recruiting, teams, business valuations, future of real estate firms, business culture and metrics.
It was Thursday’s afternoon session—Using Metrics to Manage Your Business—where technology, office culture and interpreting data were most discussed. It seems as if real estate executives understand the need for technology and many brokerages have even hired a Chief Technology Officer (CTO) to assist with these decisions. However, even with the right technology in place, firms tend to struggle with knowing what to do with the data these technologies provide. According to Dave Colmar of Colmar & Associates, this is why hiring a Chief Data Officer (CDO) is a crucial hire you should consider.
If you have someone already staffed who keeps up on current technology platforms and can process and interpret data, you are one step ahead! For those of you looking to fill this void, below are a few reasons why to hire a CDO.
- Determine Technology Return on Investment. Conquering agent adoption is a task that would not be a responsibility of the CDO. Instead, the CDO would be responsible for determining if a technology platform is living up to the initial investment and if it is wise to move forward. Is it improving sales production by simplifying the needs of agents and/or their clients? Are more leads coming in? Are you using the platform to the best of your ability? It is important to consider other components of data besides just the cost of technology.
- Don’t make this an extra task for your marketing or technology team. Although it may seem like analyzing and interpreting data is something these departments should be doing, their plates are likely full. In many cases, these teams understand and provide surface data analysis for technology platforms being used, but don’t have the bandwidth to dive deeper to optimize systems in place and plan for strategic data growth for your company as effectively as a designated CDO.
- Follow market trends closely and know when to seize a new growth opportunity for your company. Whether you expand into relocation, commercial sales or put more resources into new construction development, could all be determined by monitoring market data trends of your brokerage and your competitors.