TRENDS & ISSUES The data we examined showed a “healthy” average adoption rate of over 61%. If we only counted active agents, that number would be much closer to 100%. The general assumption is that agent adoption of real estate technology can never be 100%...or can it?
Automation and AI as the Game Changers
Is 100% Adoption of Agent Technology Possible?
F
Commentary by Michael Minard
or most brokers, real estate agent adoption of technology is an ongoing struggle—and that’s putting it mildly. Can a brokerage ever get to 100% technology adoption? If you examine survey data, it’s unlikely. According to recent research from the National Association of REALTORS®, nearly half of all REALTORS® (45%) only use a CRM, at most, a few times a month. More alarmingly: one in four never use one. Yet most successful real estate agents build their business on referrals; therefore, a CRM should be a crucial part of every agent’s tech toolbox. We dug a little deeper into agent technology adoption, studying adoption data over the past year from 12 brokerages with nearly 12,000 total agents. What first jumps out from the data is that there are two kinds of brokerages: those that use technology to check a box versus those that embrace technology and make it part of the culture. Adoption rates vary sig66 June 2022 RISMedia’s REAL ESTATE
nificantly by each brokerage type. Some brokerages remarkably have over 80% of their agents regularly using their tech systems, while others hover below 40%. Some industry experts have suggested that as low as 20% can be an excellent adoption rate, because measuring agent tech adoption at all can be tricky. For example, a WAV Group study from several years ago, which surveyed some 150 MLSs representing nearly 335,000 REALTORS®, found that only 60% of their REALTORS® were active users of their MLS; 40% had not logged into their MLS for the past six months. When measuring agent adoption of technology, should you be looking at all agents or all active agents? It makes a huge difference.
Two things could change everything when it comes to agent tech adoption: automation and artificial intelligence (AI). When real estate technology fully automates the marketing materials it creates for every listing and every agent, that’s about as close as anyone will get to 100% adoption. By harnessing the power of AI and marrying it to automation, you lock in adoption. For example, our AI-driven newsletter automatically tracks what type of content engages each customer and delivers more of that kind of content to meet their interests. It moves reluctant agents and can significantly increase adoption. Giving consumers more of what they want makes agents brilliant marketers. Seller Reports emails have an average open rate of 63%, while customer-for-life email campaigns have a 59% click-through rate. Both numbers far exceed industry standards. Can automation and AI be the way to get 100% tech adoption by agents? We do know it certainly will move the needle much higher as they learn how it can make their clients happy. RE
Michael Minard is CEO and owner of Delta Media Group, a leading and trusted technology partner for many of real estate’s top brands, and 100% family-owned and operated.
