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3 Key Benefits of Augmented Reality for Real Estate

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We recently evaluated the feasibility of using Augmented Reality for real estate in the marketing campaigns of their upcoming projects as they were experiencing severe challenges in conversion ratio. The need of the hour is to increase the customer base and an analytics framework s to track customer initiation from the campaigns. – PowerPoint PPT presentation

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Title: 3 Key Benefits of Augmented Reality for Real Estate


1
3 Key benefits of Augmented Reality for the Real
Estate industry
  • www.smacarsolutions.com

2
  • We recently evaluated the feasibility of using
    Augmented Reality for a property builder in the
    marketing campaigns of their upcoming projects as
    they were experiencing severe challenges in
    conversion ratio. Even though there was some
    revival in the low margin segment of sub 25L
    apartments, there was a total lack luster moment
    in premium category. As per the chart below,
    Sales figures for the segment between INR 1 CR to
    INR 2 CR posted a negative growth of 9 whereas
    projects above INR 2 CR posted a minus growth of
    4.

3
  • We recently evaluated the feasibility of using
    Augmented Reality for a property builder in the
    marketing campaigns of their upcoming projects as
    they were experiencing severe challenges in
    conversion ratio. Even though there was some
    revival in the low margin segment of sub 25L
    apartments, there was a total lack luster moment
    in premium category. As per the chart below,
    Sales figures for the segment between INR 1 CR to
    INR 2 CR posted a negative growth of 9 whereas
    projects above INR 2 CR posted a minus growth of
    4.

4
  • Restricting launches is not the solution as it
    will affect cash flow, brand strength and even
    availability of work force.  Hence, the need of
    the hour is to increase the customer base and an
    analytics framework s to track customer
    initiation from the campaigns.

5
KPIs of Real Estate companies
  • Maximum site visits deal closure One of the
    KPIs for any real estate company is Customer
    site visits. It is not the number of calls made
    and the number of visits to your fan page which
    counts. Customers generally prefer visiting the
    property before taking a call. Making the
    customer visit the property is only getting half
    the way through. When it comes to big ticket
    investments, prospects have a fair idea about the
    brand of the developer and their only concern is
    lack of time to visit the property. Wish there
    was a way where they could view the property,
    from wherever they are.

6
KPIs of Real Estate companies
  • Quick Turn Around Time (TAT) Most of the real
    estate purchases are made with an intention of
    moving out of a rented property and any delay in
    project will ultimately lead to financial burden
    for the customer. This situation is created
    because of various reasons, the major reason
    being changes in design. This issue could be
    avoided if the customer is clear about their
    requirements. There are projects which are
    delayed for more than 8 to 12 months which
    tarnishes reputation of the builder apart from
    throwing the financial stability of both parties
    into a chaos.

7
KPIs of Real Estate companies
  • Effect of Ad Campaigns On an average reality
    companies spent around 3 -4 of their revenue
    for brand building and promotion of projects
    through print and digital media. It is very
    important to assess the impact of campaign to
    gauge the responding population and their
    demography. Well chalked out campaign helps to
    boost the visibility among the crowd. It will
    lead to interest generation in the property.
    Analysis of Ad/campaign performance requires
    dependable data which is not traceable in most
    cases, especially for print ads.

8
  • These KPIs are common for the Real Estate
    industry and we believe that using Augmented
    Reality in real estate sector has several
    benefits.  We outline below the 3 Key benefits
    that serve as enablers to the concerned KPIs.

9
Key benefit of using AR to maximize site visits
deal closure
  • Realtors know how closely knitted Customer visits
    are to the property and deal closure. The quicker
    the site visit with family takes place better the
    chances of closing the deal. Being a key KPI,
    everyone knows how difficult it is to bring all
    key stakeholders to see the property and guide
    them in the decision making. Many a times, it is
    a herculean task to bring everyone on board
    together to visit the property. Thanks to new age
    technologies and high speed internet, this issue
    can be easily tackled by using Augmented Reality
    _at_the cost of a candy.
  • Study conducted by 3M shows 43 more chance of
    customer decision making in favour of purchase if
    they are shown the products with powerful visual
    aids (Source Minnesota School of Management,
    March 1986).According to Samujjwal Gosh,
    V.P-Marketing of Lodha Group, taking clients on a
    virtual tour of the property has become a key
    functionality of their digital marketing team and
    is expecting this to generate 25- 30 of the
    revenue in the next 3 years.

10
Benefit of using AR in Quick TAT in delivery
  • As we have seen above, sticking to a promised
    Turn Around Time is quite important especially
    with new rules in place which specifies strict
    penalty for delay in handing over of property.
    The foremost advantage of maintaining delivery
    time is enhanced brand value and customer
    loyalty. When you dig deeper into the real
    problem of a genuine builder with regard to
    delay, they are structural changes articulated in
    the last minute or individual changes due to the
    disparity in understanding between realtor and
    buyer. By using AR, even a layman can visualize
    and understand the specs and amenities thereby
    greatly minimizing misinterpretations. Apart from
    providing augmented or enhanced visualization
    during the promotion stages, where the prospects
    can walk through each rooms and surroundings, the
    AR app can be more interactive during the
    subsequent stages. Once the deal is through, app
    can be customized to help buyer to decide on
    color of paints, design and location of placing
    furniture and can even virtually try out various
    combinations and plan even during the basement
    stage itself so that the complete poka-yoke
    (mistake proofing) is in place from the beginning
    and projects run on time. The benefit Customer
    is happy, brand value is high and next project
    planning is easy.

11
Benefit of using AR for precise analytics of each
campaign
  • Gauging the performance of every campaign is very
    important for real estate business because 3 4
    or even 5 of the revenue is pumped into ad space
    of which 50 65 is on paper ads. It has always
    been an off target affair identifying the reach
    of paper ads.
  • AR is such a sharpened tool of Data Analytics so
    much that it can dig out the complete database
    live and on the spot. AR helps with live updates
    on who is viewing your ad in paper or catalogue,
    from which location and the contact details which
    makes it easier for business development
    executive to contact the probable customer even
    while the prospect is scanning the image in
    catalogue or paper. In fact, the customer may be
    contacted as and when they are viewing the image
    of property which may even amaze them to realize
    the quick response the team is giving them. The
    data analytics can be easily downloaded to a
    computer for any kind of further analysis and can
    help to decide on any shift required in the
    target audience or even can be used for the next
    project decision based on interest coming in from
    different locations.

12
Conclusion
  • Speed is the buzzword in real estate when it
    comes to closing the deals. Augmented Reality
    reduces the burden of regular site visits and
    improves interactions which in turn enhances
    transparency and leads to quicker buying
    decisions. The advantage of limitless
    visualization possibilities of AR helps customers
    plan home décor in advance and save valuable cost
    and time. Moreover, since the buyer gets a better
    idea about how each and every rooms will look
    finally makes it easy for suggesting any
    alterations in advance. When it comes to cost
    part each scan might not cost you more than the
    price of a candy.

13
THANKS!!!
www.smacarsolutions.com
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