3 Key Benefits of Augmented Reality for Real Estate

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3 Key benefits of Augmented Reality for the Real
Estate industry

• www.smacarsolutions.com

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• 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.

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• 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.

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• 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.

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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.

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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.

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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.

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• 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.

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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.

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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.

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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.

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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.

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www.smacarsolutions.com