Several recent posts have had me thinking about just how technology isn’t addressing the needs of cats. Needless to say, there are many different types of cats – cats that roam alleys picking through the remnants of fish bones versus the ones that eat Fancy Feast and sit on the laps of chauffeur driven owners who may, on occasion, stop at a traffic light seeking Grey Poupon. It could happen.
I suspect the cat population is quite diverse – many having different likes and dislikes, perhaps differing motivations as well. Given that some cats roam alleys versus sit in the lap of luxury, perhaps the roamers may be more self reliant- the “fat” cat perhaps in need of greater doting, relying on others to take care of their needs. Needless to say, there’s a larger, even more diverse range of cats beyond the alley cat and the fat cat.
I reckon there’s a parallel between cats and consumers.
When it comes to measuring the success of a broker and/or agent, furry walls are often designated as a sign of success. Jeff recently commented that his hirsute success is based on results. I have absolutely no doubt that his superior service would make him the Rockefeller of fur trading. He knows his cats – but more importantly, his cats know him. Perhaps not all his cats are “fat”, but they have a taste for Grey Poupon.
On the flip side, Greg’s recent post highlighted the self reliant cat’s approach to selling a home. From Greg’s picture, it may be a good thing that cats have nine lives, because this cat is dead.
How are current technology solutions really addressing the differing needs of cats … er… consumers?
I found Glenn Kelman’s recent survey results enlightening.
Well last March we surveyed 1,058 people who were using our site about what they wanted in a real estate agent. Some of the answers were gratifying for us to see — transparency was tops on the list — but one that stood out was the answer as to why people who had already chosen a traditional agent had decided against using Redfin: 47% cited a pre-existing personal relationship and 33% talked about “just clicking with someone.”
I am not entirely sure that the conclusions drawn from Redfin’s recent survey are entirely correct. Their results are no doubt useful, however, my beef is that the cats that were surveyed were given a basic assumption, the role of a real estate agent is a given. It’s fair that the assumption was a premise because Redfin’s model uses an agent. While the results better clarified why consumers didn’t use Redfin’s services, the basic premise that relationships are key does not translate to all cats.
What if the role of a real estate agent is not a requirement, such as in the case of Greg’s recent post? Many argue that the use of an agent should be the requirement, however, there are some very steadfast, self reliant cats out there. Moreover, there is a new breed of cats – they’re maturing from kittens to young cats – Millenials.
While Millenials are equally diverse as older generations, they do have a common thread – they have been raised in the era of new technology. Technology is a nature extension of how they live and interact with the world. Millenials readily seek and obtain information and knowledge via the internet. Google is this generation’s encyclopedia. They celebrate their diversity and admire and trust the brands that recognize and embrace their uniqueness.
Their buying behavior is different and trust sources of information that don’t fit the mold.
They don’t necessarily buy the truism that agents are a requirement. That is not to say that an agent would not be embraced by a Millenial, but it does mean that a trusted technology solution could be embraced as readily as a relationship.
As an example, I had the opportunity to do a post-mortem with a 20-something woman regarding her recent first home purchase. Like her peers – and many others of other generational groups – she immediately used the internet to do her search. She used search sites to locate available properties, sifting through the large number of properties that she thought met her criteria.
She found the latest search sites frustrating because a “pin in the map” didn’t have a great deal of meaning to her as it was presented – sure she saw the location, but location was only one aspect of her criteria. While it looked “cool”, it didn’t necessarily save her time nor present the search results in a way that met her unique requirements.
Not a surprising comment because current search tools are heavily property attribute focused, not lifestyle focused. This alone drove her to seek a trusted source for information – in this case, an agent.
She and her husband weren’t interested in listings – they were interested in finding a home.
“What if a technology solution provided a result that better addressed your specific housing and lifestyle requirement?” I asked.
So long as the results truly met her unique needs and presented them in a way that identified her as someone other than just a typical 3 bedroom, 2.5 bath buyer, she would continue to use a technology based solution. Clearly she doesn’t speak for her entire generation, but she did provide some terrific insights.
I believe technology can provide a total solution, from matching both property attributes and lifestyle attributes presenting a more narrowed, entirely more focused result. Adding analysis to the results may also allow the new breed of cats to continue further down the technology path. Providing a process to ensure that the bases are covered may also allow them to continue with a virtual solution.
Technology solutions won’t be the sole solution for everyone. They won’t meet the needs of every cat, however, I believe the next new wave of buyers and sellers will be more likely to venture into the FSBO camp than previous boomers.
In creating new, broader technology solutions, far more emphasis needs to be focused on exploiting the unique needs of the cats.
Technology may very well define how the new cats part with their skins.
ryan hartman says:
Just set that pic as desktop background. Not sure why, but it’s darn funny…
April 20, 2009 — 5:54 pm
Thomas Hall says:
@Ryan – ya know, I saw that picture and I couldn’t resist
April 20, 2009 — 6:23 pm
Sean Purcell says:
Thomas,
Great post, very thought-provoking. So much so that I’ve had to truncate my comment (will probably end up a post). How do you see such a technology working?
April 21, 2009 — 7:57 am
Thomas Hall says:
@Sean – thanks for your comment, greatly appreciated. I am anxious to read your post. I have mapped out a model at about 40,000 feet and it’s difficult to explain exactly how it would work in this comment space.
Would love to talk about it.
April 21, 2009 — 9:55 am
Jeff Brown says:
At what point does this generation realize it’s no different than those preceding them? Either the buying/selling of real estate is akin to grabbin’ a ticket from Southwest to get to Unchained, or it ain’t.
If and until the body of knowledge required to keep your own skin off some seller’s or buyer’s wall becomes injectable, the so-called Millenials will learn their lessons via the school of hard knocks. I see it monthly on the investment side of the aisle.
I’ll admit though that it’s far easier to illustrate the depth of their unacknowledged by way of a few well chosen questions. Once they’ve responded to the third query with the deafening sound of crickets, they throw in the ‘technology trumps all things’ towel.
It’s truly entertaining.
I’m now very eager to read what you came up with Tom, and what Sean has to say on the subject.
April 21, 2009 — 1:26 pm
Thomas Hall says:
@Jeff – it isn’t a question of a few chosen questions. I clearly acknowledge that not all subscribe to a technology solution, however, to assume that the new generation of buyers and seller is the same as their parents in terms of how they will buy and sell real estate is incorrect.
Technology plays and will continue to play a significant role in how Millenials gain and assimilate information. My point is that technology today simply aggregates data in a way consistent with how business has always been conducted. Millenials don’t play by the same rules. The new age of buyers and sellers don’t place the same degree of value on relationships as their predecessors.
April 21, 2009 — 1:48 pm