Enhancing Real Estate Investor Relations in a Digital Era
Technology is making it easier and more efficient for real estate sponsors and investors to connect, interact with one another, and share information. However, in a technology-driven era where day-to-day communications are increasingly occurring via Zoom, the “human element” that is critical for establishing strong relationships can sometimes be forgotten. Still, it is important to note that investor management technology is not replacing sponsor-client relationships. Rather, technology can be used to facilitate and enhance investor relationships. And because the real estate industry thrives on personal connections, sponsors must learn how to navigate society’s “digital norm” without neglecting investors’ innate need for human interactions.
Read ahead to learn 4 ways real estate sponsors can humanize the real estate investor experience amidst today’s “digitization of everything” norms.
Creating Personalized Communications
Personalization is the key to boosting investor engagement and gaining an investor’s loyalty. While many sponsors realize the importance of crafting individualized communications, finding the time to send personalized messages to multiple investors for multiple deals can easily become overwhelming. Additionally, finding the perfect balance between personalization and automation can be a daunting task for many sponsors.
Fortunately, a CRM, like IMS, enables firms to automate emails and portal notifications rather than having to manually notify each investor every time that they make an investment. With a CRM, important information about each investor, such as asset type preferences, regional preferences, and investment criteria can be stored. These insights can then be used to develop a more customized approach for communicating with and engaging each investor.
Leveraging Technology to Provide Transparency
Technology is a critical component of communicating openly and honestly with investors. In order to be truly transparent, sponsors are almost required to have frequent candid discussions with their investors. By checking in at least once a quarter and providing investor statements, firms can ensure that open deals remain top of mind while also fostering an open discussion about the performance of these investments. An open exchange of information not only facilitates a smoother transactional, but it also enables sponsors to build credibility with their investors.
Streamlining the Communication Process
In today’s digital era, people are constantly receiving communications via emails, text messages, social media posts, and so on. In fact, the average office employee receives approximately 121 emails per day. Because busy investors are being inundated with communications from various digital channels, sponsors should streamline the communication process by using one consistent medium across the entire team. Using this method, investors can begin to expect by whom, how, and when they will be contacted. If the communication remains consistent, they will also begin to anticipate these messages. The expectation that they will be receiving regular correspondence from the firm increases the opportunity for boosted engagement from investors.
In the midst of the digital era, the real estate industry’s shift to virtual alternatives can cause concerns about the industry losing its personal touch. Although many believe that technology will never hold the same power as a handshake, the data says otherwise. And as the nation continues to migrate towards a completely digital society, sponsors must adapt to these changes and consider leveraging technology as an advantage for boosting investor engagement.
For additional resources on enhancing investor relationships, read How Technology is Driving Transparency in Investor Relationships.