How an Investment Management Platform Can Be Used to Grow Your Investor Base
Commercial real estate technology has transformed the way that the industry conducts business, develops strategies, and engages with clients. As the industry’s standards have shifted from technology being a “nice to have” to being a requirement, there has also been a change in investors’ expectations. Today, 80% of investors indicate that they would specifically choose firms that prioritize and leverage tech, indicating that adapting to the industry’s technological disruption is critical for firms that desire to continuously acquire new investors. With the help of an investor management platform, like RealPage IMS, firms are equipped to satisfy evolving investor expectations in a streamlined, more efficient manner.
Read ahead to learn how firms can use the industry’s technological disruption to their advantage to attract and retain new investors.
Historically, the commercial real estate industry is one with a foundation built on establishing and maintaining long-term relationships. Although these connections were once probably created on the golf course and then sealed with a handshake, in today’s digital environment, in-person meetings and communication are not always easy to accomplish when it comes to developing new business relationships. However, many firms fear the loss of personalization when communicating solely through digital channels. Additionally, firms that handle multiple deals and investors, can easily become overwhelmed in their attempts to effectively and consistently communicate with each investor — even the ones who may not be active in a current deal.
An investor management platform, like RealPage IMS, enables firms to leverage modern collaboration and communication tools, such as bulk email, to engage current and prospective stakeholders. Email is one of the most popular forms of staying connected and engaging with important contacts across the commercial real estate industry. Email enables firms to create valuable, personalized, and relevant messaging while eliminating the common issue of information silos that many businesses encounter. With 81% of today’s consumers wishing that companies knew them better, firms that leverage technology to craft personalized communications are more likely to receive a higher volume of engagement from investors.
Investors are more aware now than ever before of the overwhelming amount of data, information, and insights that are now available. This influx of data and the insights that can be extracted from it can greatly impact the investment decision-making process; thus, providing more transparency around data could increase the chances of attaining and retaining investors. The modern investor typically seeks frequent updates and reports with unfettered access to the details of their portfolio and how their investments are performing. These insights provide your investors with increased control over their investments, creating comfort and confidence amid the unpredictability and risk of investing. Ultimately, using an investment management software to provide on-demand data and insights enables firms to effortlessly meet shifting investor expectations while building stronger relationships.
When manual processes are eliminated, investors’ expectations are more easily met and even surpassed. Today, however, about 70% of CRE firms still use manual processes to manage their client relationships. The majority of these firms have encountered issues with inefficiencies and have client data that is scattered amongst people and locations. Automated processes, including workflows and waterfall distributions, create more time for firms to focus on value-add activities that can enhance the investor experience. Additionally, with workflows and waterfall distributions, spreadsheet-based risks are removed, meaning that investors can expect to consistently receive accurate distributions and statements.
24/7 On-Demand Accessibility
CRE is an increasingly global business in which investors need instant access to key information regardless of time zone and business hours. They want real-time updates and are increasingly using mobile platforms to track the performance of their investments. In fact, 60% of CRE investors now perform commercial property searches using a mobile device. Being able to provide the data investors need, anytime and anywhere, also helps to establish trust. An investment management system helps firms deliver on investors’ expectation of consistent access to important information by granting them quick, easy, and convenient access to all of their documents.
Ultimately, an investment management platform is essential for forward-thinking firms who desire low turnover and repeat investments from their investor base. In today’s increasingly competitive market where investor expectations are higher than ever, leveraging technology is a key differentiator between firms who successfully attract new investors and those who do not.
Download this free eBook to better understand commercial real estate investor expectations and to discover how you can create a winning investor experience.