How Sponsors Can Leverage Technology to Boost Investor Engagement in The Digital Era
In a technology-driven era where day-to-day communications are increasingly occurring virtually, establishing strong relationships can sometimes be challenging. Because the real estate industry thrives on personal connections, sponsors are being forced to learn how to navigate society’s “digitization of everything” norms while still satisfying the industry’s demand for meaningful relationships. As more and more work from home policies are being implemented nationwide and virtual gatherings become the norm, it is more critical now than ever before that sponsors understand the importance of keeping investors engaged from a distance and how to do so. Today’s sponsors must have knowledge about the tools that are available within the real estate technology marketplace that can help them maintain strong investor relations and engagement without ever having face-to-face, in person interactions with them.
Read ahead to learn how sponsors can leverage technology to drive investor engagement amidst the shift to a completely digital era.
Establishing Trust and Transparency
Technology is becoming an increasingly critical component of investor retention. The modern-day investor wants access to data (so that they can make informed, data-driven decisions) as well as on-demand insights into how their investment is performing. Leveraging an investor management platform, like RealPage IMS, creates an open exchange of information by enabling investors to receive real-time, on-demand insights and frequent reports with portfolio updates. With 24/7 on-demand, anywhere access to investment data, sponsors are able to create trust and transparency and maintain regular and efficient digital communications with investors, helping to boost investor engagement.
Creating Personalized Messaging
Today, personalization is key to gaining an investor’s loyalty and keeping them engaged, meaning that the “one-size-fits-all” approach that may have worked a couple of years ago is no longer the best strategy for engaging investors. Unfortunately, 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. 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. This allows sponsors to be in constant communication with investors, keep them engaged, and also scale as the firm grows.
A CRM makes organizing and managing investors’ contact information significantly easier, which helps firms save time. The amount of time saved by using this type of platform enables users to dedicate more time back to value-add activities. 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 than those who do not.
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 boosting investor engagement, read Leveraging CRE Technology to Build Meaningful Investor Relations.