Leveraging Investor Management Technology to Enhance Evolving Investor Expectations
We are in the midst of significant change across the commercial real estate industry due to recent market shifts. Alongside this change comes an increased need for establishing strong investor relationships built on trust and transparency. But sometimes developing and maintaining stable relations can be challenging – especially as digital communications become the norm.
Now, more than ever before, sponsors must learn how to keep investors engaged and abreast of new market opportunities even without interacting face-to-face. By leveraging technology, firms can access the insights needed to identify new opportunities, creating the transparency that modern investors expect.
RealPage IMS recently partnered with Troy Merkel, Real Estate Partner of RSM, and NREI to discuss how technology can be leveraged to address and exceed investor expectations.
Understanding Investors Expectations
As investors become more and more tech savvy, they want to know that they are receiving as much information as possible from sponsors and that they have security in place. Eighty percent of investors say they would specifically choose firms that prioritize and leverage tech and 63% of new investors say they would be more likely to invest in CRE if there were technology available to make the process easier.
If this stat is not enough to convince you that CRE tech is critical in exceeding investor expectations, consider some of these benefits of implementing technology: a lower cost of capital and more efficient capital raises, the ability to tap into a new pool of tech-savvy investors, and the opportunity to differentiate your firm in the market. Essentially, technology adoption is increasingly critical in keeping firms competitive, relevant, and nimble as industry shifts take effect.
Engaging Emerging Millennial Investors
Stemming from their digital upbringing, Millennials expect a more dynamic and flexible view of their transactions and performance than their predecessors. This generation of investors desires their investment information to be delivered at a customized cadence or on demand, and with the tap of a finger. In fact, 56% of respondents in a survey conducted by corporate services firm Broadridge Financial Solutions indicated that direct digital access to their investment portfolios will be important to them over the next five years. To satisfy these demands, investment managers need access to robust data as well as the tools to render the data in multiple formats. With this combination of data and tools, managers can interact with Millennial clients in new and more personalized ways – leading to improved relationships.
Communicating with 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.
To enhance investor communications, a CRM is vital. A CRM, like RealPage IMS, simplifies, centralizes, and scales investor management and engagement. This tool can be leveraged to reduce the stress of managing pre-existing and newly cultivated investor relationships simultaneously and gives firms more time to focus on developing meaningful relationships with current investors. As a result, capital raise opportunities and the probability of generating repeat investments are increased.
Additionally, 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 creates additional opportunities for crafting individual, relevant messages for each investor. 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.
The commercial real estate industry is quickly evolving, and so are investor expectations. Investors are no longer satisfied with yesterday’s level of engagement, communication, and data access. Rather, they seek and demand a relationship with their CRE sponsor that makes them feel confident that they chose the correct partner.
To learn more about how technology can be used to exceed investor expectations, watch the free on-demand webinar.
