Situation:
Property development is a significant undertaking, involving the construction of large-scale buildings, including expansive apartment complexes. One such prominent developer in Sweden is Ikano Bostad, a company with ties to the IKEA-founding family. A critical aspect of Ikano Bostad’s business model is that they commence property development only when 60-70% of the apartments in a specific complex have been sold. This underscores the paramount importance of lead activation for the company. While Ikano Bostad doesn’t manage the entire sales process, relying instead on Housing Estate Agencies for sales, they play a pivotal role in initiating projects.
Complication:
Given the constraints of property development, from securing plots and obtaining planning permissions to hiring architects, timely project commencement is crucial. Delays not only escalate costs but also impact the overall project timeline. Recognizing the need for faster conversions, Ikano Bostad envisioned a lead nurturing program. However, with limited resources dedicated to lead nurturing, they sought innovative solutions to optimize their approach.
Opportunity:
Ikano Bostad was presented with two primary options. The first was to employ business logic, establishing rules to determine which leads to prioritize. The alternative was to leverage Allyy.io, our platform achieving superior results with a more efficient approach than traditional rule-based logic.
Resolution:
By utilizing Machine Learning models grounded in data from past buyers, trends and common characteristics were identified to predict potential future buyers. This data-driven approach empowered Ikano Bostad to allocate their estate agent resources more effectively, focusing on leads with a higher likelihood of conversion. With Allyy.io’s insights, Ikano Bostad was able to pinpoint 70% of their high-potential leads from just 20% of the total lead pool. Additionally, they gained a comprehensive overview of lead quality for each project, enabling them to determine if further marketing investments were required to enhance lead quality for specific projects.
In conclusion, leveraging advanced data analytics and machine learning can significantly streamline lead targeting, ensuring resources are optimally utilized and maximizing conversion rates.
