Foxtons reveals that data science is the key to its success…
Foxtons gave details of what some consider to be using market-leading technology to boost its sales and rental efforts.
In a document called The London Report, prepared for last week’s MIPIM international property conference in the south of France, the agency’s director of business analysis, Michael Grant, explains that the use of artificial intelligence by his company notably gives him greater power to understand and predict future business.
Foxtons partnered with DataRobot, a data analytics and modeling company, to create a machine learning model that scours millions of data points to find patterns of behavior, enabling the agency to identify customers most likely to convert.
The main objective of this partnership has been to produce a lead scoring model to predict which properties are likely to come up for sale over the next 12 months. This in turn influences marketing activity and the work of sales teams who focus on the people most likely to convert.
“Early results are promising with the number of sales reviews recorded up 51% in January and February 2022 compared to the same period last year… After building a model to examine which variables impact the probability of a property selling, we have changed and modified both our pricing strategy and our marketing strategy to maximize the likelihood of a property being sold,” says Grant.
Applied to new buildings, this approach allows Foxtons to identify the most suitable potential buyers and tenants for the new programs marketed by the agency.
Internally, the data is also used to forecast customer churn and future revenue.
Grant’s contribution to MIPIM also describes the specific technology used by the agency.
“We have reinvented our sales and rental processes thanks to our: proprietary CRM system, BOS; the introduction of My Foxtons in 2003; Customer data platform in 2019; and the artificial intelligence and machine learning platform DataRobot in 2021,” he says.
And he explains that it has paid off: “Training and data allow our employees to meet the different expectations of each client – buyers, investors, owners, management companies. Professional clients choose Foxtons for detailed data consulting.