We have seen more CRE website failures than we should have. These failures are expensive, time consuming and terrible for the reputation of those involved. Here is our stab at laying out the pitfalls. We unpack where things go wrong, but, most importantly provide, in our opinion, the questions to ask and actions to take to avoid failure.
(Alternative heading: 5 reasons why agents in CRE will never be disintermediated)
The iconic Ford Edsel, Microsoft’s Zune, New Coke and Google Glass above… What do they all have in common? They are all product flops. Similarly, it is our view that any product built to remove agents from commercial real estate will end up in the same trash heap. But first some background.
Like most of the Southern Hemisphere’s CRE industry I went on holiday in December. During this time I used and was impressed with the power of TripAdvisor. If you haven’t heard of it, TripAdvisor uses crowd-sourced ratings and a lot of user-friendly slice and dice tooling, to replace the traditional travel agent completely. How? It empowers you as a traveler to “self-serve” and engage directly with the hotel or guest house.
In short: occupiers talking directly to a property through sophisticated technology…
Can you feel the dots connecting?
Think about it – TripAdvisor gives users a one stop shop where complete information around available stock is available, and allows users to transact. Seamlessly.
No agents needed!
Cue alarm bells. Panic. Doom and gloom. Tech is out to get us!
As the former players in these businesses below will tell you, tech-driven disruption is fast and painful: