This week on The Home Builder Digital Marketing Podcast, Doug Newell of Swarmalytics joins Greg and Kevin to discuss how home builders can use AI to optimize building processes and make accurate sales predictions.
AI works by using large amounts of data and algorithms to inform choices. Doug explains,
“AI is about using information to make better decisions. So, we gather up data, reflecting things that have happened in the past. We find the patterns in there and we apply them to future decisions. It’s that simple.”
For home builders, an integral part of the data collection used in AI technology comes from the website. A better website will increase how much data is gathered and the effectiveness of the algorithms. Doug says,
“I mean, all AI algorithms thrive on lots of data and if you’ve got a website that’s so crappy that nobody goes there and it’s got two pages of just a blueprint of a cape and a blueprint of a split-level or something, there are going to be few visitors. Which means we can’t have enough observations to do any prediction and they’re not going to stay long and they’re not going to generate much data. If you’ve got a robust website, where somebody can wander here and wander there and interact in different ways, then the volume of data that flows into our algorithm increases.”
Home builders should test different AI tools to determine which ones will be helpful and an important part of that is knowing what questions to ask. Doug suggests,
“But the key thing is getting the question right. Here are 200 houses I’ve sold over the last three years. What should I have sold them for based upon the AI? Am I shooting too high or too low? How long did the AI expect the house to sit on the market versus how long did it? Do a pilot project of some sort and then start making more financial commitments and so forth. But first, get the questions. What one thing, if you knew the answer to it, what one thing might be the most valuable to you and focus on that.”
Listen to this week’s episode to learn more about how home builders can use AI.
About the Guest:
Doug Newell is an accomplished serial entrepreneur with a success rate of 75%: boasting three wins, one loss, and three ventures ongoing. With over 40 years of experience in business management, Doug excels at leveraging advanced analytics to solve complex business challenges. His expertise in artificial intelligence and predictive analytics has led to significant opportunities across various sectors including real estate, financial services, healthcare, retail, e-commerce, travel, gaming, consumer packaged goods, non-profit organizations, and advertising. Doug’s leadership has resulted in the formation of eight analytical teams, further testament to his vision and innovative approach.