The IEC™
The Internet Empowered Consumer (IEC) I am going to start with a true story that I find funny, tragic, and typical. It all started with an email. I probably receive somewhere between 3000 to 4000 emails in any given day. Thankfully three-fourths of them are junk, but I still may have to sort through 500 hundred to 1000 emails a day. (That may seem like a great deal, but I am online almost 12 hours of the day, so it really is not difficult) Many of those emails are still SPAM that did not get caught with my filter. One particular piece of SPAM got my attention. This person sent a personal email wanting to meet with me to look at his “new” system where he said he is making a ton of money. Well I looked at some of his websites. What is on the first page of his website site system? I am required to put in my name, phone number, address, and other information. I wrote him back telling him he had a glaring error with his web system, you require information. As soon as he received my email he called me back personally. Which I thought was quite impressive. We had a fairly civil conversation. Clearly, he could not tell me how much money he was making from his system, and he didn’t track it very well. When we got to the topic of requiring information the tone was much less pleasant. I said to him that any system that requires personal information is not a consumer oriented system. Why should the consumer have to give you any information to see house information which should be provided for free. I asked him if he has ever heard of the IEC, he told me know. Here is what he told me, “well you can’t go into McDonalds® and buy the food for free, why should information be free.” Here is my answer to that. I can’t buy the food for free, but I can go into McDonalds® and look at the menu items all I want, and if I want to, I can walk out, without anybody knowing what I looked at. He further told me he would “never” change his website requirement to have people fill out personal information. Sadly, this is the mentality of many Real Estate Agents and the internet. The Internet Empowered Consumer (IEC) may be a relatively new term to some of you. I am not sure who officially coined the term, but I first heard it several years ago discussed by Michael Russer, otherwise know as Mr. Internet®. Russer has consistently argued that the IEC is not the traditional consumer of Real Estate. He further maintains that the IEC wants to remain anonymous, unbothered, but most of all desires to be in control of the entire Real Estate process. This flies in the face of most traditional models of conducting sales. Consider, that for years agents have been told to cold call, they have been told to use their sphere of influence, they even engage themselves in events that will put them in front of people where they can purposely talk to more people about what is they do…Real Estate. Not so with the IEC. The IEC doesn’t want you to know they are a potential customer, they don’t want you to know who they are, they don’t want you to call them, and they certainly don’t want you watching them or tracking their internet behavior. It is interesting to me that much of Real Estate community doesn’t buy into IEC. I have often asked myself why? Why are there Real Estate websites out there that require a potential consumer to put in personal information before they can view homes? Why are there Real Estate website development companies creating websites that the agent can view a consumer looking through homes? I thought about this for quite awhile then it became clear from a conversation I over heard in a Real Estate office. I heard a broker, tell a buyer’s agent from another company, “you need to learn to control your buyers.” Why? Answer: because we (the agents) want to be in control. Most Real Estate agents have had some sort of sales training. I myself have done the same thing. What is the key to successful selling in any business? That’s right; the sales person must be in control of the process. Agents, consumers, please listen carefully. In the age of the internet, SELLING HAS CHANGED! I cannot make this clearer! If you are trying to business with consumers on the web, like you do with people in person, YOU ARE LOSING MORE BUSINESS THAN YOU ARE GETTING, AND YOU DON’T EVEN KNOW IT!!! Fox (2000) is really the pioneer in this area of research. Her research supports much of the ideas Russer has suggested concerning the IEC. Here is a summary of her research. Out of 1,017 people surveyed, she found that 86% prefer “opt-in” privacy policies. Further 54% felt that tracking their information invaded their privacy and therefore harmful. Additionally, 54% said that they did provide their information to use a website, however, 27% they would never under any circumstancing provide their information. Before I continue, remember this research was all conducted prior to September 11, 2001. Our concern with security on all levels has greatly increased. However, I think her over riding conclusion really says it all that the majority of Americans who use the internet want issues of privacy controlled by them not by the companies who employ the internet. In a quote: “By a two-to-one margin they (the internet users) reject the argument made by some firms that Web tracking can be a helpful…”(pg 2) As if this isn’t enough to convince you of the concern with privacy, consider recently the problems with AOL published 650,000 of their users search inquiries including names addresses and social security numbers. So then, who is to blame, the company or the people who entered their personal information? The bulk of the responsibility must rest on the company for not protecting the privacy of the user. Also, it is clear that the company did not provide clear information to the consumer as to what was going to happen to their information once it was received. If a consumer knew that there was a possibility that their information was going to be made available to the public you can rest assured they would have never given their information. What does all this ultimately mean? For the consumer, it means one, that you should never be forced to enter information to look for Real Estate that should be otherwise free. Two, your SSN is never required for any Real Estate agent. Three, only give personal information when you want information. For instance, if you want a relocation package, then your address will be needed to send you the information, but then find out from the agent what happens to your information. Make sure you always have the opportunity to opt out with no further information being released. Always remember YOU ARE IN CONTROL. For the agent, it means one, that if you have a website that requires information, you are losing more business than you are even aware of, use opt in only. Two, have a privacy policy that is easy to understand and is clear with regard to personal information. Three, when someone opts out, delete their data immediately. Finally always remember YOU ARE NOT IN CONTROL. Fox, S. (2000, August 20). Trust and privacy online: Why Americans want to rewrite the rules. Pew Internet & American Life Project. Retrieved August 18, 2006, from http://www .pewinternet.org
Would you like to discuss the IEC™ more, then click your way toThe Real Estate Couch. Other wise feel free to write me Dr. Jay