A Data-Driven Approach to Enhance Real Estate Marketing Campaign in California Dataset

Although this isn’t my first venture into data analysis, I’m excited to share this particular project. My journey into data analytics began last June 2023 after completing an internship as a copywriter at one of the international IT companies in South Jakarta, Indonesia. I be­gan this journey. Learning Excel, SQL, Python, and Table­au brought mixed emotions — excite­ment and being overwhe­lmed. Still, it’s been e­xhilarating through ups and downs.

Photo by Lala Miklós on Unsplash

Data Source and Challenge

For this project, I sourced the data from Kaggle.com, where I found a dataset comprising a single Excel sheet containing product and consumer insights.

Challenge: The company is embarking on a marketing campaign with the aim of reaching its target audience more effectively. The management believes that by conducting a brief analysis, they can refine their targeting strategy to enhance the effectiveness of the campaign. They anticipate that through this targeted approach, they can achieve improved marketing outcomes without the necessity of allocating extra resources.

listings table consists of detailed information about each listing (e.g. id, year of sale, month of sale, type of property, area, price, customer id, name, surname, age at time of purchase, gender, country, etc)

Overview:

1. California offers a diverse range of landscapes, from coastal regions to mountainous areas and urban centers to rural communities. This diversity influences housing preferences, prices, and market dynamics across different regions of the state.
2. In the dataset not only consists of California State, but also Nevada, Oregon, Arizona, Colorado, Utah, Virginia, Wyoming, and Kansas.
3. Property Types: Offers two property types like apartments and offices
4. Price Trends: Property prices in the dataset does not fluctuate that much over, even though factors like economic conditions and market demand.
5. This data from kaggle.com gives valuable insights for buyers, sellers, and investors navigating US’s real estate market.

Photo by Gustavo Zambelli on Unsplash

Finding

Customer Segmentation by State

Click this link to navigate the dashboard

California becomes the premier state for highest buyers with relative frequency 45%, following Nevada State with 6% which is far, then Oregon, Arizona and Colorado with only 4%.

Segmentation by Customer Age:

Theis graph constructed from intervals derived from the original table and utilizing the data provided in the frequency distribution table. It excludes data related to firms.

The initial graph illustrates the frequency distribution of age variables. A prominent peak appears at zero, which corresponds to null values linked with corporate clients.

Note: Prices are provided for all properties, whereas ages are exclusively available for individuals and not for firms. Rows pertaining to firms (lacking age values) are automatically excluded from all analyses concerning relationships between variables. In the scatter plot, these rows are visible on the x-axis, as Excel assumes their age to be 0.

Key Takeaways:

1. California stands out as the top destination for real estate buyers, capturing a significant 45% share of the market. This dominance is primarily driven by several factors, including California’s robust economy, diverse housing options, desirable climate, and employment opportunities across various industries. In comparison, Nevada holds a distant second place with a mere 6% of buyers, largely due to its proximity to California and attractive tax policies. Following behind are Oregon, Arizona, and Colorado, each capturing only 4% of buyers, primarily due to their appealing natural landscapes, lifestyle amenities, and relatively lower housing costs compared to California.
2. California emerges as the state with the highest real estate prices, boasting an average price of $280,422, primarily driven by the prevalence of apartment properties. Nevada follows closely behind with an average price of $275,417, while Arizona trails slightly with an average price of $266,144. This trend can be attributed to various factors including California’s robust economy, high demand for housing, and limited supply of affordable housing options, all contributing to the higher price levels in the state.
3. The consumer segmentation reveals interesting insights: individuals aged 36–45 constitute the largest and most loyal consumer group, with a total of 52 buyers. This is closely followed by the age range of 46–55, with 41 buyers, and the age range of 26–35, with 36 buyers. The dominance of these age groups in the consumer base can be attributed to their likely stage in life, which often involves significant housing-related decisions such as purchasing a home or investment property.
4. Furthermore, the distribution of buyers by gender shows that males account for 55%, females for 36%, and firms for 9% of the total consumer base. This gender distribution reflects broader societal trends in real estate purchasing behavior and highlights the importance of targeting marketing efforts to cater to the preferences and needs of different demographic groups.
5. Additionally, analyzing customer sources reveals that the majority of buyers, 119 in total, originate from websites, indicating the importance of online platforms in attracting potential buyers. Agencies contribute 59 buyers, while clients and unknown sources account for 17 and 72 buyers respectively. Understanding the primary sources of customer acquisition can help optimize marketing strategies and allocate resources effectively to maximize customer reach and engagement.

Marketing Analysis and Strategies to Optimize Real Estate Business:

1. Given California’s position as the top destination for real estate buyers, accounting for 45% of the market share, prioritize marketing efforts in this region. Leverage the state’s robust economy, diverse housing options, desirable climate, and employment opportunities to attract and retain buyers.
2. While California leads the market, neighboring states like Nevada, Oregon, Arizona, and Colorado also present opportunities. Tailor marketing strategies to highlight the unique selling points of each region, such as attractive tax policies in Nevada or natural landscapes in Oregon, to appeal to potential buyers.
3. Recognize the impact of pricing on buyer behavior. With California boasting the highest real estate prices, focus on positioning properties as premium offerings with added value, emphasizing features like location, amenities, and lifestyle benefits to justify higher price points.
4. Utilize consumer segmentation insights to target specific demographic groups effectively. Concentrate efforts on individuals aged 36–45, followed by those aged 46–55 and 26–35, as they constitute the largest and most loyal consumer segments. Tailor marketing messages and offerings to resonate with their life stages and housing needs.
5. Acknowledge the gender distribution among buyers, with males comprising 55%, females 36%, and firms 9% of the total consumer base. Develop gender-specific marketing strategies and messaging to cater to the preferences and needs of each demographic group effectively.
6. Given that the majority of buyers originate from websites, prioritize and optimize the online presence of real estate listings. Invest in user-friendly websites, high-quality imagery, virtual tours, and informative content to attract and engage potential buyers. Additionally, leverage social media platforms and digital marketing channels to reach a broader audience and drive lead generation.
7. While websites remain the primary source of customer acquisition, diversify marketing channels to reach buyers through multiple touchpoints. Collaborate with agencies, enhance client relationships, and explore new avenues for lead generation to maximize customer reach and engagement.
8. Continuously analyze market trends, consumer behavior, and customer sources to inform marketing strategies and optimize resource allocation. Utilize data analytics tools and metrics to measure the effectiveness of marketing initiatives and identify areas for improvement.

By implementing these marketing analysis and strategies, real estate businesses can capitalize on market opportunities, target the right audience segments, and optimize their marketing efforts to drive growth and success in the competitive real estate landscape.

Appendix:

Tool:

1.SQL and Excel for data query and processing

2.Tableau for visualization

Feel free to connect with me on LinkedIn at https://www.linkedin.com/in/abdulazizgreat/ to explore more ideas and discuss further about the analysis. I’m always open to engaging in fruitful conversations

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