#Technology #data #Brokers

Brokers Demand Simplicity from Tech Companies

In the high-stakes world of brokerage, a recent study by T3 Sixty brings to light a curious trend: brokerage owners are not clamoring for more advanced technology. Instead, they express a pressing desire for fewer systems, streamlined access to their own data, and tangible proof that the tools they invest in will actually be utilized by their teams.

This study is a product of more than 500 advisory meetings engaging various facets of the brokerage industry—ranging from independent brokers to franchise networks and mega teams. It shines a spotlight on the current gap between the technology that brokers are being sold and the technology that is actually being adopted. Currently, the adoption rate for most brokerage-provided technology hovers at a mere 15% to 20%, which starkly contrasts with adoption rates of 40% to 50% observed for the most effective Customer Relationship Management (CRM) systems.

Integration is Key

According to Derek Taylor, senior vice president at T3 Sixty and a key figure behind the research, brokers are growing frustrated with the status quo. They want integration over independence, which means they are looking for a consolidated solution that bridges the various platforms they already pay for. Instead of searching for more standalone tools, brokers are increasingly turning their attention towards creating their own solutions in-house, particularly when they discover that existing vendors haven’t met their needs.

The study uncovered several insights that resonate across brokerages, regardless of size or geographic location. Notably, brokers are prioritizing integration as the top issue they want resolved. No broker in the study requested another isolated tool; instead, many are keen on having a single interface that connects their existing technology ecosystem.

Conclusion of Findings

The study's findings culminate in nine repetitive themes critical to the brokerage landscape:

• - Consolidation over capability: Brokers favor fewer, more integrated systems.
• - Buyer blindness: Existing solutions often lack consideration for higher-earning buyers like teams and multi-entity operators.
• - Measurement crisis: Across the board, measurement functions are failing at brokerages of all sizes.
• - AI potential untapped: Although compliance and transaction review are identified as prime uses for artificial intelligence, brokers have yet to make these purchases.
• - Data access complications: Many brokers struggle with obtaining clean and predictable access to their data from systems of record.
• - Pricing headaches: The issues stem more from the pricing model than the actual price itself.
• - Importance of adoption: Ultimately, adoption is the real product brokers are evaluating.
• - Migration pitfalls: Technology vendors often lose clients during migration rather than at the renewal phase.
• - Roadmap silence stifles growth: Brokers are hesitant to purchase third-party solutions due to unclear vendor roadmaps.

Beyond these findings lies a subtle yet crucial trend: brokers are increasingly investing in their own technology solutions. Five organizations in the study have embarked on building core platform components independently, while several others have sought to replace existing commercial products with internal tools born from frustrations with industry standards. This shift underscores brokers' new paradigm—prioritizing measurable outcomes and user adoption in their technology procurement decisions.

New Avenues

As Jack Miller, president and CEO of T3 Sixty, points out, brokers are adept at initiating new projects but face challenges in sustaining them long-term. This reality opens a significant opportunity for tech companies that are willing to listen to brokers' needs and craft solutions that address the industry's fundamental issues.

For those looking to delve deeper, T3 Sixty has made the report