PropTech Today: Open APIs, not the plug and go that you may think
Do you have an 'open API'?
We use 'X' who have an 'open API' so we would need you to integrate with them.
We are only interested in products that are integrated with x, y & z.
These are probably some of the most common comments/questions faced by suppliers when presenting to agents. First and foremost, this is a good sign. It shows agents are starting to embed an array of tech across their business. It also means that they are looking to achieve the most integrated and streamlined solution possible.
However, these questions can often strike fear into even some of the most established suppliers as the reality of integration is far more complicated than most agents realise.
Most agents don't actually understand what is involved with delivering a seamless and quality API product integration - that's ok, most suppliers out there don't understand every aspect of what goes on within your agency operations to deliver the external result.
If your understanding of an 'open API' is that two products/platforms can simply exchange an 'api key', input a username and password and, alakazam, there are two integrated products, then you're grossly mistaken! That's akin to saying all an agent does is stick a property on a portal and open the door - it's a long way from the reality of selling or letting.
Open API akin to a blueprint
Think of an API like a property blueprint. You have all the details and specifications to build the property you want, but you still have to build it.
Every integration, like property, is unique
Keeping the property analogy, thinking all integrations are the same is like saying every property is the same. Just as a property can be anything from a micro-studio to a 30 bedroom castle, likewise, an integration can capture a couple of simple data fields (e.g. contact details) at a single point or can transfer any and every piece of data at multiple trigger points and even have these processes trigger other actions (e.g. workflows and ledger reading). As such, each integration project is unique and, depending on the products involved, can take hours or months to develop and implement.
Integrations take time and money
Like building a property, building out integrations, especially more complex ones, can take time and, with that, a considerable amount of money. Whilst every agent should expect their supplier to have a 'partner api' strategy- expecting an array of quality partner integrations, especially early in a products life, is unrealistic. When working with younger products you will need to allow time for an API ecosystem to develop.v Even a s company matures, they can only develop so many each year and some products won't be financially viable to integrate with.
CRM integrations most in-demand but most complex
It makes sense - the core of almost every agents' business is run by their CRM of choice. As such, it is only logical that agents want as many products as possible to integrate there. It removes most if not all data entry duplication and retains the CRM as the central operations platform.
However, these can be the most complex and costly to deliver. What is more, they might not actually deliver the best efficiencies on offer. With over 30 CRMs prevalent in the marketplace and with an array of both attitudes and architecture to accommodate integrations, this alone is a complex maze for suppliers to navigate.
Our integration journey to date
To date, we have delivered six partner integrations at The Depositary - TDS Insured, TDS Custodial, Please Connect Me, Inventory Hive, InventoryBase & No Letting Go (Kaptur). On average, these integrations have taken about one month of planning and one month of development and testing before being deployed. Our inventory partner integrations will almost certainly deliver our member agents the greatest time-saving of all, on average, saving 30 minutes per tenancy.
We are just about to complete and deploy our first CRM integration. This is currently under an NDA and, as such, I cannot name who it is with - however, this has been a fascinating journey to date. We have developed an incredibly complex integration that not only captures and populates applications in our platform with documents, it also passes amended data back, triggers bespoke workflows and even reads tenant ledgers to automate reconciliation.
The reality of this project is around three months of planning and then three months of development. I don't mind saying that the cost to us to deliver this is somewhere in the region of £40,000. When you consider our client rates start at just £75+VAT per month, this is a huge commitment from us, both in terms of finance but also development resources. Having our developers work on a project of this scale has meant we have been unable to deploy other features and innovations within the platform as early as we would have liked.
So...
Should you ask about API's? Absolutely! Should your supplier have an API/integration partner strategy? Of course! Are you going to wake up tomorrow to find every product talking to each other and every CRM? I don't think that will ever happen.
Absolutely make this part of your assessment but also be real about why you need it. If a product saves you an hour per transaction then five minutes of data entry, whilst you await an integration, it is time well spent. Remember, your agency didn't open its doors delivering the same quality of service and offerings it does now- so be realistic of what you expect from your suppliers. Like you, they are on a journey and want to deliver their clients the best product experience they can.
It's a complicated landscape out there but, together, we will get there!
