If you are reading this article, the chances are that you are a real estate agent or broker (or want to be one). If that is the case then you are likely to work in sales, leasing, and or property management. I will put to you now that each of those specialized parts of our business requires specific ‘goals’ that we should track and measure on a regular basis.
The agents that struggle in the industry are those that have little or no idea of what they are doing one day to the next, and then they take each day as it comes thereby wasting a huge amount of time and opportunities. The results in our special industry come from two main things. They are:
- Focus – That focus is on a few essential things to generate new business
- Habits – Certain things repeated daily will bring you all of your new business.
It should be said here and now that these 2 issues are difficult for some salespeople to implement (we are all salespeople in this industry), given that a fair degree of discipline is required.
If you believe that you have what it takes to handle these 2 issues then it is time to go to the next level. Answer these questions relative to your job role (sales, leasing, and property management), your brokerage and your location:
- What things repeated will generate more new business and leads to attract new clients?
- How can you improve the services provided to your clients?
- How can you market your services and properties more effectively for maximum impact?
- How can you lift your conversion rates in listings and deals?
- How can you control your listing stock?
The answers to these questions are the essential facts that we all need to master. They bring the results.
I have included property management in this assessment given that new business is also required in property management just as much as it is in sales and leasing. The approach to new business in property management is a bit different; however quality properties and better clients are always required.
If you are serious about winning new business and growing your market share, then you will need to track and measure certain things on a weekly, quarterly, and annual basis. In only that way will you know what is working (and what’s not)?
Here below are the 15 critical factors or Key Performance Indicators to track in our industry. I put to you that they are all critical numbers to watch at a personal level, particularly if you want to improve your real estate business. See what you think, and perhaps you can add to the list?
The 17 essential numbers (KPI’s ) are:
- Number of researched prospecting cold calls made every day
- Direct door knocking undertaken on a daily basis in your territory
- Meetings created each day from prospecting efforts
- Listings created each week from meetings and client connections
- Ratios of open listings to exclusive listings
- Direct mail sent out to researched property owners and investors
- Marketing dollars collected as part of vendor paid marketing
- Property inquiries inbound per campaign
- Property inspections held
- Commissions written each month
- Listings refreshed and updated weekly
- Time on market for each listing
- Commissions per property type and size
- Signboards in your territory
- Number of listings on the internet
- Number of people in your database
- Referral leads and opportunities
When you have this information collated at a personal level you can quickly see the strengths and weaknesses in your actions and adjust as necessary. Facts and figures help you understand the results achieved.
I go back to the main point of this article; the focus that we create for ourselves and the habits we develop as real estate agents will help us generate and improve results. All of these Key Performance Indicators are ‘signposts’ or ‘task generators’. Top agents know these numbers.