Essential KPIs To Improve Your Real Estate Business
“Those who cannot remember the past are condemned to repeat it.” – George SantayanaThe Life of Reason, 1905
Sound’s a bit ominous but we can take away so much from this quote from George Santayana. Keeping track of the progress of your business might get confusing at times. There are a lot of aspects to your business and a lot of factors to consider specifically in real estate. So where do you actually start? These are the 5 top KPIs ( Key Performance Indicators ) to use to keep track of your progress and be able to pinpoint your weak points and strengths.
Appointment To Listing Conversion Rate.
Your appointment to listing conversion rate is the percentage of conversions you get from the number of your appointments. As per the Keller Williams Economic Model, this metric is essential for determining the number of appointments your business needs to make to hit its income goal.
In theory, if you are converting 2 appointments out of 10, and your goal is 5 converted listings per month you can say that you need 25 appointments per month to meet your goal. of course, it’s not gonna be exact math all the time but having this information can help you map out a schedule for the month. Your conversion rate is a key factor to your success always make sure to keep track of it.
Leads generated for both sellers and buyers goas hand in hand with our first metric. This tracks the number of potential buyers or sellers you plan to contact to schedule that appointment.
This is the life source of your business. You can never have enough good leads. By assessing how good your lead generation tools you ensure that you have fuel to keep your economic engine going. Keep track of where your leads come from be it from your website, referrals, or social media. by doing so you can target specific markets you can improve on or pursue. a source that generates high-quality leads should be a great focus of your KPI.
Cost Of Lead Generation.
Cost per lead answers the question: How much does it cost for us to generate a single lead? Modern sales teams want to be efficient in their time and spending to acquire new leads. This sales KPI is important to track because it will impact your customer acquisition cost.
As a note, the most accurate average cost per lead KPI tallies up all marketing expenses (including employee salaries).
The total number of closings you had whether monthly or per quarter. This is your success metric. Make sure tracking this is your TOP priority, as this is the final conversion.
This is a KPI that should be shared to align marketing, sales, and product teams. It’s also worth noting that the Closed listing rate is an account-focused metric, so unlike the appointments to listing conversion rate that measures potential customers, the listing to closing rate measures sales only.