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Most real estate agents don’t really know the numbers behind their business. They focus on the deals and the money they make out of it without really understanding how to scale. A crucial step in my business helping realtors with real estate web design, branding, digital marketing, SEO, and social media is measurable indicator or KPI of how our strategies and overall, the business is doing.
A Key Performance Indicator (KPI) or statistic for realtors is a measurable indicator that can be used to evaluate your marketing efforts’ performance. Knowing your data and tracking your performance are important for your business’s success. According to Peter Drucker, “what can be measured, can be managed.” Therefore, it will be quite challenging for you to scale if you don’t have the figures.
Knowing your numbers is what separates a 7 to 9-figure entrepreneur or a super successful real estate agent from everyone else. You can tell the maturity of any real estate agent’s marketing based on their answer to very simple questions. Some of these are:
- How many leads do you generate?
- How much do those leads cost?
- How many of those convert into opportunities?
- What does that cost?
- What’s the show rate for your appointment?
- What’s your conversion rate?
If you are the owner of your business and you can’t clearly tell how many leads you’re acquiring, what your pipeline looks like, or what it costs, then you don’t know what’s going on in your marketing.
Knowing your numbers gives you the exact information you need to understand what lever to pull when it comes to your lead generation, lead nurture, or sales strategies. Ultimately, you are responsible for revenue generation so you need to be on top of these numbers. As one of my mentors, Dan Martell, always says, no measurement no growth.
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Knowing Your Numbers
Now that you understand the importance of KPIs, what numbers do you need to know?
The easiest way to get and understand the figures is to reverse engineer the steps required to get a transaction. And this is what the process looks like:
Leads > Conversations > Appointments Booked > Appointments Taken > Strategy Sessions Booked > New client > Transaction
You need to get the numbers of each step to be able to measure your KPIs. Appointments taken are a critical metric to track. If you have booked appointments that did not turn up, it indicates a leak in your funnel that needs to be addressed. The strategy sessions booked are indicative of a listing presentation. Lastly, every new client is not a “now” buyer or seller, but the more clients you add, the simpler it will be to anticipate your following transactions.
Once you have all these numbers, the next important thing is the percentage of conversion for each step. You do this by dividing what’s in front of you to what’s behind you, such as Conversations by Leads.
The next metric to track is how much each step costs. For instance, if you want to measure your cost per acquisition then you take the transaction number and divide it by the amount you spent on marketing. You can also do the same for each step of the process.
You need to measure these numbers daily, weekly, and monthly. If you see spikes or dips in percentages or costs, then you need to act on it. Whether that is changing the strategy or taking note of it for monitoring.
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Final Thoughts
You need to get a daily metric tracker to monitor these numbers. It doesn’t have to be too complicated. What’s important is you’ll be able to get the figures for your tracking. If you haven’t started yet, then start today. Start tracking these numbers daily and take advantage of the details. You’ll greatly benefit from knowing which aspect of the process you need to improve.
When you have the data, the secret sauce of the process is testing everything. Test each part of the funnel – it could be the ad copy, ad creative, the landing page copy, the positioning of elements, the scripts during calls, or the presentation during an in-person meeting.
There is no silver bullet to this. The people that find success and scale through their real estate business using digital marketing strategy just have a habit of constantly testing everything knowing that 90% of the tests will probably fail but that 10% that actually work compound over time. I’ve seen success stories with this countless times, and with enough patience and time horizon, you’ll be able to do the same!
Looking for more real estate strategies to grow your business? Join our free Square 1 Facebook Group for similar content that can help you in your Real Estate journey. If you are interested in one-on-one coaching, then schedule a strategy session with me today, and let’s talk about how I can help you move your business forward.
