Metrics Are More Than Just Numbers

How do you measure success? Every successful real estate firm prioritizes slightly different metrics, which means that there's no one right answer to that question. But with the ability to track so many metrics and key performance indicators (KPIs), it's easy to feel a little overwhelmed by all of the data at your fingertips.

The important thing to remember is that metrics are more than just numbers. Tracking results, from lead generation to closings, is one of the most reliable ways to help your team grow and unlock higher levels of performance from your sales associates.

Prospecting and Lead Generation Metrics

Analyzing results and projecting future performance starts with understanding what your sales associates are doing to generate leads. Statistically, luck tends to even out over time, which is one reason why volume is a key factor in many prospecting and lead generation metrics.

Leads Generated

We'll get into some of the more granular details shortly, but if you want a quick, overall look at what your sales associates are doing to generate new business, then leads generated is the perfect place to start. The simple fact is that sales associates who generate more leads also tend to close more deals. Volume is important, and leads generated is a catch-all metric to track the work your team is doing to bring in new clients.

Calls/Contacts Made

How efficiently and effectively is your team working to generate leads? The number of contacts made online and good, old-fashioned phone calls that a sales associate makes naturally play a big role in the number of leads that they generate. While raw outreach numbers don't tell the whole story, they provide a solid picture of the effort being made.

Database Size

Ideally, the number of leads, clients, and contacts in a sales associate's database should show stable growth over time. A bigger database means more opportunities, and creating more opportunities leads to more closed deals. If a sales associate is making a large number of calls/contacts, but the number of clients in their database isn't growing accordingly, they may need to adjust their tactics for converting leads.

Appointments Generated

Generating appointments is a critical step in turning leads into clients, and sales associates who post a high number of appointments generated are giving themselves more chances at success. Like database size, the appointments generated metric provides a window into how well a sales associate is managing leads.

Appointments to Listings/Appointments to Buyer Representation Agreements

We group these two metrics together because they're two sides of the same coin. Appointments to listings is a KPI for sales associates who cater to sellers, while appointments to buyer representation agreements tell the same story for sales associates who work primarily with buyers. These metrics tell you how well your team is doing at turning leads into clients.

Measuring Results and Client Satisfaction

Of course, results matter too! Keeping track of how many leads are converted, how many deals are closed, and how happy clients are with the service they receive can provide important insights into the performance of your team.

Average Sales Price

How does the average sales price of homes listed by your sales associates compare with the overall average sales price in your markets? If the average sales price for your sales associates consistently beats market averages, then your team is likely doing a good job of marketing, promoting, and showing homes.

Showings Per Sale

Are your sales associates using showings as a key tool for finding buyers? While marketing and pricing also play a role in showings per sale, a sales associate who posts weak showings per sale numbers may benefit from some extra training to help with performance during showings.

Listings Closed

How many listings are your sales associates closing? While this is a fairly basic metric, it's also one of the important numbers for measuring the success of your team and individual sales associates.

Client Feedback Score

Are your clients satisfied with the service they received? A high client feedback score often means more referrals, which can be a goldmine for sales associates. Of course, the client feedback score is also an important reflection of how clients view and trust your real estate brand.

Improve Tracking and Success with the Right Real Estate Tech

Is your real estate CRM providing you with all of the data that you need to help your team thrive? With DeltaNET®6 you get more than just a comprehensive suite of tools for lead generation, marketing, and relationship management. You also get more ways to track performance, discover which tactics work best for your team, and analyze results. If you want your team to learn, grow their confidence, and thrive, then it's critical to provide them with the right tools for the job.

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To view the original article, visit the Delta Media Group blog.