Focus on these Key Performance Indicators in the next 90 days to maximize sales.
This is the first of two articles focusing on Key Performance Indicators (KPIs) for real estate team success. It addresses short-term KPIs, while next week’s article will address long-term KPIs. Short-term KPIs are about measuring your team’s sales activities. Specifically, they track what your team members are doing to generate new business. For simplicity’s sake—and to keep our focus on the driving force of your business—administrative KPIs will not be discussed; all measurements will be related to real estate sales activity. Keep in mind that in the short-term you cannot always control results—you can only control effort. Track and review the following KPI’s on a daily, weekly, and monthly basis to ensure that your team is doing everything they can to operate at their most production level.
For most agents, listings are the lifeblood of our business, so naturally it is important to track your listing appointments. There are many different data points that can be tracked, but I recommend limiting them to the following: New Appointments Scheduled, Appointments Held, Agreements Signed, and Listing Volume. Don’t worry if one or more of these metrics are blank on individual days (not many agents obtain a new listing agreement every day), but strive to not let a day go by without at least one client scheduling an appointment, meeting with you, or signing their contract.
Prospective Client Calls: Prospective Clients include referrals, leads from open houses, FSBO/Expireds, or any other lead that you call (not email or text) to list or sell a home. This should be a daily activity, and at the very least there should be significant effort made every week. This very well may be the most important purposeful and consistent activity that most agents can do to create new business. For tracking purposes, I recommend measuring Calls Made, Contacts Made, and Appointments Set. An exception to the “no email or text” rule is allowable, by the way, if it results in an appointment!
Former Client Calls: These are incredibly important so that you don’t lose track of one of the most reliable sources of both new business and client referrals. Call your past clients on their home anniversary, on their birthday, or for any other reason that you can think of, and always ask if they are considering a move or if they know anyone else who may be buying or selling. For new agents, offer to call past clients for veteran agents that need your help and split the commission, or substitute your sphere for this category. Whomever you call through this measurement, track the same stats as for Prospective Client Calls above but add in Referrals Received.
Notice that general marketing activities like letters sent or leads received are not included above. These are too general and can be padded too easily. Also, we are not tracking offers made or received here because those are more about results than effort. The measurements above focus on direct client interaction and kinetic sales activity that will result in actual real estate sales.