The Real Estate Industry
Real estate is reeling on all sides with emerging trends led by new technologies, nontraditional markets and consumer shifts in mindset. The characteristics of real estate sales can be summarized as follows:
Inevitably, real estate agents are facing more challenges than before and in need of better guidance to exceed their targets. While it may take an average real estate agents up to 3 years to fully master the craft, creating KPIs conducive to good performance will set the beginner agents up for the best practices and habits.
Part 1: How to Set and Measure KPIs for Effective Sales Activity Management
Part 2: How to Manage Top 5 KPIs for SaaS Sales Reps: An Almost Complete Guide
New businesses don’t come without you making that call - it’s a common understanding in the real estate industry. Prospecting and active outbound efforts made a large part of lead generation.
Although everyone is supposed to know this already, making number of outbound calls a KPI motivates realtors to pick up their phone more to reach their targets.
Even when you already have enough leads in your pipeline, nurturing the future pipeline is key to avoiding a dry month or quarter.
In addition, tracking this KPI means you’d pay more attention to phone call details such as outbound or inbound, duration and time. This data could provide useful insights to improve your performance. What if you need to call earlier or later? What if you need to cut your script short?
Pro tip: Start tracking how many calls you have made on a weekly / daily basis. Then start reflecting why some calls seemingly went better than the others. You can use an Excel sheet to keep everything at one place. If you’re always on the go or in the field, try out Salestrail’s call tracking from your phone.
Download our Call Tracking Spreadsheet Template with built-in graph reports and formulas.
It’s not enough that you’ve already closed that deal.
According to the REALTOR Magazine, about 30% of their sales volume comes from past client referrals, and 30% are from repeat business with past clients. Building a strong referral network on the way is nearly as important as gaining new businesses.
Making sure that your clients are happy and satisfied can only benefit your business.
The best way to implement and measure this KPI is to include client feedback survey as a default step in the sales process. Automated workflows would guarantee 100% survey completion. Also make sure the client feedback survey is easily accessible for real estate agents to send over once the deal is closed.
Pro tip: Have a clear idea about how specific and accurate feedback from clients you want. And while you’re thinking about which questions to include, also try to think about how the feedback can be used for sales improvement.
By spending about 20 minutes to think this through, you can get the most out of the customer feedback.
This goal is particularly helpful for junior realtors to start building a relevant contact database. Seasoned real estate agents already do this. Just like delighted client, happy suppliers will refer new business to your agents.
But as we’re speaking of KPI goal setting, a key question is, how many is too many? Is it never too many? Maybe? No?
You let your real estate agents answer themselves. Networking is a long-term game, and is made the best use of when you’re most comfortable.
Equally important is the aftermath - what you do with the new leads / contacts you get. Scan all the business cards to Salesforce CRM, send invitation to connect with their LinkedIn or a follow-up message.
A significant element in real estate, especially residential real estate, is trust on a personal level. Buying a home can feel deeply personal and the financial factor can add to buyers’ sensitivity. A real estate agent with good personal branding will already gain an edge over the competition.
This starts with your social presence - most likely your LinkedIn profile. Are your profile complete and polished with clear work experiences and recommendations? Are you actively engaging with your LinkedIn network by commenting? Are your producing useful content for your network?
Strategically positioned and well-executed marketing on the individual level will not only benefit your agents, but the agency as a whole.
Real estate agent KPIs can vary tremendously according to individual agents and real estate industry. It’s good to keep in mind that it’s not a one-size-fits-all model. Junior agents may need more structure and hand-holding at the beginning, while the veteran agents know what are their Key Performance Indicators, and so are able to direct themselves towards winning the targets.
Download our Sales KPIs Excel Template to calculate KPIs goals for your agents.
Next up: The Most Important Sales KPIs for Heavy Equipment Industry