Measure Up: 4 Key Performance Metrics for Real Estate Agents
Like in any industry, and especially for real estate agents, the only way to truly succeed is to know how ‘success’ is measured. Most agents fail in their first year because they are taught to sell, but not held accountable for long-term performance. They aren’t held to a standard, and without a standard, it is nearly impossible to measure success. You can’t improve what you don’t measure.
Just as real estate agents should be held accountable to brokers for meeting revenue goals, brokers should be held accountable to agents for helping them build their pipelines — like every other industry. When brokers direct their focus on individual accountability and revenue goals, they’ll see a drastic change. Accountability for revenue translates to more productive agents. And more productive agents build a more successful brokerage.
According to the latest NAR study on home buyers and sellers, 44% of consumers rated their satisfaction with real estate agents as ‘somewhat satisfied’ with another 4% as ‘dissatisfied.’ Why are nearly half of home buyers less than satisfied with their agents? The answer often points to a key misstep: lack of training from brokers.
As a broker, it is your responsibility to make your agents accountable for meeting revenue goals and delivering high performance. Here are 4 key performance metrics to measure the success of your real estate agents — and ultimately your brokerage.
Responding to leads is how you develop your brokerage, and if leads dry up, your business does too. Failure to respond to leads in a timely manner is a major problem for many real estate agents. Average response time is 917 minutes (or 15.29 hours) and 48% of buyer inquiries are never responded to. If brokers and agents take steps to correct this problem, they are tapping into a potential gold mine.
Lead Conversion to Opportunity
Frustration with online leads is on the rise among real estate agents, and unveiling the cause of unconverted leads is a top priority for every broker. The way you measure and report your leads can have up to 70% or more total impact on your lead conversion rate. Lead generation and conversion in real estate has everything to do with knowing what is generating value and benefit and what isn’t — this will help you direct focus where it needs to be.
When you turn those leads you’ve generated into clients, you need to keep an eye on how long that process takes. It’s important to track the average length of time your real estate agent’s deals take to close and see how long leads are spending in certain statuses and where your brokerage’s bottlenecks lie. Initiate lead action plans to make source-specific workflow changes to increase your close rates.
This is the most ignored aspect of real estate lead generation. 70% of online real estate leads report they are not followed up with effectively. Set up lead follow-up reminders through an automated CRM to ensure that your agents follow up with leads in a timely matter. An automated real estate lead follow-up plan can be a game changer for your brokerage if executed well.
Make your real estate agents accountable by introducing the concept of key performance metrics into the daily function of your brokerage. Focus on performance and make accountability a core business value. When you do, everyone wins. Maximize your broker ROI and your agents’ lead conversions with a system that can monitor and track lead activity — from first contact to close.
By iremarketing Filed in: Real Estate Agent
Tagged: , real estate agents, Real Estate CRM, Real Estate Leads
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