Why are KPIs important for real estate agents?
Looking to drive your business forward and create a high performing team? Then you will need to set objectives for your company known as Key Performance Indicators (KPIs).
But why use KPIs? Here are 3 reasons why you need to use KPIs for your agents.
What are KPIs?
Key Performance Indicators (KPIs) are metrics that verify how well your business is doing. High-level KPIs demonstrate overall performance, while low-level KPIs examine performance in a particular area, such as marketing. KPIs should be clear and easy to understand.
1. Understand marketing activity
Business can fluctuate (a busy month can easily be followed by a quiet period), so make sure agents are generating contacts ahead of time in an effort to secure future business.
- KPI Idea: Set a target number of calls to make to current contacts and potential clients, this could be a daily target or a weekly amount spread over a number of days.
Agents should let clients know who you are and what you have to offer. Word-of-mouth will get you so far (as long as it’s all positive), but you also need to be pro-active and seek out ways to generate new leads.
- KPI Idea: Set goals relating to the promotion of the business in order to stay competitive.
2. Evaluate service
Are your clients satisfied with the service provided?
The best way to attract more custom is to build a solid reputation, so getting good feedback is a must. You’re only as good as your last deal or interaction - make sure clients are saying positive things about the company.
- KPI Idea: Feedback scores from clients are a great KPI of how well you’re doing as a business.
3. Diagnose issues and keep accountability
Setting goals will motivate individuals to do well, and also provides accountability. Monitoring KPIs will allow you to identify if leads are being followed up and provide the opportunity to check out sales performance.
You can use this information to make positive changes. If you have a large and diverse team then KPIs might need to vary slightly, those new to the world of real estate might need more support, whereas more experienced agents are expected to achieve more.
Read more: How to keep agents accountable
KPIs help keep your agents on track to perform. To track your KPIs, we suggest keeping it simple wherever possible, avoiding complex spreadsheets which may cause confusion.
Read more: How to track KPIs for agents