When it comes to collecting data about your business, the big question is ‘why?’.
Why is it important to collect data? Aren’t we in the business of selling houses?
Should you really prioritize tracking business metrics over other things, like following up with leads or helping out one of your agents?
Well, the truth is… you don’t.
In fact, when you track KPIs and other business metrics, you are actively contributing to your and your team’s success in the long term. The most successful businesses tend to be the ones that have well-established goal-setting and tracking processes.
So tracking should be an integral part of your business. Something you regularly tend to, just like you regularly touch base with your agents and customers.
Once you’ve started collecting and organizing data about your business, it’s crucial that you put it to good use.
In short, data insights should inform your next move. Let’s take a look at how you might use data in different areas.
Once you start tracking and collecting data on your business, you’ll be able to see what parts of your business are most profitable. You can break down all your profit and understand whether it came from properties in particular neighborhoods, specific types of properties, price ranges, etc...
You can also check your agents’ work. Who is responsible for most production? Who is responsible for the highest commissions? Who might need a bit of help?
Data insights are the lifeblood of your marketing strategy. It’s the only way to see whether a marketing strategy is effective -- and whether it’s worth the money you’re investing in it.
You can use data insights in marketing for:
Tracking what marketing efforts are more/less effective
Understanding where your leads are coming from
Whether your agents are converting leads effectively
… and many more things!
You can even use some of the data insights to make claims that set you apart from your competition, for instance: ‘We sold over 4000 houses in Fall Bay last month’.
Your agents are your most important asset. If they perform well, your business performs well, it’s as simple as that.
So that means your business can improve hugely if you coach and guide your agents. To know where you can make the biggest impact, it’s important to understand where they’re struggling. They might be able to tell you what’s going well and what isn’t, but it makes sense to have a more objective approach.
You can probably tell what is going wrong just by talking to an agent. But, you don’t always get to talk to each and every agent.
Also, one of the most important ways to improve someone else’s performance is to set simple, yet effective goals for them. Then they’ll know exactly what to aim for.
You can also improve your own performance by getting a real estate coach. If you get a coach, you’ll need to provide them with insights into your numbers.
Another great way to use data insights is to communicate with others. Say you want to get a business loan, or have someone invest in your company. You’ll need to be able to show people you are running a successful business -- show them you’re a serious partner. The best way to do this is not to just tell them you’re successful, but to show them -- using your business metrics.