The 27 key metrics agents need to track

Systems and checklists are the keys to tracking the metrics in your business and generating growth, according to an expert.

US-based real estate coach Darryl Davis said agents need a system in place and there are 27 key metrics you need to know.

“I’m a big fan of putting systems and checklists in place that help you keep tabs on key metrics for your real estate business,” Mr Davis told Inman.

“After all, knowing these things is how you keep your fingers on the pulse of your business and will alert you when something is or isn’t working as it should.”

He said it doesn’t matter whether you use a CRM or a spreadsheet, the most important part is developing a system that you find easy to use and that will give you the information in a way that you find easiest to understand.

“There are many systems out there, but the best one is the one that works for you,” he said.

Mr Davis said there were 27 data points that you need to track on a daily, weekly, monthly and annual basis to ensure you know where your business is at.

Day by day

He said each day he wants to know things like the number of emails he’s received and replied to, social media engagement, website traffic, returned phone calls, daily tasks and upcoming appointments.

“These daily metrics are essential to keep an eye on so that you can respond quickly to any new leads or client inquiries,” he said.

“Potential clients will be impressed to hear from you so quickly, and emails and social media posts will keep you in front of potential leads.

“Staying on top of your daily tasks will help you stay organised and ensure that you’re making the most of your time.“

Weekly wrap

Each week, Mr Davis also keeps track of other metrics.

He tracks, new leads, follow-up calls, appointments scheduled, showings booked, offers received, closings completed and his marketing budget spend.

“These metrics can help you assess the progress you’re making on a weekly basis and adjust your strategies as needed,” he said.

“For example, if you’re not generating enough new leads, you might want to increase your marketing efforts or try a new lead generation strategy.

“If you are spending more on marketing but not getting a response, a change in marketing tactics or tech tools may be required. “

Monthly matters

On a monthly level, Mr Davis looks at other factors as well.

Each month he tracks the number of new listings, average days on market, average sale price, total commissions, total expenses, referrals and website traffic.

“Monitoring these metrics on a monthly basis will give you a broader picture of your business performance over time,” he said.

“You can use this information to make strategic decisions about how to allocate your marketing budget, which neighbourhoods to focus your self-promotion and marketing efforts on, and how to improve your overall business operations to maximise the use of your time and money.”

Annual analysis

At the end of each year, he takes a bigger picture overview.

Mr Davis tracks the total number of closings, total sales volume, average sale price, total commissions, total expenses and client satisfaction survey.

“Taking a yearly snapshot of your business can help you identify trends and patterns that can inform your long-term strategy,” he said.

“It can also help you set goals for the upcoming year and track your progress over time.

“Did you start a new coaching program and see results? Did you set more realistic milestones to better reach your goals? This big-picture overview helps you plan for your next year.”

“You know where you are starting, and you know where you want to end up, and each of these metrics is like a town or tourist attraction along the way,” he said.

Mr Davis said metrics were like a road map and with just a little effort and attention to detail, you can position yourself for success and achieve your goals and your next level.

“If you start passing towns and attractions that you weren’t expecting to, it could mean you are on the wrong highway, but a look at your road map will tell you if the road you are on will still get you to where you want to go,” he said.

“There are many ways to your final destination, but using these metrics will keep you on track.”