When it comes to the major sporting contests, it’s usually not the sophisticated plays that win championships, but rather the players who make the least mistakes.
Games of sport are mostly won by the team who plays the best percentages. Another way of looking at this is the team that identifies the most important KPIs and executes them the best generally wins.
For example, a game of NRL is mostly won by the team that: a) drops the ball the least, and b) gives away the fewer penalties. A game of one-day cricket is almost always won by the team who has the fewer dot balls (that is, a ball that is bowled that you don’t score a run off). Coaches are rarely able to add sophisticated plays to their team’s strategy if they continue to lose the games in these key areas. These areas could be considered our KPIs.
Those in our industry who eventually win are nearly always the ones who win the ‘KPI battle’ in their suburbs.
Here are the five KPIs that I believe will almost certainly ensure you run a winning team:
1. Appraisals. Most people view the appraisal as a vehicle to the listing; those who are winning view the appraisal as a way to connect. The more connections you have, and ongoing continued connections, the more likely you are to create a win. Change the word ‘appraisal’ to Relationship Commencement Meeting, or RCM, and then you understand why this is the number one KPI: 40 a month per person or team should be the goal.
2. OFIs. These are the gateway to your community – another way of looking at it is retail outlets – yet many agents are running OFIs at very low numbers. Only one or two OFIs on a Saturday virtually guarantees little or no success. Like any case there is always an exception to the rule, but opening your retail outlets more often will ensure once again that you create connections. I believe five is an acceptable number every Saturday. If you haven’t got five pieces of stock, consider opening one or two multiple times as your vendors will love you.
3. Pipeline. The development of pipeline and a strategy to go with it will ensure ongoing consistent success. Another way of looking at it is a group of people you continue to connect with. An acceptable number in your pipeline to guarantee success is 50. That’s 50 people you have identified who are going to come to the market in the next 12 months.
I have yet to see a crowd waiting outside a house whilst you negotiate a private treaty.
4. Auctions. This might seem debatable, but auctions are a way to further the connection to your community either onsite or in rooms. I have yet to see a crowd waiting outside a house whilst you negotiate a private treaty; pretty difficult to connect under the shroud of darkness.
5. Customer Satisfaction. We now use an international management system called NPS to measure the customer satisfaction of every client; it’s the only true way of gauging what your consumers are thinking of you after every transaction.
I can guarantee that if you win the appraisal war every month you will eventually win. If you win the OFI battle in your suburb every Saturday you will win. If you identify your sellers into the future and connect with them you will win. If you use auctions as a vehicle for connection you will win. If your customers are happy with you and your level of service, and you adjust that service based upon their feedback, you must win.
The agents who will win are those that understand connection is key. And, if the industry loses connection, it loses its future.