Whenever you talk about ensuring, measuring and managing ROI aka return on investment, it sounds like a cliché but it is that essential component which ultimately determines profitability in business. So let’s break this down and explore all that comes before the usual question of “what’s working for you and what’s not?” Before you venture into this territory, understanding the details such as expenditure, sales, time taken to make the sale need to be explored. But don’t worry, there’s technology to assist you now.
Real Estate industry so far never really relied on innovative marketing channels and mostly has been dependent on traditional marketing mediums. But whether it’s traditional or modern and digital, whatever the marketing channel be, you need to know if it is working for you or not. The question you need to ask here is, what is the amount you are spending in total to market your inventory and what it costs you for one booking? In this article we have dug deep into understanding this segment and have provided multiple KPIs that real estate marketing and sales can and should measure to get an understanding of their return on investments.
To begin with, real estate sales and marketing professionals must measure performance of the following:
1. Marketing Channels vs. Leads
2. Campaign Performance
3. Project-Wise Lead Performance
4. Sales Rep vs. Lead Stage Analysis
Now while sorting this data and creating reports may seem tedious, you might want to look at tools like a real estate CRM for lead management and sales management.
Let's have a look at these metrics.
Marketing Channels vs. Leads
Your real estate marketing campaign needs to have diversity of all possible channels - online digital and offline conventional ones, but this does not mean you keep infusing money regardless of performance of these channels. After all, you must measure ‘the marketing cost per inventory sold’ and you would want this to be as less as possible. Simply put, you must invest only on those channels that get you more quality leads than in those who either do not generate leads at all or only generate bogus leads.
Get a campaign report that shows you a graph of Marketing Qualified Leads Vs. Marketing Channels.
This report should make it very clear for you to understand what marketing channel is the one that deserves more spends so that you can reallocate your spends and improve “the marketing cost per inventory sold ratio”.
Performance of your campaign is also an important aspect once you have invested in marketing. This intelligence will help you understand your TG better. What communication or idea do they receive better? What is their span of attention towards your communication on a variety of pain point solutions? Setting the right tone is necessary for success of any marketing effort.
This brings us to measuring your campaign’s lead contribution. In our previous article on “Facebook Ads Guide for Real Estate” we discussed about campaign communication types based on the interest of your target audiences’. To test this communication you would probably have to measure and track campaign communication vs. Marketing Qualified Leads.
Project-Wise Lead Performance
This is more relevant to real estate agents or brokers who have multiple project-portfolios or for real estate developers who have multiple projects up for sale to measure marketing and sales project-wise. This basically helps eliminate the need for different employee set-ups to measure marketing efforts for more than one project.
Monitor a report that buckets leads by tagging different projects which can be easily done with a real estate CRM in place. Take all your projects on Y-axis and lead stages on X-axis.
Here an additional advantage is that you can cross-sell and reduce prospect attrition or bounce rate effectively. This can be done by setting appropriate drips as per buyer needs.
Sales Reps vs. Lead Stage
Finally, your revenue and growth is only as good as your sales team and their ability to garner great sales velocity. You can customize a report that gives you data on Sales team/ Sales reps or both against lead stages - prospect, opportunity, site visit, walk-in and booking etc.
Lastly, anyone who is willing to bring order to their real estate sales and lead management with these customizations, it is imperative to either pay huge, go for generic CRMs or get the best out of fractional of the cost of former in vertical CRM.