Do you know your Numbers?
A branch manager recently asked me on social media, has the market, changed? We are not getting anywhere near as many leads through as we used to and I just don’t know why.
In private messenger, I started asking him his number, the number details, that lead up to an instructions, and he really did not have a clue…
I asked him how much marketing he had done, how many different types and where his leads traditionally come from, but all drew a blank, the phone just rings, and right now it isn’t… he replied.
I always start to look at a problem head on, when there is one part of the engine currently malfunctioning it is our job to identify which part that is.
Another way to look at it is that a business system is like a strong chain where the strength and success of the chain to perform its job is only as good as every single link within the chain.
If one link fails, then the chain will fail.
The question is, do you know what every link in your chain is and how robust they are?
For example, to “get the phone to ring” there must be some lead magnets, marketing, PR, reputation management going on, advertising and marketing to drive people to the business… Well what are these and how effective are they?
In the olden days (showing my age now) but in the 90’s for example, all we had to do was put an advert out and the phone would ring. Simple. Whereas now, many successful branches will have around 21 different lead sources for enquiries, such as:
- Referrals and recommendations
- The shop front
- Inter group referrals
- Cold calling
- Email marketing
- Contact calls
- Content creation
- Speaking events, networking, exhibitions etc.
So if your leads have dried up, why?
Which one of the leads has reduced? You need to know! So measuring the leads and enquiries into your business when all is going well will save you when it Is not working so well anymore, as markets change, platforms change (and appear) and the people using them change style too, which can have a major effect.
But it’s not just about marketing, if you get 20 market appraisal leads, how many do you expect to convert, then from those, how many do expect to sell/let, and from those, what is your average pound per deal etc?
Knowing these numbers will help you to know exactly on a day to day basis, exactly what you NEED your staff to achieve to make the deal numbers you expect from them.
When you get through to the management department, you will also discover that there is an average number of vacates every month (and this is dropping in number recently) which means there are less properties naturally coming onto the market, also that you will have an average number of tenancy renewals, arrears, and gas certificates to order.
When you get to grips with this, you can start to see how a well-run and systemised letting agency can perform better than others, because it recognises, the micro shifts in behaviour, patterns and then as a result makes small changes before they become major problems or the norm.
Here is a simple selection of numbers you MUST know and review weekly (if not daily)
- Lead sources (types and success)
- Market Appraisals booked from leads
- Instructions received from appointments
- Viewings booked on properties
- Properties sold or let from viewings
- Percentage conversion from viewings
- Completions (move ins or sales)
- Income per deal average
Once you have the above recording mechanism in place, you can really develop it and build upon it and make it quite comprehensive, then split it into departments or team members target based reports, to measure and record performance.
The lettings business is a business of micro detail, and many that fail do so, due to small details not being monitored or taken care, resulting in big scale and long term issues.
Have a go at implementing the above if you haven’t already and let me know how it feels to know daily what your numbers are.
Keep up the great work, as I know you do already.