Do you know where the majority of your leads come from? Do you know which marketing and advertising vehicles are generating the most business for you? Do you know your conversion rates?
It always amazes me that more agents are not tracking their business. But when you reduce it to the most common reason, it usually ends up somewhere between, not fully understanding the importance of tracking, and not knowing where to begin or how to do it.
Why is it important to track?
Well, it would be something like setting out to sea on your ship but not knowing where you are going or worse, how you even got there. Tracking things such as your sources of business and your conversion rates (# of contacts to get an appointment and # of appointments to get a transaction) is critical to understanding where to navigate your business. Without tracking, you have no idea how to avoid the things that didn’t work for you, and to repeat the things that did.
So how do you track?
1. Create an excel spreadsheet: it doesn’t require any fancy calculations or formatting. Just get started by adding the following column headings; Incoming Date, Client Name, Client Address, Source (how they found you), Sale/Lease/Purchase, Transaction Address, Closing Date, Sale Price, Commission %, Commission $
2. Every time you get a Lead (whether it be a call, email, referral etc.), record it on the spreadsheet. Even if the lead never turns into anything more than a 5 minutes conversation, track it. Every time you go on a Listing Appointment or Buyer Appointment, track it.
3. Record the details of every lead that turns into a transaction including the pertinent information such as closing date, sale price, and commission amount.
Why should I track a lead if it doesn’t turn into anything? What if they were already working with an agent?
You want to track the lead because it will indicate to you which were the best sources of lead generation for you. Do you think it would be useful to know that a good percentage of your leads came from a specific person or a particular website you were advertising on? Do you think it would be beneficial to be able to recognize that friend that referred the lead to you? Or to perhaps increase your advertising dollars or exposure on that particular website the next year?
Why is it important to know how many people I speak with vs how many appointments I went on vs how many transactions I completed?
Tracking your activity will make a world of difference in better understanding your success rates. If you had a terrific year, wouldn’t you want to be able to replicate the same thing for the following year? Conversion rates work like this – If you know you did 12 deals in 2013, and that you went on 50 appointments, and that you generated over 200 leads, you can easily identify what your targets should be for 2014. Equally, you can also analyze where your strengths and weaknesses are. Perhaps you are great at generating leads but you have a hard time converting them to appointments. You could start to identify the areas that you should seek support for. Objection handling, communication/presentation skills, or closing techniques to name a few.
Bottom line, without tracking your business, you are working blind. If you don’t know how you got to where you did – how can your replicate your success. I wonder if this is where the “beginners luck” comes from? …