What is the real value of things like training, brochures, floorplans, or those fancy 360 tours? Do you really need to be on two, or even, three portals? How is your marketing working – and could you cut back on an area of spend?
These are the sorts of questions every agent should be asking. By analysing Return On Investment (ROI) you get some clarity on what’s working for you, but also ideas on what you may need.
Everything starts from a definition of objectives. What are you trying to achieve by using something? When you invest in any product or service or bit of tech, you will have been looking to boost efficiency, cut costs, make customers happier, or maybe outshine competitors. Knowing what you wanted the tool or service to do will help you get clarity on if it’s ‘moving the needle.’
How do you measure this success? Some services offer clear-cut metrics. Let’s say I invest in lead generating tools; I’ll know exactly how many leads I’ve received, and over time, I can quantify how many of those leads converted into new business. This kind of data gives me a tangible measure of the service’s impact on my bottom line. The lead company are happy to provide data, and I can check it against my own.
Some returns are just as easy to spot, like time efficiencies. Take floorplans, for instance. You can either draw your own or outsource the task. By comparing the time it takes and the quality of the plans, you can determine which option is best for your business overall.
Then there are the trickier qualitative factors. Customer feedback and staff feedback are invaluable in assessing the effectiveness of a service. Happy customers mean repeat business and positive word-of-mouth. Engaged and satisfied staff members are more likely to go the extra mile for clients. These factors, along with long-term strategic alignment, can help gauge whether a service is truly delivering its objectives.
One hugely important piece of advice: if you are paying for a service, you need to ensure it is used to its full capabilities. And that goes for an entire team. If they’re not utilising a service, it’s time to ask the supplier for assistance in reintroducing it or providing additional training.
You should also make it a habit to check with the supplier to see if there are any new features or enhancements you might be missing out on. It’s also worth asking them to analyse how you are using the product / service – and if there are any untapped areas for improvement. After all, staying on top of the latest advancements can give you a competitive edge in the market, so it’s well worth doing.
By defining objectives, aligning metrics, and fully utilising the services you invest in, you can unlock their true potential and maximize return on investment.
- Written by Brian Farrell, Founder of Acaboom