Author: Buildout This post originally appeared on Buildout’s Blog and is republished with permission. Find out how to blog with us on theBrokerList.
Commercial real estate KPIs, or key performance indicators, are quantifiable performance metrics that can be used to assess different business sectors and analyze overall brokerage health.
The information you get from your KPIs can be used to identify weaknesses in your business, pinpoint the issues holding your brokerage back, and help you make better business decisions.
So, for brokerages wanting to grow and scale, here are the top KPIs you should measure and evaluate on a consistent basis.
Clients
How many clients do you have?
Having a clear picture of the number of clients you have is key to understanding how much you need to grow your database. Track how many repeat clients, one-time clients, and potential clients you have in your database to determine where you need to increase marketing, networking, and prospecting efforts.
Exclusive listings
How many exclusive listings do you have?
As a CRE broker or brokerage, exclusive listings are your bread and butter. So the more you have, the better. Track the number of exclusive listings you have on a weekly and monthly basis and put time into prospecting, connecting with business and property owners, and building your local brand every day.
Volume of commissions
What is the volume of commissions per transaction?
Understanding which listings make you more money allows you to better understand your strengths and opportunities for improvement. Track the volume of commissions per transaction closely to make more strategic decisions about the types of listings you should go after.
Proposals
How many proposals does it take to close a deal?
Knowing how many proposals it takes to close a deal will help you determine if you’re on track to hit your goals. Identify how many properties you acquired successfully to ensure a consistent stream of revenue, as well as how many properties you’re losing and why you’ve lost them to help modify your brokerage practices.
Inquiries
Can you track how many inquiries it takes to get qualified leads that turn into business?
As a brokerage, understanding your inquiries to qualified leads to customer ratio can tell you how much more marketing you have to do upfront. Track these numbers closely and be sure to have a system in place that provides you with accurate data so you can make adjustments to your marketing strategy as needed.
Are you ready to take your brokerage to the next level?
With Buildout’s full suite of connected tools, you can streamline your brokerage operations and improve efficiencies to help you grow your firm, win more listings, and close more deals.
If you haven’t seen what Buildout can do for you and your team, get in touch with us and ask for a personalized demo today.
For more updates like this, future coverage of tools in the CRE industry, and other brokerage insights, subscribe to our blog.
