Marketing efforts that do not produce results must be adjusted or eliminated.
The only way to effectively manage your marketing efforts is to measure your results. Having the ability and discipline to track your efforts, review the information, and adjust your plan accordingly is the difference between an average real estate business and one that dominates the marketplace.
Gathering data for the sake of gathering data is ineffective and a waste of time. You want to be clear on the data that matters most for your marketing campaign.
The Profit And Loss Statement (P & L)
You need to know how much revenue a campaign generates compared to the cost it takes to implement. A great way to track this is by creating a basic Profit and Loss Statement for each specific marketing initiative.
There is no simpler and more cost-effective tool for doing this than a basic spreadsheet. Simply list all of the sources of revenue and subtract all of your expenses. Update your spreadsheet monthly.
Key Performance Indicators (KPIs)
The most obvious way to measure a campaign’s success is by measuring the number of firm or closed transactions during that given month or specific campaign duration. However, it will often take a month or more for a campaign to produce a closed transaction. For this reason, you will need to identify specific metrics that measure the success of a campaign from start to finish. These are called Key Performance Indicators or KPIs.
When determining your KPIs, capture all of the important ones, but you do not need more than necessary. It is very easy to get overwhelmed by capturing too much data, which can lead to difficulties in drawing meaningful conclusions.
Again, a simple spreadsheet is a great way to track your KPIs. Since these indicators give you more real-time data, you will want to track these weekly.
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