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Success in real estate isn’t just about closing deals — it’s about making informed decisions that drive your business forward. A little daunting and potentially yawn-inducing at first glance, marketing metrics are the secret sauce to understanding your efforts, your performance and where you can make strategic changes.
I know, I know. You’re here to sell homes, not become a data scientist. I get it. But whether you’re deciphering reports from your marketing team or venturing into the world of digital ads yourself, understanding these key performance indicators is crucial.
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Marketing strategies
Websites
It’s important to know how many visitors you’re getting on your site to know where to lean in or where to cut corners and how to measure its performance and popularity.
- Unique visitors: The number of unique individuals visiting your web page.
- Bounce rate: Gauges the engagement of a website. In its simplest definition, it’s the amount of time users leave the site and don’t take any action.
- Page load time: This is important for SEO purposes. If your page loads quickly, there is less of a chance for an increase in bounce rate. Test your site speed regularly, especially after updates are made.
- Search engine rankings: Monitor your website’s ranking on search engine results pages (SERPs) for relevant keywords to assess your SEO performance
Newsletters
Your email subscribers can be a great source for repeat business and referrals. The more emails you send and analyze, the better opportunity for success. Don’t be afraid to try new things with subject lines, content and calls to action. Don’t try them all at once or you won’t know what’s working. Make small incremental changes for big results over time.
- Open rate: The percentage of recipients who opened the email out of the total number of emails delivered.
- Click rates: This is the percentage of link clicks within in the email from those who opened the email.
- Hard bounce: Usually means the email address does not exist.
- Soft bounce: Not deliverable due to a temporary issue such as a full inbox or server issue.
Industry email averages per Mailchimp.com. Your newsletter provider should provide these statistics as part of their product offering.
Social media
Everyone loves the socials, but don’t expect to be an influencer. You’re a Realtor, remember? Here are a few metrics to consider if this is your preferred method for marketing your business, and spoiler alert — it isn’t all about the total number of your followers.
- Engagement: Measures the level of engagement (likes, comments, shares) your social media posts receive.
- Reach: The number of unique accounts that viewed your content.
- Impressions: The number of times your content was seen in aggregate. This is different from Reach, which measures unique views, whereas impressions are the total number of times the content was seen.
- Followers: The net increase in followers and unfollows over time.
Of these metrics, engagement is the most important metric for social media content and growth. Lean into the content that garners more engagement from your audience. And don’t forget to engage with your audience and others you want to reach on the platforms.
Digital ads
Metrics associated with Meta and Google Ads can be very complex and certainly are not limited to what I detail here. However, it’s worth noting common terms and industry averages.
- Cost per click: Cost associated with each click on a digital ad, whether their contact information is submitted or not. A click does not equal a lead.
- Cost per lead (CPL): Calculate the cost of acquiring a lead through each marketing channel to assess the efficiency of your marketing spend.
- Cost per mille (CPM): The cost per 1,000 impressions for any ad.
- Conversion rate: Measure the percentage of website visitors who take a desired action, such as filling out a contact form or requesting more information. This can also be used to determine your conversion rate further down the funnel. For example, of the leads received, how many did you turn into clients?
This measurement can help you identify which part of the funnel needs adjustment. Are you acquiring a relatively good number of leads but not setting any appointments? Are you setting appointments but not closing the deals? This data is feedback for your process at each stage of the customer journey. Use it to make measurable improvements in your conversion rates.
The bottom line
One of the most readily thrown-around metrics for marketing is ROI. And ROI will be subjective based on the tactics used..
Return on investment (ROI): Measure the overall return on your marketing investment to ensure you’re getting a positive return. The formula to calculate ROI is:
(Net profit / Cost of investment) x 100
While ROI is useful in determining success for specific campaigns, a holistic perspective would better serve long-term marketing goals and an overall assessment of your business success. Consider Client Acquisition Cost (CAC) as a general marketing metric to identify if you’re growing in the right direction.
Client Acquisition Cost (CAC): Calculate the average cost of acquiring a new client to assess the efficiency of your marketing and sales efforts.
Ideally, CAC declines as you ramp up your business and generate referrals. This is an excellent measure of your business and should be used as a Key Performance Indicator (KPI) every quarter.
If these numbers start to go the wrong direction (i.e. increases), it’s time to evaluate your marketing spend and how you’re converting within your funnel.
Are you converting the leads you’re paying for? Are you missing out on potential clients due to a lack of follow-up? Are you nurturing past clients and SOI in a meaningful and productive way that generates opportunities?
Always strive for efficiency in your business by keeping an eye on CAC.
Creating raving fans and cheerleaders organically adds more opportunities to the top of the funnel. This means low-cost to no-cost leads, which lowers CAC.
Consider client lifetime value over what is right in front of you or immediately behind you. You might be more inclined to keep them close when you realize their true value.
Client Lifetime Value (CLV): Estimate the total value in sales and commissions a client brings to your business over the lifetime of your relationship.
Think about a first-time home buyer client. Not only do they buy one house, they will likely sell that house and buy another. They might also refer a friend or colleague to you. That friend refers another home buyer who also needs to sell their house. You get where I’m going here.
That client who started with one transaction has turned into five transactions over time.
These are the clients you want to keep. They decrease your CAC and increase your Commissions. If your marketing costs stay the same and your sales increase — congratulations, you just got a raise.
This is the goal, my friends.
By monitoring these metrics, real estate professionals can gain valuable insights into the performance of their marketing efforts and make informed decisions to optimize their strategies for better results.
Measure, analyze, improve
So how do you track these numbers and know what to do with the trends? With any type of data, you need a baseline. Establish a starting point over a short period of time and start to adjust from there. Keep in mind the images contained in this article are industry averages. While they are a good starting point, your data will vary due to marketing efforts, audience size, market, skill and established reputation.
If you’re paying someone or a company to handle your digital ad campaigns, they should be able to provide your campaign results. Ask for it and get an understanding of how it’s performing.
Website metrics are best viewed on Google Analytics (GA) if you’re up to the task, but they can be intimidating for beginners. Again, your web developer should be able to provide information on website performance if GA isn’t in your wheelhouse and you have no desire to DIY.
Track social media metrics using the professional dashboard on each platform. Take snapshots or note performance metrics monthly. Alternatively, use a platform like Metricool, Hootsuite, Later or Buffer for detailed insights on individual posts and performance. Choose the one that works best for you and your budget. They’re all a little different.
Embracing data-driven strategies is no longer optional — it’s essential. By consistently tracking and analyzing these key metrics, you’re not just measuring performance; you’re uncovering opportunities for growth and efficiency.
As we enter the last half of 2024, make it your mission to understand these insights and how they can guide your decisions and ongoing processes. As you dive in, stay adaptable and watch your actions take the shape of success in the coming year.
Tara Meier is a Certified Google Digital Marketing Specialist, licensed Arizona real estate broker, NAR technology trainer and coach. Connect with her on LinkedIn and Instagram.
