Blog Post
October 25, 2023 written by Fello
In the world of real estate, success is often measured by the number of transactions closed and commissions earned. However, there's more to being a top-performing agent than just these metrics. The biggest factor that differentiates top teams from the masses is their focus on “customer retention score”.
In this blog, you will learn how measuring agents' success goes beyond the commission numbers and why maintaining client relationships is crucial. We'll also provide 5 key performance indicators (with formulas) to measure your agent’s customer success performance.
But before we jump into the metrics, it’s important to understand why customer satisfaction or success is such an important metric for real estate agents.
Why Customer Satisfaction is Key for Real Estate Success
Referrals Matter: 36% of sellers find agents through referrals from friends or family, showing the impact of satisfied clients spreading the word.
Repeat Business: 27% use the same agent again, indicating that retaining clients can lead to more transactions.
High Satisfaction: 73% of sellers would definitely use the same agent again, highlighting the value of keeping clients happy.
Agent Assistance: 86% of sellers get help from agents, emphasizing their crucial role in ensuring customer success.
*Source: 2022 National Association of REALTORS® Profile of Home Buyers and Sellers
The above statistics prove that, while closing deals and earning commissions are essential indicators of an agent's success, they don't tell the whole story. The top 1% of agents in the market have a secret to their success - maintaining and nurturing client relationships. This fanatical approach to customer relationships is what sets them apart from the average agent.
How to Evaluate Your Agents
Let's delve into how you can measure your agents' success beyond the transaction count.
5 Key Performance Indicators for Evaluating Real Estate Agents.:
1. Referral Rate: Agents who provide exceptional service often receive referrals from satisfied clients. Measure the number of referrals your agents receive, as it reflects their reputation and client satisfaction.
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Referral Rate (%) = Number of Referrals Received: |
2. Database Win Rate: Evaluate your team's performance by tracking the percentage of leads converted into listings by your team and the percentage secured by your competition. This is critical to improving sales processes, understanding competition, and improving overall team performance.
This is automatically tracked in real-time on the Fello platform via the “Real Sellers” feature.
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Opportunities Won to Lost (Ratio) = |
3. Client Retention Rate: One of the key metrics to measure agent success is the rate at which they retain clients. A successful agent should aim to have a high percentage of past clients returning for future real estate needs.
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Client Retention Rate (%) = Number of Clients from Previous Period: : |
4. Repeat Business: Successful agents have clients who return for additional transactions, whether it's buying or selling. Keeping track of repeat business can be a significant indicator of an agent's success
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Repeat Business Rate (%) =
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5. Listing Rate for Past Clients: As revealed in the above statistics, top agents are more likely to list homes for past clients. Track how often your agents are listing properties for previous clients, as this shows their ability to maintain long-term relationships.
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Listing Rate for Past Clients (%) = |
Empower Agents with the Right Technology for Building Better Customer Relationships
Beyond evaluating these metrics, as agents you can significantly enhance your client retention strategies by using the right tools. Here are a few to start with:
1. Customer Relationship Management (CRM) Software:
Implement a robust CRM system that allows agents to organize client data, track interactions, and set reminders for follow-ups. Examples of some most used CRM by real estate teams:
Sierra, Follow Up Boss (FUB), Brivity
2. Real-Sellers by Fello
Identify exactly how many homeowners in your database are listed with your team (or another agent). With the “Real Sellers” tool, stay updated with property alerts and visualize key metrics like overall opportunity volume. Analyze closed-won properties and competitor comparisons for real-time insights into how to best improve your strategy.
Learn More about Real-Sellers
3. Data Analytics and Predictive Tools:
Equip agents with data analytics tools that can help identify client preferences and predict future real estate needs.
Fello (Real Sellers & Propensity Score), Core Logic, ATOM
4. Cross-Channel Communication
Different clients prefer different channels of communication, so it’s important for agents to be equipped with every communication platform, including email marketing and social media.
Take the help of these marketing automation tools to move regular follow-ups on autopilot:
Fello, MailerLite, Hootsuite
Conclusion
Measuring your agents' success in the real estate industry goes beyond transaction numbers. Building and maintaining client relationships is a critical factor that sets top agents apart. By using the key performance indicators provided, team leaders can measure and guide their agents in nailing the customer retention strategy in the ever-fluctuating world of real estate.
Remember, it's not just about the deals closed. it's about the lasting impressions left on clients and the referrals and repeat business that follows!
Interested in learning more, our team would be happy to provide a demo of all things Fello:
Ready to start driving more seller leads on autopilot?