Tracking Performance: Who’s Winning?
Behavioral scientists have proven that the “act of keeping score” improves performance. Quite simply, rental agents should keep track of what they actually do.
Every agent should track basic actions such as the number of new prospects they work, the number of properties they show, their total number of appointments, the percentage of people they take out more than once, and of course the number of closed transactions. This data must be recorded so that performance can be analyzed, and of course, it is a fundamental principle of good business. I believe that anything that can be measured can be improved.
“Closing Ratio” can be defined as “Closed Transactions divided by Prospects Worked.” For example: 20 transactions divided by 100 prospects equals a 20% “Closing Ratio” whereas 35 deals divided by 100 prospects equals a 35% success rate. Agents that have the discipline to track their closing ratio will also work to improve the number. It is not unusual for me to sit with an agent that is closing 10% of their prospects or one deal per every ten people. If I can make the agent aware of their “Closing Ratio” and get them to start “tracking” what they are doing, their performance will almost always immediately start to improve.
In this series, I am going to give you many tips on improving “Closing Ratio.” The first tip is obvious: “Keep Score!” By keeping track of the number of deals you do out of the total number of people that you work with your success percentage or “Closing Ratio” will begin to improve. “Tracking” or recording the number of people that you actually take out and show property to is vital. I can’t tell you how many times I have sat with an agent and asked “How many people did you take out last month?” and the answer is “I don’t know” or “Not enough.”
About Greg Young
Greg Young is the owner and President of Broker Heaven NY, a real estate training and consulting firm located in Manhattan devoted to helping agents and companies reach their full potential. Greg has trained thousands of agents over his 30 year career and has created numerous rental and sales training programs.