PREDICT YOUR REAL ESTATE BUSINESS RESULTS FOR THE FUTURE

By
Education & Training with Performance Development Strategies

We already know what happened in the last quarter, but do you know what will happen in the current or next quarter. If you know what to expect you can be prepared and excel.  If you want to have positive results for your business will need to measure and control the things that matter. As a business leader you need to see the big picture. That includes tracking the pulse of your business. Watching a dashboard of controls tells you if your car is operating properly. Having a dashboard for your business will tell you if your business is on track to reaching your goals.

As a leader who is working ON your business you will need to track important trends which can quickly warn of problem areas that need attention. You should not waste time getting bogged down in the small details of working IN the business or you will miss the forest for the trees.

You should measure business success by measuring trends and directions not numbers. Looking at the numbers alone will not tell the entire story. You should be measuring the trends and the movement toward the critical goals of your business.

These are some things that are worth measuring.

Finances – revenues and sales, profits, cash flow

Inventory – unusual drops or increases

People (Employees or other team members) – productivity, turnover, employee engagement scores

People (Customers) – customer satisfaction, customer loyalty scores

This information is vitally important to the leader of the business.

Of all the measurements one measurement that is the most important because it is the biggest predictor of future success. It is NOT finance and profit. That may surprise you. Of course, profit is indeed very important but is a measure of what has already happened. It should come with the same warning put on mutual funds which is “This represents past performance, which is no guarantee of future results.” That’s right. Just because you have had good sales and profits last year does not mean that you will have increased sales and profits this year. Sales and profits are TRAILING indicators.

Business Dashboard

A LEADING indicator which will predict future success is customer loyalty or the customer loyalty score. The most important measure of customer loyalty is the answer to this question. “How likely are you to recommend us to your friends?” You should survey your customers with this question along with other customer questions that will help you understand what you need to do to exceed your customers’ expectations. Whatever else you measure make sure that you track this. Rising scores will lead to more sales. In the same manner falling scores will predict decreased sales.

If you measure customer loyalty and see opportunities for improvement take action immediately. Taking the correct steps will help you create more sales, profits, and success.  For a similar post on our web site see PREDICTIVE ANALYTICS FOR YOUR BUSINESS SUCCESS.

Learn how to create predictive controls for more business success.

Contact Us for a Free Consultation

or call 914-953-4458.

 

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Roy Kelley 08/03/2020 08:10 AM
Topic:
Real Estate Best Practices
Location:
New York Westchester County
Groups:
Coaching and Mentoring
Tags:
customer loyalty
business dashboard
staff engagement
predictive measurments for your business

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Rainmaker
2,952,989
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Predicting the future for my business is darn near impossible and would drive me mad, haha.

Aug 03, 2020 07:09 AM #8
Rainmaker
348,222
Carol Culkin, ReeceNichols
ReeceNichols Real Estate - Overland Park, KS
Overland Park Residential Real Estate

It might be relationships and referrals by next year! I am afraid this is all going to have a snowball effect because of job losses of businesses hit so hard. 

Aug 03, 2020 07:55 AM #9
Rainmaker
2,200,647
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Wayne - it is a wake up.  Something to watch.

Raymond - always be guided by past experience.

Joan - in risk management we call what happened a black swan event.

Will - just look at the indicators.

Brian - do you need therapy?

Aug 03, 2020 07:59 AM #10
Rainmaker
4,923,412
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Grant,

Customer loyalty and customer experience is a great indicator of the future.  Those who take their customers for granted, end up regretting it.  A

Aug 03, 2020 08:01 AM #11
Rainmaker
5,888,124
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much, Grant, for sharing your experience and your advice.

Aug 03, 2020 08:08 AM #12
Rainmaker
876,123
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Grant Schneider 

This is an excellent blog post. So many times we get pulled away from looking at the gauges of our business. I'm bookmarking

Aug 03, 2020 08:33 AM #13
Rainmaker
2,200,647
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Carol - you are right that things happening now will affect the future.

Ron and Alexandra A - that is absolutely correct.  Always exceed expectations.

Roy - Thank you very much.

Doug - thanks.  If you can't measure you can't manage.

Aug 03, 2020 09:16 AM #14
Ambassador
4,029,788
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Grant because of COVID-19 this has been a funny year.  Every time I think I am starting to get a grip on how my business is headed it changes.  I got a feeling I will not be able to make any realistic predictions until 2021.

Aug 03, 2020 03:02 PM #15
Ambassador
4,259,706
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Grant- Gauges are good for keeping track of where you are but you have to know what to do with what you see, and how to interpret the numbers. 

Aug 03, 2020 04:25 PM #16
Ambassador
960,512
Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Grant Schneider 
What I love about reading your posts is that they are so clear and easy to understand. Now to implement... All the best - Lynn 

Aug 03, 2020 06:56 PM #17
Rainmaker
3,375,719
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Home and Condo Specialists

Customer loyalty is a large part of the equation. We have been fortunate that our customer loyalty score is high!

Aug 04, 2020 06:39 AM #18
Rainmaker
2,200,647
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

George - absolutely and no one can dispute the confusion.

Kathy - that is absolutely correct.  You can't have paralysis of analysis.

Lynn - thank you so much. Right nothing happens until it is implemented.

Larry and Sheila - that is a rising tide!

Aug 04, 2020 06:58 PM #19
Ambassador
4,259,706
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Aug 08, 2020 06:56 PM #20
Rainmaker
1,400,718
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Grant Schneider - I missed this because of Gateway 504.  I am glad Kathy Streib re-posted it.  I was just telling my husband yesterday, that every year my return clients keep increasing and also giving me referrals.  This year has had the biggest jump in that area.  You are correct about "Customer Loyalty".  To me, there is nothing more important than taking care of my clients. 

Aug 09, 2020 09:46 AM #21
Rainmaker
2,200,647
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Kathy - thank you for the feature.

Sheri - glad you finally got through the gateway!

Aug 09, 2020 10:05 AM #22
Rainmaker
1,049,654
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Good stuff, this is in fact exactly whet my Referral Maker CRM from Buffini & Company does for me; all the above indicators and more!

Aug 09, 2020 12:51 PM #23
Ambassador
4,253,052
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Grant:

You always share valuable business advice for us. I particularly liked the customer loyalty discussion...referrals are an important part of our business and we need to stay top of mind as much as possible.

Jeff

Aug 09, 2020 03:53 PM #24
Ambassador
2,043,305
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Hi there, Grant. Customer loyality is a biggie - especially if you operate as a referral based business - and don't buy leads. 

Aug 10, 2020 06:16 AM #25
Rainmaker
4,384,349
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Grant, our market has been going gangbusters, but do think the election will have an effect on it.

Sep 04, 2020 05:58 AM #26
Rainmaker
4,384,349
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Grant, it will be interesting to see what is in store for our real estate market the 4th Quarter! 

Sep 06, 2020 06:09 AM #27
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