KPI for Measuring of Average Real Estate Cost per Sales Lead posted in category Real Estate
WinningKPI - Real Estate - KPI for Measuring of Average Real Estate Cost per Sales Lead posted in category Real Estate
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This KPI is for measuring the cost per sales lead for the real estate company. This is calculated in different ways. It can either be measured on a low scale (mostly for small companies or individual real estate agents) where for each lead the cost is calculated and then that amount is averaged at end of the measuring period. In this case the agent will quarterly or yearly sum up the total costs calculated and divide them by the number of leads. This is often done by small start up companies or self-employed agents that want to assess the costs from the beginning and work on strategies as they go along.
They may set a desired Cost per Lead KPI (generally a low one) and put in place strategies to achieve that.
On a higher scale, the total cost invested in leads in a given time period is divided by the total number of leads achieved (this is a more accurate measure as it also includes the money invested that did not achieve leads).
The Real Estate agent or company will aim to put in place strategies to minimise this cost, whilst maximising the amount of leads generated. This can be done through mass marketing campaigns, automated systems etc.
Formula: Total budget invested in leads generation/ total number of leads generated
A real estate agent has recently opened a website to advertise properties and after a 3 months period is measuring the average cost per sales lead. This includes all costs related to websites maintenance, advertising, hours worked etc.
The formula is calculated as below:
Total budget invested in leads generation/ total number of leads generated
Total budgeted invested in lead generation via the website: $500
Total number of leads generated: 60
Average Real Estate Cost per Sales Lead:
Hence, the average cost is of $8.3 per sales lead.
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