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

Download KPI as .BSC project | Start web-based KPI project

KPI details:

Measuring of Average Real Estate Cost per Sales Lead

Click on the image to download Average Real Estate Cost per Sales Lead KPI infographic

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

KPI Units: money

KPI Time Frame: update quarterly or annually

Posted by Oana Boteanu | Help to protect community: Flag for moderation

Ideas suggested by WinningKPI community:

Here are comments:

Example:

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:
$500/60= $8.3

Hence, the average cost is of $8.3 per sales lead.
Oana Boteanu | + | September 13, 2012 at 10:26 am

Have something to add? Have some more thoughts? Help others and earn 5 credits!

Sign in to comment Please, register (there is a button 'Become a member of WinningKPI community') in the right sidebar or sign in to leave comments. It is free and more - you will have scores for each comment you post.

Articles in Real Estate category:

Tips on using Real Estate Key Performance Indicators (KPIs)

Relevant articles:

Become a member of WinningKPI community

Manage your KPIs with BSC Designer software

Random KPI requests:

KPI for: Measuring of Rent arrears as a % of rent due -- This KPI is for measuring the rent arrea... 1 comment - add ideas!
KPI for: citizens/customers,finance,internal processes,and learning and growth -- This indicator is for measuring of cust... 1 comment - add ideas!
KPI for: Measuring of Average Labour Cost vs. Forecast -- This indicator is for measuring of Avera... 1 comment - add ideas!
KPI for: Measuring of Customer Interaction Rate -- This indicator is for measuring the cust... 1 comment - add ideas!
KPI for: Effectiveness -- This indicator is for measuring of Manag... 1 comment - add ideas!