Page 20 - New Homes Legacy Playbook

Playbook
Metrics and KPIs
Sales Metrics and Key Performance Indicators (KPIs) are crucial for outlining the measurable goals and performance indicators that will drive success in your collaboration with builders. Each situation will be unique, so you must be able to provide analytics and reports that are meaningful, timely, and reflect full transparency.
We believe in the power of data-driven decision-making. Our commitment to achieving success in collabora- tion with builders is reflected in our strategic use of Sales Metrics and Key Performance Indicators (KPIs). These measurable benchmarks provide and objective framework to track progress, optimize strategies, and ensure the success of our partnership.
What is your builder partner expecting? How often? These questions may have been answered during the initial meetings with the builder partner. If not, address them at your earliest convenience. Again, each situation may call for a different set of analytics. Generally, there are some consistent elements we incorporate into our reporting, including:
Key Sales Metrics
1. Lead Generation and Conversion:
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Metric: Number of leads generated.
• And: We typically want to dissect this information by source, which helps us to make
intelligent decisions on where to target future ad spending.
• Sales Funnel: What is in the pipeline and where is the customer in their purchase decision
may help speak in detail to future sales. If your builder is privately held or publicly traded,
forecasting is an important element in planning.
Objective: Increase lead generation through targeted marketing efforts and enhance
conversion rates through effective qualification strategies.
2. Time-to-Sell:
• Metric: Average time it takes to sell a property. Understanding this component will also help to craft
customer nurturing and touch points.
• (Footnote: Velocity must match the builder’s desire and ability to deliver product. If sales are
lagging, or sales are in front of production, customer service and margins may suffer.)
• Objective: Optimize marketing and sales processes to reduce the time properties spend on the
market, maximizing overall project efficiency.
3. Customer Acquisition Cost (CAC):
• Metric: Cost incurred to acquire a new customer. Unpacking this in greater detail is a non-negotiable.
It’s important to understand the efficiency of each individual marketing channel and campaign.
• Objective: Manage and optimize marketing spend to ensure a favorable balance between acquisition
cost and project profitability.