For real estate professionals, a solid return on investment from marketing is about more than getting the most out of every dollar spent. It should also include a good return on the time being spent to prepare all the marketing materials. Fortunately, analytics may be able to help agents determine just how strong their ROI actually is.
The good news for agents these days is that there are plenty of options for not only getting their marketing materials in front of the people most likely to be enticed by them, but also examining just how effective those efforts have been, according to Inman. Facebook and other social media sites give advertisers like agents a bevy of tools they can use to determine just how effective every dollar they spend truly is, and that's especially true thanks to the ability to target ads to users in specific demographics or geographical areas.
Consider other types of returns
While ROI is often calculated in terms of simple dollars and cents, in today's market it can come in other ways as well. For instance, when effective marketing turns into real estate sales, that's easy enough to quantify; "I spent this much, and here's how much I netted from that sale." However, if that client then turns around and writes a glowing review online, that too can have a massive positive impact on future business, because consumers increasingly rely on customer reviews to make decisions about everything from which agents to work with to where they should get lunch.
Of course, it's difficult to quantify just how much the marketing in which agents invest their time and money is directly responsible for a positive review that, in turn, also leads to more business. However, lumping that factor into the equation can help agents to feel even better about what they're doing to reach potential clients.
Can predictive data help?
In addition, agents may also be able to benefit from using "big data" to cultivate predictive information that can inform more effective marketing, Inman noted, but that often requires an additional investment. So the question for many agents becomes, "Is that worth it?" On the one hand, these tools can use publicly available data to determine things like which area residents may be poised to buy or sell within a certain timeframe - and that can certainly help to inform more direct marketing decisions that are more likely to pay off.
On the other hand, one has to consider how much those tools cost when it comes to the overall ROI. Furthermore, experts note that use of these kinds of tools is only likely to increase, so the ability of any agent to adopt them as soon as is reasonable could help them get in front of the trend.
ROI is something agents should examine constantly to make sure they're getting the most out of whatever marketing efforts they can, as a means of connecting with more clients in the near future. Having the ability to get a closer look at how effective they've been is vital to making the best possible decisions.
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