For real estate professionals, a solid return on investment for marketing is about more than just getting the most out of every dollar spent.
For real estate professionals, a solid return on investment from marketing is about more than just 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 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 this is 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 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, it’s easy 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, it too can have a massive positive impact on future business, because consumers increasingly rely on customer reviews to make decisions about everything including which agent to work with.
Of course, it’s difficult to quantify just how much marketing activity is directly responsible for a positive review that, in turn, also leads to more business. However, gaining a direct lead from marketing activity can be a good indicator that their marketing efforts are paying off.
Can predictive data help?
Agents may also be able to benefit from using “big data” to cultivate predictive information that can inform more effective marketing, Inman noted, but acquiring big data often requires an additional investment. So the question for many agents becomes, “Is it worth it?” Many of 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 – which can certainly help to inform more direct marketing decisions that are more likely to pay off.
ROI should be continually evaluated to make sure that marketing efforts are effective and result in opportunities to connect with more clients.