Sometimes it takes tough questions and an honest appraisal to get to the root of a business problem. In a sales slump, it might be easy to blame the market – but don’t be so quick to jump to conclusions.
If your agency is currently experiencing slow sales, rather than assume the market has slowed too – take some time out and assess some of the possible scenarios below:
Have you taken on some new staff recently? Are you regularly meeting 121 with your sales team and tracking their ability to meet KPIs? Your sales team are your frontline force and if they’re under-performing, this will have a big knock-on effect to your sales.
If you discover that even one agent in your team is pulling down your agency’s sales figures, getting to the root of the under-performance and investing some time in training and development is a good step to take here.
Low market visibility
Is your agency gaining enough visibility with your target market? Is your brand top of mind when home buyers and sellers are looking to move? Your agency could be losing out on potential foot traffic and sales if you’re not visible.
Ensure your agency has its sale boards prominently displayed. Take out advertising in the local press, get creative and find ways to become involved in the local community activities, capitalise on the emergence of social media and online browsing to ensure you’re seen across all marketing channels.These are just some of the tactics you can employ you to get seen by more prospects.
Whilst we would never advocate watching (or copying) your competitors, it’s good business practice to keep abreast of any changes to the local competitive landscape. Has a new competitor emerged recently? Has a competitor stepped up their marketing efforts or introduced a special promotion?
Keeping an eye on these factors will ensure you’re on top of things that could impact your bottom line.
Referrals and word-of-mouth is the cheapest and most effective form of advertising for any business. But when the words aren’t positive, the effects can be extremely damaging. It might pay off to start tracking what your clients are saying about your agency, track customer service levels and find out how you can delight your clients in a way that ensures only good words circulate about your team. If market perception about your customer service performance is below par, make this a priority for the coming weeks.
The reality is, market downturns are inevitable and an integral part of the real estate industry. Interest rates, changes to home buyer grants, seasonal fluctuation and volatile markets all affect your ability to attract and convert new clients. During these times, it’s a good idea to audit the other areas mentioned above, to reduce any likelihood that any additional factors are responsible for your sales slump. Remember, it doesn’t just have to be one factor, your agency could be suffering from a combination of occurrences.
Coping with a market downturn – or any other factors affecting your cash flow can be stressful to say the least. If you haven’t already, you might wish to look into how an advance commission service can help you navigate through your sales slumps – whatever the cause.
Unlike traditional sources of finance, advance commission is an easy and flexible way to ensure ongoing liquidity in your agency, by eliminating the frustrating wait for commission. In just a few simple steps, your agency could be set up to receive express commission payments, as and when you exchange on a sale. So when times are tough, the sales you do close, result in cash much faster. What’s more, you don’t need to apply for lending each and every time. You’ll therefore save time, money and a whole lot of stress too.
To find out more about how advance commission can work for you, contact us on 1800 003 569 or visit our blog for more posts about advance commission and practical tips on running your real estate agency.
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