How KPIs Shine the Big Picture for Multifamily Marketers
KPIs have long provided multi-family marketing teams with valuable benchmarks and data, but not all KPIs are created equal. Ineffective KPI tracking can mean missed marketing opportunities or strategies that change later than they should have been, resulting in unproductive spend. When monitored and managed properly, marketing strategies can have tremendous value and impact.
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If marketing teams don’t dig enough into performance metrics, returns can suffer, but evaluating data is not the first step. “Google Analytics has often been the standard measurement tool, but critical information is often missing,” said Catriona Orosco, director of REACH by RentCafé Digital Marketing Agency at Yardi.
READ ALSO: Website Strategies to Keep Renters Engaged
Along with having a good understanding of where your KPIs should be, it’s important to have the big picture to gain perspective. “The factors that make up the full picture include the market, the environment in which we operate, business goals, operational KPIs and budget,” said Alexis Vance, Marketing Director of RPM Living.
What to watch
Some of the most important KPIs for marketing teams are lead-to-turn, lead-to-lease conversions, website traffic, cost per app, and new leads. Website traffic, for example, is a key area to watch. This determines whether any changes need to be made to ad spending, Orosco said.
“If a community is well placed with its occupancy rate, we can reduce spending in certain areas based on the sources that we know will have the least effect on their traffic,” added Kristin Weldele Tolliver, vice -President of Watermark Residential.
One of the most important metrics to follow is the lease conversion rate. Determining your acquisition conversion rates is the place to start, followed by a review of specific conversion types, such as landing page conversion rates and social and mobile traffic. “The bottom of our marketing funnel has widened with an increase in the types of conversions, for example, self-guided tours and videos,” said Vance.
READ ALSO: Attract and convert potential tenants with your website
Data segmentation is the most effective way to distinguish the value of specific sources and their effects on rental rates. Marketers can learn a lot by measuring data holistically, calculating lead spend, percentage of leads converted to leases, and return on ad spend. “When you have visibility into your sources, expenses, leads and leases, you can determine whether you are using your budgets effectively and efficiently,” Orosco said.
Costs vs benefits
Before implementing a strategy or activating a channel, Watermark Residential’s marketing team performs a cost / benefit analysis, said Vice President Kristin Weldele Tolliver. It all comes down to weighing the impact before execution. The impact determines whether a new strategy should be deployed.
What will be the impact of adding 360-degree visits or even a chatbot to your website? Baseline performance provides perspective and helps predict the outcome of a new strategy and the potential for traffic growth. Analyzing engagement metrics and understanding occupancy gives marketers the information they need to decide whether to add more information to a real estate website.
“If a community is well placed with its occupancy rate, we can reduce spending in certain areas based on the sources that we know will have the least effect on their traffic,” added Weldele Tolliver, whose The team examines a community’s budget before activating it. a new marketing channel. “We decide as a team if this is an immediate need, and if so, we deploy it while planning to save in other areas. “
While it is important to regularly check the performance of metrics, some channels may be monitored less frequently. Direct advertising campaigns, mobile traffic, occupancy, and landing page conversion rates should be checked weekly. Data such as return on ad spend, current and historical occupancy trends, and prospect to hire ratios are tracked on a monthly and quarterly basis. The goal is to accurately assign leads to your marketing sources, Orosco said.
A low conversion rate can indicate different things. Even when some metrics are underperforming, they may just need to be readjusted rather than being immediately extracted. Some changes can be made immediately for a quick impact, while other adjustments need to be implemented over a period of time. The key is knowing when to watch and expect more data, and when to make immediate changes to improve performance. Testing and measuring performance in different ways will provide the most accurate data, while investing in tools that provide insight into how your marketing efforts are working.
Amid the pandemic, marketers have been forced to adjust their strategies to retain prospects. Watermark’s marketing team quickly mobilized and began recording virtual tours of vacant units and community amenities, according to Weldele Tolliver. The company has shifted to a video-centric mindset and segmented data in their communities even more. “We decided that any type of tour, whether virtual, self-guided or in person, would be marked in our system as a tour. It (helped us) to monitor the number of tours, regardless of prospects. “
RPM Living has responded to the new climate by turning to channels focused on real-time engagement. “The pandemic has prompted the industry to innovate and embrace new resources,” Vance said.
Read the December 2021 issue of MHN.