How to Relentlessly Focus on One Key Metric w/Lance Loken
In an industry where there are so many roads to success, finding a key metric to track can be daunting. How do you form your business plan around a single metric? Are systems necessary? What can you do to improve your conversion rates without increasing your spending? On this episode, Lance Loken shares how he built a successful real estate business around a key metric and how you can do it too.
"You build an organization to compliment your deficit." -Lance Loken
Takeaways + Tactics
The one key metric that makes a real difference is the conversion rate.
Each year should be planned in advance. The 1-3-5 method helps your team focus on one goal, three priorities that help with reaching that one goal, and five tactics for each priority.
Most real estate agents have one weakness: they dislike systems. Taking people from corporate America who are already accustomed to systems can be a good idea if you have a strong learning system for newcomers.
Bring the “wow factor” to the table. Retaining clients is much more affordable than acquiring new ones.
The best way to motivate your team to focus on a key metric is to get them involved in the development of the plan. Use the 1-3-5 formula to define the goal and the path to get there. Schedule meetings where progress can be discussed.
Lance Loken is the CEO of the Loken Group, former CFO of Francesca's Collections Inc and Johnson Companies. You can find more details about his work at http://www.thelokengroup.com/