How many times have you seen or heard “#1 in sales,” “x number of satisfied clients,” or “highest-grossing broker?” Probably more than once. What do these phrases mean? Are they even really measurable? More likely than not, phrases like these come under the heading of “vanity metrics.”
Vanity metrics are things and data sets that are easily manipulated. For tech, it can include things like the number of downloads, page views, and registered users; rather than components that are truly important, such as profits and customer retention.
Vanity Metrics in Real Estate
Real estate, like any other field, has its share of vanity metrics. “Being number one” is ridiculously subjective.
While some associates/brokers/offices have absolutely earned the right based on hard data, many have not.
“Being number one” could mean receiving an award from a random blogger friend, buying an award online, or just plain paying to have the title printed on business cards and in the newspaper; it really doesn’t mean there’s anything tangible or concrete behind the statement.
Take for example the person that might say, “over 2,000 satisfied clients.” Sure, that sounds great on the surface. They must be doing something right if they’ve made that many sales. Wait? Does that mean they’ve made over 2,000 sales, or does it simply mean they’ve met 2,000 people?
It doesn’t say, “I’ve successfully sold over 2,000 homes and I have the documentation to prove it.”
It’s also another vanity metric that is intensely subjective. You need more concrete information to make a judgment on the validity of blanket statements such as these.
Also, should you really choose a Realtor® based on something so subjective?
Show me a Realtor who has been in business for more than ten years with no marks on their record (ethical or otherwise) with their local association, and has the documentation to show they’ve successfully sold homes to “happy” customers (read: they come with many recommendations) and I’ll show you someone I’ll put my faith in.
What you can focus on instead
Every team is different. This isn’t to say that major (and minor) sales milestones shouldn’t be celebrated, because they should. Rather, this is meant to be a reminder to us all the vanity metrics are so easy to fall for; we’ve all fallen for these lines, likely more than once.
Instead of looking to data sets with no meaning, teams should focus on internal metrics.
How many clients do you have right now? How many of those clients have bought a home from you? How many showings have you done in comparison to sales? Are you getting positive recommendations and feedback? How much money are you making?
Things like this can tell you where you need to improve; it is concrete data (the recommendations might be a bit fuzzy, but you get the idea).
Listen to your team. Listen to your clients. Set attainable goals and reassess them as needed. Don’t worry about those catchy little phrases, because you know what you need to do to close your sale and keep everyone happy.