Generate More Profit
As we look toward 2025, one critical goal for every Director of Operations (DOO) should be to generate MORE profit for their team. This goal is not just about “lead gen”; it’s about actively identifying opportunities for growth in your systems and implementing strategies to capitalize. Regardless of what statistics or benchmarks your industry model provides, the key is to:
- Assess your current position
- Analyze areas for improvement
- Choose specific goals to close the gap.
(Use our ROI of Operations Calculator to determine how much income your operations team generated for the business this year.)
Example 1: Improving Conversion Rates
Consider the conversion ratios on your real estate team. Let’s say your current conversion rate from appointment to signed listing is 50%, and from signed listing to closed transaction, it’s 80%. Here’s how this breaks down:
- If you have 100 appointments, you would sign 50 listings (100 x 50%).
- Out of those, 40 would close (50 x 80%).
This gives you a total conversion from appointments to closings of 40% (40/100).
Now, imagine implementing a pre-listing package that boosts your appointment-to-signed-listing conversion just slightly – from 50% to 60%. Additionally, what if you introduced a feedback system that increased your signed-listing-to-closing conversion from 80% to 90%?
- This would result in 54 closings instead of 40, adding significant value to your business. With an average listing of $700,000 and a commission of 2.8%, that’s an additional almost $275,000 in gross commission income (GCI)!
The takeaway? Assess your conversion rates at each point. Identify opportunities for growth. Setting specific goals around these ratios. And you can significantly enhance your team’s profitability.
Example 2: Transforming Your Database into a DataBANK
Another powerful strategy for a DOO is to turn your database into a “dataBANK.” The difference is not just in the volume of contacts but in the quality of your engagement with them. Here’s how you can approach this:
- Let’s say you have 4,500 people in your database. If you’re currently achieving 73 closings from this group (repeat clients, sphere of influence, and referrals from past clients/sphere of influence), that’s 1.6% of your total contacts.
- What if you set a goal to increase that conversion rate to 3%? By implementing a MORE systematic approach to nurturing these relationships, you could achieve 135 closings from your dataBANK, which is nearly double your current figure.
With an average listing of $700,000 and a commission of 2.8%, that’s an additional almost $1,215,200 in gross commission income (GCI)! That number is so big that it feels daunting. And yet, it’s the small, incremental changes that matter most.
8 Steps to effectively transition from a mere database to a dataBANK:
Evaluate Your Touch Plan
1. Do you have a systematized touch plan? (IE – It does NOT rely on people and happens no matter what! We hear too many DOOs say “well I gave them the list and I don’t think they really called”. What is your SYSTEM around that?)
2. Does it touch EVERY person in the database on each touch?
3. Do you have enough touches?
4. Do you have six touches around every event?
5. Do you need to warm up the touches?
6. Are you providing value?
7. Are you making the ask?
8. Are you systematically adding to the database?
Level Up Your Client Events: Do you “have client events” OR do you “have a client event SYSTEM”?
Level Ups
● 6 Touches around EVERY event: Email save the date, Postcard invite, Call invite, Text reminder to RSVP, At event contact, After event “thank you” or “missed you”
● Sponsors (to help with cost & grow your databank)
● Invite attendees to bring a friend who will be buying/selling this year
● Change events to increase attendance & decrease cost (ex: service project, pictures in the park)
● Do you have a clear purpose & are you measuring results (not attendance)?
● System to produce referrals/reviews
Take our Low Cost, High Impact Client Events Class on October 23 & implement additional takeaways!
Conclusion: Closing the Gap
Ultimately, regardless of the statistics or benchmarks set by the industry you are in (ex: MREA), the real measure of success lies in your ability to analyze where you stand, identify opportunities for growth, choose specific goals, and take actionable steps to close the gap. By focusing on these strategies, you’ll not only enhance your team’s profitability but also create a culture of continuous improvement and success within your organization.
ACTION:
As a Director of Operations, your role is crucial in steering your team toward achieving these goals. Embrace the challenge, and watch as your efforts lead to significant growth and profit in 2025 and beyond. Better yet, invest in Operations Coaching to ensure the growth & accountability you crave to hit your goals!
- Group Coaching (OPS-tober Promo running now!)
- Part Time 1:1 Coaching
- Elite 1:1 Coaching
Schedule a call to walk through which option is best for YOU!