As we head into the high season for leasing, I decided to write a blog post on “the X things operators need to focus on.” As I started to think of different things, I kept coming up with items focused on analytics. So let’s talk about the three most important areas requiring sophisticated analytics.
1. Marketing
Knowing your cost per lead or cost per lease isn’t enough now. Do you know:
Knowing the answers to these questions, will allow you to optimize your marketing spend.
2. Sales
Sales is an inherently numbers-driven part of our business, yet it’s surprising how little data we track. Sure, we track the numbers of leases. And we may even track a closing ratio (though that can be a bad thing since a high closing ratio is actually a bad thing if you have low exposure). But, do you know:
3. Pricing
Automated pricing and revenue management systems are probably the most impactful use of analytics that has ever hit our industry. If you’re not using one, then what’s holding you back? Almost all of the NMHC Top50 use one of the commercially available systems. I’ve got clients large and small, all benefitting from the discipline and the math that these systems bring to bear. But even if you’re using one, are you getting the most out of it?
All of the questions above are high-impact. If you’ve got the data analytics and systems in place to answer them, then you’re well-positioned to out-perform your competitors. If you can’t answer some (or most) of these, then you should dedicate the rest of the year towards getting the analytics in place so you can answer these questions and out-perform the competition.