The real estate industry has always been competitive. However, the competition is about to heat up because fewer people are renewing their leases, let alone taking out new contracts. Mortgage rates have dropped by as much as 34.1%, and 25% of people are worried about a potential recession.
You will need to step up your property management marketing strategy if you want to keep up with the competition and retain your tenants. This entails more than just launching more ads and marketing campaigns — it involves keeping track of your campaigns' efficiency and impact.
Email and text are great mediums for marketing, but most property managers don't know how to measure their efficiency. Here is an overview of important key performance indicators (KPI) to help you gauge your communication's performance for campaigns aimed at both current residents and prospective ones.
Text marketing is one of the most effective forms of marketing for property managers. It is ideal for property managers managing multifamily units, as it has a personal aspect about it. Use the following KPIs to monitor your text marketing campaign's performance:
Your list size includes the number of people who have subscribed to your campaign. It includes active and inactive subscribers, but it is advisable to focus more on active subscribers. Ideally, your list size should be long and full of potential leads.
Ideally, your list of subscribers should increase over time — which makes for its growth rate. A steady growth rate is an indicator that your campaign is gaining momentum and popularity with your target audience. It is advisable to assess growth rates every month, but this will ultimately depend on your marketing campaign's urgency.
One of the reasons why text marketing is so efficient is that more than 95% of all texts are read almost immediately. As such, you can expect your marketing campaign's opening rates to be just as high — you would be right to be concerned if they are not close to the 90% average. A high opening rate means that your audience doesn't mind receiving and reading your messages.
The opening rate is not a reliable measure of performance as some people can open your messages and then ignore them. This is where the click-through rate comes in. It is an indicator of how many of your subscribers respond to your call to action when they click on embedded links.
The response rate is just as reliable as the click-through rate, but it only works for SMS campaigns that have a response component enabled. In addition to helping you measure your campaign's performance, a response component will also enable you to get insights from your audience. These insights will be useful when refining your marketing strategy as they essentially represent the audience's desires.
Ideally, your list's growth rate should be steady and on an upward trajectory. However, some subscribers will lose interest in your campaign and unsubscribe. This is unavoidable, but a high attrition rate should be a cause for concern as it is an indicator of lack of interest in your campaign — and a sign that you are not doing it right.
Find a way to learn what is causing your audience to unsubscribe. You can do this by sending an automatic prompt asking for the individual's opinion before finalizing the unsubscribe request. This will help you correct your campaign's flaws.
Email marketing moves at a slower pace compared to text marketing, but this doesn't mean that it is not effective. It works better when you monitor performance and use the data to improve your campaigns' strategies. Use the following KPIs to monitor your email marketing campaign's performance:
You already know what the open and click-through rates indicate. However, you should be forewarned that email marketing campaigns register dismal rates compared to text marketing. For example, the average open rate is 24%, and the average click-through rate is just 4%.
The click-through rate is more reliable than the open rate, but it does not guarantee that your audience actually follows through with your call to action. The conversion rate is designed for this purpose. It is an indicator of how many people did what you asked, whether it is viewing your open houses for prospective tenants or renewing lease contracts for existing ones. Measuring the conversion rate requires that you work with other marketing platforms.
The bounce rate is an indicator of the number of subscribers who don't receive your emails. This is common in email marketing, as many marketing emails are automatically redirected to the spam box.
These two metrics are important as they are good indicators of your campaign's efficiency and shortcomings. If you see high bounce rates for current residents, take this as a red flag! Be sure to send out a communication to all residents to add you as a contact in their inbox, so they receive all notices related to the property.
Running a marketing campaign (on any platform or medium there is) without keeping track of its performance is like flying blind. It helps to know where your campaign stands and to get an insight into what the future holds. While we cited some general benchmarks to aim for with KPIs, industry benchmarks often aren't as important as your campaign's progress. The best open rate is an improving one! The numbers should also reflect on the overall ROI.
Your marketing campaign's performance analysis is only as good as the tools you use, and no other tool beats Notifii Connect. This tool is designed to refine and automate many aspects of email and text marketing, and it is tailored for property managers! Notifii Connect will give you real-time performance data and help you exploit new leads to refine your marketing campaigns.
It isn’t clear how long the decrease in leasing rates will persist, but it is clear that property managers need to step up their marketing tactics. Explore everything that Notifii Connect has to offer and get ahead of the competition!