I am often asked what our cost per lease (CPL) by ad source is. I find that to be quite an interesting question. We base many decisions off of this magical number that is bogus from the jump. I have worked both sides of the multifamily fence both as a vendor selling advertising for For Rent Magazine and have held positions on the client side ranging from Leasing Consultant to Director of Marketing so I am able to see things clearly from both perspectives.
According to the first quarter industry report card, also known as the Telephone Performance Analysis done by CallSource it is noted that of the 74,043 calls reviewed from 1,179 communities nation-wide only 48% asked the ad source.
The shock does not stop there…
47% shared features and benefits while discussing the price
7% mentioned features and benefits of their community amenities
7% mentioned benefits of their apartment features
26% set an appointment for a specific date and time
38% ensured the caller could find their way to the community
47% obtained the callers contact information
So, are you still asking what the CPL is for each source and if you have the right advertising in place? Perhaps we should begin with these questions instead:
· Do you have the right people in the right positions?
· Have your teams been effectively trained?
· Do your teams understand the expectations?
· Is performance measured and communicated consistently?
· Are there consequences both if goals are met and if they fall short?
· Are individuals coached and given open and honest feedback?
Advertising is an investment when you are effectively handling the traffic. It should be seen as an Investment Per Lease (IPL) vs. a cost. Cost of Indifference (COI) is what we are paying for in this industry! We have to focus on engaging and informing our employees. I assure you the lost opportunities stemming from the indifference I speak of is far greater than the cost of any advertising you may be doing and if corrected could add enormous value to your organization.
I too often see misplaced accountability in our industry. We cancel ads without a second thought when our telephone performance as an industry would score a D if it were a test. And yet, The Apartment Guide is supposed to generate leases at a reasonable cost?! Come on!!!! Scale back advertising when you can look in the mirror and say…”My team is doing it right! I measure and I have policies in place! I hold my teams accountable for their role within our organization.”
When I worked at For Rent, a client came to me to cancel their ad and stated that it had only generated 2 calls in the last 30 days. My tracking results showed a different story! 208 calls were received by this particular client in the same 30 day period. When presented with this information, his decision was reversed. Can you imagine going through a month or two without the 208 calls that they were getting from For Rent alone? Based on a 30% closing ratio, that would have been 62 less walk-ins each month and 19 additional leases! All of this because there was no “trust but verify approach” in the initial decision making process.
Do I have it all right? Does everyone on my team ace every shop and track perfectly? No way! But I communicate expectations and track performance of vendors and Leasing Specialists alike and most importantly…I refuse to be a part of the “tracking is an industry problem…always has been and always will be” crowd and I will not accept sub par performance as “the way it is”. I will never stop fighting to be better than my competitors and I will NEVER stop believing in the ability of my teams. They are brilliant when engaged and encouraged.
When I was making $6 an hour, I cared because the leadership of the organizations I worked for made it clear to me how my performance impacted the whole and told me often how important I was to the organization. They also made it simple for me to meet expectations by sharing those expectations with me. They rewarded me when I exceeded goals and they coached me when I was falling short.
When was the last time you pulled your company’s TPA and reviewed it with everyone? Do you know how your company stacks up against the industry and does your front line know what a big role they play in setting you apart from the competitor down the street? Do they understand that it is THEIR responsibility to keep the CPL at a reasonable dollar amount?
Yes, I do talk a great deal about the “basics” but I have witnessed these basics positively change the direction of a community and an organization. Let’s face it…if you can score a B- on your TPA’s…you will be blowing away your competitors!
Only one of the four P’s can make or break you and that is your PEOPLE. Are they your focus?