Closing Time and Cohort
Once we define these concepts, we have to understand two other very important ones, the closing time and the cohort. Closing time is a very important metric for sales performance analysis since this determines the period in which commercial reports must be updated.
For example, if our average closing time Telegram Number Data for a property is 2.8 months, we have to update the reports until after this time to truly determine the performance of a channel or strategy.
The Cohort, on the other hand, also called a litter, are the prospects or leads that share a series of characteristics. One of them may be the date they were generated, or for example the marketing channel in which these leads were generated. This is a very important concept since companies usually generate monthly reports on commercial activities due to financial closures, but this is a mistake since it does not allow us to measure the real performance of the commercial process, since we may be counting generated leads. in this period against closings of the previous period.
This is where the cohort plays a very important role, since the correct thing to do is to identify the leads that were generated in the period to be studied, for example January, and continue updating this January cohort report until the average closing time has passed, to actually have a metric of the sales performance of the January Cohort. It is important not to make the mistake of adding all the leads generated in April and dividing between the closings that may come in January or February, this way we will never know the real performance of the development. real estate or the product we are marketing.
It can be complex to do this manually, there are two tricks to eliminate the problem of doing it manually:
Take periods of closing time or preferably larger. If the periods to be analyzed are long enough, it is possible to estimate the performance of the commercial process; long enough means greater than the average closing time of a product.
Use a CRM that already generates this automatically. There are several options in the CRM market that already have a preconfigured reporting module to control the real effectiveness of each cohort.
The Extra
Now that we have defined these concepts, we want to share some benchmarking on the optimal performance of a commercial process in funnel format. We also have benchmarking for the stages of digital marketing that you can see in this link, but here we will see the performance of visits against leads generated by digital media and closures against visits to the development or show room.
The first benchmark is the VTR , which is the division of effective visits between digital leads. According to our analysis, the optimum is between 10 and 20%. The second benchmark is the ETR , which is the division of Closings between effective development visits, the optimal is between 5 and 10%, this depends on the product and the effectiveness of the sales team. All this was obtained by analyzing a funnel as a Cohort and in a period greater than the cycle time for closure.
Below we show you an example of a development that we marketed internally to test the tool, they are apartments of $1,350,000 that gave us the following results, where our VTR was 17.8% and our ETR was 8.57% and finally the CAC/SALES was 1.78% :
If you want to know how Perfilan can help you automate your profiling process so you can focus only on prospects who have a high chance of purchasing in your development, request a DEMO with our advisors.