How to Track and Analyze Your Marketing Strategies

When developing your marketing strategy for attracting motivated seller leads and converting them into real estate deals, you want to employ a multi-faceted approach that includes as many different traditional and digital marketing channels as possible. You also want to develop a system that allows you to track and analyze the progress of your marketing campaigns within each channel.

The Importance of a Multi-Channel Lead System

You never want your business to be reliant on one marketing stream. You not only miss out on HUGE opportunities to find and attract motivated home sellers in your market, but you also make it harder for your business to generate consistency in your lead generation efforts.

Instead, you want to develop a multi-channel lead system that drives traffic from a variety of sources. Once you establish a marketing channel, you can track and analyze it to determine how well the channel is performing. Tracking and analyzing your marketing allows you to generate more leads, close more deals, and grow your business on a more solid, predictable foundation.

It applies to both traditional (offline) and digital (online) marketing, which are often intertwined, depending on your marketing strategy and the tools you use for tracking data.

What Insights Can You Gain from Tracking and Analytics?

1. Who Your Leads Are

If you have ever performed a marketing analysis, you have a pretty good idea of who your seller persona is (i.e., a detailed description of a seller that represents your target audience). In this case, your seller persona is likely motivated seller leads.

But how do you know if your ads are reaching your target audience? Is your targeting accurate? Tracking and analytics allows you to track every interaction with your audience. You can analyze every visitor in terms of time on page, bounce rate, pages per session, conversion rate and more from all of your website and/or landing page traffic.

Based on those metrics, if your ads are not hitting the right home sellers, you can rethink your marketing strategy and reposition your ads so that they connect with motivated sellers - and not just any home sellers.

2. Number of Leads Coming In

One of the most important pieces of data you need to know is how many leads are coming in over a given period. Knowing the number of leads you're getting can help you set or adjust your lead goals.

For example, you may want to set goals for different periods - weekly, monthly, quarterly, and all. Tracking and analytics tools, such as Spark Follow-Up, CallRail, and Google Analytics, can provide real-time reports of how many leads you have received over a specified period to track the progress of your ad spend and marketing campaign.

The more you advertise, the more data you have, the better decisions you can make. In marketing, it’s extremely important that you make decisions based on data and not emotion.

3. Where the Leads Are Coming From

You've set up several marketing channels to expand your market reach. As a result, several leads are coming in. However, where are they coming from? When marketing from different channels, how do you know which channels work and which need work? Did sellers find you on Google? Did they click on a social media ad? Organic traffic?

You can identify the marketing or remarketing channels that generate qualified motivated seller leads using various tracking and analytics tools. Analytics can help you track leads from

• Google Search Network
• Google Display Network
• Google Business Profile
• YouTube ads
• Facebook ads
• Landing pages
• Phone calls from various online channels
• Phone calls from direct mail
• And more

Knowing which channels are generating leads can help you balance your ad budget and allocate more dollars toward platforms that are bringing in more qualified leads. It keeps you from wasting money on campaigns that aren't working. Once again, let the data drive your decisions.

4. What Is Happening to the Leads

A conversion rate is the percentage of sellers who take the desired action visiting your website and/or landing page.

Tracking conversion rates allows you to measure the performance of your ads against your goals. Understanding what percentage of sellers are completing the goals that drive your business (form submissions and phone calls) allows you to gauge the success of your ad and identify areas for improvement.

Improving your conversion rate allows you to generate more motivated seller leads with the same amount of spend and traffic. You can then cut back on your ad spend and get the same benefit as before, or invest the additional revenue back into your ad campaigns for even more lead flow.

While tracking the number of leads is important, it’s important you track beyond this. Many investors stop here, and that prevents them from seeing the true outcome of their marketing investments. For instance, Google or Facebook analytics tells you how many leads you generated. From there, you need to manually view and assess the next layer of data to determine your conversion rate or other information.

You follow this same process for each marketing channel listed above. By following these steps, you can identify the marketing channels that are giving you the best return on your ad spend. When you work with the Magnyfi team, we track all of this for you to empower you to make the best, data-driven decisions.

Data tracking can take you through the entire seller journey, from first impressions to buying the house. That way, you know where you need to improve your strategy. For example, let's say you're getting a lot of qualified leads and making several cash offers, but you have few pending or closed deals. That tells you you're doing a great job of attracting leads but need to improve your closing skills.

5. Budget Performance

Staying on top of your ad spend budget is crucial for long-term success. It also helps you minimize dollars wasted on campaigns that don't produce qualified, motivated seller leads. When assessing your ad spend consider the following items:

• Cost per lead per marketing channel
• Cost per qualified lead
• Qualified lead percentage
• Total deals plus net profit from each deal
• ROAS (return on ad spend)

Whether you analyze this data yourself or hire a digital marketing agency to do it for you, it is crucial to know how much you are spending per lead and whether your ad spend is generating results.

You may ask yourself, "What's a good return on ad spend?" There is no universal answer to that question, as there are many factors and variables that determine your ROI. However, as a real estate investor, you should be aiming for a minimum 3X ROAS. Of course, your geographical location and your exit strategy will play a large role in this outcome.

Measuring Your Results On A Realistic Timeline (Don’t Make This Mistake!)

Because you are in real estate, the time it takes from the moment you generate the lead until the lead is monetized can range from weeks to months, even a year. If you were an ecommerce company, this wouldn’t matter as much because most of your online purchases are instant from the initial click, therefore the data you’re reviewing is real-time data.

In your reality as a wholesaler or investor, only a small percentage of the leads you generate will convert into a deal closed in 1-2 weeks. The majority of your leads will convert into a deal closed within 1-3 months. However, some leads will convert in the 3-12 month timeframe as well. What does this mean for measuring your marketing?

Let’s say you run ads for 90 days and begin to review your results. You generated 32 leads and out of those 32 leads, you bought one house. If you just stop here and look at your ROI, you may be profitable, but maybe not as profitable as you’d like to be. You may even decide to shut down this marketing channel. What many investors don’t take into consideration is that some of those leads generated in the first 90 days may convert into deals in month 4, 5, 6 or even later (this assumes you’re following up with leads and if you’re not, you should probably start doing that now).

When measuring your marketing results as a real estate investor, it’s important to know that the data you look at is always trailing your true return on investment. In the above example, if two more leads from your initial 90 days end up converting into deals in months 4 and 5, that revenue should be attributed to your first 90 days of ad spend, which ends up greatly increasing your ROI from the initial 90 day time period.

As you can see, it’s not only important to measure your results, but it's just as important to measure those results on a realistic timeline that allows you to make the best decisions for your business. If you’re not measuring your data or your making decisions too quickly, you will end up bouncing from marketing channel to marketing channel and never getting the consistency in your business that you desire.

Start Generating 15-30+ Inbound Motivated Seller Leads Every Month

Magnyfi can help you get more motivated seller leads through various paid and organic online marketing strategies. Learn more about how we can help you implement the Motivated Sellers Marketing Program in your area.

To check the availability of your market, fill out our application form or contact us at 877-540-4248, and we will walk you through the process. We only work with a limited number of investors per area, so claim your market today!