Short-Term Return On Marketing Investment

What is the value of just one customer lead that converts to completion of a successful sale? Based on an average 3% commission model, the sale of a €100,000 property would return €3,000 in commission. The sale of a €1 million property on a lower 1% commission contract would return €10,000 in commission.

The direct short-term return calculation examples shown above are undeniably straightforward to understand. However, marketing investment decisions need to factor in both short-term financial gains as well as long-term impact. Spend should be biased towards brand building, awareness and sustained future growth. There is also the need to provide confidence to sellers, that as a company you are actively advertising on relevant online portals to increase the chances of selling their homes.

Long-Term Return On Marketing Investment

Long-term ROMI encompasses other less tangible aspects of marketing effectiveness, pertaining to increased brand awareness, added consumer confidence, trust, consideration and future purchase intent.

The financial return available on just one lead can also convert into these additional money-making opportunities for estate agencies.

Additional ROMI and commissions earned from:

• Upsell and cross-sell (customer lifetime value)
• Currency exchange
• Legal and notary services
• Surveyancing
• Future referral business from customer recommendations