Growing a Title Business: What Metrics Should You Track?
In a previous post we discussed the importance of measuring performance in growing a title business. What key metrics should be tracked? Choose 10 to 20 financial, productivity and turn-time metrics that are critical to the performance of the agency and then monitor them on a monthly basis. These might include:
• the overall profitability of the business on a monthly accrual basis, taking all costs into account;
• net profit and gross margin on any given order;
• revenue per employee, orders closed per employee, and cost per employee (because title is a very labor-intensive business, and you want to distinguish between high and low performers).
This data drives corrective action, whether it’s cutting expenses that aren’t yielding results; investing in more productive offices and locations; or identifying engagements in which you have underpriced the offering. The key to success is to track your progress religiously month after month. Some title companies will set up a new tracking system but three to six months later it sits unused. If this happens, find an external coach or consultant who can help hold you accountable month after month. We have seen the inner workings of hundreds of title agents over the last 17 years, and every single one of the top performers had a goal management and metric tracking system in place, which they religiously followed with iron discipline month after month.
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