August 18, 2016
The Secrets of High Growth Companies
What distinguishes a top-performing property management company or REIT? In Sales Growth, experts from McKinsey & Company spoke to 200 of today’s most successful global sales leaders from a wide array of organizations and industries, including Coca Cola, American Express, P&G, Merck, Nissan, UPS and many others. What emerged were five key traits that impact top-line growth, which can also be very easily applied to the property management industry.
1. Commitment to the future
While it can be difficult to run a successful business today while planning for tomorrow’s organization, it is ultimately critical to sustainable success. Change is a given, and companies need to be able to anticipate both opportunities and threats. Fast growth companies are more likely to invest 6% of their sales budget on activities that are more than a year out.
For property management companies, this means giving marketing departments and leasing agents the tools to better attract, screen and process high-quality potential residents.
2. Focus on key aspects of digital
Leading companies applied a “digital first” mindset throughout their operations to increase employee effectiveness as well as transform the customer experience. In fact, digital channels provided at least one-fifth of 2015 revenues for 41% of the fast-growing companies in the McKinsey survey.
Digital capabilities – both customer facing (online applications, video tours, etc.) and operational – are no longer a nice-to-have for companies in the multi-residential space, but a must-have.
3. Harnessing a full range of sales analytics
Companies that use analytics see more sales. And those that extensively use advanced analytics see sales improvements 131% higher than competitors who don’t. The conclusion is unmistakable: The better the analytics, the better the sales. By properly analyzing data, businesses are positioned to make smarter decisions, and more accurately forecast opportunities as well as potential risks, giving them the edge on sales strategy.
Leasing agents need a way to automatically capture leads, and follow up. They must have reporting that provides a bird’s eye view of all portfolios so they can predict which prospects are most promising and become more targetted in their efforts to attract residents, or corporate clients.
4. Investment in people
Fast growers invest in people and training. This fact emerged as a clear differentiator between leaders and laggards, with nearly half the fast growers investing significant resources in sales-force training (compared with just 29% of slow growers). In many organizations, learning and capacity building is viewed as a soft attribute. However, when it can impact sales performance significantly, it has a hard impact on your bottom line.
Your sales team represents your property management firm. They’re often the first point of contact for new prospects. You can’t afford to have them make a bad impression. By investing in sales talent and performance, you can make more promising leads, in less time.
5. Marriage of clear vision with leadership action
Sales leaders identified two factors as key to their success: communicating a clear, consistent vision and strategy, and having leadership that makes good on it. The second point is mission critical. Any company can have a vision, but it won’t go far without strong support from the top.
In guiding your sales team to success, ensure that your higher-ups understand the property management firm’s big-picture goals, and can focus on what really matters to turn vision into action.
Be sure to read the full report here.
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