7 Essential KPIs for Home Staging Professionals - Boost Sales and Stand Out in a Competitive Market

Welcome to the world of home staging! Are you curious about what makes a staged home sell faster and for more money? Look no further! In this article, we will explore the top seven KPI metrics that every home staging professional should track and calculate. But first, let's take a look at the state of the home staging industry today.

The home staging industry has been rapidly growing over the past few years, with the average sale price increasing by 8-10% for staged homes compared to non-staged homes. With such impressive statistics, it's no surprise that many homeowners and realtors alike are turning to home staging companies to help their properties stand out in today's competitive market.

• Percentage of projects completed within budget
• Customer satisfaction rate
• Average time property stays on the market before sale

To be truly successful in this industry, it's essential to track and calculate the right KPI metrics. These metrics will help you optimize your business operations, streamline your marketing efforts, and ultimately, make more sales. In the following sections, we will explore each of the top seven KPI metrics in detail, giving you all the information you need to start tracking them for your business.

Average sale price increase Percentage

As a home staging entrepreneur, one of the most important KPI metrics to track is the Average sale price increase Percentage. It is a measure of the effectiveness of your home staging efforts on the final sale price of the property.

Definition

The Average sale price increase Percentage is the percentage difference between the listed price of the property before staging and the final sale price after staging.

Use Case

By tracking this KPI, you can determine the impact of your home staging efforts on the final sale price of the property. If the percentage increase is high, it means that your home staging efforts are effective in increasing the value of the property. On the other hand, if the percentage increase is low, it means that you need to adjust your home staging strategies.

How To Calculate KPI

To calculate the Average sale price increase Percentage KPI, follow this formula:

Calculation Example

Suppose you listed a property for $500,000 and after home staging, it was sold for $600,000. To calculate the Average sale price increase Percentage:

The Average sale price increase Percentage for this property is 20%.

KPI Advantages

• It measures the effectiveness of your home staging efforts on the final sale price of the property.
• It helps you adjust your home staging strategies to increase the value of the property.

KPI Disadvantages

• It does not consider other factors that may affect the final sale price of the property such as the location, market conditions, and property features.
• It may not be applicable to all properties as some may not have a significant difference between the listed and final sale price.

KPI Industry Benchmarks

The industry benchmark for the Average sale price increase Percentage KPI is 10-20%. However, this may vary depending on the location and property type.

Number of staging consultations per month

When it comes to measuring the effectiveness of home staging, the number of consultations is a key performance indicator (KPI) that is widely used in the industry. The consultations are generally conducted by a professional home staging consultant who will assess the condition of the property and provide recommendations on how to improve its appeal to potential buyers.

Definition

The number of staging consultations per month is a measure of the number of consultations that are conducted by a home staging company in a given month.

Use Case

This KPI can help home staging companies to track the demand for their services and identify trends in customer behavior. If the number of consultations is increasing over time, it may indicate that the company's marketing efforts are effective or that the real estate market is growing. Conversely, a decline in the number of consultations may signal a need to adjust marketing strategies or to explore other avenues to attract customers.

How To Calculate KPI

To calculate the number of staging consultations per month, simply divide the total number of consultations conducted in a month by the number of days in the month. The formula is:

Calculation Example

Suppose a home staging company conducts 400 consultations in a 30-day month. The number of staging consultations per day would be:

Therefore, the company conducts an average of 13.3 staging consultations per day in that month.

KPI Advantages

• Helps to assess the demand for home staging services.
• Can signal the effectiveness of marketing strategies.
• Provides valuable insights into customer behavior.

KPI Disadvantages

• May not reflect the quality of the consultations or the effectiveness of the staging recommendations.
• Does not account for cancellations or rescheduling of consultations.

KPI Industry Benchmarks for the KPI: 'Number of staging consultations per month'

Industry benchmarks for this KPI vary depending on the size and location of the home staging company. However, a general benchmark for a small to mid-size home staging company is 10-15 staging consultations per week.

Percentage of projects completed within budget

One of the most crucial Key Performance Indicators (KPIs) in home staging is the percentage of projects completed within budget. This is a metric that provides insights into how well a project is planned and managed, and whether it is in line with financial goals and objectives. In this chapter, we will discuss in detail the key aspects of this KPI, including definition, use case, calculation methods, industry benchmarks, advantages, and disadvantages.

Definition

The percentage of projects completed within budget is a KPI that measures the proportion of home staging projects completed within the allocated budget. Specifically, it calculates the percentage of projects that were completed without exceeding the estimated budget.

Use Case

The percentage of projects completed within budget is a crucial KPI for home staging businesses because it provides insights into the financial performance of the company. This KPI helps companies to understand whether they are managing their costs effectively and whether they are achieving their financial goals. By tracking this KPI, businesses can make informed decisions about where to allocate funds, how to price their services and manage their resources, and how to optimize profitability.

How To Calculate KPI

To calculate the percentage of projects completed within budget, you need to use this formula:

Calculation Example

Suppose a home staging company completed 50 projects in a year, and out of these, 40 projects were completed within the allocated budget. The percentage of projects completed within budget can be calculated as:

Therefore, the company completed 80% of its projects within the expected budget.

KPI Advantages

• The percentage of projects completed within budget helps companies to track their financial performance and manage their resources more effectively.
• This KPI provides insights into the company's ability to estimate and manage costs, which could impact profitability.
• It helps companies to identify areas of improvement and optimize financial performance by making informed decisions.

KPI Disadvantages

• The percentage of projects completed within budget does not account for quality or customer satisfaction, which are crucial aspects of home staging projects.
• It only considers whether a project was completed within budget, which could be misleading if it does not reflect the actual value delivered.
• It assumes that the allocated budget is accurate and that all costs are considered when estimating.

KPI Industry Benchmarks for the KPI: 'Percentage of projects completed within budget'

The industry benchmarks for the percentage of projects completed within budget KPI vary depending on the type of home staging project and the region. However, based on industry data, a benchmark of 80%-90% is considered good, with best-in-class companies achieving a rate of 95% or higher.

Customer satisfaction rate

Ensuring customer satisfaction is crucial for any home staging business. Measuring customer satisfaction rate is one of the essential KPI metrics to track.

Definition

Customer satisfaction rate is the percentage of customers who express satisfaction with the services provided by the home staging business.

Use Case

By tracking customer satisfaction rate, a home staging business can gauge the effectiveness of the services they provide. This KPI helps to identify areas for improvement and ensure the business meets or exceeds customer expectations.

How To Calculate KPI

To calculate customer satisfaction rate, divide the number of satisfied customers by the total number of customers surveyed and multiply by 100.

Calculation Example

If a home staging business surveys 100 customers and 70 express satisfaction, the customer satisfaction rate would be:

KPI Advantages

• Helps to identify strengths and weaknesses of the business from a customer perspective.
• Enables the business to make data-driven decisions to improve customer satisfaction.
• Measuring customer satisfaction rate can lead to increased customer loyalty and retention.

KPI Disadvantages

• Survey results may not be representative of the overall customer base.
• Customers may not respond truthfully in surveys, leading to skewed results.
• The KPI does not measure other important factors such as customer loyalty or willingness to refer the business to others.

KPI Industry Benchmarks

According to the Home Staging Association, the average customer satisfaction rate for their members in 2020 was 92%. However, industry benchmarks may vary depending on the size and location of the business.

Average time property stays on the market before sale

As a home stager, one of the key metrics you must track is the average time a property stays on the market before it gets sold. This KPI is fundamental as it gives a clear indication of the effectiveness of your home staging efforts. A shorter duration indicates that your home staging efforts were successful, and buyers were attracted to the property. Meanwhile, a longer time spent on the market indicates that your home staging strategy needs improvement.

Definition

The average time property stays on the market before sale metric measures the number of days between the moment you list a property for sale and the day it gets sold.

Use Case

The average time property stays on the market before sale KPI is crucial for assessing the effectiveness of your home staging strategy. By tracking this metric, you can determine if your home staging efforts have resulted in a quicker sale and whether you have achieved the desired ROI. Moreover, by analyzing this metric over time, you can identify trends and make informed decisions to improve your home staging strategy's effectiveness.

How To Calculate KPI

To calculate the average time property stays on the market before sale metric, you need to add up the number of days the properties in your inventory stay on the market before they sell and divide this by the total number of properties sold. The formula for this KPI is:

Calculation Example

Suppose you have 20 properties in your inventory, and it takes a total of 600 days before they get sold. Your average time property stays on the market before sale is:

KPI Advantages

• The average time property stays on the market before sale KPI provides a clear indication of the effectiveness of your home staging strategy.
• By analyzing this metric, you can identify trends and make informed decisions to improve your home staging strategy's effectiveness.

KPI Disadvantages

• The average time property stays on the market before sale metric can be influenced by external factors such as the state of the economy and the real estate market.
• It can also be affected by your competition's home staging strategies.

KPI Industry Benchmarks

The ideal average time property stays on the market before sale varies by location and market conditions. However, as a general rule of thumb, a shorter time spent on the market is desirable. Industry benchmarks suggest that a successful home staging strategy should result in properties staying on the market for no more than 30 days.

By tracking the average time property stays on the market before sale metric, you can gain valuable insights into your home staging strategy's effectiveness and make data-driven decisions to improve it. Remember to stay aware of current real estate trends, study your competition, and use social media to showcase your work to attract more clients.

Number of referrals from satisfied clients

As a home staging professional, ensuring that your clients are satisfied with your service and able to recommend you to others is crucial. The number of referrals from satisfied clients KPI measures how many clients were referred to your business by previous satisfied clients. This metric is useful for identifying the level of satisfaction your clients have with your service and can help to inform future marketing efforts.

Definition

The number of referrals from satisfied clients KPI measures the number of clients who were referred to your business by previous satisfied clients.

Use Case

This KPI is particularly useful for home staging businesses that rely on word-of-mouth marketing. It enables you to measure the level of satisfaction your clients have with your service, as well as the effectiveness of your referral program.

How To Calculate KPI

To calculate the number of referrals from satisfied clients, use the following formula:

Calculation Example

Suppose your home staging business had 45 clients and received a total of 20 referrals. Using the formula above, the calculation for the number of referrals from satisfied clients would be:

This means that each satisfied client referred, on average, 0.44 new clients to your business.

KPI Advantages

• Measures the satisfaction level of your clients
• Enables you to track the effectiveness of your referral program
• Provides insight into the success of your word-of-mouth marketing efforts

KPI Disadvantages

• May not be practical for home staging businesses that do not rely on word-of-mouth marketing
• Difficult to track if clients do not mention referrals
• Can be skewed if one client refers a large number of new clients

KPI Industry Benchmarks

There are no widely accepted industry benchmarks for the number of referrals from satisfied clients KPI since it is heavily dependent on industry, location, and marketing strategy. However, a good benchmark to aim for is to have at least 20% of your new clients come from referrals.

Percentage increase in property value after staging.

As a home staging professional, one of the most important metrics to track is the percentage increase in property value after staging. This metric helps you to quantify the ROI of your home staging efforts and make data-driven decisions to improve your services. Below, we dive into the details of this crucial KPI.

Definition

The percentage increase in property value after staging is a KPI that measures the difference in the fair market value of a property before and after it is staged for sale. This metric is typically expressed as a percentage of the original property value.

Use Case

Home stagers use this KPI to demonstrate the effectiveness of their services to potential clients. They can showcase how their staging efforts can increase the sale price of a property, making it a valuable investment for homeowners and real estate agents alike.

How To Calculate KPI

Calculation Example

KPI Advantages

• Quanitfies the effectiveness of home staging services
• Helps to justify the cost of home staging
• Provides valuable data to inform future home staging decisions

KPI Disadvantages

• The KPI does not take into account other factors that may contribute to property value increase
• It can be difficult to attribute the entire percentage increase to home staging efforts alone
• It may not be applicable to all types of properties or real estate markets

KPI Industry Benchmarks

According to the National Association of Realtors, staged homes sell 25% faster than non-staged homes. Additionally, the same study found that 17% of buyers were willing to spend 1-5% more on a staged home than a non-staged home. These statistics indicate that home staging can have a significant impact on the sale price of a property.

In conclusion, home staging has become an essential tool for homeowners and realtors to sell properties faster and for more money. With an average sale price increase of 8-10% for staged homes compared to non-staged homes, it's clear that staging is an investment worth making. However, to be successful in the home staging industry, it's crucial to track and calculate the right KPI metrics.

• Average sale price increase Percentage
• Number of staging consultations per month
• Percentage of projects completed within budget
• Customer satisfaction rate
• Average time property stays on the market before sale
• Number of referrals from satisfied clients
• Percentage increase in property value after staging

The top seven KPI metrics that every home staging professional should track and calculate include the percentage of projects completed within budget, customer satisfaction rate, and average time properties stay on the market before sale. By monitoring these metrics, you can optimize your business operations and marketing efforts to make more sales. As the home staging industry continues to grow, keeping track of these key performance indicators will be critical to maintaining a competitive edge and delivering the best results for your clients.