It is quite easy to understand. Sales velocity is a metric that tells you how fast you’re likely to sell a new home project. Effectively, sales velocity enables you to measure how quickly incoming potential homebuyers are moving through the sales cycle and how much revenue you can expect over a certain period of time. The faster homebuyers engage with you in a new home project, the shorter the sales cycle is and the higher the revenue generated is at the end of the day.
In short, the greater your sales velocity, the faster your company can make money.
1. To Measure the Success of Your Home Building Business
Sales velocity is a great measure of the success and the growth of your company. It is a way to measure the efficiency of your sales strategy. The faster you sell a new construction project, the more you increase your sales pipeline and revenue.
2. To Forecast Your Sales
Knowing how to measure how fast you or your team is able to sell a new construction project will enable you to evaluate how many deals you can convert in the months to come. Sales velocity is a great metric to follow to set up clear and measurable objectives and optimize your sales pipeline.
3. To Increase Revenue
Improving sales velocity means that homebuyers will engage quicker with you in their new home construction projects and then move on quicker from one step to another in your sales conversion funnel. The speed in which you reach each step of the funnel can be measured. The longer it is, the less your chances of converting a prospect into a client will happen. A faster pipeline naturally leads to more time available to manage new potential incoming homebuyers and then increase revenue.
When visiting a home that is already built, a home buyer generally makes their decision in the first 90 seconds of the visit. In the case of a new home construction, 3D views are a good way to quickly get this wow effect from your client and significantly accelerate their decision making.
High quality, photorealistic 3D renderings provide an accurate representation of a future home. They highlight the project’s strengths and present it from the best angle.