Agent Segmenting as a Coaching Tool


Companies that “Segment” agents by production levels, typically group agents in ‘quartiles’ by arranging them in descending order according to some specific unit of measure. For example, Adjusted Gross Commission Income (AGCI) is a commonly used metric in the segmenting of sales agents.   Although beneficial to a degree, I find this traditional concept of ‘quartiling’ to be somewhat limiting and narrow in scope. Considering the changing face of real estate business, and agent’s inclinations to work in alternate environments, there is a clear need for more flexible analytic views.

As a result, business leaders should have tools available to them that allow for the segmenting of associates in many and varied ways. Consider the five examples below:

1. Traditional quartiling Four groups with non-producers at ‘the bottom’

In many companies, the fourth quartile has little or no production whatsoever, as these individuals have yet to acquire critical skill sets.  Partly as a result of this, the most positive results often come when focusing on the second and third segments.  Create an environment whereupon each agent can generate a minimum of one monthly transaction (listing or sale.) This environment should include training, coaching, sales agent business plans, upholding minimum production standards and in some cases, the re-directing of non-producers.

Agent Segmenting as a Coaching Tool

2. QuintilingThe traditional view but with all non-producers as a ‘fifth segment’

3. Virtual agents Analyze how your virtual agents compare to one another as well as to traditional and 100{0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c} agents

4. 100{0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c} Agents Analyze how all of your 100{0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c} agents compare to one another as well as against traditional and/or virtual agents

5. Years of service Identify training and coaching needs by viewing production in relationship to ‘years in the business’

Although most brokers acknowledge the “80/20 rule” (that 80{0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c} of the sales are transacted by 20{0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c} of the agents,) too few actually measure it.  I would like to encourage you to challenge this ‘traditionally accepted’ rule when viewing and analyzing your agent productivity. It is my clear and unwavering belief that with proper coaching and support, a far higher percentage of sales agent population will become successful and profitable to your organization and to themselves. Regardless of their past level of success, sales associates should be offered the help and support of management in identifying key areas through which to improve their business. Remembering this critical point will assist you in retaining the best and brightest sales agents within your demographic.

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