Network Update
Like every one of our past 120 years , this new year presents us with a unique set of opportunities and challenges . We begin the year as a larger organisation - in terms of network members and market share - and we will benefit from the opportunities and relevance that come with that . However , we will be challenged by the market uncertainty that confronts us and some industry trends that require us to continue to change and improve .
How did we rate our 2022 ?
• We settled $ 81.8 billion of sales across 88,553 transactions , down 2.6 per cent and 10.1 per cent respectively on 2021 . New Zealand , New South Wales and Victoria experienced the biggest declines in market activity .
• Our combined market share for Australia and New Zealand increased to a record 13.1 per cent .
• We remained true to our reputation as the ‘ Competition Creators ’. Our overall auction market share increased significantly during the year and we reached a record high of 29 per cent towards the end of 2022 . We now measure a very important statistic , being our ‘ internal auction share ’. Our share of voice in the media remained above 40 per cent .
• Total properties under management grew by 1.7 per cent to 222,448 , though total PM income grew by 14.3 per cent to $ 351 million . Our property management teams experienced intense pressure from rising rents and increasing regulation .
• Disappointingly , our customer experience response rates declined during the year .
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• In terms of providing all of our members with a family experience , our Connect conference in August 2022 rated very well with 470 offices represented . The success of Leading Ladies is evidenced by its continued quarterly events and strong engagement . But the criteria for our recognition programs got more complex and we have more work to do to get this area right .
• Attracting and empowering leadership is one of our primary responsibilities . Our members returned to their offices once pandemic restrictions were lifted , and whilst there is more flexibility in working arrangements , the relevance of an office environment has never been more important . For the first time since the start of the Profit Book , we witnessed a material rise in average number of people per office , increasing from 12.7 people to 20.2 .
• We kept our commitment to drive NurtureCloud and give our leaders a cutting edge sales management platform . Some 80 per cent of the Australian network is using the product , though unfortunately our NZ launch was delayed due to obstacles in obtaining data feeds .
• A strong relationship has been formed between our profit team and ANZ , enabling us to introduce a very competitive banking product to ambitious business owners .
• We introduced the Network Effects concept in 2022 , seeking to illustrate value for members by being in the largest group . Our Pulse suite expansion is the most tangible evidence of progress , with Profit Pulse , PM Pulse , Radar and Refer all being released over the past 12 months .
We just completed our annual retreat with our Australian and New Zealand corporate team where we debated the 2023 Operating Plans of our 22 specialist teams . All of these teams play significant roles in building and implementing all the components that form part of what we call our Springboard , whether it be our state leadership teams or national specialist teams like Marketing , Digital or Performance . Our Springboard is in a constant state of renovation and improvement !
This year will focus on improving the core elements of what we do and also to try some new things . We know that we are seeking to provide value to our members in so many ways , and for some members it is difficult to be across everything . But the ambition of our 250 strong corporate team , plus Concierge , ensures that we are always going to be restless in providing the best family experience , always supporting and attracting leadership , and creating maximum competition .
This year will provide us all with tremendous opportunities , if we are prepared and ready to take advantage of them . Our commitment is that we will do all we can to make it a year of which we can all be proud .
Dan White Managing Director Ray White Group