Ideally, every person who contacts you about a real estate transaction would turn into an income-generating transaction if it is a successful lead conversion.
However, that’s not the case. According to the National Association of Realtors, most real estate agents enjoy a conversion rate of somewhere between 0.4% and 1.2%. That means out of every 200 leads that you get, you’ll probably convert one or two of them into becoming customers.
With such a low percentage, it’s important that you’re converting as many leads as possible. If you feel like you’re struggling to convert leads into customers, there are five things you should consider.
1. Are you searching for transactions or relationships?
Since customers buying or selling a home is your source of income, it’s easy to look at leads as transactions instead of viewing them as people. However, those potential clients that are contacting you are real people who are prepared to make one of the biggest financial decisions of their lives, and they want you to help them with that. When you shift the way that you view your leads, the service that you provide them will quickly improve, and they will take note. Make sure that you’re taking the time to get to know the person before you start thinking about how much commission you can earn by representing them.
2. How good is your follow up?
Follow up is one of the most important aspects of your real estate practice. If a lead reaches out to you and then doesn’t hear anything back for weeks, there’s a good chance that they will land with another agent who is able to give them the kind of time and attention that they need. According to some studies, real estate leads are 21 times more likely to become customers if you follow up with them quickly. With the help of a real estate ISA, or inside sales agent, you can quickly follow up with potential leads without neglecting your other responsibilities.
3. Are you focused on the big domino?
We certainly live in a technological era, but that doesn’t mean that your only focus should be on developing your online presence as a Realtor. In fact, a recent study by the National Association of Realtors indicates that as recently as 2017, only 9% of sellers and 4% of buyers found their real estate agent through a website. Instead, they chose to work with an agent who represented them in the past, or one who represented someone they know. Referrals are still the most powerful form of lead generation, so it’s important that you’re staying in touch with previous clients through emails, texts, direct mail, and other methods. Doing so is a proven lead generation technique.
4. Is tech hindering or empowering you and your team?
We certainly live in a technological era, and real estate agents should understand how to use the technology that they have at their disposal to their advantage. While some potential clients reach out based on their own experiences with you or through the referral of a friend or family member, studies indicate that 78% of real estate transactions start with a Google search. That means nearly 8 out of every 10 leads that you and your team generate begins with the internet. Understanding how to capitalize on these leads is imperative. Having a dependable ISA on your team can ensure that these leads are quickly being recognized, contacted, and the wheels are set in motion to convert these leads into customers. With millions of people using the internet to research potential properties, it's important that your team is ready to convert those leads quickly.
5. What is your ROAS on your marketing spend?
You may have heard it said that money makes the world go around. While that’s certainly true, it doesn’t mean that you can fix your lead conversion issues by dumping more money into an advertising budget. Many real estate agents assume that if they grow their advertising budget, they will increase their lead conversion. The two aren’t always related. Evaluate how many of your leads are converting into customers. If you’re generating enough leads, but conversion is an issue, you may be able to convert them into customers with the help of an ISA. This ISA can help answer some of the preliminary questions that clients ask, while also ensuring that the clients you work with are qualified and ready to make a move.
6. Short term vs. long term thinking
Being a Realtor isn’t a get rich quick concept. If it was, everyone would do it. Instead, it requires that you take a long-term approach to growing your business. While you may work for a brokerage, ultimately, your career is up to you. With that in mind, it’s important that you don’t become so focused on the next 30 days that you fail to think about the next 3 years. Some leads who contact you or your ISA may not be ready to make a move for a year or two. Nurture them and guide them through the process of preparing for the future. It’s worth investing time today to earn their business in the future.
While changing your way of viewing some parts of your business can help, having an ISA on your team is a great investment. If you think that an ISA could help you convert leads into customers, contact us today to find out how we can help you take your business to the next level.
We hope you enjoyed these 6 ways to improve your lead conversion will help reduce your sales cycle time as well increase the number of homes you sell.
By executing these tips from us here at Persistence.AI we know you'll move the needle on your lead conversion rates. Each month when you work with the Persistence AI platform you get the world's best lead conversion software that replaces your need for ISAs or Inside Sales Agents. Additionally, because we're a data driven company, Persistence AI has strategy coaches to help you better understand your cost per acquisition, lead conversion rates and all the data in your business to make only data driven decisions to excel in any market regardless if there is a recession.