Your Real Estate Lead Conversion Rate – Are You the Bottom of The Barrel?By Joe Skousen Filed in: Real Estate Lead Generation
Tagged: , Lead Reporting, Real Estate Blogging, Real Estate CRM, Real Estate IDX Website, Real Estate Lead Conversion, Real Estate Leads
With real estate lead generation, there are lots of different ways and methods to receive and generate those leads. One undeniable truth is that the source and method of collecting these leads is going to have an impact on the quality of the lead. The other truth is that all leads, and especially online leads, need a solid and refined follow-up plan to get top conversion. With online leads, you can get a huge return and great closing rate, if you understand the pieces of the real estate lead puzzle.
Most agents or brokers that contact Inside Real Estate struggle to put together the the right pieces of the real estate lead puzzle. Take this statistic, for example. Over a period of time, we polled new clients coming to our Lead Promoter solutions. We would ask what they had been seeing for a closing rate on leads currently. the normal answer would be something along the lines of 3-5%. When we dug in deeper with a little analysis, it turned out to be about .5%-1%.
This is happening at the same time that 70% of online real estate leads report they are not followed up with effectively. The Key is: You need to separate yourself from the pack of agents that don’t know how to consistently build a strong brand, generate good leads, and refine their closing rate.
So, what are the right components for great lead return?
1. Your Website is Your Real Estate Lead Generation Hub
I kinda hate to start with something as basic as this. The truth of the matter is that it really needs to be said, because although it seems like every agent or broker has a website, that is not true. ANd although it seems like everyone should have figured out how to have a decent site by now, that is not true either. in fact, the majority of agents and brokers are still floundering under sub-par branding and website functionality. Here is a brief hit-list, but more can be found on our real estate platform features page:
- Flexible Content Management System – CMS (ie. WordPress)
- Nice, Customizable Branding
- Indexable Listings
- Good Lead Capture Tools & Logic
- Optimization Tools and Solutions
- Customizable Forms Tools
- Integrated Blogging & Social
You also ought to be thinking about how you are going to keep the site relevant, fresh and up-to-date. More on this below.
2. Real Estate Content Marketing is about Blogging & Social, but Not Alone
You often hear about ‘Content Marketing’ in real estate now. This is basically what we have preached for 5 years – utilizing valuable content and insights to gain visibility and attract people searching. It is more important than ever, but for 99% of real estate professionals, doing this well and consistently is probably not going to realistically happen. Additionally, you can’t always assume that writing a few good blog posts is going to throw you onto page 1 of the top keyword in your area.
Typically, you need a combination of solid blogging, social content and search engine optimization (queue the person cold-calling you because they are “Partnered with Google”). Despite some of the stigma around these things there is real value in having it done right, and you will see consistant leads. You ought also be leveraging Craigslist and other sources of good leads.
You can see as the list grows, why we recommend ways for you to leverage an outside marketing team to handle all of these activities while you focus on the next steps.
3. Automate Your Lead Follow-Up SYSTEM
Your lead follow-up system may be an ignored part of your business, or it may be something you have spent some good time on. Either way, you want to make sure that you have a system that has been updated. You are going to need leads from your website and any other source to flow straight into your lead management and follow-up system. Some other features you ought to have in the system include:
- Lead Activity Tracking – Website Searches, Property Listing Views, Logins, etc
- Phone Call Tracking and Text Message Functionality
- Auto-Email and Campaign Functionality, with reporting on open rates
- Ability to Tag or Categorize Clients and Leads
- Be Able to Track Multiple Listings or Transactions per Client Easily
- Add Tasks and Action Plans AUtomatically based on the Type of Lead
4. Engineer Your Lead Follow-Up PLAN
This is the most-ignored aspect of real estate lead generation and follow-up. In fact, many agents and brokers setup their system and then assume they have a plan. Your Real Estate Lead Follow-Up Plan can be a game changer if done well. Part of our service is to help tailor this to you and your business, but typically is should include a number of steps where you can really leverage automation, like auto-emails, new property alerts, etc. You also need to have points of your follow-up system that are performed by you – even then, though, your system can send you reminders on those tasks.
The trick to the Lead Follow-Up Plan is to setup a good one based on some industry best practices, then make sure that you run the SAME plan consistently so that you can get results again and again off the same actions. Then you iterate your Plan – it is tempting to just free-style your leads without updating your plan.
5. Live by Simple & Effective Reporting
The thing that will tie your real estate lead efforts together is reporting. Your system needs to have a built-in way to measure your leads, lead activity, and YOUR activity. if you can’t measure yourself, you don’t really know what you are doing. This is true for large teams as well as single-man/woman shops.
Remember with your reporting that the goal is to measure yourself based on your Real Estate Lead Follow-Up Plan, see what is not working well, and make adjustments. You also want to know what is working well. When you really engage in this process of measurement and improvment, you are on the road to seeing a big increase in your real estate lead conversion rates as well as a great consistent ROI on your business.
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