Why Some Real Estate Agents Convert at Less than One Percent
Many real estate agents fall short of their lead conversion goals. What gives? Why do so many agents face lead conversion crisis?
The Lead Conversion Numbers Game
An estimated 13 percent of real estate agents thrive in their industry. NAR reports 87 percent of all new agents fail after five years. Many failures and success stories can be pinpointed to lead conversion.
Lead conversion is not the result of an accident, chance, or luck - but a direct reaction to smartly applied effort. If you don’t know your numbers, you’ll fail at lead conversion.
Before you worry about how to generate leads, such as website features, blog posts, paid ads, offers, landing pages, marketing campaigns, etc., know how well you’re converting the leads you already have.
There’s no point in generating more leads if you’re struggling with lead conversion.
Lead generation, in and of itself, will not make you succeed. Lead conversion will. Motion should not be confused with progress.
Determine your conversion rate by dividing the total number of closings divided by your total number of leads. Chances are, there's work to be done!
You must have defined systems. Period. When you gather a boat-load of leads but don’t have a documented course of action for those leads, they get lost in transmission and cannot evolve from lead to converted client. It is imperative that you know exactly where that lead will live in your database, and how it will be guided, step-by-step through your sales funnel. Here's the deal:
Whether you have a database that automatically pulls in leads, or they must be manually imputed, you need a systematic plan for the “what next”.
Charter the course. Write it down. Get out a good old fashioned piece of paper and a pencil. Document each step of the journey.
How soon do you make contact with that lead? This era reflects short attention spans and plentiful options for service providers. If you don’t respond in 24 hours or less, you can expect that lead to detach itself from your hook in search of answers you failed to provide in a timely manner.
What is your first mode of contact with the lead? Email? Phone call? Text message? Where are your follow-up touches?
What Did You Say?
Even with the most complicated, sophisticated CRM software, you have to input your written scripts manually.
"Off the cuff" communications do not produce predictable results. Nor can they be measured and tested.
Whether you're communicating by phone, text message, or email - with a buyer or a seller, you must have consistent scripts to guide you. Or better yet, to guide your lead through the sales funnel.
Know in advance what each point of contact will say. Analyze each word carefully. If necessary, contract a writer to help you create compelling content for your scripts. Then test and measure for results. Modify over time where necessary until you create content that converts.
Automation Rocks Lead Conversion!
CRMs such as Infusionsoft can do a lot of your heavy lifting. Not only does Infusionsoft work as a database to contain your leads, but can tackle many of the tasks for timely touches.
Text messaging is one of the primary modes of communication among the population. CRMs like Infusionsoft are capable of text message responses. But for those outgoing text messages to be beneficial to you or your prospect, they MUST garner conversation.
Design your text message prompts with questions that will generate more than a yes or no answer. Provoke interaction. Entice the lead to engage.
When you properly deploy automated systems, they can help qualify and nurture leads, saving you both time and unnecessary steps. Automated systems can make small teams seem larger than they are.
And there's more.
Attracting the Right Leads
You can spin leads by the hundreds every day, but how many of those will be Fred Flinstones? Looky Lous? Curious Georges?
Begin by generating quality leads.
The way to generate quality leads is to provide quality content. Content can include your website fundamentals such as an about page, listings, informative videos, images, lucrative offers, and meaty blog posts targeted specifically to your audience.
Define your niche, then zero in on it.
Social media platforms such as Facebook and Instagram allow ads with demographic targeting. Demographic targeting focuses on a finite location, occupation, income bracket, age group, gender, and other options such as homeowners, people who have lived in their homes for a particular number of years, and more.
But that's not all.
The Sorting Hat
Not only must you generate and qualify leads, but you must cultivate those leads to closing. Nurture your leads by sorting them into categories. Basic categories could include "buyers" and "sellers". But you can dig deeper. Drill down to price ranges, locations, feature preferences, and other categories.
Some leads are hot and ready, eager to buy or sell without delay. Others may take more time to consider their options, research the market, think about locations. Or maybe they're struggling with financing options.
By filtering your prospects, you can better gauge the kind of information each lead category needs. You can then deliver pertinent information via email drips.
For example, you may be able to tempt someone who has expressed interest in a particular area with hyperlocal content highlighting exciting activities, special events, venues such as restaurants and local hot spots, school reviews, public transportation, pet amenities, and other useful information.
When you know the proper way to communicate with your qualified, sorted leads to guide them through your sales funnel with a calculated plan, scripted text, automated systems, and resourceful information, you can then focus on generating more quality leads.
Back to the Math
You've determined how many leads you're currently able to convert, but how many do you need to turn into sales to make ends meet, and then some?
It's not up to chance. It's a numbers game. You control the numbers. You control your success.
How many appointments do you need to achieve your conversion goals?
How many web leads do you need to generate the right number of meetings?
How many website visitors do you need to achieve the right number of contacts?
Know your numbers. Set yourself up for success.
Track, measure, and change accordingly.
Create Your Lead Conversion Platform
- Know your numbers - what you have vs. what you need.
- Know your target market, your niche.
- Demographically target your marketing.
- Be consistent with your message.
- Provide quality content.
- Use valuable offers.
- Design your website for lead capture.
- Construct a plan for cultivation.
- Prepare your scripts for phone, text, and email.
- Automate where possible.
- Sort and filter your leads.
- Follow up consistently.
- Track and measure for results.
- Make changes when needed to improve.
And then keep going. Go! Go! Go!
Summing it Up
You can choose whether you're in the 13 percent of real estate agents who succeed, or you can fall victim to the 87 percent who fail.
The real estate agents who reached success didn't do so by resting on their laurels, wishing on a star, or throwing enough proverbial crap at the wall that something sticks. On the contrary, they figured out the numbers game and played to win with intelligent tactics.