Most real estate professionals self-report lead conversion rates of 3-5 percent, but when the industry-wide numbers are analyzed, the rate is closer to 0.5-1 percent. That means that for every 200 leads you generate, you'll convert 1 or 2.
Meanwhile, 70 percent of online real estate leads report they are not followed up with effectively. See the correlation here? Let’s say that most real estate agents are only reaching out to 30 percent of their leads, but only making contact with half of them. This means they are only working with a pool size that’s 15 percent of what it could be. Imagine how much your conversion rate would increase if you could contact more of your leads faster.
6 Calls to Success
How many call attempts do you make for each lead before marking them as “bad” leads? According to a study by InsideSales, the chance of making contact with a lead on the first try is under 30 percent. However, by the sixth call, the likelihood of making contact increases to 90 percent!
However, only 40 percent of sales people even attempt the first call! The numbers continue to dip, as only 15 percent attempt a third call, and less than 5 percent attempt a sixth. That’s a lot of opportunities to be leaving on the table.
At BoomTown, we encourage our clients to make at least 6 call attempts. Our in-house Lead Development Team also incorporates 6 calls into their follow-up plans. Simply by making a few more call attempts, agents can experience up to a 70 percent increase in contact rates.
Connect Through Texting
Another method we have seen great success with is to incorporate texting throughout your follow-up plans. One of our best performing Action Plans in the BoomTown Sharing Library incorporates 6 phone calls, 5 texts, and 5 emails over the course of 2 weeks to maximize your chance of contact.
Many people do not answer phone calls from an unfamiliar number. Others may simply prefer to communicate on their own time through text or email. While phone calls are undoubtedly necessary and successful, recent statistic show that only 5-10 percent of people actually pick up the phone. Emails have a 20 percent average open rate. However, 90 percent of people open and respond to text messages within 5 minutes.
One tip is to make a reference in your text message to the specific area that your lead is searching in. This shows that not all communication is automated, and that you are in-tune with their needs and better connected to them as a helpful agent. Our team has seen a 29 percent success rate using texts.
So don’t give up on your leads because they don’t answer your calls. Diversify your follow-up strategy and be persistent!
Cap Number of Leads
During BoomTown’s last user conference, Brian Gubernick and Brett Tanner, two of our top-performing clients, shared insights into how they grew their businesses. One tip that surprised the audience was the fact that they cap the number of leads their agents have in their pipeline.
Their reasoning behind this strategy? They saw that one of their newer agents was continually outperforming their more seasoned ones because he was choosing to limit the number of leads he was actively working with.
Too often, agents become overwhelmed with the staggering amount of leads in their database. Drowning in leads, agents deviate from the structured follow-up processes put in place. They begin to adopt a mentality of “chipping away” at their pipeline instead of creating meaningful relationships with real people.
No agent on Brian or Brett’s teams has more than 100 leads at a time. They cap the number of leads for ISAs at 250. With less leads in their immediate pipeline, agents can put more focus and effort into a smaller number of contacts, which leads to more closings.
If capping the number of leads sounds unfeasible to your team, there are other ways to help agents focus on smaller fractions at a time. With a system like BoomTown, you can segment your database into workable lists according to properties like search area, price range, leads active on site, or those who haven’t yet been contacted.
Treat Your Database Like a Bank Account
Another great insight from Brian and Brett was that not enough agents and brokers treat their databases like there’s money inside of them. This is why they give up on leads or let them slip through the cracks without proper follow-up.
But treating your database like it’s a bank account makes all the difference. It’s what makes the difference between having a “salesperson” mentality and a “business owner” mentality.
Using these strategies, our Lead Development Team contacted 50 percent of our clients’ leads in two weeks. With the right mentality, follow-up processes, and integrated tools, you can connect with more leads already in your database and close more deals.