The only thing worse than an agent without leads is an agent whose leads choose to do business with a competitor.
Under different circumstances that statement might be funny.
But, this happens way too often. Luckily, there's a science for turning leads into clients.
Agents spend a lot of time and energy figuring out what to say to convert leads into clients. Obviously, that matters, but the truth is if they want to knock it out of the park and keep the closings coming, they must master the following three areas.
Speed to Lead: The Critical Conversion Factor
One of the ways agents can separate themselves from their competition and make a fantastic first impression is to contact incoming leads quickly.
Yet, you wouldn't believe how many agents give hot leads the cold shoulder.
MIT conducted a study where they surveyed over 2,200 companies and found that the average lead response time was 42 hours.
At first glance that may not seem too bad until you realize that same study determined that the optimum time to contact a lead is within the first five minutes of them taking an action such as filling out a form.
Sales conversions are 391% higher when contacted within the first minute. And that doesn't mean initial consultations, that's closed deals.
Both contact and qualification rates significantly drop off after five minutes. When leads are responded to within five minutes or less there is a 100% better chance of contacting them and a 21x better chance of converting them into a client then if they would have been contacted in 30 minutes.
Roughly 70% of consumers use the first real estate agent they meet. That said, many times all agents need to do to win the client is win the speed to lead battle.
The Fortune is Still in the Follow-up
Humans have a shorter attention span than goldfish.
The average attention span of a goldfish is nine seconds. In the year 2000 the average person had a 12 second attention span. Now, thanks to smart phones, studies reveal that the average attention span has dropped to just eight seconds.
Consumers are all over the place. They may be thinking of buying or selling a home one second and then something beeps or buzzes and their attention shifts to something completely different.
That said, it's the agents job to follow up and take back the prospect's attention.
Harvard Business Review conducted a study and found that 71% of qualified leads are never followed up with. Even worse, of the leads that are followed up with, they're only touched an average of 1.3 times.
Research shows that in order to reach 50% of leads the bare minimum that they must be contacted is 6 times. However, contact rates may get as high as 90% when leads are followed up with 8-12 times using multiple contact methods.
Increase Contact Rates Through Diversification
What's the most effective way to contact a new lead? Should agents be calling, texting or emailing?
The short answer is that they are all effective forms of communication and different people have different preferences.
Also, it's worth mentioning that communications may be missed or ignored. Some people keep their phones on silent or won't answer numbers they don't know. Sometimes emails go to spam or texts get ignored, etc.
The best strategy to get in touch with leads is to use all three methods of communication so that you have a better chance of reaching your prospects in their preferred method of communication.
How to Maximize the Value of Every Lead
There's an incredible amount of money being wasted by not following up with leads properly.
When consumers make an inquiry, they want to be followed up with fast. Unfortunately, the nature of the real estate business is that agents are juggling a ton of responsibilities and because of that money is literally being hemorrhaged.
We designed our Double Your Closings™ Client Acquisition System with the challenges that agents face in mind.
We combine our proprietary Five-Day Follow-Up Formula with Speed to Lead Technology to make sure leads never slip through the cracks again.
As soon as a lead makes an inquiry, we contact them right away. This allows agents to cherry pick the hottest leads within the first minute.
If you're interested in closing more deals with predictability click the button below to see what our Double Your Closings™ Client Acquisition System can do for your business.