Online leads ain’t what they used to be
Online leads ain’t what hey used to be. During my recent trip down to the National Association of Realtors (NAR) conference, I attended a session on leads. It got me thinking about the many calls I have received over the last few years offering to participate, at an exorbitant cost, in a company’s lead generation system. They all claim to have the best traffic and referral sites in the city.
The truth is that leads are a fickle creature. I can say with accuracy that the strength of the leads that I have encountered over the years has varied from extraordinarily weak to weak. The truth is that some leads do pan out and are worth pursuing. It could be that my conversion technique is just not good enough. But if you look at the graph, there are currently over 12 leads than deals. That’s a lot of leads. While this is a US graph, I think it is fair to say that a similar graph shape exists in Canada.
So, if the numbers are true, then one could infer that a majority of people are going on to lead generating sites, filling out contact information but are not getting contacted by an agent. If they don’t get a reply they try another site…and so on and so on. The science behind lead traffic (and there is a science) is well documented. Here are some interesting facts compiled from a recent NAR survey;
Quick follow up is a must. You have a better chance of converting if you can respond within the first 30 minutes.
In order to convert a lead to a client takes 6 touch points. Consider that you only have a 10% to convert that lead to a client after one follow up. 2 follow ups increase your chances to 30%, 3 to 40%, 4 to 50%, 5 to 70% and 6 follow ups give you a 90% chance.
After that 6th follow up you will need another 46 interactions to get to a closing.
You are 164% more likely to qualify a lead between 8-9am and if you are more likely to succeed if that contact is made on a Wednesday or Thursday.
Finally, it is important to act fast and be efficient because 67% of buyers and 70% of sellers work with the first agent they connect with.
Of course keeping in touch with your clients is paramount to future success. Do you need proof that a great CRM tool will work for you? consider that within a year 70% of homeowners don’t remember who they worked with and only 12% of buyers or sellers will use an agent from a previous transaction. It is interesting to note however that if you keep in contact with past clients you are 85% more likely to get a referral or recommendation for futures services.
Statistics to live by. Enough said.