Ever wondered why most of your real estate leads fail to convert? Here are 8 potential reasons.
Your real estate team or brokerage may have many leads coming in through various sources, but are you doing enough to convert them into clients?
Portals, Social media, PPC, referrals, or organic, there are multiple sources out there that can provide you with relevant leads. But, even after having these leads, have you as a team leader ever wondered why most of your leads slip away and fail to convert?
Here are 8 reasons why your real estate leads may not be converting!
1. Your lead stages are mixed up
Do not fall into the trap of lazy lead stage updating.
Not updating your lead stages correctly and frequently is the most common reason for leads dropping. As a team leader or manager, you need to ask yourself the hard-hitting question - Do my agents keep my lead stages healthy?
Updating your lead stages is essential, as it not only helps you and your team leader understand where you stand in the lead conversion process but also prevents leads from falling through the cracks.
Labeling your leads, lead segmentation, adding tags, and automating stages, will help you understand where your agents stand regarding efficiency in lead conversion.
Lead segmentation and adding defined custom tags will support your real estate agents in taking effective action to convert leads into potential clients.
Auctm’s AI-powered Lead Management is a solution to this. Not only does it help you keep track of leads that have fallen through the cracks but also lets you nudge your agents to follow up with these leads and update stages.
2. Your agents are overwhelmed
Bundles of leads fall into your CRM every day and get divided between your agents. Ever wondered if they are getting overwhelmed by the sheer number of leads? Or are they unable to prioritize between the leads? Your agents might be swamped with leads but don’t know which ones to focus on. This can generate low productivity, poor lead follow-up, and lots of leads falling through your system.
Lead scoring can be a good solution to this. Learn how Auctm helps you stay on top of your conversion game through dynamic lead scoring!
3. Not taking hiring and training seriously
Not taking recruitment seriously can be fatal in the long run for your real estate business. As a team leader, broker/owner, or hiring manager, are you sure that the people you’re onboarding are the right fit for your team?
“Each company is going to have its own persona. Entities are just like people, it has its own vibe, its own heartbeat, it has its own frequency. if it does not fit between you and the agent, it will never fit.”
- Don Weimer; VP Technology & Analytics, Robert Slack LLC
Are your agent’s personal goals aligning with your overarching business goals? If not, what are you doing to overcome this? Are you sure that your teammates are motivated enough to work for the conversions? If not, is there a problem with agent accountability?
Not having proper agent accountability systems set up can be a reason for lower conversion rates. Auctm helps you overcome this! Our agent 1-1s dashboard has all the critical agent metrics - speed to lead, lead connectivity & agent outreach metrics - in one place so that you can coach your agents and keep them accountable. Moreover, you can easily track agent efforts and outcomes to compare and identify areas of improvement.
Accountability also might not be the problem. Maybe you have not reached the stage of hiring new teammates in your real estate business. Here are some KPIs you should be tracking before you decide to hire new agents to your team!
4. Treating all lead sources in an identical way
No 2 lead sources can be approached in the same way. Yes, you read that right. Did you know that different lead sources need to have different action plans?
There are various sources from where you can get your leads. Ylopo, Zillow, PPC, social media, sphere, referrals, organic, etc. But the way you take these leads towards conversion will differ. Ask yourself, am I treating all lead sources the same way? Have I estimated the conversion rate & sales cycle for all my lead sources to create action plans accordingly?
Eg. If you are going in for Zillow leads you need to have a 1-2 month action plan in mind versus a Ylopo lead that needs to have a 1-2 year plan.
According to him “Leads from Google or Facebook tend to not feel like they need to talk with an agent just yet. Mainly because they haven't figured out what they want and as such don't see value in speaking just yet. We've found an admin-related call to action works great”.
Eg. Ylopo type ‘Buyer Lead’ opening email can look like this:
Subject: John? Did your number 757-444-4444 change recently? Call isn't going through?
Body: Afternoon, Looks like you liked something on your home search in Virginia Beach, but there were a few other listings that might interest you. Would it be okay if I send those over to you as well? Text or Email works best?
Whereas “For Zillow Leads, the degree of specificity is different. While the Facebook/PPC lead is still researching, the Zillow lead is shopping/transacting. So rather than talking about the home search and admin related "is this your number" we use copy that is more focused on property-specific verbiage”
Eg. Zillow type ‘Buyer Lead’ opening email
Subject: A few 🏡 near 123 Smith St you might like, John?
Body: Afternoon! I found a few that you might like, but I think there are even more. If we can schedule 15 minutes in the next couple of days for a quick call, I'll text you my contact information and then let's discuss some others.
Remember, just because a source is working well for another team does not mean it will fit the needs of your business. This will only happen if you have the right systems and conversion strategy in place for that lead source.
5. You have Poor speed-to-lead
Poor speed-to-lead is one of the main reasons why conversion rates drop regardless of lead source. Contacting your lead within just a few seconds of them dropping in your lead pool will be a game-changer for your business. Remember, most clients work with the first agent that contacts them, not the best.
According to the Inman article ‘Speed-to-lead: The mission-critical step where most agents fall short’ “Most leaders in real estate recommend reaching out to a new lead in 5 minutes or less...Top producers are recommending that online leads should be touched within 2 minutes or less”.
As a team leader, have you been constantly checking your connectivity metrics to track your speed to lead? Do you know what your team’s average speed to lead is, and what you can do to improve it? If your answers to these questions are - no or not really, you should start looking at ways on how you can track these metrics.
You can also check out Auctm, to understand how we help you track important metrics like speed-to-lead to keep your agents accountable!
6. Not having a nurture and follow up strategy
Nurturing your leads and prospective leads is essential because - real estate, more than anything, is a business that thrives on good customer service. The better service you give to your clients, the more likely they are to buy/ sell with you.
By sharing market reports, suitable property listings, and even small efforts like automating holiday greetings works wonders. Hence, as a team leader, think about your nurture strategy. How often do you contact your leads?
Having a nurture strategy to stay connected and on top of your leads’ minds will boost your long-term conversion goals and increase your sphere of influence.
Remarketing and retargeting also help greatly. Targeting leads that have previously shown interest, have bought/ sold with you before, have visited your website, clicked on your ads, read your emails, etc can be a great source of business. Remarketing works because people are 10x more likely to click on ads/emails or any content that they have seen before. Not only that but these leads have previously shown interest in your brand hence, their knowledge about your business is more and the intent to work with you will be high.
Moreover, remarketing strategies will only work if you have a great connectivity and follow-up system in place. The worst thing you can do is not take your connectivity metrics seriously. Are you constantly on top of how your agents are reaching out to potential clients? Do you know how many follow-ups it takes for an agent to get a positive response? Which channels work best for a particular type of lead? Do you have a connectivity plan in mind - that is tried and tested - which quickly converts leads into hot or warm leads?
Check out our MasterClass on ‘Driving More Conversions With Better Connectivity Rates’ with Chase Greene (Success coach & realtor) from the Figueroa Team. In this session, he talks about how you can boost your connectivity by sharing his team’s connectivity plan!
7. You’re looking for instant gratification.
If you are entering the real estate business to get rich quickly, then you should opt- out instantly.
Do you have a roadmap in mind? Are you focusing on various steps that will lead you to your long-term goal, or are you just looking to make a quick buck? Success does not come quickly; forget instant gratification.
To run a successful brokerage or team, you need to be patient with your growth because nothing happens overnight. Real estate is all about treading strategically, building good and long-term relationships, nurturing, building your sphere of influence, and putting the customer first. If you go after leads with fire and no plans, it will either not be successful or will just be a one-time transaction.
8. Treating leads like data
A lot of real estate is about finding insights through data and numbers. With so many heavy processes, we often forget that leads are actually humans, just like you and I. And even though your lead may just be a number in your CRM, treating them like one is detrimental.
Contacting your lead with a mindset to get business done as quickly as possible will not get you anywhere. This ties back to the instant gratification mindset we touched on earlier in the article. Rather than going in with a - “How can I convert this lead as quickly as possible?” mindset, have you tried contacting your lead with a - “How can I add value & help them achieve their real estate goals?” mindset?
As a real estate business owner, have you invested in getting to know your client and helping them accordingly? Or have you mechanically gone about your way? There is a massive difference between both, and the latter will always be unsuccessful in the longer run.
So, treat your leads how you would like to be treated.
Summing it up
Here is a gist of what we discussed above:
- Keeping your lead stages updated and healthy is a must.
- Hire teammates who fit your culture and are ready to grow with you.
- No 2 lead sources can have the same strategy.
- Have a nurture strategy and follow-up strategy to boost long-term lead conversion.
- Forget instant gratification.
- Falling short on follow-ups is a fail.
- Treat your leads like human beings.
Want to know how you can boost your lead conversion? Check out Auctm’s Conversion Cake!