On average real estate agents across the United States purchase around 100 million digital leads per annum. Many agents are following-up with the same ‘hot leads’ making it a highly ‘winner-take-all market’. The brokers that have jumped on the digital bandwagon are spending close to $100 $ per lead on average while chasing the elusive return on investment. Additionally, a PwC study shows that 85% of high-networth individuals which drive high-value real estate transactions use digital devices for 5 or more hours per day, making many other forms of lead generation less effective.
Having a respectable conversion rate with regards to online leads remains a challenge for most brokers. To truly milk value out of online leads, it is essential to be methodical with lead nurturing, prioritize leads with the highest chance of conversion, and run data-driven analytics to ensure to get a positive ROI from your lead spend.
Major problems faced by Real Estate Brokerages :
- Not sure how to optimize spends across various lead generation sources
2. Not able to track how often agents have meaningful contact with prospects.
Jeufeng Ge (Co-founder of Ylopo) says,
When data-driven agents run a cost of acquisition analysis, they look at a point in time where they have spent a particular amount across sources such as Zillow, Realtor, and Ylopo. But in future, they forget how much they spent on procuring leads as there is an obsession with new leads. What we need is a combination of email listings, alerts, dynamic marketing, and other methods to nurture and revive these old leads.
This implies that merely generating new leads and following-up incessantly may not necessarily increase ROI. An old lead in your CRM maybe a new lead for someone else. Many times buyers that were previously uninterested could be getting ready to purchase a home, and agents that follow-up methodically will be able to take advantage of this situation.
Quite often leads get back online, and prominent lead generation sources recycle these leads and re-sell them to brokerages. There is a lot of data around how the number of online leads has increased nearly 10X over the past decade, yet the number of homes on sale has remained the same.
In such a situation, Implementing an effective nurture strategy is challenging as it involves cultivating a disciplined approach to content marketing, regular metrics tracking, drip campaigns, and CRM data organization.
John Bolos of Century 21 Vanguard says, “Updating notes and information in the CRM is crucial. We need to ensure that leads are well-accounted for. Apart from this, agents need to call more often instead of sending mass texts, and create an omnichannel outreach strategy for old leads.”
Auctm helps teams track agent performance across lead generation sources
Here you see an agent’s new CRM pipeline, leads they got from a particular source, stages they were added to, and how leads moved from stage to stage.
Conversion is a function of
a) How many leads did you keep with you
b) How many leads did you put in active stages like Nurture and Hot
c) How many of those opportunities became hot; and
d) How many of those opportunities closed - the product of which is your conversion rate.
By Sorting by agents with low conversion rates, you can see averages of where people are vs others and where they need to improve using red and green heat maps. This helps you shortlist agents who are not following-up with say Zillow leads or Trulia leads, and intervene accordingly.
Overall, most experts believe that repetition and routine are the cornerstones of follow-up by agents. Brokers can use the insights derived from Auctm to track agent performance. If agents let expensive leads fall through the cracks, then the team will need to spend a significant amount to acquire expensive portal leads . Due to this, Auctm adds value by becoming a sort of consulting arm which helps teams keep track of agent productivity, allowing them to make better business decisions in the long-term.