Aiva
Qualifying Leads
What is LPMAMA in Real Estate?
Ready to dive into the world of online leads but confused about how to do so? Read this post on how to score a high lead conversion rate with your online real estate leads.
If you have high speed to lead engagement, a CRM to manage leads, and a consistent follow up schedule then all types of online leads could be lucrative irrespective of their acquisition channel.
Using these tools you can have your processes in place to filter out bad leads and save a lot of time. This will let you strategically focus your time on serious leads that are just as good as any referral while keeping the time wasters at bay.
In effect, you boost your conversion rate to add more dollars at the end of the month and this is what we aim to demystify in this blog post.
If you are curious, and wondering how to create an effective lead management workflow using these elements, then this post will give you some valuable insights and help you boost your pipeline. Let's look at the Necessary Pieces of a Real Estate Lead Conversion Process.
Understanding Real Estate Leads
It is important to know what types of leads drive the most return in your neighborhood, and the best way to find out is to test various lead sources for at least three months. It helps you aggregate conclusive data about acquisition channels and make an informed decision.
Here’s a table to show the nature of leads acquired from the most common lead generation sources.
We have calculated the average cost per lead but it may vary depending on the neighborhood. However, we believe that the above breakdown helps you prioritize your lead generation budget with respect to the platforms.
If a particular lead acquisition source is working better than others in your area, you may streamline your marketing dollars towards that platform alone.
The next piece of the framework is a real estate CRM. It won't be an overstatement to call it the heart of your lead management workflow.
Understanding Real Estate CRMs
Apart from Lead Generation, it is important to have a CRM system that helps you manage your leads, route leads to the right person, and automate the workflow to a great degree. Here are some popular CRMs trusted widely used in the real estate industry.
- Follow up Boss - CRM only
- Real Geeks - CRM + Lead Generation + Website
- Commissions, Inc. - CRM + Lead Generation + Website
- Liondesk - CRM only
The key is that you have to choose a CRM that suits your business needs. If the CRM is overbuilt or underbuilt with respect to your business, then it is not the best condition. It is also necessary to look into the learning curve for CRM. It is not advisable to go for a CRM with a steep learning curve unless they have a great support team to help you out.
For example Commissions Inc. CRM has a significantly complex learning curve but it is very powerful when configured with the right strategy. Their support team and help docs make it quite easy to go forward with the software and get adapted to it pretty quickly.
We’ll dive into more detail regarding CRM comparison in one of our next posts. But for now, let’s move onto the most important part of the workflow, consistent follow up or speed to lead.
Speed to lead
Why do some people have a hard time with the leads? It is because the ball is dropped when it comes to following up with the lead fast enough. Real estate leads require quick, immediate, and consistent follow up. We understand that real estate agents find it hard to follow up with leads quickly as they are preoccupied with other important things.
However, regardless of what lead source you focus on, you absolutely need to engage these leads immediately and follow up rigorously in order to have a chance of converting them, because:
- 80% of leads end up working with the first Real Estate agent or team they are able to interact with
- In order for a lead to have the highest possible response rate, you need to respond to leads between 20 and 80 seconds
- It takes an average of 12 days of consistent and systematic follow up to hear back from any lead, and it may take up as much as 90 days
This is when a lead conversion platform that responds to leads on your behalf can be highly useful. These platforms follow up with an incoming lead within a minute and filter out the bad leads from the ones that are transaction ready.
With online leads, you can scale your business in a predictable manner, as long as you have all the right pieces in place. Also, be sure to test the lead quality & conversion over a course of several months to see what types of leads work best for your area.
