A lead conversion process that gets results
Mitch Ribak is the Team Leader of Tropical Realty Beachside powered by eXp Realty and owner of Inside Sales Agents. He has been nicknamed the "grandfather of lead conversion" because of the work he has done refining successful lead strategies over the past 16 years. Thank you, Mitch, for this guest post.
On a daily basis, I receive no less
than 5 phone calls from brokers, team leads, and agents asking me
about lead conversion. I'm always amazed at how many agents don't
even do the basics when it comes to converting leads. It's not
rocket science, but you do have to have a system in
Everyone jumped into the lead generation business a few years ago. You built websites, you spent millions of dollars generating traffic, you grew your teams, and then when you finally looked at the numbers, you realized the only one not making money was...you. Again, this is a daily call I receive.
Let's chat for a few minutes about converting leads and how sticking to a proven system will help you convert more leads than you ever thought possible.
Below, I've outlined the basics of lead conversion. You do have to buy into this and you do have to implement it or nothing changes. But those of us who are very successful in converting leads took the time to do it right...as pain-staking as it might have been!
The Basic Lead Conversion Process
Step 1: Create A Saved Search
Every single lead that comes into your site must be set up with a saved search. Several of our full-service customers came to us and had thousands of leads with no saved searches. They basically threw away hundreds of thousands of dollars in lead generation, but also gave away millions of dollars in lost opportunities!
Set each lead up with a saved search that has at least 25 listings and make sure your leads are set to receive listings daily. This will ensure the lead will receive listings multiple times per week. Setting up saved searches must be done regardless if you contacted your lead. Do not wait until you finally get a hold of them! It could be too late by then.
Step 2: Phone Your Leads
Call your leads!!!! This is the cornerstone of lead
conversion. Yes, you can email and text leads all you want,
but NOTHING beats a phone call to build a great relationship.
The reality is 42% of all leads are never called. If they are called, they are called once and never again, resulting in a 21% contact rate. Furthermore, most of these unreached leads won't receive any listings because most agents won't do a saved search until they get hold of the lead. It's a double bad habit whammy!
After your call is over, immediately set a reminder to call them again based on their buying timeframe. If you didn’t get hold of them, make sure you put a reminder to try again within a day or two.
Your first call after your initial contact should be within 1 week. It's a simple call, just to verify that what you are sending is what they want and to establish a working relationship. Many times people who say they aren't buying for a year, buy within a month or two. You never really know.
Step 3: Put Leads Into A Group
Once you have made contact with a lead, place them in a proper group. You need to have groups set up that follow the progression of the lead towards their purchase. You also need to place these groups into a callback schedule, based on the buying timeframe.
Step 4: Nurture Your Leads
Continue to nurture your leads until they are ready to buy. You need to adjust your phone follow up schedule based on their buying timeframe. This might adjust each time you talk to them so it's important to always clarify.
Step 5: Refine The Saved Searches
When a lead gets within a month of buying, be sure to set them up on a more specific saved search. Most of you will need to do this within your MLS, as an IDX system by nature isn't going to allow you to drill down enough to give your customers a more detailed list of properties.
Step 6: The Finishing Touches
If you just follow the simple steps above, you'll have a greater chance of increasing your transactions from leads—not just internet leads, but all leads.
Of course, on top of the steps above, you need to manage your team and do the following:
- Inspect what your agents are doing – are they doing what is required?
- Know your numbers – you are running a business, you need to know your numbers.
- Meet with agents who are not performing well on a regular basis – if an agent doesn't cut it, it's time to take them off leads. Hire slow and fire quick.
- Review everything quarterly, at the very least.
Hopefully, this conversion process overview gives you some insight into what it takes to double, triple or quadruple your lead conversion rates. If you are not converting at 2% or better of raw registration leads, you are likely doing something wrong.
Based on our numbers at Inside Sales Agents, we know that 52% of the leads you capture are going to buy a house. The question is: are you going to be their Realtor?