Lead Conversion System, part 2 Converting Prospects to Clients © Copyright 2010, Realty Direct...

Lead Conversion System, part 2

Converting Prospects to Clients

© Copyright 2010, Realty Direct Naples. All Rights Reserved.

Introduction

4 Stages in Real Estate Process:

You have to FIND prospects You have to CONVERT prospects to listing

or buyer clients You have to provide exceptional SERVICE

to your clients You have to LEVERAGE this one client for

repeat business and REFERRALS

Lead Conversion System

Once you have generated a prospect, you have to convert them into a client with your lead conversion system:

Step 1 – convert prospects to a face-to-face appointment

Step 2 – convert the appointment to a signed listing or buyer contract

Step 3 – help them sell their home or help them buy a home


Step 1 – Implement a follow-up system to convert prospects to an appointment

1.) Enter the prospect into a contact manager system (e.g. SalesDriver, this is automatically done for you if it is a Realty Direct lead)

2.) Send them the information they requested


Step 1 – Implement a follow-up system to convert prospects to an appointment

3.) Follow up with a phone call to:– Let the know you received their request and that the info

has been sent out to them– Determine their motivation & timing and either set up an

appointment or schedule the next follow-up call in your contact management system (SalesDriver)

4.) Send them regular emails with listings and real estate info or reports (see ListingBook and SalesDriver email campaigns)


Step 2 – Provide a compelling benefits presentation to convert appointments to clients:– make a presentation to the prospect to secure

them as a clientVIP Buyer presentationVIP Seller presentation

Step 3 – help them sell their home or help them buy a home

Understanding Prospects

3 Types of Prospects:

Now Business – will buy or list in 4 weeks or less

Future Business – will buy or list in more than 4 weeks

– offer to follow-up with them at a later time– send monthly newsletter or email campaign– set follow-up call in ½ the time they indicate they are

planning a move No Business – will not by from you, ever (sister is

an agent, 500 credit score, etc.)

The Call Back Script

Making the Initial Call

Points to Remember:

Lead generation calls are the core of the real estate business, if you excel at conversion, you real estate business will explode

Calling the leads and being bad at it is better than not calling them at all

Follow the script, even if you have to read it initially


Points to Remember:

The sooner you call the lead, the easier the conversion process

Calls should only take 2-3 minutes (talk less and listen more)

You’re not making the call to be their best friend

Do not deviate from script, imitate before you innovate


Why Agents Don’t Call:

Fear of picking up the phone Fear of rejection Past bad experience with cold calling Mistake “warm leads” (prospects who

contacted you first and asked for info) with cold calling (prospects you are calling without any prior contact)

MIT Lead Response Study

The study was designed to identify what day of week, time of day and time from creation to call back a web-generated lead for optimal contact and qualification rates.

The study examined 3 years of data across six companies that generate and respond to web leads, from over fifteen thousand leads and over one hundred thousand call attempts.

The study focused on one question: When should companies call leads for optimal contact and qualification ratios?


Time of Day: 4 to 6pm is the best time to call to make contact with a lead. It is 114% better than calling at 11 to 12am, right before lunch.


Response Time Analysis by Hours: the study started their analysis by measuring response times by hours and found an incredible drop in the odds of contacting and qualifying leads if you wait to begin calling for even just 1 hour.


Response Time Analysis by Hours: The odds of calling to contact a lead decrease by over 10 times in the first hour.


Response Time Analysis by Hours: The odds of calling to qualify a lead decreases by over 6 times in the first hour.


Response Time Analysis After 20 Hours:

After 20 hours every additional dial your salespeople make actually hurts your ability to make contact to qualify a lead.

What does that suggest?

Do additional call attempts after 20 hours actually turn people off to the point they actually hurt your chances of doing business?

Should sales reps just stop calling after 20 hours?


Response Time Analysis by 5 Minute Increments: The odds of calling to contact a lead decrease by over 10 times in the first hour.


The odds of qualifying a lead in 5 minutes versus 30 minutes drop 21 times. And from 5 minutes to 10 minutes the dial to qualify odds decrease 4 times.


Response Time Analysis:

Study called several of the top lead providers and signed up to get quotes on mortgages and insurance.

The study’s president signed up with the top lead providers to get quotes on his mortgage, here is what happened:

He received a total of 7 calls. The first one called in only 30 minutes. The last one called on the lead 3 days later.

Does that last one who called realize that the odds of qualifying this lead are several thousand times less than if they had called within five minutes?


Response Time Analysis:

The study’s Sales Manager and several of sales reps filled out web-based health insurance questionnaires with several of the top lead providers in the insurance industry:

The Sales Manager filled his lead out at 4pm, (the optimal time for someone to reach him according to the data.) He didn’t get a single call that day. He got his first of 5 calls at noon the next day (almost the worst time to call), and the last one two days later.

One rep filled his lead form out with another top lead provider at 8:30am (the second best time for someone to call), and had his first call in 1 minute, his second in 3 minutes, his 3rd in an hour and 45 minutes.

Another rep also at 8:30am, and he got one call in 2 minutes, and 2 more calls the next day.

Another rep filled theirs out at 10am and got the first call in 2 hours and never noticed any additional calls.


Study Summary: 8-9am and 4-6pm are the best times to call to

make contact with a lead (by 114% over the worst time block).

The odds of calling to contact a lead decrease by over 10 times in the 1st hour.

The odds of calling to qualify a lead decrease by over 6 times in the 1st hour.


Study Summary:

After 20 hours every additional dial you make actually hurts you ability to make contact to qualify a lead.

The odds of contacting a lead if called in 5 minutes versus 30 minutes drop 100 times.

The odds of qualifying a lead if called in 5 minutes versus 30 minutes drop 21 times.

The Cost of A Lead

The cost to generate a 100% qualified prospect has gone through the roof in recent years:

prior to 1975 the cost to generate a prospect was $17.95

by 1995 the cost per prospect had sky rocketed to $495, each

In 2005 Bob Burns spent $75,000 on lead generation, at a cost of $714.28 per Lead

Realty Direct Office Leads

Buyer, Seller & Rental leads:

Company Provided Leads – Do what you enjoy most, Sell More Property!

Supplemental Income – More money now; more consistent

Build Referrals – Accelerates your future Referral Business

Realty Direct Office Leads

Leads will be assigned:

In rotation to eligible agents (completed SalesDriver & other training, etc.)

Via phone call from the office to first available Agent (remember to tag office phone #)

Only leads with a good phone # will be assigned, all other leads will go into drip-mail campaign until they provide good contact info

SalesDriver New Lead Procedure

Once an Agent is assigned a new lead in SalesDriver, the Agent must:

Call new leads within 1 hour of assignment Follow up initial call with an email within 4

hours of assignment Update “Status” and “Notes” for leads

within 4 hours of assignment

SalesDriver New Lead Procedure

Once an Agent is assigned a new lead in SalesDriver, the Agent must:

Create a new “Activity” for leads within 4 hours of assignment

All leads, regardless of age, must have an activity scheduled until such time that status is changed to “Lost,” “Dead,” or “Won.”

If you cannot meet the requirements, please decline the lead, leads without follow-up or with missing or incomplete info will be reassigned.

SalesDriver Lead Status

Available SalesDriver Lead Status:– New– In Progress– Incubation – Lost– Dead– Won


Appropriate Use of SalesDriver Lead Status: New – a new lead who has not been contacted by

an agent In Progress – a short term prospect

– Agent has contacted the lead and is providing ongoing follow-up.

– A lead will stay in this status even if they place a property under contract.

– A lead will stay in this status until it is moved to “Lost,” “Dead,” or “Won.”

– All leads in this status must have one or more future activities scheduled.


Appropriate Use of SalesDriver Lead Status: Incubation – a long term lead

– Agent has contacted the lead and has deter– All leads in this status must have one or more future

activities scheduled– Leads should be moved to “In Progress” if

purchase/listings timeframe is less than 30 days in the future.

Lost – lead has secured the services of another real estate brokerage

– Agent must include in the notes section details of which brokerage the lead chose and why the lead chose to not purchase or list with Realty Direct.

– Agent must send Lead Coordinator an email for leads moved to this status.


Appropriate Use of SalesDriver Lead Status:

Dead – lead has decided not to list their home or purchase a home

– Agent must include in the notes section details of why the lead chose to not purchase or list with Realty Direct.

– Agent must send Lead Coordinator an email for leads moved to this status.

Won – lead has purchased and closed on a home– Lead status should be changed to this only after closing.

SalesDriver

How Can Realty Direct Help

OUR GOAL: “Assist our associates in having a steady pipeline of clients and referrals to build and grow their real estate business.”

• Mentor Program – pairs you with a seasoned agent for first 3 transactions

• Sales Training – every other Monday night (starting in the fall)

• One-On-One Business Planning – meet with Broker to develop your personal real estate business plan

Q&A

The entire presentation, call back script and all materials are available for download on the Realty Direct Naples SalesDriver intranet.

Question and Answer Session

Lead Conversion System, part 2 Converting Prospects to Clients © Copyright 2010, Realty Direct...

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Transcript of Lead Conversion System, part 2 Converting Prospects to Clients © Copyright 2010, Realty Direct...