Why Do Some Real Estate Leads Convert Better Than Others If They Are All Equal?

Why Do Some Real Estate Leads Convert Better Than Others If They Are All Equal?

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According to Redfin CEO Glen Kelman, the volume of real estate leads generated in 2021 will be more than six times that of 2015. The majority of us in the industry have seen this increase—there are a LOT of leads being created right now. However, it is not all good news. Conversion rates have dropped dramatically, hovering around 2% on average.

Why do some Realtors outperform others in lead conversion? Do they have knowledge that the rest of us don't? You might be surprised by the response.


Is It True That All Real Estate Leads Are Created Equal?

No, technically. There are other ways to assess the quality of real estate leads, but the one that makes the most sense to us is the conversion rate or the number of leads that convert to active clients relative to total leads.

The conversion rate of a lead is frequently related to where they are in the lead funnel—a popular marketing phrase for the path a lead follows from acquisition to activation. The higher the conversion rate, the closer a lead is to becoming a buyer or seller.

However, this is only a short-term measurement. When you zoom out and look at your sales funnel as a whole, you'll notice that nearly all of the real estate leads agents receive are part of the same funnel—they're just at different stages of the buying or selling process.

This means that if you have an effective plan for bringing leads down the funnel and toward activation (while still creating a relationship along the way), it doesn't matter where they begin. Indeed, you could categorize them as short-, medium-, and long-term leads and see the surge in lead volume as an opportunity to cultivate relationships for years to come.


How Do Successful Realtors Move Leads Down Their Funnel?

Lead nurturing is the process of pushing real estate leads down your sales funnel toward activation. Top-performing, high-converting agents and teams use effective lead-nurturing tactics to differentiate themselves from others that barely break even.

A strong lead nurturing plan has many moving elements (which we'll discuss shortly), but at its foundation, it is:

Real estate agents, at least the successful ones, get a lot of leads. Your nurturing technique cannot be replicated with each lead; instead, you must develop a process that can be replicated and scaled.

  • Measurable: An effective nurture approach allows you to track your progress, both in terms of overall conversion rate and individual component performance.
  • Adjustable: As you discover more about what your leads need and desire from you, you'll need a plan that's easy to change to meet those demands.
  • Reliable: In order to be effective, good lead nurturing must be done on a constant basis. Lead nurturing systems must be dependable and, if possible, self-sufficient.


Every Real Estate Agent Should Use These 4 Basic Real Estate Lead Nurturing Strategies

Now that you understand what real estate lead nurturing is and why it is vital, let's go over the fundamental nurturing technique that all agents should employ (or at least begin with).


1. Make Contact With New Leads As Soon As Possible

Real estate leads expect real-time connections and follow-up from Realtors in the age of live chat customer service. This can be accomplished by developing automatic, immediate responses to any new lead inquiry. When a new lead is introduced to your customer relationship manager (CRM), we advocate a two-pronged approach: send an email and an SMS message.

Why are there two messages? Because they each have a distinct value.

  • Email: With an automated email response, you can provide your new lead with all of the materials they need to connect with you on social media, visit your website, begin property searches, or attend a digital listing presentation. Consider this introduction email an opportunity to answer all of your new prospects' frequently asked questions before they ask them.
  • Text message: By using an automated text message response, you may meet your new leads' desire for instant engagement. You provide them a direct path to ask questions and establish a discourse, which email makes less likely.


2. Begin Immediately And Consistently Delivering Value

After making initial contact with your leads (an act that demonstrates you're engaged and active), you must continually give value. This entails developing a communication strategy with them that will offer them your knowledge, experience, and expertise in accordance with their objectives.


3. Initiate Frequent, Relevant Conversations

The passive delivery of value to the leads you're nurturing is a good place to start, but it's frequently more active, relevant dialogues that will progress your leads down the sales funnel more drastically.

Text messages (or other instant messaging apps) and phone calls are commonly used for these chats. However, proceed with caution. A text message or phone contact that feels forced, inauthentic, and irrelevant to your lead can push them away from activation, and in some situations, completely out of your funnel.

Here are a few ideas to assist you avoid this pitfall:


Begin Phone Calls With

"This morning I was thinking about you because..."
Leads appreciate hearing that you were thinking about them and their requirements first thing in the morning. Make a list of the things that are essential to your leads and use this opening phrase to start a conversation about those needs.


Text Message Strategy "Quick Question / Open Question"

This two-question method for SMS messaging is really effective. Begin by asking a simple, easy-to-answer question about your lead. "Quick question: How do you feel about mid-century modern homes?" Is that something you'd consider?" This will elicit a response from your lead and initiate a discussion.

After engaging them, you might offer an open-ended inquiry to elicit their lead response. "Every day, I see a lot of houses posted. Are there any particular styles you'd like me to keep an eye out for on your behalf?"

The more frequently these interactions should occur, the closer your leads are to activation.


4. Involve Your Leaders In The Community You're Creating

Another important aspect of lead nurturing is establishing your reputation as an active, competent, and experienced real estate professional. Invite your prospects to your customer appreciation events.

Offer "coffee shop happy hours" at a local community location, where you supply the coffee and food. Invite them to your open houses, even if it's only to acquire ideas for when they're ready to purchase or sell.

Leads who have been nurtured connect with you not only through their devices but also see your face and feel like they're a part of your firm, making you a part of their real estate success.


Market Leader interface On Several Devices

These four methods would be difficult to implement on your own if not for bespoke solutions created exclusively for real estate lead nurturing and conversion. Market Leader is our recommendation for managing these four lead conversion tactics and so much more.

Market Leader's #1 choice for real estate lead generation has launched a comprehensive real estate business platform that elevates lead nurturing to a new level. What they have to offer is as follows:

  • Fantastic paid lead generation: In order to nurture your paid real estate leads, you must first get them. Market Leader agents know exactly how many paid leads they can expect each month and where they'll be coming from thanks to our industry-leading, guaranteed lead volume approach. Furthermore, because these leads are exclusive, you know you'll be the only agent pursuing a relationship with them.
  • An MLS-connected CRM: All of your Market Leader-generated leads (along with the option to connect directly with other lead sources) are automatically integrated into your Market Leader customer relationship manager (CRM), where you can track all of your lead activity, including their responses to your lead nurturing communication and value. Best of all, this CRM integrates with your Market Leader website, naturally capturing your prospects' online behavior such as properties seen, saved searches, and favored communities.
  • A lead-generating website: The Market Leader website search functionality is similar to the Zillow experience that many of your prospects are accustomed to, except that with Market Leader, you can set up custom pop-ups to prompt your website visitors to enter their lead information in order to unlock more searches, save favorites, and access buyer and seller strategy guides.
  • A complete Marketing Center: The Market Leader Marketing Center, which is practically a standalone product in and of itself, is the launchpad for all your automated marketing, including sophisticated automated email marketing campaigns as well as automated or on-demand print marketing via a partnership with Shutterfly, allowing Market Leader users to incorporate mailbox marketing into their lead nurturing strategies in ways that competitors cannot.