Most agents tell me that their most urgent business concern is the need for more leads. With all the incredible lead generation sources both online and offline, I simply don’t buy it. Our coaches are taught to lead each session with revenue. One of the first things we do is identify the lead sources, lead tracking and lead conversion percentages of the agent or team we are coaching. We often find that there are plenty of leads, but there is no real system to convert these leads over time. Agents love the quick “list me” calls, or the “let’s-go-see-a-home-today” emails generated online. Unfortunately, these “ready to go now” leads are few and far between. Agents do a great job of working these “ready now” leads (what I call the “A” leads), but convert a very low percentage of the “B” and “C” leads. The reason for the low conversion rates is simply lack of systems, processes and organized follow-up.
Sales statistics state that:
• 48 percent of leads generated never get followed up on by an agent.
• 25 percent of salespeople make a second call.
• 12 percent of salespeople make the third call.
• Only 10 percent of salespeople ever make more than three calls!
The harsh reality is that we don’t really need more leads, we just need to follow up better on the ones we have. The question is how and when do we follow up?
Here is what we know:
• 2 percent of sales are made on the first contact.
• 3 percent of sales are made on the second contact.
• 5 percent of sales are made on the third contact.
• 10 percent of sales are made on the fourth contact.
• 80 percent of sales are made on the fifth to twelfth contact!
This means that we need to step it up and personally contact our leads a lot more than three times.
Now that we know how many contacts need to be made to convert a lead, we need a system to follow to generate the highest closing rates.
First, agents must understand the difference between A, B and C leads:
- A leads always have an appointment. If you don’t have an appointment scheduled, it is not an A lead. When you have a buyer’s day out and they don’t write an offer, schedule the next appointment.
- B leads are 30-90 days out from being ready to buy or sell. A B lead should be called two times a month during the weeks of the 1st and 15th.
- C leads are 90+ days out and should be called during the week of the 8th.
- Sphere of influence calls should be done the week of the 22nd.
The key to this and every other system is that you follow it and execute with perfection. Your leads will move up in status, people will not feel pressured, and you will convert a much higher percentage of your opportunities.
Don’t stress over lead generation. Instead, focus on conversion and following this proven system. Become exceptional in lead follow-up and conversion and you will provide a much higher level of service to your clients…and close more deals.
Verl Workman is president of Corcoran Consulting, Inc. (CorcoranCoaching.com, 800-957-8353), an international consulting and coaching company that specializes in performance coaching and the implementation of sound business systems into the residential broker’s or agent’s existing practice. Sign up today for your complimentary business consultation at www.corcorancoaching.com/programs.