As a real estate agent, you know that conversion is key. You need to turn leads into clients to make money and grow your business. In doing this, there are a few things that you can do to improve your conversion rate. To have a better understanding of how to increase conversions, let's take a look at some of the basics.
It is necessary to keep in mind that conversion and ROI are important subjects to discuss if you are generating leads. Particularly if you are purchasing the leads for which you are working.
The goal should always be to maximize your ROI per lead, but that doesn’t mean you should always be focused on conversion. This can mean different things for each source and will depend largely on how many deals you're working with that particular brokerage.
But one way it's done is by looking at conversion numbers, which is the number of leads converted and divided against all those contacted through that specific advertising channel or media property.
The conversion rate applies to both ways, so if someone reaches out without being interested in buying, then they get credit towards their initial outreach effort even though no sale has happened yet and are not included in the conversion rate.
The conversion rates for real estate are usually between .4% and 1% but can get as high as 2%. It is not just based on how many leads you get, and rather your success also depends heavily upon what kind of agent or broker you are. A good agent doesn't mean being a top producer.
It's about how you approach brand new prospects. No one is getting all their potential out yet, but between those you contact right away, then letting slip through your fingers, which there will always be, and lots can happen in just one step.
This could be because people who get leads from other agents are willing to pay for them, so they take better care of them and follow up with more commitment.
This influences the conversion rate of 2-3%. But keep in mind that those who just focus on just the first 12 months will have less than that, while those looking beyond 13-23 months can see higher rates.
As a good realtor, you will be able to increase your conversions by focusing more time on marketing efforts, lead generation, providing more value to your potential clients, and less time on actual selling. That is where your ROI will be greatest.
It is not only about understanding how your customers think but also being willing to change the way you do business to accommodate their needs. With some great insights into how you can start improving your conversion rates by thinking more like your customers and less like marketers, then you can be more confident and ready to take your business to the next level.