Real estate lead conversion rates can vary widely, depending on the source of the lead. For some paid lead generation, conversion rates hover around one to three percent, while for more personal, referral-based leads the rate may be much higher. The difference lies in the vast gulf between cold leads, warm leads, and red-hot leads. That’s why pairing a real estate CRM and lead generation makes sense, allowing you to nurture colder leads while staying top of mind with those leads that are most likely to convert.
Real estate CRM and lead generation: The formula for top-of-mind follow-up
Brands fight for two things when it comes to their marketing strategy: market share and mindshare. Market share is the percentage of the available market that is potentially paying for their product or service. Mindshare is that elusive glimmer of recognition that comes when a potential customer sees a company’s logo or hears an advertising jingle.
For real estate agents, it’s harder to capture mindshare, since you’re not selling a soda or detergent. You’re selling a process and your professional ability to guide the client through that process more easily and effectively than someone else.
In addition, where there might be dozens of products competing on supermarket shelves, there are nearly 1.6 million Realtors competing in the US, with dozens, or even hundreds, competing in the same neighborhood where you practice. That makes it harder to stand out and to differentiate yourself from other agents in your local market.
That means that you need to stay in touch in order to stay top of mind with members of your sphere of influence, including family, friends, acquaintances, and former clients. For new leads who come into your pipeline, you need to be reaching out and providing value-added information and service from the moment they enter your business as a potential client.
The main ways real estate CRMs drive leads
You may think of CRMs as a way to stay connected to those who have already come into your marketing funnel. Besides assisting you with your internal lead-nurturing process, CRMs can drive additional leads and help you convert them more effectively. Here’s how.
Content – including value-added blogs, podcasts, and videos – can show your expertise and help you establish market-leading skills and insights. However, they don’t do much good if no one knows they’re there.
Build your brand authority and position yourself within your market by distributing your content through an email campaign or through a direct mail newsletter. Grow your readers, listeners, and subscribers through smart search engine optimization (SEO) and shares from your current subscribers.
By looking at your leads and past clients, you can figure out your client avatar – a framework for finding out who is most likely to respond to your sales pitch and to work with you. This allows you to target your marketing content and communications more effectively across all of your platforms, including online, on social media, and at real-life networking events.
Send birthday cards, anniversary cards, and a handwritten note on the anniversary of your clients’ home purchases. Respond to their good news on social media or email them just to touch base.
By keeping track of the important milestones in your clients’ and leads’ lives, you’ll be better able to keep in touch – and stay top of mind when you do so.
Referrals from satisfied clients are among the most reliable sources of new leads. That’s because they come from folks who have worked with you and can personally attest to your professionalism and effectiveness.
By staying in touch with your past clients, you can generate new leads on a regular basis. By quickly and consistently reaching out to those leads – including making them part of your real estate CRM – you ensure that you make the most of that valuable referral opportunity.
Service after the sale
You may not want to reach out and ask for referrals from past clients directly, however you still need an excuse for keeping in touch with them. How about
- reminding them of an upcoming end to the lease term
- Informing them about changing property tax information, or
- posting reminders of regularly scheduled home repairs and maintenance items.
By providing ongoing service after the lease or purchase contract has been signed, you show that you really care about the client – both in the short term and long term.
Other benefits of real estate CRMs and lead generation
By gathering information about your potential leads, you can make better decisions about where you put your marketing dollars. Track your conversions and find out where your best lead generation is coming from. Learn what works and what doesn’t during your conversion process.
In addition, by keeping track of your sphere of influence, including active and inactive leads, you can easily communicate changes to your business, including new certifications and designations, new service offerings, and new niches you’re qualified to serve. That can help you re-boot a lead that has gone cold or convince one that’s on the fence to work with you.
RentSpree puts the power of a real estate CRM to work for your business with a rental client manager (RCM) that’s built for robust relationship management for rental agents, landlords, and real estate agents who work with renters. With an agent profile that allows you to keep your information updated, clients will always be able to reach out and connect with you. In addition, you’ll be connected to the power of your RentSpree dashboard for a seamless client management experience.