How to Increase Your Online Lead

Conversion Rate by 50%

AUGUST 2, 2021

Implement a consistent follow-up system to boost your conversions and elevate your business.

Effective follow-up is one of the keys to success for those in the luxury real estate market. Unfortunately, most agents don’t have a system to help them follow up on leads they’ve collected. Instead, they reach out to leads when they have the time via email or a phone call, or they assign their assistant to do follow-up when they aren’t busy with their other tasks. This unorganized approach rarely works — and many agents find they reach leads only to find out they chose another agent to work with because they waited too long or didn’t persist after the first follow-up.

If you want to dramatically increase your lead conversion rate by up to 50%, you must have an effective lead follow-up system that is foolproof — meaning it is not dependent on you! Here is more on why follow-up is crucial to conversion and how to implement a system that works.

The Dangers of Not Following Up on Leads Effectively

Did you know that approximately 44% of salespeople (this includes real estate agents!) give up after one no? 22% give up after two nos, meaning that about 75% of agents are giving up on leads after hearing no twice. However, statistics show that those making large purchases like homes only say yes after five follow-ups! That means that if you fall into the 75% of those who stop following up on a lead who has put you off twice, you’re giving business away to your more persistent competitors.

Many agents stop following up because they don’t want to be rejected again. Others simply lose interest in the lead, get distracted, or forget about them completely. If they do remember to follow up, they often find that another agent has already gained their business. You are literally setting money on fire and letting good leads go down the drain if you don’t have an effective follow-up system. You may also gain the reputation of being flaky if you fail to follow up with a potential client who is interested in working with you.

Implement a consistent follow-up system to

boost your conversions and elevate your

business.

Database Marketing Strategies

The Importance of Your Website as a Realtor

Effective follow-up is one of the keys to success for those in the luxury

real estate market. Unfortunately, most agents don’t have a system to

help them follow up on leads they’ve collected. Instead, they reach out to

leads when they have the time via email or a phone call, or they assign

their assistant to do follow-up when they aren’t busy with their other tasks.

This unorganized approach rarely works — and many agents find they reach

leads only to find out they chose another agent to work with because they

waited too long or didn’t persist after the first follow-up.

If you want to dramatically increase your lead conversion rate by up to 50%,

you must have an effective lead follow-up system that is foolproof —

meaning it is not dependent on you! Here is more on why follow-up is

crucial to conversion and how to implement a system that works.

The Dangers of Not Following Up on Leads Effectively

Did you know that approximately 44% of salespeople (this includes real estate

agents!) give up after one no? 22% give up after two nos, meaning that about

75% of agents are giving up on leads after hearing no twice. However,

statistics show that those making large purchases like homes only say yes

after five follow-ups! That means that if you fall into the 75% of those who

stop following up on a lead who has put you off twice, you’re giving business

away to your more persistent competitors.

Many agents stop following up because they don’t want to be rejected again.

Others simply lose interest in the lead, get distracted, or forget about them

completely. If they do remember to follow up, they often find that another

agent has already gained their business. You are literally setting money on

fire and letting good leads go down the drain if you don’t have an effective

follow-up system. You may also gain the reputation of being flaky if you fail

to follow up with a potential client who is interested in working with you.

Why is Your Database So Important?

Your database is your key to staying in touch with those who may do business with you or who are likely to give you referrals. If you don’t have a way of keeping in touch with them and engaging with them, they will likely forget about you and their business (or referrals) will go elsewhere.

While many agents think they can keep track of those they need to touch base with by retaining their business cards, writing them down in their planner or simply remembering who they are, most are not organized and disciplined enough to do so. They need to rely on a system that involves not only building their database, but also effectively using that database to develop marketing campaigns that can include email newsletters, text campaigns, phone calls, or social media marketing strategies.

Some real estate agents decide to split their databases into two distinct groups: a lead generation group that includes only those who the realtor is attempting to gain as clients, and a sphere of influence group that includes past clients, networking and referral partners, and others who are likely to pass their names on to others who need a real estate agent. While both of these types of databases are useful, most agents find they get more business from their sphere of influence group than their lead generation group — especially if they are not using a professional, unique lead gen system.

What Mistakes Do Agents Make When Building Their Database?

Many agents suffer from “shiny object syndrome” when it comes to building their database. Instead of playing the long game and focusing on ways to slowly build their database with solid leads and close spheres of influence, they jump on the latest and greatest marketing trend and shift their efforts to a strategy they think will make them some quick sales. Unfortunately, a change in algorithm or other occurrences out of your control can easily put an end to the effectiveness of trendy marketing techniques. When you focus on building a solid database, you’ll insulate your business from external changes and reap the benefits a few years down the line when your list pays dividends and your income skyrockets.

Other agents do a good job of building a strong database, but then fail to utilize it by not creating a robust marketing strategy connected to it. Compiling the names is only part of the battle. The more important component is developing a system that consistently engages those in your database to keep them up to date and interested in what you are currently doing. Your system also needs to have “triggers” to let you know when someone in your database is at a stage where they might make the decision to work with you or pass on a referral so you can follow up with a phone call or an in-person meeting.

The Wrong Messaging

Build and Market to Your Database

As a realtor, your database is your best friend. This is your list of past, current, and prospective clients as well as referral sources who can help grow your business. A basic rule of thumb is that an effective database consists of around 1000 names and contact information. Once you’ve built a solid database, you can market to your contacts through regular email newsletters, texts, or personal invitations to events or open houses. The marketing you do to your database should follow the same guidelines as your social media marketing: keep content informational and helpful rather than salesy. This keeps your contacts engaged with your brand and ensures they will continue to pay attention to what you have to say even when they are not actively looking to buy or sell real estate.

Harness the Power of Social Proof

The theory of social proof states that people are likely to conform and copy the actions of those in their peer group or those they view as experts or who are trustworthy. When it comes to real estate marketing, you can take advantage of social proof by featuring testimonials on your site and social media, soliciting online reviews from those you’ve done business with, and by establishing yourself as an authority on the local real estate market with helpful, informative content. When you harness the power of social proof, you essentially have others selling for you and no longer have to hustle or chase leads.

2. Links to Active Social Media Profiles

Having a strong social media presence shows your

potential clients that you are up to date, active in the

industry, and committed to connecting with those you

work with. To make it easy for your website visitors to

connect with you on social media, make sure you add

links to each of the platforms you are on.

2. Links to Active Social Media Profiles

Having a strong social media presence shows your

potential clients that you are up to date, active in the

industry, and committed to connecting with those you

work with. To make it easy for your website visitors to

connect with you on social media, make sure you add

links to each of the platforms you are on.

Database Marketing Strategies

The Right Messaging

The Benefits of Effective Follow-Up

When you implement a follow-up system that works, you will increase your

inbound business and continue to break your GCI records. This translates

into more time and money that you can spend with and on your family, your

hobbies, and other areas of your life that increase your quality of life.

Following up effectively will also set you apart from your competition. You’ll

get a reputation as a professional agent who does what he or she says and

never allows a potential client to fall through the cracks. This makes buyers

and sellers feel safe and confident that you will take care of all their real

estate needs.

Now that you understand that talking yourself and your accomplishments up on your site is the wrong messaging, let’s take a look at the content that works. Here are some tips on creating messaging that resonates with your target audience:

Content that is helpful. What are the issues your ideal client is dealing with? Are they attempting to buy and sell homes at the same time and need assistance with financing a down payment? Are they struggling to find a home they are interested in due to low inventory? Are they trying to decide if they should relocate or buy a second home now that they are empty-nesters? Identify the pain points in your target market, then address those points through blog posts that you then share on social media and in newsletters that go out to your database.

Content that establishes you as an expert. Those looking for help buying or selling property want to work with the best. To show that you are an expert in your local community and industry, develop content that revolves around neighborhood events, local real estate news, and other industry issues.

Content from experts and past clients. When you use the power of social proof to develop your website content, you let others do the selling for you. Social proof is the phenomenon where others copy the actions of people they see as peers or as trusted individuals. If they see your past clients talking about your high level of customer service in a video testimonial or read reviews from experts in the industry who have worked with you, they will be more likely to choose you as their realtor.

Content that stays ahead of the game. Your ideal client wants to know what’s going on in the industry as soon as possible. They also don’t want to read the same old content on your site that they’ve read on all your competitors’ sites. To address these needs, stay on the cutting edge of the industry and share information your visitors can’t get anywhere else.

Components of an Effective Lead

Generation System

How the Right Messaging Increases Conversions

The Benefits of Effective Follow-Up

When you implement a follow-up system that works, you will increase your inbound business and continue to break your GCI records. This translates into more time and money that you can spend with and on your family, your hobbies, and other areas of your life that increase your quality of life.

Following up effectively will also set you apart from your competition. You’ll get a reputation as a professional agent who does what he or she says and never allows a potential client to fall through the cracks. This makes buyers and sellers feel safe and confident that you will take care of all their real estate needs.

The Components of a Good Follow-Up

Not sure what a good follow-up system looks like? The most effective

systems have these characteristics:

■ They provide value.

When you reach out to your leads, you need to have more to offer them than

“You ready to sell your house yet?” An effective follow-up always provides

value, whether that’s in the form of a gift, an educational piece of content,

or a helpful tip.

■ They are personal.

No one wants to feel like a number, so don’t make the mistake of sending

out generic emails or cards to your leads as follow-ups. It’s important to

personalize each follow-up with the client’s name and some detail about

how you met or about the home they want to buy or sell.

■ They are automated.

If you plan to remember each and every lead you need to follow up on and

when, you’re fighting a losing battle. Other priorities will distract you, you’ll

forget which leads you’ve already talked to, and the whole system will come

to a standstill. Instead, use a system that doesn’t rely on your memory and

provides automation to make the process easier and more reliable.

■ They are unique.

You don’t want your follow-ups to look or sound like every other realtor, or

you’ll get lost in the shuffle. Instead, focus on your target market and what

they want and need out of a real estate professional. Combine that with

your unique personality and skillset to create a follow-up that makes an

impact.

■ They solve a problem.

You can be the hero and gain business when you solve the problems of your

prospects. When you’re following up, ask what they’re struggling with right

now and offer assistance. This might involve connecting them with another

professional in the real estate industry, answering a question about a

neighborhood they are considering moving to, or providing a checklist on

how to increase their credit score so they can qualify for a mortgage.

■ They are not pushy.

Calling and texting your leads every day to ask if they’re ready to buy yet

is not an effective follow-up technique. Learn more about your ideal client

to determine how often they want to be contacted and always ensure

you’re providing value rather than just asking for the sale.

■ They are immediate.

Just met a lead at a networking event or been given a referral by a colleague?

Some realtors make the mistake of waiting a few days (or even weeks)

before following up. When you do this, you open the door to other agents

who may have also gotten the lead. You should always make your first follow-

up attempt as soon as possible after getting a lead.

■ What to Do Now

Now that you understand the importance of an effective follow-up system

and what makes a good follow-up, it’s time to implement a system that

works. Work with an outside agency like Luxury Presence that specializes in

lead generation, conversion, and follow-up systems for real estate agents

to ensure you are leveraging the power of the follow-up and increasing your

conversion rate up to 50%.

The Components of a Good Follow-Up

Not sure what a good follow-up system looks like? The most effective systems have these characteristics:

■ They provide value.

When you reach out to your leads, you need to have more to offer them than “You ready to sell your house yet?” An effective follow-up always provides value, whether that’s in the form of a gift, an educational piece of content, or a helpful tip.

■ They are personal.

No one wants to feel like a number, so don’t make the mistake of sending out generic emails or cards to your leads as follow-ups. It’s important to personalize each follow-up with the client’s name and some detail about how you met or about the home they want to buy or sell.

■ They are automated.

If you plan to remember each and every lead you need to follow up on and when, you’re fighting a losing battle. Other priorities will distract you, you’ll forget which leads you’ve already talked to, and the whole system will come to a standstill. Instead, use a system that doesn’t rely on your memory and provides automation to make the process easier and more reliable.

■ They are unique.

You don’t want your follow-ups to look or sound like every other realtor, or you’ll get lost in the shuffle. Instead, focus on your target market and what they want and need out of a real estate professional. Combine that with your unique personality and skillset to create a follow-up that makes an impact.

■ They solve a problem.

You can be the hero and gain business when you solve the problems of your prospects. When you’re following up, ask what they’re struggling with right now and offer assistance. This might involve connecting them with another professional in the real estate industry, answering a question about a neighborhood they are considering moving to, or providing a checklist on how to increase their credit score so they can qualify for a mortgage.

■ They are not pushy.

Calling and texting your leads every day to ask if they’re ready to buy yet is not an effective follow-up technique. Learn more about your ideal client to determine how often they want to be contacted and always ensure you’re providing value rather than just asking for the sale.

■ They are immediate.

Just met a lead at a networking event or been given a referral by a colleague? Some realtors make the mistake of waiting a few days (or even weeks) before following up. When you do this, you open the door to other agents who may have also gotten the lead. You should always make your first follow-up attempt as soon as possible after getting a lead.

■ What to Do Now

Now that you understand the importance of an effective follow-up system and what makes a good follow-up, it’s time to implement a system that works. Work with an outside agency like Luxury Presence that specializes in lead generation, conversion, and follow-up systems for real estate agents to ensure you are leveraging the power of the follow-up and increasing your conversion rate up to 50%.