Back to Home

eBay, Amazon Dish Lessons For Real Estate

By Bernice Ross, Inman News

Part 2: Converting Web leads into closed business
(Read Part 1 here: "Real estate's a game of instant gratification.").

If you're still focused exclusively on lead generation, you are losing thousands of dollars in commissions in every year. The 21st Century real estate environment now demands an entirely different game – converting Web inquiries into leads that turn into closed business.

Last week's column looked at the distinction between traditional marketing strategies that yield "right now" business and Web marketing strategies that require agents to incubate leads for up to a year or more.

Many frustrated agents mistakenly believe that Web leads are "worthless." The frustration arises from the agent's assumption that Web inquiries are no different from telephone inquiries. Nothing could be further from the truth. Web inquiries are excellent sources of leads. They are better qualified, they earn more money, and they are more likely to do business with an agent than those who do not use the Web. The challenge is that Web leads take longer to convert into closed business.

To convert more Web inquiries into closed business, follow the steps below.

1. Connect with Web visitors based upon their agenda, not yours.

To build connection, you must know what your Web visitors want. The answer is simple: multiple pictures of listings, plenty of virtual tours, and a link to the MLS. Remove your picture and personal information from your home page and post it to your "about us" page.

2. Easy navigation

Ideally, your Web site should be simple enough that a 10-year-old child could navigate it easily. Also, it should take no more than three clicks to get to any place on your site. Remember, with each click, you lose potential leads.

3. Anonymous shoppers

Look at the two most successful online businesses – eBay and Amazon. Both use the same approach. Visitors shop anonymously. Only when the Web visitors are ready to do business do they have to identify who they are. Due to the huge amount of spam, today's Web visitor is reluctant to provide contact information. The Web visitor will continue to search for the information he/she wants elsewhere. If you're forcing people to complete forms to receive "free" information, you are losing leads.

4. Offer multiple drip-marketing campaigns

Visitors will step-up and identify themselves if you have something that meets their needs. Most visitors will surf to another site if you make them register to see MLS listings, especially when they discover Realtor.com or a competitor's Web site that does not require registration. Some strategies include offering a series of e-coupons from local merchants. Change the coupon monthly so the visitor has a reason to continue to visit your site. Another approach is to offer an online course. Rather than sending out a full report, break the report into bite-sized chunks and send out an installment weekly or monthly. Other alternatives include a newsletter or a monthly online update of the sales and new listings in your market area.

5. Transaction-based marketing may be a mistake

Most real estate marketing is transaction-based. Approximately 17 percent of all homeowners will move this year. The other 83 percent will not be moving and have no interest in receiving transaction-based marketing materials. Nevertheless, many of these people are surfing real estate Web sites. You will lose this business if you are unable to meet the needs of this huge proportion of "inquiry" clients. To convert these valuable inquiries into leads, provide high-interest materials that are not transaction-based. For example, include information about new laws, scam watches, changes in the tax code, and other issues related to home ownership. This approach will appeal to most homeowners rather than just the small percentage that will be moving.

6. Immediacy is the name of the game

Autoresponders that say, "I'm out of the office," are not a viable strategy. Instead, post your 800 number on your site where visitors can call to hear a pre-recorded message about any of your listings 24-7. Better yet, new "Pay-per-call" technology from Ingenio.com will contact you immediately on your cell phone when someone inquires about information on your site. This allows you to respond to them immediately either with a phone call or with an e-mail, provided you are using a Blackberry, TREO, or other combination PDA/telephone.

Is it worth it? According to Realtor.com CEO Allan Dalton's statistics, the conversion rate on properly handled inquiries is 20 percent. In many cases, this statistic is comparable to the conversion rate for referrals. To capture this business, you must aggressively pursue and drip market leads patiently over extended periods. Patience is critical. If you're not focused on inquiry conversion, the lead aggregators, banks, and online real estate companies are. It's time to make the shift – can you afford to be left behind?

Points of Interest:

 

Back to Home

Name:
Email:
 
What's this?