The ABCs of Lead Management
Most agents say that their most urgent business concern is the need for more leads.
“With all the incredible lead generation sources both online and offline, there are more leads out there than most agents know what to do with if they regard them properly,” says Verl Workman, president of Corcoran Consulting, Inc.
The biggest problem is a lack of a lead strategy. “We often find that there are plenty of leads, but there is no real system to convert these leads over time. The reason for the low conversion rates is simply lack of systems, processes and organized follow-up,” Workman added.
According to Corcoran Consulting:
- 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,” said Workman. The question is how and when do to follow up? According to Corcoran:
- Two percent of sales are made on the first contact;
- Three percent of sales are made on the second contact;
- Five 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.
Workman suggests that agents create a system to generate the highest closing rates. The first step comes by understanding 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 system is that if 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,” said Workman.
Bottom line: Don’t stress over lead generation. Instead, focus on converting the leads you already have.
“Become exceptional in lead follow-up and conversion,” says Workman, “and you will provide a much higher level of service to your clients and close more deals.”
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