LEAD MANAGEMENT BEST PRACTICES FOR RESIDENTIAL REAL ESTATE BROKERS

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1 LEAD MANAGEMENT BEST PRACTICES FOR RESIDENTIAL REAL ESTATE BROKERS CONVERT MORE OF YOUR ONLINE LEADS POWERED BY LANTRAX.COM

2 LEAD MANAGEMENT BEST PRACTICES FOR RESIDENTIAL REAL ESTATE BROKERS Over the past eight years LanTrax has worked with Residential Real Estate Brokers providing lead management software to help collect, qualify, track, assign, and convert leads from online sources. Through the course of working with these Real Estate Brokers, we ve had the unique experience of observing and helping to configure and implement best practices that have resulted in higher conversion percentages. This white paper will focus on the common best practices that companies have implemented which have resulted in higher conversions of leads received online. We will be looking at it from two perspectives: 1. Company culture and expectations: The importance for a Real Estate Broker to clearly define the guidelines and expectations of how internet leads should be handled by staff and sales associates. 2. Using technology: How using a software program helps maintain the best practices for successful lead management.

3 COMPANY CULTURE AND EXPECTATIONS ON HOW LEADS ARE HANDLED A website that lists properties for sale and allows consumers to gather information about what listings are currently on the market is standard practice for Real Estate Brokers. However, there are certain practices that separate those who are successfully generating, capturing and converting web visitors into customers from their websites. Web design, search capabilities and tools that promote lead capture are sciences in and of themselves. Our focus is what actions the Real Estate Broker takes after a lead inquires on a property to have a better chance at conversion. The number one question to ask yourself if you are looking to do a better job in converting the web visitors that are taking the time to contact you is, what s my strategy? If your strategy doesn t include the exact details on how fast you should be following-up, who the lead is routed to after initial contact and the different touch points after initial contact then you need to read on. Typically we run into two common scenarios that companies practice when they receive a lead online: 1. Leads that inquire on an agent s listing get routed directly to that listing agent. 2. Leads that inquire on an outside broker s listing get routed to a company that is monitored by an individual and then distributed to sales associates. Many times sales associates who are on floor

4 time will receive these leads as they come in. In most cases, the lead management strategy for the company ends there. The lead is generated, routed to an agent, and any transparency around what happens next is non-existent. This is where companies that have made a conscious decision to implement a strategy that tracks all leads from acquisition to close can separate themselves from the competition and it all starts with company culture. THE CASE FOR AN INTERNET LEADS TEAM A broker s website should be treated as a marketing and sales tool that drives business to that broker. Allowing consumers to easily search for the type of home they re interested in or to use tools on the site that will notify them when a new property they re interested in comes onto the market are great ways to keep potential buyers on your site. When that potential home buyer has a question or is interested enough in a property to make an inquiry is really where you can turn those marketing efforts into actual sales. However, it s what happens after that inquiry is made that sets apart those who are successful at converting online inquiries. Ultimately, the lead is going to be routed to an agent whether it is upon initial submission or shortly afterwards. Either way, it is essential for the agent following up with the internet lead to be prepared to take that potential client through the steps to buying or selling a home.

5 IMPLEMENT AN INTERNET TEAM OF SALES ASSOCIATES WHO ARE ELIGIBLE TO RECEIVE WEB LEADS Not all sales associates are created equal when it comes to dealing with the Internet consumer and not all sales associates want to bother with the follow-up that is involved in trying to get the internet lead converted into a customer. Additionally, the ability to communicate with a consumer that wants to use , text messages, instant messenger and social media to communicate is a skill set that not all sales associates share. Companies that have identified sales associates who have the skills to stay in contact with a lead that inquired online through the use of social media and electronic communication are generally more successful in conversion. To take it a step further, companies that require training on how to deal with internet leads show an even higher success rate. Finally, companies that implement a strict set of guidelines to remain eligible to receive leads see even greater success when it comes to lead conversion percentages. Companies that require training on how to deal with internet leads show an even higher success rate.

6 THE MAIN COMPONENTS OF SUCCESSFULLY IMPLEMENTING AN INTERNET LEADS TEAM 1. Internet Lead Coordinator(s): An Internet Lead Coordinator is an individual or team whose sole responsibility is to track leads generated online, sales associates assigned to leads and agent follow-ups to those leads. They also may have the responsibility of monitoring data and trends and make decisions on how to continuously improve lead conversion percentages. This person or team can also play the role of lead scrubber as well. Many companies have had success when they first scrub a lead before it s assigned to an agent, which can help to better qualify leads that are interested in working with an agent versus just asking a general question. 2. Make it a privilege to receive internet leads: As mentioned before, not all sales associates in your company will have the same success rate in closing internet leads. Identifying sales associates who agree to abide by company lead follow-up guidelines when a lead is assigned to them is the first step. Setting criteria to continue to receive leads is also an important part. Some examples: Sales associates must attend training sessions held by the Internet Lead Coordinator(s). Sales associates must have a certain amount of closings to continue to receive leads.

7 Sales associates must follow-up with leads in a certain amount of time. Sales associates must use a smart phone and be able to receive s/text messages and access a mobile web browser on their phone. 3. Set follow-up guidelines: Timely follow-up is an essential component to converting leads. The faster you can have a human contact the lead upon receiving their request the greater chance you will have converting that lead. Many companies have implemented an initial follow-up rule that requires an agent to respond to a lead request within fifteen minutes. The Lead Coordinator acting as lead scrubber can also help with initial contact. Once a lead has been assigned to an agent and the agent has agreed to accept that lead, setting time frames on when the agent is required to check back in with updates is very important. First off, you re letting your sales associates know that their follow-up attempts are being measured. Secondly, this will help sales associates stay accountable to the leads being assigned to them. If sales associates know that they need to abide by the company s Internet Team Guidelines there is a less of a chance leads are ignored. 4. Charge Referral Fees: Investing in a web site, Internet Lead Coordinator position or positions, and a system to help track leads, assignments and follow-ups cost money. A way to recoup these costs and turn your Internet Lead Team into a Profit Center is by charging a referral fee on leads that are assigned out to sales associates when they close. Broker s should easily be able to justify this referral fee

8 because they re spending the money to drive traffic to their corporate web site, investing in employees whose job it is to help scrub and better qualify leads for sales associates, and investing in a system to help manage the entire process. LEAD MANAGEMENT SOFTWARE So far, we have reviewed what Real Estate Brokers who have had success in converting web leads have implemented in regards to how they expect leads to be handled by staff and sales associates. Now, the challenge becomes finding a solution that can automatically collect all of your leads into one central database, track which sales associates have been assigned leads, track how long it is taking them to accept those leads and how long it is taking them to follow-up with those leads. Additionally, a solution should allow you to look at the data you re collecting from a high level to determine areas for improvement. Fortunately, there are software options that can help you keep track of your leads, assignments, follow-ups and more.

9 WHAT TO LOOK FOR IN A SOFTWARE SOLUTION 1. The ability to automatically receive leads from all your sources into your lead management software: If you re generating a large quantity of leads, you don t want to spend all day manually entering those leads into a database. A lead management solution that has the ability to automatically accept any lead from any source is a huge time saver and helps to automate the lead assignment process. You don t want to spend all day manually entering leads into a database. 2. Different lead assignment options: The software you choose should be flexible enough so you can test different assignment methods. The most successful companies are constantly trying new processes to see if they can improve their results. Experimenting with different assignment rules is an example of how testing different processes may lead to better results. For example, you may want to pick a specific lead source that is auto-assigned directly to sales associates on your Internet Leads Team versus another source that you have your Lead Coordinator scrub and manually assign. The software should also be able to put a time limit on how long an agent has to accept a lead. After a certain amount of time, if the

10 lead has not been accepted, then you should be pulling that lead away and either re-assigning to another agent or contacting that lead so they do not go too long before they are contacted. 3. Automate Follow-Up Rules: After a lead has been assigned and is accepted by an agent you will want to set up rules requiring sales associates to make updates as to their communication with the lead. A system that can automate these follow-up requests and be flexible enough to allow you to make changes to the rules as needed is essential. The goal should be to add more leads over time. A software solution that automates the follow-up processes will allow your Lead Coordinators to work with sales associates in helping close business versus chasing them for updates. 4. Lead Nurturing Campaigns: Your lead management system should have the capability to send s to leads. Many of the leads you receive will not be ready to buy or sell a house. This doesn t mean they should be ignored. Rather, you should develop an follow-up campaign that keeps your brand and services in front of the lead to allow them to contact you when they are ready to buy or sell a home. 5. Reporting: The more data that you can collect and analyze the more intelligent your decisions will be. Looking at which lead sources perform better than others, which sales associates are more successful in converting and even which offices are better at converting than others are all useful in figuring out strengths that can be built upon and weaknesses that can be improved.

11 CONCLUSION As mentioned in the beginning of this white paper, LanTrax has worked with Residential Real Estate Brokers over the last several years in helping provide lead management software solutions. Our clients have been able to successfully convert more leads over that time by implementing the strategies outlined in this white paper along with a software solution that helps automate their processes. If your company is investing in website tools that are meant to attract and generate leads along with third party lead generation sources then you should focus some time on what is happening after a lead reaches out with a question or request for contact to maximize those lead generation investments. The first step is understanding what you re receiving. The next step is to determining how leads are being distributed and finally after a lead is first contacted how they re followed up with and nurtured through the buying or selling cycle.

12 Collect, qualify and assign all your leads within a single, customized solution. ABOUT LEADTRAX LeadTrax helps you direct the entire lead management process from acquisition to close. Built-in automation allows you to eliminate mundane tasks and focus on strategies to close more business. LeadTrax provides an easy-to-use web interface and graphical reporting tool that helps you determine the health of your lead management efforts. You ll gain immediate visibility of the new leads you ve received, know which sources are the most productive, and know at a glance the status of any given lead. LeadTrax pulls all your leads into a single, flexible system. No more manual entries, no more errors. We play nicely with your system, your existing databases and with the top lead generation services, including: REALTOR.COM TRULIA ZILLOW HOMES.COM HOTPADS KWKLY VOICEPAD READY CHAT REALESTATE.COM and many more... Some of the most successful Real Estate companies across the country rely upon LeadTrax to give them the visibility and efficiency they need to manage their leads. We can help you configure LeadTrax to meet your own unique business needs and provide support, training and guidance on how to convert a higher percentage of lead opportunities.

13 LEADTRAX IS POWERED BY LANTRAX Founded in 1999, LanTrax, Inc. is a leading provider of real estate technology solutions, with a focus on back office accounting, lead management, and customized software. Each day, more than 150 companies and over 65,000 real estate sales associates rely on our software to manage leads, process commissions, and provide business-intelligent reporting. With sophisticated software, a knowledgeable staff, and customizable solutions, LanTrax combines leading technology with industry knowledge to provide personalized systems to meet the specific needs of our clients. LanTrax was founded on the premise that well-designed and implemented management and IT systems are critical success factors in today s business world. All our employees are practicing professionals, project-oriented and self-managing, and we strive to provide software and service that will keep our clients ahead of their competition and on the forefront of technology.

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