Converting leads into sales is the most important element of ensuring the success of your development, so the process must be optimized and streamlined.
When selling off plan, it is important to remember that you are doing just that … selling a plan, a concept, an intangible future. And, without those sales, there is a good chance that your development may never get off the ground.
This means that you need a system to capture, engage and manage a significant volume of leads. From the first contact, you and/or your sales team will take the lead (who will hopefully become a customer) along a defined sales path. And, with all the noise and competition out there, it’s important to maintain their interest, so the last thing you need is to lose them due to poor management. Says Andrew Kumm, Director at REDi.
The consequences of poor lead management are:
- Money. The cost of acquiring leads who have the ability to purchase is extremely high, and – because sales is a numbers game – the opportunity cost of missing a buyer in this market is also high.
- Time. The longer you take to respond and convert, the more likely you are to lose the buyer. So your response strategy is key in terms of timing and content. Make sure the prospect is engaged rapidly and receives the correct information promptly.
- Reputation. Competition is tough and is here to stay. A poor customer experience is likely to drive people to the next opportunity. This is why it’s so important that the agent is unassailably professional, and therefore has all the relevant info right at their fingertips. They are able to update customer profiles correctly, effortlessly and seamlessly. A confused or irritated lead does not become a buyer or an ambassador for your brand or project.
Corina heads up Business Development at REDi and she says: “Lead management is a craft requiring a delicate balance between harvesting leads, reaching out, keeping track, and – of course – converting as many into sales as possible. Building and maintaining momentum can be challenging and even exhausting, because there is just so much data and information, and it changes constantly. But it needn’t be. Smart cloud databases in conjunction with good CRM can support customised automated behaviours that, if used cleverly, can reduce costs, increase sustainable productivity, and prevent staff burnout, enabling your team, and your business, to not only survive, but thrive – to lower operating costs and increase revenue. These are all indicators of a sustainably thriving business, and the REDi Leads Management System just might be what you didn’t know you needed, until now. “
So where does this leave you? Well, assuming you have a great development (of course you do), and you are a rock star at marketing your project and drawing in interest, you need to focus on how you bridge the gap between an interested lead and transferring the property, i.e. the part where you actually make the money. Granted, it’s not easy – but these are some key considerations:
- Look at the quality of leads, not just the quantity.
- Carefully evaluate the cost of leads and the sources generating them.
- Keep all your leads and associated information in one place.
- Have a structured strategy for converting your leads.
- Automate responses, notifications and other tasks associated with conversion but never to the point of losing the personal touch (people like people)
- And, last but not least, keep accurate records for reporting and analysis – and improvement.
This is where REDi comes in. We bring you the tools to navigate the journey with your buyers from interest to close. We’ve been proudly serving the South African real estate industry for over 15 years by listening to our clients, implementing what works, and designing solutions you need.
Featured image credit: Val de Vie