All too often it’s common for Sales Managers to hear this from the sales team — “I’ve called all my leads, now what? We need more leads!”
This statement from your sales team should raise red flags, especially if you do not have a homebuilder CRM solution in place to guide follow up. The truth of the matter is that many, many leads just don’t get the attention they need in order to be nurtured through the new home buying process. As most managers already know …leads don’t come cheap…in fact, I repeatedly hear home builders quote a cost per lead in the range of $250-500. These cost metrics are usually based on leads that actually make it to the appointment phase of follow up and visit the model home or sales center.
Numerous studies have shown that it takes up to 12 touch points or contacts to engage a potential homebuyer and move them to the buying phase of shopping. More often then not sales agents give up on follow up long before those numbers are reached. Persistence is the key. It may seem unrealistic, but a sales agent’s initial follow up work is never done until they receive a definitive, “Yes, I want to come out to see the community,” response. Or a “No, please remove me from your list I’m no longer interested.” If a lead says, “ I’m not interested right now,” be mindful of the fact that they did take time to register. Not now doesn’t mean not ever. It means not now! This means it’s important to periodically schedule future email and or phone follow up until you have one of the responses you are looking for as an end result. The buying cycle has extended and with that it can take months or years to turn a lead into a buyer.
From personal experience, we find here at Lasso, that we acquire at least 5-6 new customers every year that initially would not have been considered an interested lead. All this means is that just because a lead is unresponsive it doesn’t mean this is a sign to give up on follow up. Pre-programmed follow up campaigns built into a lead management software program for homebuilders is the key to keeping you on track for long-term engagement.
The next time you hear a sales agent say that they don’t have enough leads, it is very reasonable to look into the current follow up process they implement. It sounds simple, but time and time again its proven that persistence and process really does pay off.