Can You Keep Up? The Industry’s Need for Speed

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By Glenn Houck RISMEDIA, June 25, 2007 Everyone is finally realizing that responding to Internet leads quickly is the key to improving lead-to-close conversion rates. Speed wins, when it comes to Internet leads. This much is certain.

Why does speed matter so much when attempting to convert Internet leadsInternet buyers demand instant gratification.

Instant gratification isn’t just a real estate issue; its an Internet issue. A Web browser is instantly able to browse every listing and see multiple photos on those listings. She can view sales comps and get instant home valuations. She can pull neighborhood and school reports. If she doesnt find the information she wants on a specific brokers site, she can just hit the back button and there are hundreds of other sites to choose from with similar content.

When the buyer completes a form to get more information, she wants that information now. Not tomorrow. And if you dont call her immediately, her back button is still there for her to find another option to get her the information she desires. No Internet lead is exclusive.

Internet real estate buyers visit five sites on average and fill out three request forms. So, at a minimum, there are three Realtors competing for each Internet buyer. Who will that buyer do business withThe California Association of Realtors reports that 90% of the buyers end up doing business with the first person who responds. This means that the first company to respond is much more likely to win the client.

We have seen a 30% increase in lead-to-close conversion just by moving from a 30-minute average response time to a five-minute average response time. Since the median response time in real estate is actually 16 hours, most brokers can see a significant increase in conversion by moving to an immediate response process.

Internet leads have lower conversion rates than traditional leads.

Most Internet leads arent thinking about making an offer on a home at the moment they fill out the Web form. They are just beginning the process. If they dont hear from an agent immediately, they quickly forget which form they filled out, and what they were inquiring about.

Responding within minutes solves this problem, because the buyer’s inquiry is still top of mind, and you can begin your relationship with the client prior to the client making any additional inquiries.

It’s not easy to put a repeatable process in place where you respond to each and every inquiry within minutes, but five-to-10-minutes average response times should be your benchmark in order to maximize your Internet lead conversion. RE

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

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