It’s exciting to see a huge flow of leads streaming through your organization with the high and strong pressure to hold. It reminds an overfilled river after the rain, which goes out of the rut and ready to demolish the near-located villages. While watching the waterfall of leads, the mind is always full of big hopes and great imaginations. In case, you haven’t experienced these feelings in your business activity, probably, your organization must be moved from the middle of the desert, at least to the middle of the oasis.
But the most surprising fact is – in certain cases, the huge and strong flow goes towards unknown direction and disappears like the mirage in the desert. Here is where the main idea comes – where does it go? How to stop it?
Below is the overview I conducted with the methodology of analyzing the clients and clients’ behavior. During the study have been approached 1,178 clients who were flagged as a “Lost Deal”. I grouped all clients into 7 main and general categories that covered all determined reasons. All leads have been registered via a variety of sources: Online Portals, Online Marketing, Walk In Clients, Outdoor Advertisement, Referrals and others.
Every category covers many leads lost due to similar reasons faced most often. Let’s look at the main categories and their descriptions:
Property Is Not Available – when client inquires about certain property which’s no more available or there’s no property available to the agent with provide the client with.
Unresponsive Clients – sometimes a “big” people who inquired about a property and after that who were always busy and had no time to talk to an agent.
Low Budget – often case, when the seller, landlord, developer can’t agree with the offer of the client.
Didn’t Like a Property – not every property viewed is finalized by the client due to objective reasons.
Already Found a Property – these cases like a thunder in the sunny whether, when finally it appears that the client has already finalized another unit.
Agents – other real estate agents that got in the list of clients and inquiring about a specific property for their clients.
Spam – when somebody is calling an estate agent seeking for a help in buying a Porsche Panamera. It was a joke! Spam – people who call with the irrelevant inquiries, for example, to conduct a certain survey or to offer irrelevant services.
As per the graph above, we see that the largest segment was taken by Already Found a Property with the share of 31% of lost deals. Following the largest segment, we have the next category Property Is Not Available with the share of 25% of lost deals. Right after, we see another massive share of Didn’t Like a Property with the share of 21% of lost deals. The Little smaller part is taken by the clients with Low Budget, which is 11% of lost deals. Third from the bottom we have so-called Unresponsive Clients, with the share of 9% of lost deals. 3% of the “leads” you generated indeed are Agents from other Real Estate companies and 1% of your leads potentially can be operators from Du, Etisalat or someone who dialed the wrong number and we categorized them as Spammers.
Some Tips to Increase the Conversion?
Already Found a Property (31%)- the first sign of the extremely low level of practicing follow up by the estate agent. As we see, this factor is the key factor! One of the biggest differences of successful estate agent from an unsuccessful estate agent is the quality and the number of follow ups conducted. Regarding the follow up, there are the main 4 techniques which are the best suiting all types of estate agents (to be covered in next publications).
Property Is Not Available (25%)- one of the main powers of an estate agent is the portfolio of properties, which helps to generate a number of leads. In case if the client is inquiring for a certain property in your target area, and in most of the cases you’re unable to provide the client with a product, you must focus on the best ways of sourcing the properties.
Didn’t Like the Property (21%) – another massive circle of leads, that got lost, as the estate agent in most of the cases wasn’t successful enough to convince the client, that in this property the client is going to find his happiness. Current stage is initiated, during the viewings and the meetings. At this stage an estate agent must be highly enthusiastic and full of knowledge and use the psychological technique covered in earlier publications called “Decoration”.
Low Budget (11%) – often we hear that certain deal got lost as the seller or landlord didn’t accept the price offer of the client. But indeed, this ratio is quite low if we compare with more dramatic and sad reasons of losing the clients written above. In case, if this issue is your main problem, you must work in 2 directions:
Direction 1 – Clients: While communicating with the clients, you must use the key sales technique (covered in earlier publications) “First Convincing Steps” if the matter is about the Sales Transaction. If you’re progressing with the Rental Transaction, a good comparison with other low quality properties will assist you.
Direction 2 – Seller or Landlord: One of the productive ways out of many in negotiating with the landlord is the short-term forecast and a CMA, to convince the landlord, in case if the price is higher than the average market price, and the only loser in this situation will be the landlord. In order to convince the landlord to revise the price, the estate agent must evoke the feelings of trust by professional work and approach.
Unresponsive Clients (9%) – considered as unserious clients, or clients who aren’t ready to finalize the transaction. In order to define the level of “HOT’ness” the main Questions of Qualifying the Lead (covered in earlier publications) must be asked. In case if the client seams cold, never raise your hand to throw him out of the box of your potential clients. They might buy from you after 1-2 years. Keep these people in your regular broadcast of news and conversations.
Agents (3%), Spam (1%) and others – unfortunately, nobody is protected from being contacted by non-clients. These categories don’t require the advices and tips to be given. But I must say: I’d definitely advise to be nice, polite and professional with everyone who you have a chance to communicate with. This is where the success starts!
By Akhmed Idigov