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3 minute read

In real estate, we’ve got a big problem, and it’s costing us millions.

We’re great at chasing leads, but when it comes to sealing the deal? Not so much. Here’s the ugly truth: our industry is dropping the ball big time on lead conversion, and it’s a wake-up call we can’t afford to ignore.

The Shocking Stats

Through our ‘Vendor Lead Tracker’ tool, we’ve uncovered some sobering figures.

Only 20% of vendor leads collected on real estate agency websites end up listing with that agency. This means that 80% of potential vendors who have requested an agent appraisal or price estimate on a real estate agency (or agent) website end up listing with a competitor.

Why? One simple, honest reason… the agency was too slow to respond or didn’t respond at all.

Tracking Vendor Leads

Our Vendor Lead Tracker platform collects every address entered into a real estate website for the purpose of an appraisal request or price estimate request (an automated price estimate using data integrations with Domain). The platform then checks the web each night to see if a property comes to market or is sold over a 90-day period and who it comes to market or sold with. We also track the source of the lead to determine which channels are performing best from a lead generation perspective, i.e. Google, social media, DL cards, email, etc.

Through our Google integration, we monitor a wide range of websites, not just the major portals, to track when an address goes to market. This includes off-market listings by competing agencies.

The results provide a revealing snapshot of an office’s lead conversion practices.

Where We’re Going Wrong

The issue is crystal clear: lead response times are way too slow.

Immediate action is key. Data reveals that businesses making contact on the first day achieve an 80% lead conversion rate. Hesitate, and this figure nosedives to 20%. Despite this stark evidence, the real estate industry continues to lean heavily on emails and CRM systems, expecting them to manage what truly requires a human touch.

What is the best digital marketing tool going around? Turns out it could just be the telephone.

This approach not only undermines our potential for conversion but also signals a broader disconnect in our industry’s understanding of effective communication. In a world where speed and personal engagement are paramount, relying on automated systems and delayed responses is a strategy that’s bound to fail. We need to pivot back to basics if we don’t want revenue to walk out the door. We need to prioritise rapid, personal outreach and recognise that in the race to win clients, every second counts.

The Straight Talk

Lead generation? We’ve got that down as an industry. Lead generation is NOT the problem.

But lead conversion is where the real magic happens, and right now, we’re failing dismally.

The solution isn’t rocket science. It’s about getting back to basics: picking up the phone, making that call, and building that relationship. Every lead is a potential goldmine, but only if we act fast with purpose.

Time for Action

This is our wake-up call. It’s time to shift gears and focus on what really matters: turning leads into listings. Let’s ditch the tech-heavy approach and bring back the personal touch. Because in the end, it’s not just about making a sale; it’s about building trust, and that starts with a single conversation.

After all, in this race to relationship, the prize isn’t just a listing—it’s securing our future in the industry.

Time to go make some money.

Agents & Marketing teams: Scale your digital marketing in 2024!

Digital & AI Marketing Masterclass is a full-day interactive workshop being held in Sydney, Melbourne, Adelaide, Perth and Brisbane (all cities nearly sold out!).

Go behind the scenes with Australia’s leading digital marketing strategists in real estate and learn, step-by-step, the digital and AI marketing strategies we use, working with Australia’s top agents. Most real estate training events might have one or two sessions on digital marketing and AI that only scratch the surface of the “why”. But this full-day workshop is dedicated 100% to the “how”.

You’ll receive actionable digital and AI marketing strategies that you can implement in your office straight away to grow your business and inspire your audience across every digital channel. You’ll get a detailed and proven system used by Australia’s leading agents and brands that consistently generates predictable results. And the best part? There’s no sales pitch at the end.

Click here to see for yourself below why over 1,000 agents attend our training events every year (and why many return with their teams!) to dominate their competitors online.

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