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Responding Quickly Is A Critical Factor in Online Lead Conversion Rates | Real Estate Lead Generation and Conversion

June 22, 2012

Responding Quickly Is A Critical Factor in Online Lead Conversion Rates

A key characteristic of real estate agents that are successful at converting online leads into sales is that they follow-up immediately. Real estate leads contacted within less than 15 minutes convert at the highest rate. The prospects recall filling out the form and their motivation for doing so. The value of real estate leads degrades by 10% or more if not contacted in the first 15 minutes. The rate of decay slows down from the 15 minute mark until the lead switches activities (leaves work, turns off their home computer. etc) This period of slowing degradation typically lasts about 3-4 hours. Contacting a lead more than 4 hours after submission results in another 10-15% decline in conversion rates. Real estate prospects are bouncing around the web, looking at multiple sites and often filling out multiple forms. If you don’t contact them within four hours, they may not remember visiting your Website. If they are not contacted same day, they probably will not recall your site or why they filled out the form and you will have given other real estate professionals an opportunity to get their foot in the door. Failure to contact a lead during the day of registration degrades the value of the lead by 40-50% versus contacting them within 15 minutes.

An article by LeadQual describes how speed wins when it comes to converting online leads because “Internet leads die a quick death”. LeadQual’s research indicates that “the first to contact a lead increases conversions by 238%”. While the above referenced study is in regard to leads in general and is skewed based on lead generation companies that sell their leads simultaneously to multiple sources, results for real estate leads are similar. The LeadQual article was based on a study by Dr. James Oldroyd of MIT on lead response management.

A survey by the California Association of Realtors reinforced the importance of response time:

86% of leads felt that response time was “extremely important” when deciding on their real estate agent

31% of Internet homebuyers expected their real estate agent to respond instantly to their online inquiry

96% of Internet home buyers expected a real estate agent to contact them within 4 hours of their online inquiry

Following up on leads immediately after they were submitted will significantly increase your online lead conversion rates and increase the number of homes you sell.

via Responding Quickly Is A Critical Factor in Online Lead Conversion Rates | Real Estate Lead Generation & Conversion.

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