On the Internet, Only Persistence Wins Leads
By Kim Shindle
If a REALTOR® isn’t using the Internet, he’s probably losing business.
The average age of REALTORS® is 52 while the average age of a first-time homebuyer, particularly one using the Internet, is 32. This dramatic age difference is rapidly affecting how the real estate business is conducted.
Carla Cross, CRB, MA, and president of Carla Cross Seminars, Inc., recently talked with The Pennsylvania REALTOR® about managing lead generation on the Internet. “Lead generation from the Internet is not easy. It takes about 200 leads to get one client. That’s a very high number,” she says.
She notes that Internet consumers are more highly educated, have a higher income and make a decision quicker once they contact an agent.
“The problem is, agents do not follow up with Internet buyers,” Cross explains. “They don’t stay with them and continue the contact because agents are used to the traditional buyer who wants to look at homes with them. That’s a mistake.
“Approximately 70 percent of homebuyers start out by looking at the Internet,” Cross says, adding, “According to NAR, that’s going up about 10 percent every year.
“Internet buyers are curious, but it’s hard to pin them down,” she adds. “That’s where agents need to learn how to screen these Internet inquiries. There are a lot of steps between an Internet inquiry to the point where a client is actually buying a home,” Cross explains.
The expectations of the young Internet consumer are more demanding. According to a John L. Scott study, 32 percent of customers who make an online inquiry want an immediate response. Another 19 percent are willing to wait a half an hour for a response.
Cross says nearly 50 percent of real estate agents never respond to Internet inquiries because they think it’s junk mail. Those agents who do respond take approximately 54 hours to get back to the prospective customer. By that time, many customers have moved on.
“Between 75 and 80 percent of Internet consumers will work only with one agent once an agent has made contact with them,” Cross notes. “If you follow through, they will only deal with you. So agents need to have a contact management plan in place.
“Technology doesn’t preclude talking to people,” she adds. “That’s what technology-based companies leave out. Even the leads you find through Internet inquiries require a personal contact early on. That’s how you find out what the customer’s needs are. You help him determine what he’s looking for.
“The client is looking to the REALTOR® to help him reduce stress, save time and treat him like an individual,” Cross says. “If all you’re doing is e-mailing her, what have you done to earn a commission?
“Agents specialize in consulting and negotiating. That’s what clients are paying for,” she adds.
Cross says maintaining contact with both new and former clients is the way to keep business flourishing. “Only one third of agents surveyed contact their clients after closing. Why wouldn’t the customer think the agent took the money and ran? We need to start thinking about keeping these individuals as clients for life,” Cross notes.
“REALTORS® need to be of the mind that everyone is a buyer sometime,” she advises. “We need to go from gaining market share to customer engagement. You want your customers to say, ‘I wouldn’t think of ever going anywhere else to buy or sell a home’.”
Carla Cross, CRB, MA, is president of Carla Cross Seminars, Inc. and Carla Cross Coaching. She specializes in productivity and profitability systems for real estate professionals. Contact her at www.carlacross.com or 425-392-6914.