Lead Segmentation - Increase Conversion and Decrease Your Stress

Lead Segmentation

For the next few posts I will be focusing on Lead Segmentation; a topic that many small businesses know, they just do not go into great detail. This topic will increase your lead conversion and it will also relieve your sales related stress because it will create an income stream that is relatively stable with a slight upward sloping curve. Lead Segmentation should be a part of your marketing plan, especially if it consists of online marketing. 

What is Lead Segmentation?

When you generate leads what happens during the timeline of the lead? Typically you will cultivate your lead for a number of days or weeks and then you will show some homes and close a sale. If you could divide the timeline of a lead up it would probably look something like this.

Notice there is no timeframes on the different segments along the timeline, because there is no set timeframe on each individual buyer or seller in Real Estate. Timelines represent a liner order of events in graphical fashion. Leads come and go throughout this timeline, however they are always at some point along this order of events. The key is finding out which segment they are in along the timeline. What lead segmentation does is match up information for each of these areas of the lead timeline. Lead segmentation is a must for an effective marketing strategy. 

I have leads who have gone under contract in 15 days...

The misunderstanding of the lead timeline and why lead segmentation is so critical is because of the quick closes that happen in real estate. Every agent receives the call from the qualified and ready buyer and seller at least once in their career. This is just not the norm, it is the outlier. Often times the leads that come to agents like that are in someone else funnel at a different stage in the lead timeline. Conversely there are leads in your funnel that have not been contacted recently and they are off somewhere else looking for different content because they have moved from one level to the next in along the lead timeline.

Yes, You Are Losing Leads!!

As stated earlier, lead segmentation is designed to determine which leads are in which categories. As they go along the lead segmentation timeline, they are looking for different content to consume. What you are doing and thousands of other agents are doing is not providing that content. So the leads go to sites like Zillow and Realtor.com to find out the information. Often times asking targeted questions about a particular area, perhaps your area. An agent then responds to the question and gently walks the lead to the buy/sell segment. As I mentioned earlier, you have had leads close in 15 days. Do you remember how you were first contacted by them? Was it a question about a particular neighborhood or niche, like short sales or HUD homes? I am not saying that this was unethical, because I am sure you asked if they have "signed with another agent." But, if they are not in the decision making stage of lead segmentation why would they sign with an agent? The point here is that you are losing leads, because you are not providing the information that a lead is looking for at the particular lead segment. 

What's next?

I will be adding to this particular topic in the next few week including detailed information on each segment as well as what to do as action steps. If you would like more information on what Lance & Company can do for you and how to develop a segmented marketing plan please contact me here.