Lead Segmentation is a rare action among real estate
professionals. Typically we think buyers are looking for information or looking
to purchase immediately. All buyers go down the same linear timeline with three
segmented areas: Information
– Engagement – Decision (buy/sell). Each timeline is different in length
and speed from one segment to the next. What agents often do is misalign the
leads with content.
In order to give agents a better understanding of what to do
during each segment, I will be going in depth into each one over the next few
posts. Next on the Lead Segmentation timeline is engagement.
Engagement
Engagement is the most misunderstood and misaligned stage in
the entire Lead Segmentation process. Leads at this point are typically educated
by the information they can find online or other materials. This is where
all agents can improve their lead conversion rates. Put simply engagement is
about providing the right, targeted information to a targeted audience. An
example of this would be a 1st time investor who has listened to
several podcasts, reads a few real estate investing books and is ready to look
at the local market.
This phase is the time that leads look beyond the broad
based information like the sales process or market reports. They are at a stage
where they are narrowing in order to come to a conclusion. When the investor
lead is asking about expected cap rates or cash on cash return, this is an
example of a lead in the engagement phase.
Engagement is completely different from both the information
phase and the decision making aspect along this linear line. Notice I use
the term linear, meaning the leads all follow the same process. As noted during
the information phase, leads can come to you and they are ready to close in 15
days. These leads are not outliers, this means the agent who had them in their
sales funnel did not provide the right information at the right time. During
the engagement section, providing information is critical, but asking questions
is even more critical. As with the information phase, multiple Calls To Action
(CTA’s) can be integrated at this point either while on the phone or in your
email campaigns that will give you
better sense of the leads decision time. This is one of the most
difficult times, because when we have an engaged lead we assume they are ready
to purchase immediately. By creating and segmenting information at this stage
it will be less likely that leads will leave you due to excessive closing
strategies.
Revisiting the investor lead above, if an agent prepares a
quick survey for investors that include questions like are you familiar with what a Cap Rate is and what is your understanding of cash on cash return? It is a piece of
information that is engaging the lead and also qualifying what the agent will
provide next. The agent here is providing useful information and asking the
critical questions. On a buyer/seller side this would be similar to having a
worksheet that asks are you looking to
purchase in 3-6 months.
A quick note here: CTA’s can be used as closing strategies,
however not all CTA’s are closing questions. The objective of a CTA is to
elicit an action, not a sale. In other industries outside of real estate this
can occur, however within the real estate industry closing with a CTA is
unwise. In real estate you are building trust; and excessively closing
leads is not nurturing, it is harmful.
Because the sample survey for the investor lead above is
asking the right questions at the right time, it is building trust with the
agent. By educating the lead on both the minutia of the industry and introducing
them to the process (which should be taken care of during the information
phase) the next logical step would be to ask for some sort of commitment. This comes
with a buyer/ seller agreement. There are several scripts out there that can
help with your framing of this step, but remember once they sign this,
they are now in the decision making stage and they have become clients, not
leads. The ultimate goal is to keep leads in your sales funnel during each
phase of the Lead Segmentation timeline, which culminates with the lead
deciding to work with you.
Signs: Leads at this stage are educated on the broad market
and have an idea of what similar homes are selling for. What they are looking
for is targeted information, they want to answer questions. How much are pools
worth in my neighborhood? What is the difference in 10% and 20% down on a
conventional home loan? During this stage on the selling side, a comparative
market analysis is usually requested.
Action: Many of your brokerages have content that works on a
broad scale, here is where you will have to develop some content on a
neighborhood by neighborhood basis. You can repurpose the content you have with
a few subtle differences.
Create surveys and guides for your community. Ask 25 homeowners
what they like about where they live and list the top five in a word document
with your heading and contact information. Use the example above for investors,
or create one for tenants who might be looking to purchase, or owners who might
be looking to sell rentals. Remember answering questions people have during the engagement phase to builds trust and showcases expertise.
Instead of the phrase “your” use a neighborhood. For example
“recent home sales for homes similar to yours” turns into “recent
homes sales in Sam Hughes” or even better “recent homes sales on speedway
blvd.” In the engagement phase, targeted is highly effective. If you recall in
the last segment one of the keys to remember is to include multiple CTA’s that
are neighborhood specific. This is a great place to add this content for both
the Lead Segmentation timeline, as well as any search engine optimization.
Keys to Remember: Engagement is the stage where more leads
are lost than any other on the Lead Segmentation timeline. You must create and
present content at this stage for this process to increase lead conversion. Start
small and work your way up; run a comparative market analysis for your
neighborhood and create a pricing grid. Develop a price for a pool, a mountain
view, tile floors, granite countertops. Use this grid everywhere, on your
listing appointments and with buyers. Take an appraiser out to lunch and learn
how they price in your neighborhood.
Segmenting your leads is crucial and this stage is where you
make or break your business. Take the time to develop the content these
leads are looking for and it could revolutionize your business. Narrowing your
focus here will increase your lead conversion and multiply your sales at this point next year.
For More Information on how you can grow your business, contact Chris Webb today with
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