Real estate agents have a difficult job when it comes to converting potential customers into actual clients. According to the National Association of Realtors (NAR), only 13% of buyers and sellers return to work with their agents when the opportunity presents itself. This means that for every 200 potential clients, only one or two become clients. However, some brokers and agents are optimistic and report a potential customer conversion rate of 3% to 5%.
Technology plays a huge role in the real estate industry. Agents can now use photos, videos, and virtual tours to show a house. 95% of homebuyers search for homes online and 51% find a home to buy through online channels. When it comes to communication, 9 out of 10 customers prefer to keep in touch via text message.
Text messages have a 98% open rate, so it's important to pay attention to customer preferences. For every 100 homes visited, two are likely to become new customers. This usually takes place through text messages or phone calls. To make this process easier, custom tools have been designed specifically for the promotion and conversion of potential clients into real estate.
Organic search traffic generates the highest conversion rates, at 3.2%, followed by direct contact at 1.8%. Keeping track of conversion rates, MQLs, SQLs, and closing rates helps you predict if you're going to meet your growth goals or not. Improving your lead conversion rate by just 1% (120 potential customers) on this channel can have a profound impact on your business, costs, and overall benefits. Google Adwords has a higher conversion rate (5%) since it allows people to go from being online visitors to potential customers, while Facebook Ads has a much wider upper part of the funnel (more traffic), but shows that customer conversion potential is lower (2%).
An interesting study found that 61.7% of homebuyers searching on the Internet ended up becoming customers over the phone, a significant increase from the average conversion rate for organic searches alone (3.2%). A lead's conversion rate is measured according to where the prospect's journey from acquisition to activation is.