Let's paint the perfect picture of helping a new client buy a home. You first capture a lead through your website or a referral. Then you reach out to them within 5 minutes, like Realtor.com recommends, and you qualify them as an opportunity. The next day you show them houses and within 30 days you have something under contract.
Unfortunately, most of the time that doesn't happen. Most of the time, you have to put much more time and effort into nurturing a relationship with that person to get them to convert. The average life cycle of a lead is best illustrated in what we call the conversion funnel. The conversion funnel is simply the time and energy it takes to convert a lead, into an opportunity, and then ultimately into a sale.
Through research done by WAV Group and Realtor.com we have come up with 3 numbers to demonstrate the average length of the lead life cycle in the real estate industry. Just remember: 18 - 13 - 7.
18 months is the average time that a consumer spends researching online before they raise their hand to speak to a real estate professional. So as a real estate professional you have to research what online channels consumers are most likely to search, and how you can be a part of it. Whether they are buying or selling, remember that you need an online presence as well that makes you searchable.
13 months is the average amount of time from lead to conversion. The average consumer will spend 18 months researching online before they finally raise their hand to speak to a real estate agent like you, and now you work with that client for 13 months on average before a transaction actually takes place.
So you captured the lead, you've engaged with them, and qualified them as an opportunity. Now what? As you know, it doesn't stop there. You have to continue to build a relationship, establish a level of trust, and maintain presence of mind with them so that when they are finally ready to make that transaction, you're the person that is there with them.
7 years is the average length of time that a homeowner is ready to buy or sell again.
You're looking at almost a 10 year lifespan that you have potential relationship with an opportunity. Not only to convert that opportunity to conversion or sale, but nurture that relationship and capture referrals from them. This is where real estate agents, as a whole, tend to fall short. Research from Realtor.com shows that for every $1,000 spent on lead generation, only $10 is spent on converting the lead.
This shows that real estate agents are spending a great deal of time, attention and money acquiring quality leads but then fall short when it comes to managing and nurturing those leads through the conversion cycle. If this sounds like your story, let us show you how eMerge can help you manage and nurture your leads through their entire life cycle, saving valuable time and converting more business: take a quick tour today (link to demo page)