Every Property Manager understands the importance of improving sales closure conversion rate. However, going from a lead to a lease is not always straightforward and even the most seasoned professionals need to stay on their game to be successful.
With many outside factors affecting different types of leads, it is pivotal to control when and how you respond to each lead. With that said, here are the best practices you can apply in sales closure, and help maximise lead conversion.
To put it simply, the faster the response, the higher chance of a reply. According to this Lead Response Management Study, response time highlights an incredible turnaround for connection rate, with leads up to 40% more likely to engage if they receive a response in the first 5 minutes compared to waiting up to a day. Even waiting 30 minutes to respond will make the likelihood of converting the lead to a lease decrease by roughly 10%
In this situation it is even more likely you could lose the lead to another property, as roughly 20 percent of leads will move on to another listing, making it crucial to stay on top of leads as soon as they are present.
Most people have a preferred method of contact, whether it be through text message, phone call, email, in person or even through social media with the rise it has taken over the years. Observing a lead’s preferred method of communication and contacting them via that channel will increase the likelihood that they will engage with you.
For instance, if you were contacted via email and responded with a phone call or text message, the value of that lead is cut to almost half given the study above. Provide potential leads with every option of contacting you, and oblige with their choice even if the concept seems a bit different to your usual form of contact.
Counter with Cross-Sell
Not every home will fit every lead, as finding the perfect home for somebody is a tall task in itself. Individuals may decide against the property they initially enquired about, which can essentially put the likelihood of a conversion to lease on ice. However, just because that particular property was not a good fit does not necessarily mean the sell has to end there.
Cross-selling is key here, as you can showcase other properties that you own or manage that may better suit the person/s. Developing an understanding of the client and their needs will be essential to cross-sell, as you’ll be more likely to match the home to the person, increasing the likelihood of a lead to lease conversion, even if it wasn’t the property you first had in mind for them.
In summary, communication is key if you want to improve lease conversion rates. Make it as easy as possible for your client to enter into a lease by responding promptly to any questions, communicating via their preferred channel and offering alternative options when they decline a property.