As marketers, we work hard to generate leads—we deal with a myriad of promotion possibilities and formulate a strategy to entice potential home buyers to inquire about our communities. In order to measure the effectiveness of these marketing programs, you need to have the right key performance indicators (KPIs) in place.
In this webinar with Meredith Oliver and Matt Riley, ”Marketing by the Numbers: Skyrocket Your Sales & Marketing ROI with Fail-Proof Metrics”, Dave Betcher discusses the five key metrics you need to know that will help shape your marketing strategy and provides benchmarks of these metrics based on a sample of 35 single-family home builders and multi-family developers.
Here are the key metrics you need to be measuring:
1. How many website visitors convert to a lead?
This first metric to know is how many website visitors complete a registration form on your website. This is an important question and one that you can find out relatively easily based on setting up Goals in your Google Analytics data. <link to goal set up on the google analytics site>
In the sample of builders, less than 1% of visitors filled out a form to become a lead.
2. How many leads do I need?
If you have 100 homes to sell, how many leads do you need to find those 100 buyers? This metric relies on a few variables, including how many monthly leads you get and what the conversion rate is for leads to buyers. If your marketing generates 75 leads a month, you would need to convert almost 6% of these leads per month to sell all your homes in 24 months.
For single-family home builders, 2-5% of leads in their CRM converted to buyers, while multi-family developers managed to sell condos to 7-9% who expressed an interest in their community.
3. Where are my leads coming from?
Focusing at the top of the funnel, the next metric to look at is *where* your leads are coming from— are potential home buyers calling in, walking into a model, or coming through online sources such as your website. This is a slightly different way of looking at your leads. Instead of evaluating “how they heard” about your community, which is another metric that can guide the tactical aspects of your marketing, evaluating lead mix assists with finding the best approach for follow-up and maximizing lead conversions.
In the sample of builders studied, single-family builders received approximately 40-42% of leads from online sources. For multi-family developers, this number was 60%.
4. Where are my customers coming from?
By understanding where your customers are coming from, it forces you to look further down the funnel and evaluate the source for buyers. Are purchasers coming from a walk-in, call-in, or online? While you may be generating leads in a certain way, ultimately, you need to know the source of the buyer.
In the study of builders, an Online Sales Counselor (OSC) had a big impact on converting online prospects to purchasers. While walk-in buyers were more likely to become a buyer in general, for builders with an OSC, 44% of online leads became buyers. For builders without an OSC, this conversion rate was less than 30%.
5. How well is my team following up on my leads?
In prior studies, it was discovered how low follow-up can be (in some cases only 30% of online leads were followed up on). While merely following up may make a difference, studies have proven that being fast and consistent, will help you convert more leads. There is an expectation from buyers that you will respond to their inquiries–and quickly. If you don’t, your competitor will. As a result, you need to know the percentage of prospects who are being followed-up with, looking at phone calls and emails, and evaluating their impact on overall lead conversion.
In the sample of builders, the OSC impact was again pronounced. For builders with an OSC, approximately 60% of leads were called back and 90% received a follow up email. Without an OSC, the numbers were significantly lower—only 15% of leads were called back and 63% were emailed.
Marketing is a numbers game.
How did you compare to those benchmarks listed above? Are you doing better or worse?
While your numbers may be higher or lower than what was discussed in the webinar, what matters is that you know them for your own business.
By knowing this information, you gain greater insight into your business so you can adjust your sales and marketing programs and more efficiently convert your prospects into purchasers.