The primary focus for new home marketing and sales professionals is on generating leads and turning browsers into buyers.
The Builder Benchmark Survey: Selling & Marketing New Homes, conducted with Builder Partnerships, gave new home sales and marketing professionals an opportunity to share their thoughts about leads and selling homes in general.
In prior years, our surveys focused on follow-up for online leads—whether the builder followed up at all, how quickly they did it, and their use of an Online Sales Consultant role in the organization.
In this year’s survey, in addition to questions about lead follow up, we wanted to take a step back at ask questions at a higher-level–the biggest challenges they face, lead volume, and sales velocity.
Some highlights from the report:
Major Challenges: No surprise, that Generating New Leads and Understanding Return on Investment were two major challenges reported by sales & marketing professionals
Sales Velocity: 31% of builders reported it took an average of 60-90 days to sell a home while 22% reported it took only 30-60 days. For nearly 25% of respondents, it took less than 30 days!
Number of Leads: 60% of builders reported getting less than 50 walk-in leads a month, while 55% reported less than 50 online-leads a month. 20% reported that more than 150 online leads a month.
Lead Follow-up and Conversion Rates:
- 29% of builders converted more than 8% of prospects into purchasers while another 16% reported converting between 5-8% of leads. This is similar to the 2018 survey that saw almost half of builders reporting a conversion rate of 6% or better.
- In our current survey, almost 1 in 5 builders said they didn’t know their conversion number.
- While email and calling are still the most popular methods for follow-up, given the shift in social dynamics, it’s no surprise that texting was not far behind!
- 55% of builders use a pre-defined follow-up sales process for more than one year.
- 36% of builders reported being Satisfied with follow-up, while 18% said they were Very Satisfied. This result compares closely with our prior survey in which almost 1 in 5 builders felt very satisfied with follow-up.
OSC Role: More than half of builders reported using an online sales counselor (OSC) for follow-up. In comparison to our 2018 survey, only 21% reported using an OSC. In this year’s survey, there was a definite skew based on the number of homes built. Larger builders were more likely to have an OSC on their team: 81% of those building 200+ home per year, compared to 49% of those building 51-200 homes, and only 28% for those building fewer than 50.