Recent posts discussed two core CRM fundamentals; use CRM software to capture all leads, and standardize on a sales ratings system. Let’s now delve into the importance of identifying where your leads are coming from and how having the knowledge of which marketing initiatives deliver the best results can drive more sales, reduce costs and improve profits.
- How many leads did you get last month?
- Where do your leads come from?
- What percentage of leads comes from past homebuyers, referrals, brokers, signage, online marketing or traditional print media?
These seem like simple questions, but in many cases builders and their marketing professionals aren’t always able to pinpoint these. It is difficult to know where to invest your marketing dollars if you aren’t sure what is bringing you the best return on investment. It may seem safe to continue to do what you’ve always done, but is there a better way, a fact-based way?
A CRM system will help you accurately determine your best lead sources by first identifying how a lead found you. In addition to the obvious question on a registration page of “How did you hear about us?” there are other ways to accurately determine which specific online sources your leads are coming from:
- Unique registration pages or landing pages for pay-per-click or listing services automatically identifies which registration page a lead used to sign up and records the source in your CRM system.
- Website analytics can track specifically which online source, or search engine the lead used to find your community: organic search, facebook, Google Adwords, Trulia or Craigslist, or maybe it was direct entry so the lead already knew of your site.
- Geographic tracking – Literally, where do your prospects and purchasers currently live? Granted, you may not know their address at the beginning of their buying cycle but during the process being able to determine which geographic area your prospects and purchasers are coming from will assist you in future direct mail or print media marketing initiatives.
The need to track results over a period of time is crucial to figure out cost per lead and cost per purchaser. This fact based information highlights best (and worst) sources so you can reallocate budget and perhaps reduce cost. More importantly, done well, effective allocation will drive more and better leads and more sales.
Can you measure lead quality and specific marketing campaigns? The answer is a resounding yes. Real estate-specific CRM systems will have a means to combine criteria such as the source and the rating of the prospect so you can determine the number of purchasers that came from a specific campaign. Not only will you be able to determine the cost per lead per source, but also the number of purchasers that resulted from that campaign. The ability to compare campaigns using multiple variables – cost, number of leads, number of purchasers, time frame, etc. is all part of the marketing strategy.
Analyzing marketing data and using the information that is available to you is very powerful. In today’s market being able to create more qualified prospects, increase sales velocity and manage costs by pinpointing the best sources of leads can play a big role in the financial success and sell out of every project and new home community. A CRM system will provide this information and much more.