New Survey from Lasso and Builder Partnerships
Lead volume is important, but the quality and consistency of follow-up are major precursors to sales. We wanted to understand how home builders are following up with online leads in 2018. In a joint survey conducted by Lasso CRM and Builder Partnerships, we asked builders who follows up with leads, which systems they use to manage leads, if they are satisfied with follow-up, and how well leads were converting.
In prior years’ surveys, we found that only 25-30 percent of home builders followed up with online leads. This means that by just following up on the leads you are getting today – without doing any further marketing – you have an opportunity to leapfrog your competition.
This year, we wanted to go deeper and obtain a better understanding about how builders are following up with their online leads, and help to identify potential gaps in the process. Builder Partnerships surveyed their members to find the answers to these questions (and more). Seventy-seven builders completed the survey. Here are the results:
Where are leads coming from?
- Most home builders ranked their website as the primary lead source for their business.
- Other popular lead sources mentioned included REALTORS® as well as word of mouth/referrals.
Who is following up with online leads and are builders satisfied with it?
- For most builders (62%), sales agents handled online leads, followed by an Online Sales Counselor (21%).
- However, only approximately 1 in 5 builders were very satisfied with how their leads were being followed up with today. The average satisfaction rating was 6.7 out of 10.
How well are leads converting?
- Only 1 in 3 builders reported a lead-to-appointment conversion that was at least as high as the industry standard of 20%, and only 13% reported a conversion rate greater than 30%.
- Almost half of the builders reported that at least 6% of their online leads converted to a contract.
How are builders managing their leads?
- 57% of the builders were using a CRM or proprietary system to manage leads, while nearly 1 in 3 were using a spreadsheet or had no system at all! This result was skewed for those closing fewer than 75 homes a year.
- The majority of the builders (53%) who used a sales process said it had no impact or less than 5% of their overall sales.
From this data, we can identify several opportunities for home builders to improve their follow-up processes and convert more leads, including:
- Use of an Online Sales Counselor to follow up with ALL online leads
- Audit and improvement of sales processes to be more targeted, relevant and effective
- Use of a home builder CRM system to capture, track and manage sales opportunities
To learn more about online lead follow-up and how to improve your conversions, download the Lasso guide, No Lead Left Behind: How to Launch an Online Sales Program.
To learn more about the benefits of being a Builder Partnerships member, visit BuilderPartnerships.com.