Selling property is not like selling any other product. After all, selling high-ticket products will require a different kind of strategy. This makes the value of the sales lead much higher in this business than in any other business. In property markets across India, the focus of brokers is always on leads, however, the subject of lead generation and lead management is not widely discussed.
What are lead generation and lead management?
Lead generation is the process of identifying potential buyers, while lead management is the next step in identifying and pursuing quality leads. Converting a lead into an actual sale depends on the quality of lead generation and lead management.
Since real estate is a one-time purchase for most Indians, the follow-up aspect of lead management is not a concern for either the developer or the broker. However, follow-up lead management can reward sales channels with referral buyers and, in some cases, repeat purchases when someone decides to move on to buying a second home.
Lead generation in real estate
There are many traditional and new-age channels for generating sales leads. The most common sources of lead include:
This traditional form of generating leads is still popular in the Indian property market. The reason is that marketing ROI is easier to measure for a sales channel because there are sales inquiries and few sales transactions immediately following the promotion. The sales channel should manage inquiries with proper follow-ups.
However, the impact of the coronavirus on real estate has led to shrinking marketing budgets, and this method is becoming more expensive in terms of its cost-to-change ratio. Also, lack of quality leads is an issue as most developers continue to use the same medium for advertising. Everyone has the same data in any property market.
Another tool for building online engagement is through various social media. It’s a cost-effective way to get to know potential buyers. However, managing social media is a time-consuming exercise for brokers. One should also have an understanding of the buying behavior of property seekers. Failing that, these sites open a number of non-serious inquiries.
Data analytics involves using technology to track potential buyers through their online searches. These data sites track buyers’ search preferences through online searches and call tracking. It is then followed up with a targeted message and/or ad that leads to a conversion. It is a new marketing channel and is in its infancy in India. However, if property agents learn to use data analytics, it can be a very rewarding lead generation and management practice.
Referrals or peer-to-peer marketing is a tried-and-tested lead generation practice that yields high returns on capital. Referrals may be through word-of-mouth advertising from a previous buyer or broker.
This is great sales practice when it comes to the quality of leads, and estate agents who have earned goodwill in the neighborhood know its importance.
While advertising serves as the top lead generation exercise, below activities like industry fairs, seminars, and neighborhood events lead to better lead generation. The key here is one’s networking skills and managing relationships.
It really is the best. It costs nothing, is more likely to convert a sale, and is a sign that you’ve got yourself a serious buyer. Nevertheless, lead management remains relevant here. A property agent who is unwilling to follow up will never make the best use of this lead.
In today’s digital age, project video marketing and/or placement on many free social media platforms, including YouTube, is an effective way to generate leads. For example, 3D virtual tours of properties are growing rapidly. However, as the property brokerage business in India is largely unorganized, this medium has not been explored to its best.
This is probably the best marketing channel for lead generation in today’s world. A blog that can weave together a project’s story, its USPs, its offerings, and other consumer touch points can connect well with today’s buyers, who are not only aware of their choices and concerns but are well-informed.
More importantly, buyers, today can filter out what is a directly paid ad and what is a legitimate review blog post. For this way of lead generation, brokers need the help of real estate bloggers. Unfortunately, there are very few cases of such smart content management in the Indian context.
Lead generation can be done by following any of the above methods, but with all the data readily available, the difference lies in how a property agent can improve their lead management to get better sales conversions.