Real estate sales are a highly nuanced process. The industry works with high-involvement products that demand a large monetary investment. Due to this, the buyer’s journey becomes longer, and prospects must be carefully nurtured through this entire process.
However, real estate generates a large volume of leads for diverse sources. These numerous leads expect quick responses and personalized services in order to keep up their interest in the product. How can the buying journey for each of these prospects be managed in a way that converts them to positive sales? The solution lies in creating and managing an efficient sales funnel for real estate.
What is a Real Estate Sales Funnel?
A sales funnel is a visual representation to map and track the end-to-end interaction of your customers with your brand. It breaks down the entire journey of your customers into various stages, starting from the point that they raise an inquiry and ending when a sale is successfully concluded. This journey is best tracked in the form of a funnel, because it is always widest at the top where many prospects are in the system, and narrow at the bottom because only a select number of these prospects are actually converted into sales.
For real estate, a strong sales funnel means a strong sales process. In turn, this will boost the sales velocity and lead to higher revenue and profitability. Due to the nature of the real estate industry, it becomes even more important to pay close attention to the incoming leads, and direct resources toward nurturing only the right lead. A sales funnel is the best way for real estate agents to gain these insights, and it also has a variety of other benefits.
What is the Importance of Real Estate Sales Funnel?
As elaborated above, a sales funnel is the way for real estate businesses to close more sales. It acts as a definitive guide for marketing and sales teams, so that their efforts are more targeted and can lead to the best results.
Here Are Some Of The Other Advantages Of A Sales Funnel For Real Estate:
Determines the efficiency of your marketing & sales process:
A sales funnel is a representation of the purchasing journey from your customers’ perspective. It indicates how prospects discover businesses, and their progress through the stages of the funnel. With this information, a real estate business can identify the marketing channels that are bringing in more leads, and the sales practices that are keeping customers engaged through their buying journey.
Identifies the loopholes in your operations:
Weaknesses and loopholes in your systems are easily identified due to the graphical way in which the buyers' journey is shown in a real estate sales funnel. You can visualize and track the exact stage at which maximum loss of prospects takes place. Accordingly, you can direct more resources at this stage and try to retain more prospects.
Guides your nurturing efforts:
You can improve your nurturing efforts by tracking each stage of your sales funnel and determining the best way to approach your prospects. Establishing meaningful communication with prospects at the right time will go a long way towards maintaining their interest in your product and brand.
Since the sales funnel is such a crucial aspect for real estate businesses, it is vital for it to be maintained in the best way possible. A real estate CRM tool can help in optimizing the sales funnel and leveraging it to get maximum results.
The role of CRM in Optimizing your Real Estate Sales Funnel
The average funnel conversion rate for most businesses is between 3.1% to 5%. This conversion ratio can be improved through a stronger sales funnel, which can be obtained with the help of real estate CRM.
Real estate campaigns typically generate a lot of leads that enter the funnel. Retaining each of these is an impossible feat, but it is essential for sales teams to focus more on the leads who have a higher desire to purchase. However, sales teams cannot always differentiate between the hot and cold leads right at the start of the buying journey.
Your hot leads may thus become cold leads and drop out of the funnel because of delayed responses and lack of nurturing efforts. Every such lost lead is a missed opportunity to earn profits. However, CRM helps to spot and stop all the potential leaks from your funnel.
Here Are The Ways In Which Crm Optimizes The Real Estate Sales Funnel:
Streamlines the inflow of leads into the funnel:
CRM automatically captures all incoming leads and places them in the top of your funnel. Your sales agents can directly begin interacting with new leads instead of wasting their bandwidth on manual entries. Incoming leads can also be segregated by real estate CRM based on criteria suited to your business requirements.
Scores and qualifies the right leads:
Due to lead qualification offered by CRM, your teams can focus on the most prospective leads coming into your funnel. CRM tools use various metrics to qualify the leads and isolate the ones most likely to convert to sales. Hence, your teams do not need to blindly target every single prospect entering the system, but instead can reserve their efforts for the right leads only.
Keeps leads engaged through the sales funnel:
After identifying the hot leads, it is essential to be in regular communication with them and to track these communications. CRM helps you send timely and relevant communication at every touchpoint of your sales funnel to keep prospects engaged.
Keeps the sales funnel up to date:
Your sales funnel needs to be updated with real-time information as your prospects move down the funnel or exit it. Through automation, your CRM can track every activity and interaction with a client and accordingly update their stage in the funnel. This has dual benefits for your business:
- You can get accurate insights about the volume of leads in every funnel stage
- You can eliminate manual errors and delays in updating the status of leads through the real estate sales funnel
In these ways, a real estate CRM tool streamlines your sales funnel. Your operations, as well as the work of your teams, is made more productive through a well-managed funnel.
A sales funnel for real estate can greatly transform the work of your business. It helps you allocate resources more efficiently and make informed, data-driven decisions. CRM can optimize your sales funnel and boost your sales velocity.
Sell.Do- India’s only integrated real estate CRM solution is a robust tool to help with the management of your sales funnel. It can also benefit other aspects of your real estate business, right from lead management to post-sales support.