Real estate is one of the most booming sectors that deals in high-involvement products. Purchasing property is a milestone for every person and hence numerous inquiries and transactions related to real estate occur on a daily basis. For any business operating in this industry, it is confusing to keep track of the large volumes of incoming leads and the number of deals that are actually closed. However, staying on top of this data is crucial for the success of real estate companies. How can companies do this? The answer is a real estate funnel.
What is a Real Estate Funnel?
A funnel is the best way for real estate businesses to optimize their sales process and secure more closures. It is a visual representation that maps and tracks the complete interaction of customers with a business. Through a funnel, you can break down the end-to-end journey of your customers into numerous stages, beginning from when they enter your system as a lead and ending when the sale is closed. The nature of the real estate industry makes it even more important for businesses to have a well-maintained funnel and to keep track of it. However, the sales funnel is complex and consists of various different aspects. Each of these aspects, or metrics, must be individually monitored to get an understanding of your sales figures.
Real Estate Funnel Metrics:
As elaborated above, a funnel for real estate tracks the movement of consumers as they go through their buyer’s journey. There are various touchpoints throughout their entire journey. Each of these touchpoints are crucial for converting prospects into sales, and hence must be closely monitored.
Here are the significant real estate funnel metrics that you should track:
Leads comprise the very beginning of your sales funnel. They are the potential customers who have raised queries, engaged with your marketing material, or otherwise displayed interest in your product. With respect to incoming leads, there are two important aspects:
- The number of leads
- The quality of leads
Both these funnel metrics will give you an indication of how your marketing and branding efforts are being received by the people. Your goal must always be to have a healthy number of highly qualified leads in your system.
Rate of Conversions:
Tracking your conversion rate will give you an idea of how many incoming leads were converted to paying customers. Even if your top-of-the-funnel shows a high volume of leads, the conversion rate is what truly matters. Measuring and tracking the conversion rate can generate valuable insights regarding:
- Strengths and weaknesses in your sales process
- The stage at which most leads are dropping out
- Efforts that are pushing people towards conversion
All real estate funnels begin with high volume leads, but a certain amount of these leads drop out from the funnel as they go ahead in their buyer’s journey. The leads that make it to the bottom of the funnel are the ones who will ultimately generate revenue for you.
If the number of total sales is low, you must reevaluate your sales process. You must optimize the efforts being undertaken at each touchpoint so that you can decrease the number of leads that drop out of the funnel.
Average value of each order:
This metric indicates the value associated with each customer who reaches the bottom of your funnel. It can be calculated through the average value that is spent for every sale brought by a customer. Your sales process will lack productivity if you end up spending more to achieve a sale as compared to the value that you are receiving from it
The Role of CRM help in Tracking Real Estate Funnel Metrics:
CRM is a robust software that can streamline all your business operations. It automates all redundant tasks, helps you track the work of your teams, and reduces the risk of manual errors. However, one of the most significant benefits of CRM for your business is the easy tracking of your real estate funnel metrics. Let us look at the ways in which CRM does this:
Metrics will generate the right insights only if your funnel is accurate. CRM ensures that no incoming lead is missed, and automatically brings these to the top of your funnel. Through auto-capture, every lead is entered in the system, and you have the correct data to measure metrics.
Detailed funnel insights:
It is not always easy to gather inputs on every lead at every stage of your funnel. With CRM however, this is possible. It offers detailed funnel insights such as:
- Bifurcation of qualified and unqualified leads entering the system
- History of every lead’s interaction
- Data analysis: Bottlenecks in the sales process
Detailed sales reports:
By adopting CRM, you can easily and readily get all the information you need to track your metrics. The software automatically generates sales reports, charts, graphs etc. and presents your data to you in a readable manner. You can set the system to produce such reports daily, weekly or monthly, as per your unique requirements.
CRM is an efficient way to gather and store all your data in a centralized platform. Although, its advantages extend beyond the collation of data, and it also analyzes the data for you. It identifies trends and patterns which can help you make informed decisions about the optimization of your sales process.
Tracking real estate funnel metrics can help you stay informed of the health and performance of your overall business operations. CRM is one of the most efficient ways to do this and hence is an essential asset for every business. Sell.Do- India’s only integrated solution is one of the best real estate CRM for any business to consider due to its expansive feature set and high functionality.