Clicks to Closing – The Internet Buying Cycle
April 26th, 2007 Posted in Online Marketing | No Comments »Over the past few months, I have spoken with a number of clients about the internet buying cycle. They have contacted me with the following questions:
- Should I contact a lead via the website by phone or email?
- How long should I wait before contacting an internet lead?
- Most of the leads I receive don’t turn into sales. What am I doing wrong?
These are all valid questions and most agents have the same questions. Why? The reason is that the internet buying cycle is different from the traditional buying cycle. Whereas in the traditional buying cycle, an average client will contact a real estate agent 3-5 weeks before they purchase a property, the average internet buyer will contact a realtor 20-50 weeks before they buy a property.
That is not to say that a bell curve does not exist in both those buying processes. I once met a woman who bought their 1 million dollar home off the internet without ever seeing the property. I know agents who have received an email lead on Monday and had a property in escrow by Friday with an all cash offer and 30 day close. The bell curve exists with both these buying cycles, however you build your business based on the middle of the bell curve, not at the ends of the curve.
Having said that lets look at the questions above and outline how the traditional buying process and the internet buying process are similar, and how they are different.
- Should I contact a lead via the website by phone or email?
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- What is the first rule of real estate……”face time”. You are taught that if you are not selling houses, you should be meeting people, passing out business cards and asking questions. This is the first rule of the traditional real estate buying cycle. The Internet buying cycle is the same. If a phone number is given, CALL THEM!!! Since you are not meeting them face to face, a voice is the next best thing and a positive first step. E-mail a lead ONLY if that is the only method you are given in the lead. A lead is exactly that, The first step to meeting a client face to face.
- How long should I wait before contacting an internet lead?
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- Most if not all people today multi-task and have a short attention span. As a result, it is critical that you contact a lead within 15 minutes of receiving the lead. There are many reasons for doing this, but the primary reason is that their actions are still fresh in their mind which will give the real estate agent the best chance of creating a re pore with that lead. Think of an internet lead as if it was someone walking into the office during floor time. If they had to wait to speak with you for 30 minutes, would they still be as interested as the minute they walked in the door? NO. They would move on to the next office, agent or activitiy. If someone is taking he time to fill in a form online, they have a need and you as an agent want to fill that need while it is still top of mind for that potential client. (BTW, It also helps that the Florida Association of Realtors did a survey of internet buyers and found that 85% of clients worked with the first agent that contacted them. That alone should get you to contact a lead as soon as possible)
- Most of the leads I receive don’t turn into sales. What am I doing wrong?
- Many clients I work with feel that because many of the leads they receive via the internet don’t close, that the internet is not worth the effort. In reality, the exact opposite is true. The internet allows the real estate agent to reach beyond their sphere on influence and communicate with potential buyers who they could not reach via traditional marketing avenues. In the traditional real estate buying process, agents are taught to first contact their sphere of influence, second set-up and work their neighborhood farm and third, start networking. All these actions have one aspect in common. They introduce you to maybe 1 or 2 levels of separation from your socio-economic situation. The internet however, opens you up to ALL potential clients, regardless of a persons socio-economic situation. As a result, The process you use to cultivate these clients is fundamentally different.
- FOR USERS: The internet fundamentally offers 2 services.
- It is an information source to research, collect and exchange information.
- It is a tool to allow users to make their lives easier.
- FOR BUSINESSES: The Internet offers 2 services.
- It is the business card of the 21rst century.
- It is a distribution channel to reach additional consumers.
- Understanding this basic concept gives the real estate agent a basis to know how to contact, cultivate and convert a lead into a client. So the answer to the above question is to understand that leads received from the internet require a different approach. In many cases, you do not have that socio-economic similarity you normally start with in the traditional buying cycle. As such, your approach to contacting them should be focused on building a base of trust, professionalism and service. Once you are able to build a base with the client, they will be more inclined to work with you. Remember, the purchase of a home is the single biggest purchase for most of your clients regardless of their socio-economic situation.
As I mentioned above, the internet buying cycle is fundamentally different from the traditional buying cycle, however if managed correctly is a distribution channel which exposes the real estate agent to clients beyond their sphere of influence. Once you understand this basic concept, you are on your way to converting internet leads into clients for life.
