Many agents today complain that they aren’t getting enough leads from their broker. Brokers and managers across the country are constantly trying to figure out how to capture more leads, process the leads, track their progress and make sure their agents follow up. The cost for a single lead contact has been quoted to be in the hundreds of dollars having been secured through a myriad of marketing efforts that includes newspaper, signs, classifieds, brochures, web tools…and, well..you name it.

Many agents are looking to these daily leads to keep their business going. The truth is that working this entry level contact is at the bottom of the customer loyalty ladder. It requires more work and money to convert to income while the real rich leads often lay dying in the office storeroom in files marked “closed”

A series of studies were done by U.S.Learning, a company in Memphis, Tennessee which studied the progression from prospect call to closed from leads generated in hundreds of companies. The results were clear that the initial lead call took a great deal more work, follow up, nurturing, sustaining and converting before a sale could be made.

After defining the different levels of buyer to client progression, the company noted that there were specifically six steps of customer loyalty beginning with the lead call. They identify the transition from the first contact or “suspect” to the highest level in the relationship “confidant” in a six-step format. This format clearly proved that working primarily with the higher end of converted relationships supplies the richest percentage of referrals, and the easiest to convert.

Conversely, studies indicate that a high percentage of agents have little or no follow-up with their client or customer after the sale. An even smaller percentage of companies have any consistent program of contact specifically within 7-30 days after the sale is completed. With such a minimal percentage of follow-up after the sale done by individual agents, management has an opportunity to rescue this valuable customer and begin nurturing both the buyer and the seller of each transaction. We can secure valuable survey information that would improve customer service, and more easily secure spin-off business through referrals.

Smart brokers understand the value of established relationships and are directing their newer agents to target and solicit this upper echelon of contacts for referrals. By pursuing this high-end group, management hopes to reignite these past relationships by instructing their newer agents to target them with personal phone calls and offers of additional services. Questions range from inquiries regarding their level of satisfaction with the property, to asking for opportunities to service the client’s friends, families or colleagues. This “after the closing” contact scores high on the customer relationship scale and when executed with genuine interest and concern, provides a comfortable environment to solicit future business.

While developing lead generation is critical to business development, using a targeted, consistent program of contact for past clients proves to provide an excellent source of qualified referral business while demonstrating the personal follow-up that secures and builds future business. Directing new agents to do what seasoned agents don’t seem to do make for a smart strategy to cut lead generation costs and spend less time and energy on a rich referral system. It has been shown time and time again that sales cycles are shorter and closer rates are higher when we diligently mine these “acres of diamonds”! .

Published: April 24, 2003

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