Builders have a unique challenge when it comes to lead management — a new home is rarely a quick sale. But understanding the keys to lead conversion and how they apply to builders is crucial to a builder’s success.

The Inbound Sales Network posted “The 3 Keys to Lead Management — Speed, Process, and Persistence.” Here’s a brief summary along with a few pointers.

Speed

The ISN’s post states: "According to Leads360’s analysis of 25 million data points, speed is the single most critical component to lead conversion. Conversion rates are 391% higher when the lead is called within a minute of their inquiry; 120% within two minutes; 98% in under three minutes; 62% in under 30 minutes; and 36% in under an hour.”

To me, this emphasizes the importance of having online representatives who are fully trained as sales professionals with their conversion rates being measured by whether the client visits a site and/or buys a home. This is an underdeveloped aspect of the industry that can yield powerful results when executed well.

Process

ISN’s post states: “Quickly contacting a lead is the first step to higher conversion rates, but not all leads turn into instant leads [sic], and in many companies, they are lost or dropped. Progressive businesses have started focusing on squeezing value out of leads that do not immediately close, and have had some amazing results. According to Forrester Research Reports, companies that have implemented an effective lead nurturing process have closing rates 300% more than their competitors who fail to take a long-term view of prospects.”

This quote demonstrates the importance of process for any sales organization. But with builders, it’s especially important because buying a home rarely occurs overnight. Builders should invest as much in the sales process (I’d argue more) as they do in the price, product, presentation, and other tangible aspects of the business. Sales professionals should know the process in and out and managers should be ready and able to hold them accountable to that process.

Persistence

ISN’s post states: ”Another key factor that many organizations underestimate is the value of persistence. In a recent analysis of over 15 million sales leads, Leads360 discovered that making two calls versus just one, increases the chances of contacting a lead by 87%."

This one needs no explanation. It’s just follow-up, follow-up, follow-up.

Jason Forrest is a professional sales trainer, coach and speaker specializing in new home sales. He is the author of Creating Urgency in a Non-Urgent Housing Market and 40 Day Sales Dare for New Home Sales. He can be reached at jason@shoreforrest.com and his website is www.jforrestgroup.com.