A lot of people want to know what kind of conversion rate they can expect when working with us. Here’s the thing: We don’t have the ability to track all of our clients’ results. We’re required to report back to you, so we report our numbers and our analytics. However, our clients don’t always report their numbers back to us regarding their sales and profits. We try to help people track their numbers, but we can’t require clients to send them to us.
For the purposes of this article, I’m going to discuss conversion rates with real estate clients. We have hundreds of campaigns in this arena so we know pretty well what these numbers should be.
On average, we’re making between 450 and 750 calls per day. Of those calls, a good contact rate is about 5%. That equates to about 25 to 40 people per day. On an average day, we know the conversion rate depending on the list or type of data you’re using. Here are the best kinds to use.
The first and best is propensity data that you buy from a data company—specifically, the kind of data where you can get very specific with these numbers and even have the data company add a “most likely to sell” filter. If we have a list like this, there’s a good chance that 10% of those people are going to become leads.
“A good contact rate is around 5%.”
The second-best is the low-hanging fruit in the real estate world, including for sale by owners, expireds, canceleds, and withdrawns. Of the people we talk to on this kind of list, we’re able to convert about 8% of them to leads.
Next on the list is other propensity-type data that you don’t have the ability to add your criteria in to. The likelihood of converting those people to leads is about 6%.
Finally, we have straight neighborhood data. There are no filters or other indicators on it. This cold traffic only leads to about a 1% to 2% conversion rate.
If you go through these numbers and calculate them out, you see that the best data source, by far, is that propensity data with additional filters to your exact criteria.
I hope this was helpful. If you’re interested in talking with us about how we can help you scale your outbound prospecting and grow your business, don’t hesitate to give us a call or send us an email today. We look forward to hearing from you soon.