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Follow-Up Is Still the #1 Reason Agents Lose Business

September 29 2022

Deploying a strategic follow-up plan is similar to starting to go to the gym. In both of these cases, success and results are produced with consistency. One day may not bring about instant results, but one year certainly will usher in amazing wins.

When it comes to refining and streamlining the way that real estate businesses engage with their spheres, many agents avoid follow-up because it's not the most fun task to do. It's likely that an agent will prioritize interacting with active clients over warming the colder leads in their sales funnel.

This is one of the reasons why follow-up is still the No. 1 reason why agents lose out on business.

To convert more leads and build better relationships with your clients, you have to be diligent, motivated, and consistent with your follow-up.

Follow-up boosts lead conversion

Follow-up is what separates the agents who fail from top producing agents. Agents who just want quick wins slack on their follow-up, while best-in-the-business agents who build longevity are dedicated to a scaleable, success-oriented follow-up strategy.

Strong follow-up action plans are what allow you to tap into the goldmine in your database.

When you warm prospects and continually follow up, you are more likely to stay top-of-mind with your leads. This allows you to retain your business opportunities throughout the entirety of your sales funnel — rather than seeing that they are far-off from their transaction, labeling them a "trash lead," and ceasing communications.

To grow your business and maximize efficiency, revenue, and closed deals, you need to create a constant stream of leads that are cycling through the full sales funnel.

You need to work your leads all the way through to the home run of conversion, not give up after the first inning.

  • Pro Tip: Did you know that only 25% of leads in your CRM are ready to buy at any given time? Additionally, nurtured leads go on to make 47% larger purchases than those who buy immediately.

If you're following up with the remaining 75% of leads in your database that are not conversion ready, you can create a sales cycle that continually generates transaction opportunities.

If you don't follow up with the 75% of colder leads and only focus on hot leads, you're likely to hit a stall in your lead funnel once your current clients have closed.

Strategic follow-up improves client experiences

Do you want to create lifelong client relationships to access repeat business and referral opportunities? You need to do the legwork of keeping in touch with your sphere from first contact.

Besides giving you access to more transactions to boost production, good follow-up also directly benefits your clients by improving the experience they have while working with you.

Following up is like rolling out the red carpet for your clients.

When you are communicating and sharing valuable information that helps them achieve their real estate goals, you are positioning yourself as a priceless asset to them. You are also showing them that you care, which is the first step to creating a meaningful relationship with your sphere.

Following up shows clients that you:

  • Have great communication practices
  • Prioritize them and their needs
  • Can answer questions quickly and effectively
  • Will answer them whenever they reach out to you
  • Will act as a strong guide when it's time to buy or sell

In today's world where consumers expect Amazon-type instant gratification, transparency, and an open line of communication, strategic follow-up is becoming increasingly important for real estate professionals.

5 follow-up best practices to start growing your business

According to a recent study conducted by RealTrends, these five follow-up strategies proven to generate more income are the activities that make real estate agents successful.

1. Marketing should target both potential new leads and former clients.

Agents who market to both fresh leads and past clients see an average of 9% more transaction sides than agents only focused on networking with new clients.

2. Implement a systematic follow-up process for every contact.

Agents who do not employ systematic follow-up average 22% fewer transaction sides than agents who have a formal workflow in place for both past clients and new leads.

3. Workflows for both former clients and new leads should use a mix of contact types, including programmatic and social media advertising.

Agents who do not use programmatic and social media advertising tend to see 29% fewer transactions on average.

4. Aim for 10 or more touch points per person, per month.

Making 10 or more touch points per month helps agents see 39% more transaction sides than their peers.

5. Invest time in marketing and networking to grow your database beyond the tipping point of 500 contacts.

Agents with databases of over 500 contacts have an average of 25% more transaction sides.

To view the original article, visit the BoomTown blog.