3 Best Practices for Successful Lead Management
Competition in multifamily housing is tough. Prospective renters have a multitude of choices when it comes to selecting a new apartment home, including location, floor plans, amenities and pricing. And with the number of new apartment renters entering the market exceeding those exiting to make home purchases, there are more leads flowing into your property than ever before. But, as lead volume increases and staff bandwidth stays the same, how can you ensure those leads turn into leases for your properties? Below are three best practices for driving a successful lead management program.
1. Respond to Leads Quickly – or Someone Else Will
In today’s 24/7 world, people expect convenient online self-service options that allow them to transact and communicate with you on their time and not according to your office hours. In property management, missing an opportunity to respond to an inquiry can mean missing out on a new lease or renewal.
Timely response to leads is critical to a successful sales and lead management process. According to the Kellogg School of Management:
- You are missing out on 75 percent of callers if you don’t pick up the phone before the third ring;
- 30 percent of leads occur after hours; and
- Companies that respond to inquiries within the first 30 minutes increase closing ratios by 30 percent.
If you’re not able to respond quickly to a prospect, they’ll move on to the next property. And, depending on the type of online service options your competitors offer, that prospect could already have a lease signed before your office opens the following day.
2. CRM is Your BFF for Optimum Lead Management
Knowing the needs of your prospects, when to contact them and what type of information they need is a win-win situation for prospects and leasing agents. Failing to meet these expectations will quickly turn off potential renters.
In property management, the right customer relationship management (CRM) system helps leasing professionals develop relationships with prospects and nurture relationships with residents by recording prospect- and resident-related activities. This makes it easy for the on-site staff to be reminded of follow-ups and details that help to facilitate a good relationship with residents.
Because a CRM system makes on-site management staff more efficient by automating common tasks, it can also help convert more leads into leases. For example, Forrester Research revealed how Microsoft Dynamics CRM impacted users by accelerating “the sales conversion cycle by 50 percent with a corresponding revenue gain as teams worked better together across different business systems, processes, and geographies.”
3. What Gets Measured, Gets Managed
How do you define the success of your sales and marketing? Data is key to measuring performance, investing wisely and getting the most out of your dollar.
Reporting on metrics such as lead source performance, cost-per-lead, leasing staff follow-up activities and conversions to leases can help drive better decision-making around key stages of your lead process and ultimately increase marketing ROI, producing net results that can include:
- Productivity savings of 16 man-hours per month due to the better reporting tools with data consolidation, reporting automation and richer dashboard capabilities.
- Marketing cost savings of more than $200,000 (risk-adjusted over three years) due to more real-time insights and improved campaign management from better analytics.
Allowing prospects to search for apartments and receive follow up 24/7, coupled with the proper reporting is essential for capturing leads. Having the right tools in place for each aspect of the lead management process can make your life easier and convert leads faster.