In order to make sure you’re using lead generation tools that are actually working for your business, you need to assess them to see if they are worth your time and money.
The first step is to come up with every lead generation tool that you are utilizing. Whether it is social media or traditional advertising, most agents and companies have a number of ways of getting their name out.
You’ll also need to calculate the amount of time and money that you are spending on each tools. Most tools will require more time or more money and, depending on your own resources, you can find the ones that work best with your own time and budget.
In order to do the calculation of your conversion rate, you’ll need to know: the number of leads generated, and the number of those leads who became a client.
However, there are a number of challenges to measuring the effectiveness of a marketing program.
First of all, it’s unknown how long it takes for a lead to turn into a client. Someone who sees your marketing today might not act for a few days, a few weeks or even a few months.
It often takes multiple touches to turn someone into a client or customer. Purchasing a home is one of the most important decisions that a person will make. In the early stages, homebuyers are often just consumers are often simply gathering information about the market.
Different marketing methods affect people differently and it can be difficult to narrow it down to which one was the most effective.
How to measure your ROI
The simplest way to measure your ROI is to utilize either first-touch or last-touch attribution. This method allocates the credit to either the first or last program that converted a customer into a lead.
Once you know how many leads you received from a certain source, you can then calculate the cost per lead for each tool. You can also figure out your conversion rate by seeing how many of those leads turned into clients.
One of the best ways to track leads, according to Agent EDU, is a customer relationship management (CRM) system. These programs are designed to help agents store information that will enable them to sell more efficiently and effectively. For each different marketing method you use, keep track of the resources (time, money) that were spent, whether or not each lead becomes a client and whether or not it results in recurring business.
Running these numbers on a regular basis is necessary to see which lead generation tools are working for your business and which are not. If certain tools are costing you a lot of time or money but aren’t providing a lot of results, then it’s time to either change up your methods or to invest more in the tools that are providing you with the highest ROI.