According to what I have read, the national average of floor calls converted to customers is a whopping 2%. You ready taht right, 2% of the consumers who call a Real Estate office are converted to a customer.
When I first got into Real Estate I was told not to waste my time doing floor time. I was told that they never turn into a customer and that you could be out marketing yourself versus sitting in the office waiting for the phone to ring. That's what I was taught by Realtors who had been in the business for 20 years or more. Of course when I heard that, I realized there was probably a great opportunity to gain business by their lack of abilities.
First I had to analyze a floor call. It was easy. Almost every floor call that came in was from a consumer wanting to know the price or the address for one of our listings. The average Agent gave them the answer immediately and then said good bye. I listened to almost every Agent in my office "do" floor time and found they all did it the exact same way. The Agents really wanted to get off the phone so they could go back to doing...whatever they were doing!
So how do you convert a phone call to a customer. It's actually very easy. My first year in business, 2001, I had 36 sales...28 were floor calls. All I had to do was to figure out how to keep the customer on the phone long enough to get them to like me...I think I had about a minute to accomplish my goal.
The first thing I did was to take my time giving them the info. Instead of writing how this works, I'm going to demonstrate with a scenario below.
Mitch: Thank you for calling Tropical Realty, this is Mitch, how can I help you?
Caller: I would like to know the price of MLS# 333333.
Mitch: No problem. I have to look it up on my computer, hold on a few seconds for me while I open the program. So are you having a fun day today?
Caller: Sure, it's ok.
Mitch: I hear ya! Where are you calling from?
Caller: Vermont
Mitch: So you finally are making the decision to get out of the cold eh?! I'm from Boston so I know exactly what you are going through. I have to say, I don't miss the cold and the snow!
Caller: Yes, I have had it with the snow.
Mitch: Did you just start looking? Are you working with a Realtor already?
Caller: No, I just started looking.
Mitch: What are you looking for?
Caller: Just a small 3 bedroom house under $200k in the Melbourne area.
Mitch: Cool. Ok, I have that listing pulled up for you. I also plugged in your criteria while we were talking and there are another 45 homes that fit your criteria. Would you like me to email them to you?
Caller: Sure that would be great!
Mitch: The listing you called on is $225k. It's a great house. Whats your email address so I can send you that list?
Caller: It's caller@caller.com
Mitch: Could I have your phone number too so I can verify you got my list. I"m also going to set you up in an update system so I will notify you of any other listings that match your criteria.
Caller: My phone number is 902-333-5555. I'll look forward to those updates, but you realize I'm not buying for a while, I'm just starting to look so I don't want to waste your time.
Mitch: Its' not a problem at all. Let me know if you have any questions about the listings I send and if you need me to change anything in your criteria let me know. If you don't get the list give me a call. I'll give you a shout in a month or two to check in and make sure you don't have any questions.
Caller: Thanks alot. I appreciate the help.
So what did I accomplish here. Firstly I kept the caller on the phone for a lot longer than the average floor person. By doing this I was able to spend some time learning about his needs while making sure they weren't using a Realtor already. (always ask this as you don't want to do someone elses work) Once I understood what they needed I asked him if he would like a list of properties emailed to him. The answer is ALWAYS yes on this question. Once you have done that, you have created another possible customer for life!
I have used and taught this system to many Agents around the country. Anyone that implements this and practices it, does great! I don't think I have any Agents that haven't done a good job converting phone calls to customers.
As always, if you need help or have questions about this very easy to use system, don't hesitate to call or write me. I'm always here to help!
Mitch My very first listing, which ultimately was my first transaction, was picked up on floor duty. The 2% you quote, like any statistic, if put into perspective can take on a whole new meaning; two percent represents about $30 billion (yes, billion with a "b") in real estate transactions last year. I'd love a piece of that! However, different lead generation works for different folks. If phone conversion isn't you're thing, then floor duty won't be your thing. However, scripts might make the difference with a little practice.
Hi Mitch!
Fantastic blog!!!!! Your realization that you could take advantage of the negative attitude of others was a real eye opener! Thanks for the blog and the script!
Paula
Mitch, thanks for the tutorial. I still need to remember to practice scripting. I like the way you presented it here, and would love to read one by you for greeting Open House visitors. I'll be waiting!
Thanks for the reminder. Our company now has virtual floor too, with web leads forwarded to the floor agent.
Mitch -
Great Qualifying Process, man!
I rarely take floor duty, and I, too, see other agents just providing the "quick answers" and having buyers just hang up.
It takes skill, like you have, to establish rapport, qualify the customer inquiring, and seeing if you can get the valued CITO - Come Into The Office!
I train my Team members to find out what attracted them to the house they are calling in on, and what their timing is. Then, and this is CRITICAL, they ask if they are working steadily with another agent. "We wouldn't want to step on anyone's toes, you know!" is the exact dialogue we use.
After also establishing financial credentials ("How much do you have saved up for a down payment," and "How much are you looking to pay each month for your house payment," is far better than, "Are you Pre-Approved," and "How much do you want to spend?"
I then get contact information - must have a phone number! Then, a great segue.
"If you'd like, I can check to see if there are a few other similar homes nearby you may have missed. Would you like me to do that for you?"
My check is broad, and when I call back, about half an hour later or so, I tell them about the list, and ask that we get together to review these so I know I am on the right track. (This works a heck of a lot better than emailing cold prospects a bunch of stuff, and praying they will call you back!)
We probably get about 60% of inquiries to allow us to investigate further for them, and half of them end up as an appointment. Again, half eventually buy - perhaps 2 in 10 from the original group of inquirers.
Call anytime you need anything!
DEAN & DEAN'S TEAM CHICAGO
Good Advice Mitch & Dean - I have to admit I don't do as well qualifying on the phone. There just seems to be so much resistance by consumers. But I'll give it a fresh shot next time I'm no floor!
Thanks for the comments. I am lucky to have the gift of gab so talking to people on the phone is a natural for me. However, I am as nervous as the next guy when doing so. Nobody likes rejection! In one of my other lives, I used to open telemarketing departments for companies. I learned a lot doing that, but mostly I learned not to read scripts and I have always taught not to read them too.
Of course if you don't have the gift of gab, then following the above script will help, but you need to adjust it to your own style. I feel that way about all scripts. I remember one of the first telemarketing rooms I took over was failing terribly. The first thing I did was meet with all the telemarketings (there were about 30 of them) and I had them all take their scripts out and rip them up. They love it! I sat down with each of them individually and wrote guidelines to follow versus scripts. This lawn care company had sales of $200k per year when I took over. Within 6 months they were up to $800k per year in contracted sales. My job was done.
The key to telephone work is to deal with your strengths. If you have trouble talking on the phone, then you need to practice. Once you feel comfortable in what you are saying and talking about, you should do well with this program.
The most important ingredient of handling floor calls is to have fun. If you are fun, they will want to chat with you. I ask almost everyone if they are having a fun day! That usually breaks the ice pretty good. Good luck!
When people call a real estate office, they generally believe they're going to get a high-pressured salesperson who only cares about the commission. What they don't realize is, the majority of us enjoy providing service. After getting the caller to let their defenses down and loosen up a bit, they begin seeing that we do in fact care.
So simple...but genious. I'm sure you're converting significantly more than 2% of your leads with your fluidity on the phones!
I don't use "scripts" because I don't want to sound scripted, I want it to feel very informal for the people I talk to on the phone. Thank goodness for the fairly slow speed of my MLS because it really gives me a chance to chat up some of these people. It also gives me the chance to enter them as a prospect in the system. People LOVE the automated emails. I am in my first few months as a Realtor and have gotten 1 buyer and 1 seller under contract this way, and just friday had a listing presentation that went pretty well (I should hear tomorrow if I got it, and I feel pretty good about my chances) all from floor time!