June 13, 2018
Seventy-one percent of real estate agents use some type of customer relationship management system (CRM), and more than two-thirds of them use this technology to keep in touch with their contacts. Still, a good chunk of realtors, agents and brokers are making the same errors -- ones that could jeopardize sales and revenue. Usually, it's not the technology that's the problem but the end user. Here are three common CRM mistakes and how you can avoid them.
CRM is pretty awesome. This software collects data from various sources and keeps it in one place so you can automate workflows, streamline contact management, customize your services and move prospects through the real estate sales funnel. Twenty-four percent of CRM users, however, say end-user adoption is a major challenge when incorporating this software into their business model, while 34 percent say it's a moderate challenge.
Training your staff to use this software properly can solve many of the problems associated with CRM adoption. If you are already familiar with CRM, teach employees how to use the various features and functions that improve customer service, sales and revenue. As a result, your staff will feel more comfortable using this software. Training is crucial if you want CRM implementation to be a success. Research shows that 30-60 percent of all CRM projects fail.
Your CRM software is only as good as the data you feed it. If your data is incomplete or out-of-date, your employees won't be able to complete simple day-to-day tasks like selling properties and contacting buyers. Bad data costs the United States economy more than $3 trillion every year, and it can cost you as much as 25 percent of your entire revenue.
"For example, when a customer is filling out a form on a business' website, he or she might make a careless mistake such as misspelling a word, providing an outdated address or giving the wrong phone number," says data quality and retail expert Stephanie Zatyko, writing for Experian. "Once these mistakes are added to the system, they can be difficult to correct."
Collecting accurate, real-time data from new and existing customers reduces bad data in your real estate CRM system. There are various ways you can do this. For example, you can tell your staff to ask prospective homebuyers to confirm their contact details at various touchpoints to ensure you have the most reliable information at all times. Research shows that real estate agents who use CRM software are 26.2 percent more productive than those who don't.
Not all CRM tools are the same. Some programs are more difficult to use than others, while some have outdated functions that provide your business with no real value. It's no wonder, then, that 25-60 percent of CRM initiatives don't meet expectations. Even more worryingly, 49 percent of all CRM projects fail completely.
It's important to choose a reputable vendor who can tailor software based on the requirements of your real estate agency. This way, you can select a program with the features that provide you with the biggest return on your investment and help you facilitate everyday tasks. Still not convinced? One real estate company generated 71 percent more leads and 54 percent more unique website viewers when they used CRM.
CRM is a powerful piece of software that will revolutionize your real estate business. You can use it to market properties, upsell products and services, and engage with new and existing customers. Just avoid the three mistakes on this list. Otherwise, you could do more harm than good.