Baylor Study Shows Depressed Housing Market Demands Change in Lead Generation TechniquesJuly 16, 2008
by Cynthia Jackson, director of communications and marketing, Hankamer School of Business, (254) 710-7628
A down housing market calls on real estate agents to change their tactics, according to Dr. Chris Pullig, Director of the Keller Center for Residential Real Estate Sales & Marketing at Baylor University's Hankamer School of Business. His recent study of lead conversion rates revealed that varying market conditions call for different approaches to lead generation.
In his article, "Lead Generation: What Really Works?," published in the Keller Center Research Report this month, Pullig reported that strength of market and lead conversion strategy have a complex nonlinear relationship.
Pullig's study analyzed lead generation efforts as being either "seek" or "attract" strategies. A seek orientation employs tactics such as phone calls, networking and referrals. An attract, or marketing, strategy, employs tactics such as advertising or direct mail and then waiting for the phone to ring.
"We found that the best lead generation approach did depend significantly on the type of market the realtor was in, with a predominantly seek orientation being more productive in converting leads into appointments and transactions when the market conditions are not as favorable," Pullig said of the study.
The research showed that a balance of 60% seek-oriented activities and 40% attract-oriented activities delivered the highest lead generation conversion rates in a tough market.
"When the market is tough you need to be more aggressive and creative with your lead generation activities. You should do some things that are non-traditional and not rely so much on advertising and direct mail. In a tough market, focus more on building networks, acquiring referrals, and other ways that you can generate leads by proactive means."
The research also showed that in a stable market, a balance of 50% seek- and 50% attract-oriented activities created the highest lead conversion level, while in a healthy market 40% seek- and 60% attract-oriented activities were most productive.
To read the full text of this article, please visit the Keller Center Research Report online.
The Keller Center encourages the participation of realtors in its research. To be added to the Keller Center mailing list, please send your name, address and email to [email protected].
About Baylor Business
The Hankamer School of Business holds to a visionary standard of excellence whereby integrity stands shoulder to shoulder with analytic and strategic strengths to build leaders, not simply careers. BusinessWeek ranks the program in 36th place. U.S.News & World Report ranks the undergraduate business program in 58th place. Baylor's Entrepreneurship program is ranked 14th by U.S.News and its Accounting program is ranked 24th by Public Accounting Report. Visit www.baylor.edu/business for more information.