builder benchmark survey: selling & marketing new homes...process within your crm to follow up...

Builder Benchmark Survey:Selling & Marketing New Homes

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New home sales and marketing professionals primary focus is on generating leads and turning browsers into buyers. In our survey with Builder Partnerships, we wanted to provide new home sales and marketing professionals with an opportunity to share their thoughts about leads and selling homes. In this survey, they were asked about the biggest challenges they face, how they follow up with leads, lead volume, sales velocity, and the online sales counselor role.

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WHO TOOK OUR SURVEY?

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Over 86% of those surveyed said their company built single family homes.Sales (43%) and Marketing (26%) were the most popular roles/functions that took the survey.29% of respondents built < 50 homes per year, 40% built between 50-200 homes, and 31% built more than 200.Total of 87 respondents answered the survey.

0% 20% 40% 60% 80% 100%

Other

Active Adult/55+

Luxury home builder

Townhome/multi-family

Single family home

TYPE OF BUILDER

0% 10% 20% 30% 40% 50%

Other

Marketing

Sales

Owner/President

PRIMARY ROLE/FUNCTION AT YOUR COMPANY

HOMES BUILT PER YEAR

29% 22% 18%

21% 6% 5%

0 – 50 51 – 100 101 – 200

201 – 500 501 – 1000 More than 1000


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CHALLENGES FOR SALES & MARKETING

Generating New Leads topped the list of challenging tasks for sales and marketing teams, followed closely by Understanding the Return on Marketing Investment. Sales Attrition was the third biggest challenge reported.

LEAST CHALLENGING CHALLENGING MOST

CHALLENGING TOTAL WEIGHTED AVERAGE

Generating new leads 10.5% 12.8% 54.7% 11.6% 10.5% 86 2.99

Lead management/follow-up 26.7% 38.4% 23.3% 7.9% 4.65% 86 2.24

Sales attrition 15.3% 27.1% 45.9% 8.2% 3.5% 85 2.58

Coordination between sales and marketing 32.9% 27.1% 23.5% 14.1% 2.4% 85 2.26

Understanding return on marketing investment

18.1% 21.7% 27.7% 21.7% 10.8% 83 2.86


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31% of respondents reported that it took on average 60-90 days to sell a home and 22% said it took 30-60 days. Amazingly, almost a quarter of the respondents reported an average sales velocity of less than 30 days!

0% 5% 10% 15% 20% 25% 30% 35%

Other

More than 1 year

6 months – 1 year

90 days – 6 months

60 – 90 days

30 – 60 days

0 – 30 days

31%AVERAGE LENGTH OF TIME TO SELL A HOME?


29%GREATER THAN 8%

0%

5%

10%

15%

20%

25%

30%

35%

Don't know Less than 1% 1 – 2% 2 – 3 % 3 – 5% 5 – 8% 8% +

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WHAT PERCENTAGE OF PROSPECTS BECOME PURCHASERS?29% of respondents report a conversion rate greater than 8%. 17% reported not knowing that number.


HOW DO YOU FOLLOW-UP?

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Email wins the day with the most popular method, followed closely by Calling, and then Texting.Automated and Ad-hoc Marketing Emails were other popular methods, while Chat was lagging behind the others.54% of respondents surveyed were Satisfied or Very Satisfied with their follow-up process.

0% 10% 20% 30% 40%

Very satisfied

Satisfied

Neutral

Unsatisfied

Very unsatisfied

NOT AT ALL OCCASSIONALLY ALL THE TIME TOTAL WEIGHTED AVERAGE

Emails (sales, personalized, one-to-one) 0.0% 1.2% 8.14% 12.8% 77.9% 86 4.67

Phone calls 1.2% 2.3% 12.6% 28.7% 55.2% 87 4.34

Ad-hoc marketing emails 19.0% 6.3% 43.0% 15.2% 16.5% 79 3.04

Automated email campaigns 23.2% 7.3% 22.0% 19.5% 28.1% 82 3.22

Texts 8.6% 13.6% 37.0% 19.8% 21.0% 81 3.31

Chat 52.6% 15.8% 22.8% 2.6% 6.6% 76 1.95

HOW SATISFIED WERE YOU WITH THE FOLLOW-UP PROCESS?


WALK-IN VS. ONLINE LEADS

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60% of respondents report seeing < 50 Walk-in leads per month and 55% get < 50 Online leads per month.

20% report getting more than 150 Online leads a month.

0% 20% 40% 60% 80%

300 +

201 – 300

151 – 200

101 – 150

51 – 100

0 – 50

0% 10% 20% 30% 40% 50% 60%

300 +

201 – 300

151 – 200

101 – 150

51 – 100

0 – 5060%LESS THAN 50

55%LESS THAN 50

HOW MANY WALK-IN LEADS DO YOU GET A MONTH?

HOW MANY ONLINE LEADS DO YOU GET A MONTH?


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The majority of respondents are using a sales process within their CRM. 36% for have been using one between 1 to 3 years, while 32% have been using one for more than 3 years.

0% 5% 10% 15% 20% 25% 30% 35% 40%

Less than 6 months

6 months – 1 year

1 – 3 years

More than 3 years

We don't use one

HOW LONG HAVE YOU BEEN USING A PRE-DEFINED WORKFLOW/ PROCESS WITHIN YOUR CRM TO FOLLOW UP WITH PROSPECTS?

*79% of the builders who responded to the survey reported using a CRM. This number may be skewed because Lasso CRM customers were included in the survey. In a prior survey, 57% respondents reported using a CRM.

91%


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We’ve seen the OSC role grow in popularity over the years for home respondents, so it was no surprise that over half of builders report the role being part of their sales team.

Larger builders were more likely to have an OSC on their team. 81% of those building 200+ home per year, compared to 49% of those building 51-200 homes, and only 28% for those building fewer than 50.

DO YOU HAVE AN ONLINE SALES COUNSELOR (OSC) ON YOUR SALES TEAM?

YES NO


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METHODOLOGYBuilder Partnership members as well as prospects and customers of ECI were sent an email with a link to the survey. Data is based on survey information collected between November 5th and December 10th, 2019. 87 builders responded to the survey.


builder benchmark survey: selling & marketing new homes...process within your crm to follow up...

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