Conversion Rates for the Online Sales Program

Posted by
Mike Lyon
Date
 March 2, 2007
Comments
4 comments

Most builders have the same questions about the success rate of an Online Sales Program. How many leads do you get each month? How many of those are converted to an appointment? How many appointments end up on contract? What are your statistics etc…

I would like to share what numbers I have seen personally and also what many other successful programs experience. Keep in mind, every market and builder is different. Use these statistics as benchmarks but your numbers may vary slightly.

1-3% Leads captured from online sources
You will have many sources to drive traffic. What most builders use to determine this number is the new unique visits each month, not the total “hits” or even return visits. It is important to determine how many new users you attracted and how many of those requested further information. Your web host should have these statistics on hand – if not, they should be able to install the software to track this for you. A lead is qualified as one individual who submitted a request or called in directly from an online source. Many sources are included but only the total unique visitor stats from your website is used as the number to get your ratio. This is the easiest way to measure overall conversion.

20-25% Leads converted to appointments
The total leads are from both online sources and incoming phone calls. The conversion ration is based on appointments that are kept, not appointments scheduled and not kept.

30-35% Appointments that write a contract
This number is based on leads that go on appointment and then write a contract and close on the home. You will see some contracts fall through so do not count the totals until the home is closed.

5-10% Increase in overall sales
You can expect to see an increase in the first year of this successful program. This does not take into consideration additional sales that are created from a stronger web presence. It is hard to truly determine direct sources from the internet.

20-25% Of total sales will be generated by this program
You can expect to see a good portion of sales generated through this program. Keep in mind; these are additional sales or sales that you will not lose to your competition. You might have had some of these sales before – but now you will be sure to keep these numbers high.

Remember, these numbers will continue to increase as more people use the internet as the primary source for their new home search.

  • Matt Adams

    You had me until the last graph. 20-25% of gross sales is a high number, and requires that almost all marketing target not just the website, but the advantages for registering with the website. I wholeheartedly agree that almost 90% of those who buy homes use the internet extensively, but getting enough of those people to register in order to be able to track them to that extent is the real challenge. Like your subsequent article suggested, people don’t like to register. if they don’t register, we can’t track them. And with that roadblock, expecting 20% of gross sales to come from an online program seems unrealistic.

  • Matt Adams

    You had me until the last graph. 20-25% of gross sales is a high number, and requires that almost all marketing target not just the website, but the advantages for registering with the website. I wholeheartedly agree that almost 90% of those who buy homes use the internet extensively, but getting enough of those people to register in order to be able to track them to that extent is the real challenge. Like your subsequent article suggested, people don’t like to register. if they don’t register, we can’t track them. And with that roadblock, expecting 20% of gross sales to come from an online program seems unrealistic.

  • Thanks for the feedback. 20-25% of total sales are definitely possible…these are numbers I see consistently from our program and others around the nation. Keep in mind – this is not a total increase in sales, but sales that can be credited to the Online Sales Program. These numbers can vary based on location, builder and program.

    If your website is attracting enough visitors (which I’m sure you are) and you have the “calls to action” that will encourage interaction, all the statistics that you agree with should inevitably lead to the 20-25% ratio. If you are not seeing the conversion numbers from the website, I would start looking there to increase those numbers. Keep up the good work!

  • Thanks for the feedback. 20-25% of total sales are definitely possible…these are numbers I see consistently from our program and others around the nation. Keep in mind – this is not a total increase in sales, but sales that can be credited to the Online Sales Program. These numbers can vary based on location, builder and program.

    If your website is attracting enough visitors (which I’m sure you are) and you have the “calls to action” that will encourage interaction, all the statistics that you agree with should inevitably lead to the 20-25% ratio. If you are not seeing the conversion numbers from the website, I would start looking there to increase those numbers. Keep up the good work!