With the onset of the new year, most builders welcomed an increase in leads and sales compared to the previous quarter. When comparing Q4 of last year, leads were up 74%, and appointments and sales were both up 70%. The peak of the home-selling season occurred earlier than anticipated this year, much to the satisfaction of builders, with many meeting or exceeding their sales goals.
Below, we have outlined our findings from analyzing the first quarter of this year. We aim to provide concise insights about benchmarks and the latest metrics to ensure your program is strategically positioned and on track for success.
Key Takeaways:
We see a few minor changes when comparing 2023 Q1 to 2024 Q1. Here are some key takeaways:
- In Q1 of 2024, the lead-to-appointment conversion decreased by 1% compared to 2023. This decline coincided with the onset of the selling season and a surge in lead volume, prompting a shift away from prospecting activities. Online Sales Specialists have also reported a return to objections of “waiting to see what happens with the election and interest rates.” Consequently, there was a slight dip in the conversion rate from leads to appointments during this period.
- In 2024, the appointment-to-sale conversion rate rose by 2%, increasing from 18% in 2023 to 20%. This uptick suggests that leads attending appointments demonstrated greater seriousness as potential buyers. Consequently, there was a corresponding increase in the number of sales originating from these appointments.
- In Q1 of 2024, there was a modest 1% increase in online sales contribution compared to the same period in 2023. This brings the online sales contribution to the overall company sales to 46%. This figure underscores online sales' consistent and solid contribution to the company's overall revenue, indicating the steady health of online sales.
- While all of this is true, we see incredible metrics when we break out our seasoned, top-performing online sales teams. Our top performers and well-established programs came in with an impressive 50% lead-to-appointment conversion, a strong 21% appointment-to-sale conversion, and a solid 53% online sales contribution to overall company sales.
So far, 2024 feels like a normal market, with builders experiencing normal amounts of online traffic met with walk-in traffic. If you get a lead in this market, it’s a good sign that they are serious. Make sure to utilize all of the tools. Talk tracks for pivoting any objections and increasing communication with sales and marketing will help keep the momentum going into Q2.
