A Study by

Property ManagementLead Response Study

Why We Performed This StudyMost property management companies we speak with report that they make it a top priority to respond to

new leads quickly. This sounds like good news, given that response time is such an important factor in lead

conversion. The problem is that this response didn’t jive with our first hand experience.

So, we decided to do some research. In July of 2012 we partnered with ManageMyProperty.com to track a

subset of the owner leads they sent out to their property management clients. By tracking the number of

calls and emails made to each lead, we were able to get a glimpse into how property management

companies handle new leads. From that research we were able to establish an industry baseline of

responsiveness (speed to call) and persistence (# of attempts).

In Oct of 2013 we decided to follow up and expand our initial research by surveying a broader swath of

management companies with a specific focus on initial response time (the first 6 hours after a lead was

submitted).

Property Management Lead Response Study

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Baseline Data The original data from our 2012 partnership with ManageMyProperty.com gave us this industry baseline.

39hrs

2

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Average Call Response Time Average # of Call Attempts

1.6Property Management Lead Response Study

ObservationWhile we had a strong hunch that prospects were being neglected, we were surprised that these numbers

were so low. The data indicated that although some prospects received a faster response, others had to

wait even longer to hear back, so that on average, their experience looked like this:

Of particular interest was the subset of leads that were never called back… at all. This was especially

surprising given that these were leads companies were paying for.

Lastly, this data reveals a significant gap between perception and reality in lead management. Having

shared this data with a number of management companies, we’ve yet to speak with anyone that believes

their response time is this slow.

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Mon. 11:00amLead Arrives

Wed. 1:00pmFirst CallExample: 39 hours later

Property Management Lead Response Study

Comparison Against Other IndustriesAs it turns out, studies in other industries have uncovered similar trends. The following studies focused on

B2C and B2B industries such as Finance, Mortgage, Insurance, Education, Legal and Technology.

1.639

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1.048

1.246

This Study

Average Call Response Time

Average # of Touches Per Lead

(Source: "The Fast and The Furious") (Source: ResponseAudit.com)

Property Management Lead Response Study

ObservationProperty managers can take some encouragement from the fact that this problem is at least not unique to

them. The cross industry comparison reveals that slow responsiveness and weak followup are common

across many different industries.

One factor that may explain the slightly faster response time and additional number of touches from this

study is the fact that we were looking exclusively at paid leads which tend to be perceived as more valuable

given the financial loss if they are not worked.

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Lead Response Audit Oct. 2013

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MethodologyAll companies were contacted between the standard business hours of 8:00 am to 5:00 pm (PST - EST),

allowing companies to have the best chance at responding quickly.

3K6 hrs

Time Window Analyzed # of companies surveyed

Property Management Lead Response Study

Results

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Call vs Email For Initial ContactOf those responses that came in within the initial 6 hour window studied; 69% of first contact attempts

were made via phone versus 31% being made via email.

69%

31%

0 - 1hr

1 - 2hr

2- 3hr

3 - 4hr

4 - 5hr

5 - 6hr

Calling vs Email Over 6 Hours

Property Management Lead Response Study

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Comparison Against Other IndustriesData from similar studies showing whether companies call or email first when following up with new leads.

25%

75%

CloudForce ResponseAudit

74%

26%

OnDemand ResponseAudit

20%

80%

Dreamforce ResponseAudit

(Source: Dreamforce ResponeAudit 2012, InsideSales.com)

(Source: Cloudforce ResponeAudit 2012, InsideSales.com)

(Source: OnDemand ResponseAudit 2013, InsideSales.com)

Timeframe:These studies looked well beyond the initial 6 hour window.

Averages:Phone: 24%Email: 76%

Property Management Lead Response Study

ObservationIt appears that companies are much more likely to follow up via phone in the initial six hours after the lead

was generated versus over the following life of the lead. Within the first 6 hours, almost 70% of all

responses happened via phone, which is in stark contrast to the average of 24% recorded in other studies

that looked at the entire life of the lead well beyond the initial six hour window that was the exclusive focus

of this study.

It makes sense that the companies that are most aggressive in contacting leads quickly would also make the

effort to call even though calling requires more pro-active effort than email.

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How Quickly Companies Reach OutNOTE: All companies were contacted between the standard business hours of 8:00 am to 5:00 pm (PST -

EST), allowing companies to have the best chance at responding quickly.

50%

Did NOT respond in 6 hours

50%

Responded in 6 hours

Property Management Lead Response Study

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Average and Median Response TimeOf those companies that did respond within the first six hours, the average response time was 90 minutes.

Responded in 6 hours

50%

69%

31% 1.5hrs

Median Response

Time

Average Response

Time 1.7hrs 1.3hrs

1.0hrs1.1hrs 0.9hrs

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Responses in First Hour25% of all companies surveyed responded within 1 hour, 75% did not. This also means 50% of responses

that came in within in first 6 hours, happened within the first 60 minutes.

25%

Responded in 1 hour

Did NOT respond in 1 hour

75%8%

Property Management Lead Response Study

17%

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First 60 Minutes Broken OutOf those companies responding within the first hour, we saw the following breakdown in the first hour.

25%

Responded in 1 hour

0-15 min

15-30 min

30-45 min

45-60 min

35%

28%

19%

17%8%

17%

12% 23%

10% 18%

4% 13%

5% 12%

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Comparison Against Other IndustriesInitial call response time broken out by time blocks show largely similar trends when compared to other

similar studies in different industries.

0 - 5 min

15%

Time: 5 - 30 min 30 - 60 min 1 - 2 hr 2 - 4 hr 4 - 8 hr

This Study

Cloudforce (Source)

This Study

30%

Property Management Lead Response Study

Dreamforce (Source)

OnDemand (Source)

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Contact Trend Across First 6 HoursWithin the initial 6 hour window, the majority of contact attempts were made toward the beginning of that

window.

Property Management Lead Response Study

15m 1h 2h 3h 4h 5h 6h

Time:

Time:www.leadsimple.com

The Majority vs the MinorityThe faster the response window, the fewer the responses.

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All Contact

AttemptsAll Companies

Responded in 6 Hours

100%

50%

25%

Responded in 1 Hour

5 Minutes

3%

15 Minutes

9%

Responded in 6 Hours100%

36%

18%

Responded in 1 Hour

All Companies

5 Minutes

1%

15 Minutes

5%

Phone Contact

Only

Property Management Lead Response Study

ObservationThe fact that only 50% of property management companies responded within 6 hours makes it clear that in

practice, many companies struggle to respond to leads promptly.

Drilling deeper into the initial six hour window only highlights the extreme gap that exists between the lead

management practices of the top and bottom tiers in the industry. The companies that did respond within 6

hours had a median response time of 90 minutes, which while not perfect, is radically faster than the

industry average of 39 hours. The fast are very fast, and the slow are very slow. Furthermore, companies

that prioritize lead responsiveness are more likely to call versus emailing.

While not the subject of this study, we know contact attempts outside of the initial 6 hour window only get

slower over time as lead decay and apathy sets in.

Bottom Line: We see a clear trend of top performers calling first rather emailing AND making sure those

phone calls happen within the first 90 minutes.

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Why This Matters

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0-5 Min: The Golden WindowIn the 90 minutes after a lead was generated, the first five minutes represent a golden window of opportunity

for making contact and establishing rapport. Companies prioritizing this window have a huge advantage.

5

# o

f C

alls

(Source: 2007 Kellogg/MIT Study)

Calling within 5 min

vs calling after 30 min(Source: 2007 Kellogg/MIT Study)

21X MORE EFFECTIVE

Property Management Lead Response Study

Minutes10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90

0-90 Minutes: Initial Dials That Become Qualified

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0-6 Hours: The Only WindowResearch shows that the first six hours are when the majority of meaningful initial sales interactions take

place. Obviously you should still call if this window has already passed.

# o

f C

alls

Calling within 5 hrs

vs calling after 24 hrs(Source: Ultimate Contact Strategy, Velocify)

0-10 Hours: Initial Dials That Become Qualified

Property Management Lead Response Study

40% MORE EFFECTIVE

(Source: 2007 Kellogg/MIT Study)

1 2 3 4 5 6 7 8 9 10Hours

Cost of Slow Response TimesThe importance of speed to call, and it’s impact on conversion, is made clear in the following example.

Companies A, B, and C represent the ideal, good and average response times and conversion rates,

respectively.

1 Minute

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1 Hours

40 Hours

40%

20%

10%

Response Time Close Rate

$50

$4,000

Avg. Cost Per Lead

Customer Lifetime

Value (CLTV)

Inputs and Variables

Company ACompany BCompany C

Example Performance DataThe average cost per lead will vary widely depending on the lead source and whether it was generated organically or not. Manage My Property reports a $40 average lead price while Propertyware reports $60. We’ve used an average of those two figures.

This refers to the profit (not revenue) a contract will generate over its lifetime. This is a function of annual contract value and client retention. For example, our $4k average could mean $1k in profits annually and a 4 year avg. client relationship OR a $500 annual value and 8 year avg. customer relationship.

Property Management Lead Response Study

Cost of Slow Response Times, Cont.The fastest company is driving 400% more revenue out of the exact same set of leads as the slowest company.

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- 75%

$125100

Leads

Contracts Won

20

10

A

B

C

40

Cost Per Contract

$250

$500Cost: $5,000

$155k

$75k

$35k

Cust. Lifetime Value (CLTV)

Return on Investment

Property Management Lead Response Study

3,100%

1,500%

700%

- 50%

Speed to Call is UnderratedMany people think that call speed has an even, linear effect on conversion rates. In reality, the relationship

between speed to call and conversion is far more drastic. The fastest companies receive an exponentially

greater benefit than the companies that call just behind them.

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Perception vs

Reality Time to Call .

Rew

ard

.

Property Management Lead Response Study

You May Not Be as Fast as You ThinkWe’ve noticed an odd phenomenon. While the average lead response time for property managers is around

39 hours, when asked, no one reports being anywhere near that slow. The truth is, A) 99% of companies aren’

t sure exactly how quickly they respond and B) most companies respond slower than they think.

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Perception vs

Reality1 Hour

39 Hours

Avg. Speed to Call

Property Management Lead Response Study

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Procrastination Breeds ProcrastinationBroken Windows Theory: Signs of urban decay (e.g. broken windows) tend to encourage further neglect or vandalism. Fixing the little things, like broken windows, restores respect and pride; halting further decay.

Once an agent has missed the initial prompt call window, there is negative inertia that builds and further

delays the eventual response. Contact rates only get worse over time in part because of the feeling that, “if

a couple hours have already passed, what’s a few more?”

What happens in the initial call window significantly affects the rest of the sales process in part because it

reflects the discipline and commitment to properly manage key milestones in the sales process. A process

started poorly, is unlikely to get better later on.

Companies that make it a priority to aggressively police speed to call tend to have a much tighter handle on

all of the subsequent steps involved in converting a lead to a customer.

Property Management Lead Response Study

It Pays to Be FirstStatistics aside, here are some common sense reasons why calling immediately makes a difference.

● Presence - The prospect is likely at their computer and with a phone nearby when they hit submit.

● Highest Interest - The prospect is thinking about their need and ready to mentally engage with you.

● Wow Effect - Fast responses build confidence and rapport, starting things off on the right foot.

● Beat the Competition - Frame the conversation and get the first shot to close the deal.

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66%64%BUYERS SELLERS 35-50% of sales go to the vendor that responds first. (Source: InsideSales)64% of buyers and 66% of sellers work

with the agent they talk to first.(Source: National Association of Realtors)

Property Management Lead Response Study

Being First is FreeThere are a lot of things you can do to get more customers. More ads, better website, well designed

brochures, etc. While all of those things are good, they all require time and money.

Speed to call is one metric you can influence with no additional cost or overhead. Simply pick up and call.

Yes, you may be busy when calls come in and there are some best practices to make this easier, but at the

end of the day this is a significant piece of low hanging fruit that every company should optimize for before

dumping time and money on larger endeavours.

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Call Speed

Cost

30sec 30min 3hrs

$0 $0 $0 $0

30hrs

Property Management Lead Response Study

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Competition Is Fierce and Only GrowingAs sales and marketing practices within the property management industry have matured, brute force (i.e.

large ad budget) has lost ground to speed, agility and creativity. As new marketing channels are discovered,

first movers have the advantage, until that advantage is eventually competed away as the channel becomes

saturated. As more companies realize the importance of speed to call, this leg up becomes non-optional.

We see two common traits amongst the fastest growing property management companies. First, they are

always experimenting with new marketing channels in order to stay on on the cutting edge. Second, they are

consistently better at lead handling which results in a higher close rate and lower cost per lead.

Company

ACompany

BMore important than their current lead ahead is the fact that Company A is running uphill, while Company B is running down a slope that makes for easier growth velocity.

The Fast Only Get Faster

Property Management Lead Response Study

Best Practices

Call Before Sending an EmailAlways call before emailing. Yes email is easier, and quicker, but it is also radically less effective at

establishing meaningful rapport when trying to make initial contact. Email is great for sending followup

information about pricing and services, but phone will always have the upper hand in allowing for the

human element to come through.

In addition, sending an email can provide a false sense of accomplishment in having moved the sale forward

when in reality you don’t know if the prospect even received or read the email. By calling first, you put the

odds in your favor of having more meaningful contact and being able to actually qualify the lead. A ten

minute phone call can often accomplish the same thing as ten back and forth emails over several days.

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1 st 2 nd

Property Management Lead Response Study

Automate Lead DistributionMany companies still distribute leads manually which wastes time and slows down initial follow up.

Automatically sending each lead to the right person(s) improves lead response times and overall follow up.

Leads can be distributed in a number of different ways such as round robin, by territory or by giving

preference to top performing agents. Aggressive sales teams automatically distribute leads based on the

criteria that yield the highest close rate for their team.

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“...raise conversion rates by 87%.” (Source: Leads360)

“...improve the percent of leads called in less than five minutes by 91%.” (Source: Leads360)

Push Pull HybridFirst to CallFirst to ClaimBlind PullCherry PickTerritoryTop ProducerRound Robin Evenly distributes leads to reps in order.

Assigns based on location of the lead / agent.

Agents view leads and claim ones they want.

Agents claim leads without seeing details first.

Multiple agents notified, first to claim lead wins.

Multiple agents notified, first to call lead wins.

Lead Distribution Approaches

Property Management Lead Response Study

Automatic lead distribution can:Assigns leads based on agent performance.

Automate Calls to New LeadsImagine getting a phone call every time you get a new lead. That call reads off info about the lead and gives

you the option to press 1 to call the lead, or press 2 to pass the lead off to someone else on your team.

Receiving call notifications allows you to connect in seconds and is one of the best ways to maintain consistent

callback times. For smaller companies, taking advantage of this kind of technology levels the playing field

when competing against larger companies that have multiple agents available to take each lead.

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How to Call Every New Lead in 3O Seconds Flat

(Source: LeadsSimple.com)

Property Management Lead Response Study

Focus on The Top of The FunnelThe sales funnel progresses from initial contact all the way to closing the sale. The further along a prospect is,

the more likely they are to convert. What many companies don't realize is how many leads are won or lost at

the top of the funnel. Companies that call leads faster have a higher contact rate with their leads which will

inevitably lead to a higher overall close rate as well.

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Won

100%

Committed

60%

New

18%

50%

82%

Actually Met

Sales Funnel

38%

Meeting

More Conversations = More Conversions

Most property managers are far too dismissive of the leads

that they were not able to immediately get a hold of or

schedule a meeting with.

By focusing on improving their contact rates and lead to

meeting ratio, managers can increase the number of

opportunities generated from their existing lead flow.

ContactedOpportunity

Typical Focus

Property Management Lead Response Study

Coordinate Follow UpIf you manage one or more agents it’s imperative to have visibility into the follow up process.

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Reassign Lead To A Different AgentNotify Manager

LeadAnswers

30 Minutes: Lead Called?

LeadAnswers Schedule Follow up

No.

No.

Leave Voice Mail

Send Email

New Lead:First 30 MinutesProcess is key. If the agent assigned to a lead fails to call immediately then the sales manager is notified and if the delay persists then the lead should be assigned to the next available agent. Subsequent follow up attempts should also be clearly laid out and scheduled. Schedule Meeting

Assign Lead

Property Management Lead Response Study

Yes

Yes

Yes

5 Minutes: Lead Called?

Yes

No.

No

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Responding in

22 minutesMedian Resp. Time

Trying

3 timesMedian # of Touches

Contacting

90%Of Leads Received

Converting

24%Of Leads Received

Example Dashboard From LeadSimple

Track Speed to Call and Contact Rate“You can't manage what you can't measure.” - Peter Drucker

The first step toward improving is getting an accurate handle on your baseline (i.e. the status quo). Once you know how fast or slow you are responding to new leads, you can start making changes and and testing their impact. Within any given company, some agents will be faster than others, and some lead sources will produce better leads that yield better results.

Property Management Lead Response Study

Specialize As You GrowAs your business grows, the need for flexibility gives way to the need to streamline processes to ensure

repeatable results at a larger scale. In regard to sales, the first bottleneck we usually see is that the broker is

handling most new leads. One way to remove this bottleneck is to send leads directly to agents. This is an

acceptable short term solution, but in the long term the answer is hiring a specialist to to take the dedicated

role of managing the sales process from beginning to end.

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Lead QualificationTenant Placement

MaintenanceAccounting

Specialist ModelPortfolio ModelProperty Inspection

The portfolio model has each agent doing everything for the clients in their portfolio. This model makes sense, early on, but it can become an operational bottleneck as agents are spread thin and have very little leverage in their business model.

The departmentalized model requires more investment in people, training and infrastructure. But by allowing agents to specialize more narrowly and bringing in other specialists to support them, economies of scale kick in and drive profit up and costs down.

Property Management Lead Response Study

About LeadSimple

LeadSimple is a cloud based lead management solution focused on

helping real estate companies drive sales and increase market

share.

Since 2008 we've generated tens of thousands of leads for

property management companies across the nation. We've been

in the trenches with our clients and know first hand about the

challenges of being a small business and wearing a lot of different

hats.

LeadSimple brings structure, accountability and automation to the

selling process so that you can connect to leads faster and close

more deals. We're committed to helping companies that want to

sell better and providing them with a simple product, outstanding

customer service and world class free resources on how to grow

their businesses faster.

www.leadsimple.com

(888) 626-3259

PO Box 1354

Brush Prairie, WA 98606

Start fine tuning your lead management process today.

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