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Multifamily Communities Convert A Mere 20 Percent Of Qualified Phone Leads To An Appointment; CallSource Analysis Reveals
Review of actual inbound calls shows nearly $9,800 in first-year leasing revenue lost per community due to poor conversion skills
WESTLAKE VILLAGE, CA — May 4, 2006 — CallSource has released its 2005 Telephone Performance Analysis (TPA) study for the multifamily housing industry, which found that leasing professionals failed to convert 80 percent of qualified phone prospects to an appointment, resulting in a per-property loss of $9,800 and an aggregated $11 million in lease revenue across the communities sampled. Projected across the total number of communities nationwide with 50 or more units,* the total lost leasing revenue across the industry would approach $584 million.
For a twelve-month period, CallSource telephone performance analysts objectively reviewed nearly 22,000 recorded inbound phone calls for 1,159 multifamily communities to assess the call-handling performance of its leasing professionals. The CallSource analysis revealed that only 20 percent of calls from qualified apartment seekers were converted to appointments. As 3,053 callers in the sample were qualified to become residents but were not converted to an appointment, CallSource concluded that 1,068 fewer leases were written during the year (based on the national average closing ratio of 35 percent).
Specifically, the study scored the ability of agents to ask questions proven to qualify prospects, overcome objections and set a tour appointment. For example:
- Leasing agents failed to ask for the prospect�s name on 45 percent of calls and didn�t request a phone number 72 percent of the time.
- When asked for the rental cost, two-thirds of leasing agents simply answered the question without providing information about property amenities and features.
- Only 28 percent of leasing professionals properly determined that a prospect was not qualified due to price, pet policy or availability.
- Leasing agents asked the caller for his or her specific needs and preferences only 21 percent of the time.
- Leasing professionals offered to set an appointment on only 27 percent of calls, and successfully set a specific appointment on 15 percent of calls.
"While the Telephone Performance Analysis reveals the potential loss in first-year leasing revenue, a lost resident will cost the community double or triple that amount over the life of an average lease," said Doug Chasick, CPM�, CAPs, CAS, Adv. RAM, CLP, the "Apartment Doctor" and senior vice president, CallSource Professional Services. "Although the evaluation reveals that many leasing agents have difficulty converting calls to appointments, the good news is that enrolling in training programs that emphasize successful closing techniques and phrases to overcome objections, frequent performance reviews and effective supervision will improve leasing results."
About Telephone Performance Analysis
CallSource Telephone Performance Analysis is a complete assessment of the phone skills of leasing professionals and other call-handling employees. Expert call analysts review and score clients� recorded inbound customer calls to reveal whether the leasing team is asking the specific questions proven to qualify future residents and set a firm appointment. The national leader in call review and analysis services, CallSource has developed the industry�s most accurate TPA scorecard for evaluating phone skills, which has been used to review more than 92,000 calls for multifamily communities over the past three years. Unlike �phone shop� services that stage scripted calls with the goal of catching employees doing poorly, TPA scores are objectively based on their real interactions with actual customers.
About CallSource
CallSource provides online call-tracking and recording solutions that allow companies to measure and increase return on advertising investment. CallSource also offers expert statistical and performance analysis services to improve an organization�s marketing and call-handling effectiveness, training and coaching to help companies convert more callers into customers, and U.S.-based call centers respond to clients� after-hours and overflow call traffic.
CallSource tracks more than 200,000 advertisements and five million phone calls every month for apartment communities and property managers, automotive retailers and dealer groups, publishers and advertising agencies, and a wide range of businesses throughout North America. Since 1994, the company has provided innovative services and fact-based advice that improve performance across marketing, operations, sales, training and customer service.
Editors Note: A copy of the complete Industry Report Card, which includes the specific questions and responses evaluated, as well as average scores for each item, is available here.
* 59,576 privately-owned properties nationwide 50 units or larger. Source: National Multi-Housing Council analysis of U.S. Census Bureau's 1995-1996 Property Owners and Managers Survey.
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