In our second-quarter analysis, we’ve highlighted findings that will help your program remain well-positioned for success in the competitive new home market.

The good news is that if you’re getting a lead in this market, they are converting to appointments and sales! As we finish Q2 of this year, all benchmarks stayed strong or even improved. The only decrease was a slight 8% dip in lead counts. This decline followed the higher lead volumes observed during the new home-selling season of Q1. 

Key Takeaways:

• In Q2 of 2024, the lead-to-appointment conversion rate remained steady at 39%, indicating consistent effectiveness in converting leads into kept appointments. This performance shows strong lead management practices from Online Sales Specialists and highlights the alignment between marketing and online sales efforts. Also, with a slight decrease in total lead counts, online sales has more bandwidth to respond quicker and practice intentional prospecting. 

• The appointment-to-sale conversion rate increased significantly by 3%, climbing from 20% in Q1 to 23% in Q2. This uptick is consistent with industry trends, where lead volumes from the preceding quarter often result in increased sales metrics at the bottom of the conversion funnel in the following quarter. The higher lead volumes observed in Q1 directly contributed to the impressive sales performance observed in Q2. This trend underscores the importance of proactive lead management strategies to build the pipeline and achieve sustained sales in the coming months.

• Additionally, in Q2, we observed a significant 2% increase in the online sales contribution, resulting in our total online sales contribution reaching 48% of overall company sales. This strong contribution shows the consistent importance of online sales and their pivotal role in driving revenue for new home builders.

• When we break out the seasoned, top-performing online sales teams, we see they achieved impressive metrics in Q2 yet again. Those results consisted of a 54% lead-to-appointment conversion rate, a 23% appointment-to-sale conversion rate, and a contribution of 52% of total company sales. 

• As we transition into the second half of the year, be ready for potentially lower lead counts by leaning heavily into prospecting efforts. Before adjusting strategies due to anticipated lower lead volumes, make sure to prioritize the potential of your CRM by thoroughly working existing leads in your database. Tracking how many appointments are coming from aged leads older than 45 days each month will show how effective your long-term nurturing is. We are seeing, on average, 15% + of appointments in a month coming from long-term leads.

• As demonstrated by our recent numbers, strong lead counts from Q1 directly translated into robust sales conversions for Q2. Understanding the typical lead cycle duration in your market and within your company will prove helpful for sales forecasting in the coming months. Be sure that you know the lag time from lead inquiry all the way through to sales conversion. By staying proactive and strategic in lead management and understanding your company's unique conversion timeline, you can better navigate fluctuations in lead volumes and optimize sales performance throughout the remainder of the year.

We hope these industry insights help you to navigate market fluctuations with confidence in the coming months.