Your Formula For Converting Traffic to Signed Leases
For Marketing Managers, Property Managers, and Leasing Agents, this scenario should feel all too familiar:
Your brand-new property is behind in leasing, and your team needs to close on 10 signed leases this week. Foot (and website) traffic is slow, and you’re stressed about hitting that goal. You’ve got social media pages up and running, but your posts aren’t getting enough traction.
How will you close those 10 leases when you can’t even get 10 likes on a post?
We’re glad you asked.
After a colleague recommends you get in touch with Social Kapture, our Digital Marketing team shares that you only need to drive 2,400 people to your website to meet your leasing goal.
How is that possible??
Again, we’re glad you asked.
All it takes is a few simple formulas and a little Marketing Math to make major headway on your leasing goals.
It’s time to figure out your property’s key metrics. You may already know some of these numbers off the top of your head. But if you don’t, you can find them within your resident management portal. Let’s start by working backward:
Here, we’re looking for the number of submitted applications that actually convert to a signed lease. This number should be nearly 100% but in all honesty, things happen. Sometimes, you may have denials based on credit or background checks. Other times, applicants may be approved but don’t respond.
For example: if on average for every 10 applications submitted, nine people sign leases, you have a 90% application-to-lease closing ratio.
Closing Ratio Formula: # of signed leases / # of submitted applications
Next, let’s tackle your application ratio. No, not the slightly inflated number from your Leasing Agents that makes them look better (you know what we’re talking about). The number we’re looking for should be an accurate representation of how many guests that tour in-person actually convert to completed applications.
It’s okay to include that lady that toured for her granddaughter and didn’t leave an email address, and the guy who stopped by over lunch and said he’d come back (but never did). Including them in this calculation is important — because a true application ratio will help you more accurately set traffic goals down the line.
To find your application ratio, determine (on average) the number of tours you give before someone fills out an application. The best way to find this information is by using your guest card totals or weekly leasing reports. For example, if you’ve given 20 tours in one week and two of those guests completed applications, then your tour-to-application ratio is 10%.
Application Ratio Formula: # of completed applications / # of tours
Now that we have your application ratio let’s find out how many people you need to bring into your office to achieve your target number of leases.
Calculating this number is going to be a bit more technical, but not too challenging. We just need to find your conversion ratio based on your overall in-person, email, telecommunication, and web traffic. It’s easiest to use guest cards, leasing reports, your property’s inbox, and Google Analytics to tally up those numbers.
For example, if your website has 500 users per week and receives, on average, 25 tours, calls, and emails from that traffic — you have a 5% web conversion rate.
Traffic Conversion: # of tours + calls + emails / # of website users
Note: There may be people who contact your property but have never visited your website. They may have driven by, seen it on an ILS, or be a referral from a current resident. Since it’s difficult to attribute these leads consistently, we’ll count them as bonus traffic and won’t include them in our calculation.
Lease Target: If your property has 10 vacant units, our target is 10 leases.
Applications Target: If based on overall numbers, 90% of the approved applications turn into leases, we know that we need at least 12 applications.
Tours Target: If based on our ratio, we convert 10% of tours into applications, then we need at least 120 tours.
Traffic Target: If your property’s website has 500 users in a week and about 5% of them actually get in touch with your property, then we’ll aim for at least 2,400 website users.
Using the example from this blog post, if you need to sign 10 leases in one week, then you’ll need at least 2,400 people to visit your website within the next 7 days.
The next question is, how do you get 2,400 people to visit your website in 7 days? Our Digital Marketing team can answer that for you. Contact us at firstname.lastname@example.org for more information!