Why CRM isn’t Always the Answer
You will find dozens of articles and blogs about how amazing CRM, or customer relationship management, software is for any business. These articles aren’t wrong, a CRM can do wonders for any business when it comes to centralizing their leads and sales activity. The multifamily world is fairly new to adopting this kind of tech, and while it has helped the leasing funnel modernize from using paper contact cards, it doesn’t offer a complete solution to managing multifamily leads.
So where is the disconnect? CRM is a database of all the data collected on every lead. As they get worked by the onsite leasing teams, the lead’s contact record is updated by your team with activity. Most people will tell you their CRM is full of dirty data and needs to be cleaned up. As a database, it will keep everything that comes in. The net result of a dirty CRM is weakened operational efficiency and difficulty with reporting. Leasing teams must sift through all of the junk to find their work and data.
While CRMs typically purge leads that are marked dead after a short period, CRMs are still challenging to keep organized. When you plug multiple data sources into your CRM, you are at risk of making the problem even worse.
As a database, CRM does what it should. A challenge is that CRM is being used as a marketing reporting source, which is not its original intent. Further, in multifamily, where roughly 20% of apartment rental leads go unfollowed, and the cost of a lead is on average $17 to $24, CRM is clearly not helping the team manage all the leads in their funnel. So what’s the solution?
The answer lies in B2B marketing history. In the late 1990s, a marketing automation revolution began in B2B.
An investment banking researcher at Bain Capital named Mark Organ conducted research that showed that the most successful salespeople were in companies that figured out how to give the team really good leads. This gave birth to a startup called Eloqua.
Originally envisioned as a technology for sellers to chat with prospects on the company’s website and an engine for marketers to send bulk email, Eloqua carried some big hype. But their team learned quickly that the chat product wasn’t being used by the salespeople. Instead, the sellers would cherry pick out the leads that had clicked through to the website from marketing emails that had been sent by the marketing team through Eloqua.
The “cherry picking” scenario is pretty similar to the challenges that multifamily is seeing today; leads don’t get followed up on, onsite teams don’t have time to chat with tire kickers, and marketing dollars get wasted. Maybe multifamily doesn’t need more leads, but rather better leads for the onsite team?
So going back to our multifamily CRM, the problem isn’t necessarily the CRM technology. It’s the way this technology is being used. Let me explain.
Today, CRM treats every lead like it’s equal. Whether it is someone very early in their leasing process, a person PERQ calls “low intent”, or someone who is more ready to sign a lease, aka “high intent,” records are added to CRM as a “lead”. At PERQ, we believe this concept is largely flawed. Leasing CRM should be reserved for REAL leads, people who are ready to talk to someone on the onsite team. PERQ believes people who are low intent aren’t yet a “lead,” even though they are valuable records that deserve attention.
Returning to our Eloqua story, the smart people at Eloqua realized they were onto something with the leads being cherry picked out by the salespeople, and they made a change. They stopped using CRM as a catchall and began getting more sophisticated around lead strategy for the valuable contacts that were not quite ready to speak to a salesperson:
- Leads were only put into the hands of salespeople when they were ready to talk to salespeople
- Lead records only entered the CRM when they were ready for sales activity (otherwise they stayed in Eloqua), and
- Marketing took on the early engagement with the customer to get them ready for sales and it was all tracked in the lead nurturing automation system to be passed into the CRM when the person was ready to speak with a salesperson.
What this new strategy did was free up salespeople from having to treat every lead like it needed equal attention to focusing on only the leads that were really ready to engage in a sales conversation, or “high intent.” The people that had not demonstrated high intent remained as marketing contacts in the Eloqua system for marketing to “nurture”.
A lot of good things came from this “nurture” approach and it ushered in a new era of marketing sophistication that was desperately needed to ensure that the customer experience and the buyers’ journey was providing prospects the engagement then needed before they were ready for a conversation.
As a result of this approach, the consumer experience was consistent and always to brand standards from first touch to signed agreement. Conversions at every stage of the funnel improved. Salespeople got better at closing deals due to their increased focus. Marketing became experts in why people buy and tuned their marketing messages and marketing spend so that it was exactly what was needed to get results.
I’m sure you’re saying to yourself “this all sounds good, but I don’t have a multifamily technology whose purpose is built to address this.” And, chances are, you don’t have people on your team that can write and send this kind of volume of nurturing communication messages to your low intent marketing contacts.
Both true, and both changeable.
PERQ was developed to address this specific problem. We have the benefit of being able to look back at the history of marketing technologies like Eloqua and their competitors through today’s more sophisticated technology lens.
PERQ has cracked the code on the consumer experience for leasing, automating your engagement with consumers on your website, SMS and email. PERQ complements your CRM and, reduces the CRM mess by engaging and nurturing low intent contacts until they are ready to speak to a person, but we do it better than it was done in the 1990s. We leverage today’s technology to improve the consumer experience using built-in nurture science and AI. With this technology, low intent contacts receive cross-channel engagement that is personalized to them. Once they’re ready to speak to someone live, the lead is passed to CRM and the leasing team. And, PERQ is always on the lookout for capturing more contacts to nurture, offering communications and experiences across channels to convert unknown visitors to known.
CRM is not your funnel’s savior and it was never meant to be. If you are frustrated by your current marketing approach or want to see first hand how PERQ’s platform is revolutionizing lead capture and automation, schedule a demo.