Bottlenecks to Property Management Profitability Part 3: Leaky Sales Funnel

Does Your Property Management Company Have A Leaky Sales Funnel?

This week’s episode of The Property Management Show continues our series on removing bottlenecks to encourage profitability in your property management company. We’re joined by two superstars from RentScale, Berit Elizabeth and Milissa Miller. No matter how outstanding your property management marketing is, if your sales process isn’t airtight, you will lose business. Milissa and Berit are going to tell us the damage to property management that a leaky sales funnel can do to your profitability, and they’re going to share a couple of secrets that can ensure you’re not losing opportunities.

By the way – if you’ve missed our previous episodes on bottlenecks to property management profitability, including focusing on the wrong activities, and poor accounting, you can catch up by clicking on the links.

Alright, let’s introduce these sales experts, and kick off our topic.

Introducing Milissa and Berit

Both Milissa and Berit are consultants with RentScale, where they work with property management companies across the country on improving sales processes. They are both passionate about optimizing the sales process. They have worked in sales and in training throughout many different industries, and they are happy to be working with property managers because of the unique business model that comes with recurring income streams.

What is a Leaky Sales Funnel in Property Management?

Even if you’re new to sales, you probably have some idea of what a sales funnel is. You’re putting all your leads and potential business into the top of the funnel, and on the bottom of the funnel, you’re producing customers.

When lots of leads are dropping into the funnel but few customers are coming out, your conversion rate is smaller than you expected, and you need to know where those leads are dropping off. This is what Berit and Milissa refer to as a leaky sales funnel. You have leaks in the funnel where those leads are falling out. You need to identify them and fix them so you don’t lose that business.

Visualize a bucket. It would be great if all your water stayed in the bucket. But, if there are holes in that bucket, you’re never going to keep all the water. That’s what a leaky sales funnel looks like.

A leaky sales funnel can break the bottom line of a property management business.

You’re probably paying for leads every month. If you’re putting a budget towards those leads, you want to know how much money you’re spending on leads compared to the money you’re earning on signed contracts. That means you have to look at the sales process itself. There are many stages to that process, and you need to evaluate each stage to find out where your sales funnel is leaking.

Are You Closing Enough of Those Leads?

Maybe you’re not even looking at your sales funnel because you’re closing a handful of great business every month, so you assume everything is working just fine.

Why go looking for problems?

But, you have to know your sales funnel so you can avoid lost opportunities.

Look at the bigger picture of how many leads you have coming in versus what you are closing. Does it make sense? You need to make sure you’re maximizing the leads that are coming in. If you’re not looking at your sales funnel, you’re not going to know what to fix.

Make your sales process visual. You want to take a look at the definitive steps you take, and you want to see how people move through the process. It won’t take long to identify where they’re dropping off.

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