If you're looking to generate more real estate leads this year, there's a good chance AI has caught your eye. AI has been all the buzz recently, and for good reason. If you haven’t been paying attention to recent trends in tech—particularly around conversational AI—ahem, Chat GTP, then this may come as a surprise to you.
Artificial Intelligence is the way of the future. It’s taking over and transforming how we do everything, from sales to operations and everything in between—and right now, AI powered customer engagement and lead generation is having a moment.
For the longest time the mantra for generating real estate leads has been “having a strong online presence.” While this is true, it’s also the bare minimum bokerages can do. Simply being present online is no longer enough. Consumers expect engaging and personalized experiences from brands, and this is where artificial intelligence (AI) comes into play.
AI-powered tools can help real estate brokerages create highly engaging and personalized experiences for their prospects and clients alike, leading to increased conversions and revenue while slashing unnecessary costs. In this article, we'll explore nine statistics about generating real estate leads with AI that every broker needs to know. We'll discuss the benefits of AI-driven experiences, the billions of dollars saved by companies using AI, and how brokers can use AI to engage with consumers in a way that generates real estate leads on autopilot.
Consumers Love AI Driven Customer Experiences
Yep, we’re biased—but facts are facts. Consumers love AI-powered real estate brand interactions because they provide a more personalized and efficient experience. AI algorithms can analyze vast amounts of data and provide personalized recommendations, allowing consumers to quickly find properties that meet their specific criteria. And AI powered chatbots can provide immediate assistance, help with appointment setting, and answer common questions, making the entire process more convenient.
The use of AI also increases transparency and reduces the likelihood of human error, which builds trust with consumers. AI-powered real estate brand interactions offer a more seamless and satisfying experience for consumers, which is why they are becoming increasingly popular. And while some brands hesitate to make the jump into AI powered sales tools for real estate lead generation due to fear of customer dissatisfaction, here are some stats to prove the contrary.
1. 87% of consumers are satisfied with bot-only interactions.
According to Startup Bonsai, different studies are showing that consumers’ satisfaction rates with bot-only conversations is over 87%, reporting either positive or neutral experiences.
2. 68% of consumers like AI interactions due to speed of response.
Convenience is the #1 factor consumers look for in brand interactions, perhaps unsurprisingly. In a digital world, we’re conditioned to expect and crave instant gratification—and when we don’t get it, we’re very turned off. In a recent survey by Userlike, 68% of respondents said they like chatbots and AI interactions because of the fast response times. In the survey, it surpassed all other factors as the most important aspect of their experience.
AI & Automation Are Saving Companies Big Time
AI is saving companies billions of dollars and man hours by automating and optimizing various processes in 2023. The potential savings for real estate brokerages jumping on this trend is vast, and moving into a recession and uncertain market means that cost savings and efficiency are more valuable than ever.
By improving brokers’ ability to generate and convert high quality real estate leads—enough to replace less efficient processes—major costs are being slashed. Here are some stats on how AI is helping companies streamline operations and increase revenue at an unprecedented rate.
3. Chatbots will save businesses billions in 2023.
Chatbots are expected to save businesses 11 billion dollars and 2.5 billion man hours by this year, according to Juniper Research. That’s because call centers and sales agents are expensive, due to the man hours it takes to generate and convert a lead. Compared with the price of software, it’s a no-brainer to make the switch.
4. The real estate industry has been underreporting the conversion rate of real estate leads.
In real estate, leads convert at around 1% or less—despite the misleading stats you might find floating around the internet. And according to the Keller Center for Research, it takes about 7.5 hours of calling to generate a qualified appointment—or 1 in every 330 cold calls. That’s a lot of time, energy, and money—but with conversational AI, you don’t need to pay for sales agents to do this work.
5. Brokerages switching to AI sales tools can save as much as 81% on real estate lead generation and conversion.
While IBM reports an average savings of 30% on chatbot customer interactions, we’ve had customers save as much as 81% on lead conversion through using our conversational real estate AI. While every business is different, depending on what they’re currently investing into lead generation and conversion, it’s clear that there’s dramatic cost savings available to any brokerage willing to implement AI into their strategy for generating real estate leads.
Your Audience Is Online & You Need To Be There Too—But Even That Isn’t Enough
In today's digital age, having an online presence is critical for companies to generate leads and establish brand awareness. This applies to all industries, including real estate businesses. However, merely being online is not enough. Consumers are looking for engagement and activity from brands, and that's where AI can play a significant role.
AI-powered tools can help companies engage with customers in real-time and provide them with valuable insights. By leveraging AI, real estate brokerages can establish a strong online presence and build trust with their target audience, ultimately generating more leads and increasing sales.
6. 84% of buyers use the internet to search for homes.
There it is. The importance of having a presence online. According to data from Agent Advice, 84% of the potential pool of transactions is starting their search on the internet, which means you need to be meeting them there. This shouldn’t be too surprising, given that the largest group of home buyers are internet and social media obsessed—millennials.
7. Engagement and presence make brands more trustworthy.
Yet, just “being present” online isn’t enough. Throwing up a website or listing isn’t going to cut it, because that’s the bare minimum everyone else is doing. Agents who spend time cultivating a brand presence by interacting with prospects on social media saw an increase in leads by 66%, according to more data by Agent Advice.
They also reported that 8 out of 10 consumers use social media presence as a factor in determining brand trustworthiness. While connecting with consumers online and being active 24/7 might seem like a tough demand, AI can make it happen seamlessly.
8. Marketers struggle the most with generating high quality leads—especially in the real estate sector.
According to Fit Small Business, generating high quality real estate leads is the #1 thing marketers struggle with.
Why? Because buying or selling real estate is one of the biggest decisions a person will make in their life, and most marketing campaigns are set up to capture and convert—instantly. Or, at best, they’re set up to convert over a short period of time. But real estate leads can take 3 months to a year—or more—to convert. And the only way to continue to connect with enough people for that long is through AI.
9. The average agent is only spending between $0-$250/month on lead generation.
So you trust that your agents are out there on the internet, generating real estate leads—right? Another statistic provided by Fit Small Business proves this assumption wrong. The average agent is spending $250 max per month on real estate leads. With the average real estate lead costing roughly $44 or more (for good ones, that lead to an appointment), at most, you’re looking at a handful of appointments per month, per agent—and this is optimistic.
Long story short, most likely, your agents are not investing nearly as much as you think—who can blame them—and that’s impacting your bottom line. The only way to ensure you’re bringing in transactions is to spend on lead generation yourself, and with AI sales tools, that cost is dramatically lower than in the past.
The Bottom Line
In conclusion, the statistics speak for themselves—artificial intelligence is a game-changer for brokerages looking to generate more real estate leads and increase sales. Consumers love personalized and engaging experiences, and AI-powered tools can help companies provide just that. Additionally, the cost savings associated with using AI are significant, making it a smart investment for brokerages of all sizes. By embracing AI and leveraging its capabilities, real estate brokerages can establish a competitive edge and stay ahead in today's digital landscape.
If you’re interested in learning more about implementing AI sales tools at your brokerage, connect with us at Landslo for a full complementary conversational AI demo, no strings attached.