The Critical Role Of Customer Relationship Management For Real Estate Companies 


Every real estate business needs an effective customer relationship management (CRM) system to keep track of customers’ contact information, past purchases, and other vital data. This information is critical for providing top-notch customer service and developing long-term relationships with clients.

Real estate software is increasingly transforming the industry, and it’s not hard to see why. 

More than 60 percent of real estate agents who earn a minimum of $100,000 yearly use CRM software. And reports show that each dollar invested in a CRM solution, even for real estate, brings an $8.71 return. 

Is CRM and CRM software consistently profitable for realtors? Read on to find out. 

This article discusses the critical role CRM and its software plays in the real estate business and how it can help you improve your customer relationships.

Find the best CRM software that fits your business with the help of our top-listed CRM software reviews.

What is Real Estate CRM?

Real Estate CRM

CRM stands for customer relationship management. Real estate CRM software is an application that manages realtors, customers, brokers, developers, and agents’ relationships. It typically contains features to track customer data, manage customer interactions, and generate reports on customer behavior. 

A real estate CRM system typically has three main components: a database to store all your customer and lead data, a task management suite, and a communication method.

The database is the most crucial part of a real CRM. This is where you store all your leads’ contact information and notes from previous interactions. The database should be easy to search and filter to find the information you need quickly. 

The task management system is where you keep track of your deals. You can create custom stages for your sales, so you can see at a glance which ones are ready to close and which ones need more work.

Finally, the communication system is how you’ll stay in touch with your leads and customers. Many real estate CRMs come with built-in email or phone systems, so you can easily send out mass communications or individualized messages. This tool saves you time and ensures that your customers always receive the best possible service.

Types of Real Estate CRM Software

Desktop Real Estate CRM Software

Desktop real estate CRM software is a customer relationship management software you install on a user’s computer. This type of software normally requires a one-time purchase and can be used without an internet connection. 

However, some desktop CRMs may offer an optional subscription for additional features or services. 

Cloud-Based Real Estate CRM Software 

A cloud-based real estate is hosted on the internet, which means you can access it from anywhere in the world with an internet connection and accurate log in details. 

You can run your activities without installing the application on your computer. You can also give different levels of access to other users so that they can only access the information they need.

Why is Customer Relationship Management Critical For Real Estate Companies

1. Improves Lead Generation Efforts

Lead Generation Efforts

An excellent CRM system improves your lead generation efforts by automating tedious tasks such as collecting and collating data and cutting down on the time it takes to send an email campaign. 

It also helps you create targeted lead generation campaigns based on specific business metrics, such as the number of new signups or purchases made from a real estate broker or agent. 

Finally, a real estate CRM system helps you identify which leads are worth pursuing (are most likely to become customers) and which ones to ignore.

2. Manages Real Estate Marketing Strategy and Campaigns

Managing your realtor and buyer relationship using CRM software can help you manage your real estate marketing strategy and campaigns by tracking every activity, from lead generation to contract signings. 

Whenever you send an email, post a listing, or schedule a showing, your software can track who received the message, when it was sent, and whether it resulted in a new client. This helps you analyze which strategies generate the most leads and which customers are the most likely to sign the contract.

It also helps you keep track of your leads and interactions with potential clients. That way, you’ll never lose touch with a prospect and always know where each lead is in the sales process. 

With CRM software, you can create custom target lists, track click-through rates and ROI, and other vital marketing metrics. 

With detailed reports on campaign performance, you’ll be able to see what’s working and what’s not—and adjust your strategies accordingly.

3. Streamlines Approval Workflows

Real estate CRM software helps to streamline approval workflows by automating notifications to keep everyone on the same page. It also provides templates, making it easier to standardize communications. And some of them even allow customization to match your specific process.

Streamlining approvals helps to ensure that projects move forward quickly and smoothly without any bottlenecks. This saves time and money, and it also helps to avoid frustration on the part of customers. 

To use real estate CRM software to streamline approval workflows, define your approval process and choose workflows that match. Create automated notifications to keep everyone in the loop. And use templates to standardize communications.

4. Forecast Sales More Accurately

Effective customer relationship management using a CRM system can help you accurately forecast sales by tracking historical data, identifying patterns, and predicting future trends. 

The system can track all of your company’s historical data, including information on leads, sales, and customers. Mining this data and analyzing it can help you identify patterns in customer behavior that can help you predict future sales. 

For example, if you notice that most of your sales come from a specific part of the city, you can focus your marketing efforts on that area to increase sales. By analyzing data from past sales and current trends, a CRM can help you predict future trends in the real estate market. 

Pipedrive CRM has one of the best sales forecast tools. It clearly reveals vital sales metrics on an intuitive user interface. Metrics such as the average sales cycle length, revenue fluctuations and gaps in your deal stages.

5. Completes Visibility of Sales Funnel

CRM software gives you a complete view of your sales process from when you generate a lead to the point where you close the sale. 

It enables you to track and manage real estate leads and prospects and identify which ones are most likely to convert into sales. And if things are going wrong in your sales process, it offers accurate insights to address the problem.

Why is it important to have a complete view of the sales funnel? It allows you to make data-driven decisions about where to focus your efforts. 

If you know which steps in the funnel that are causing the most problems, you can concentrate your efforts on fixing them. 

For example, if you see many prospects dropping out of the funnel at the proposal stage, you can work on making your proposals more compelling.

6. Centralized Database of Information

Effective customer relationship management entails storing all your information in one place, making it easy to access and update. Having all of your customer’s data in a single repository makes it easy to track interactions with them, both in the past and present. 

This can help you better understand their needs and preferences and provide them with the best possible service.

Additionally, it helps you build a comprehensive profile of your customers. This can help you target them more effectively with marketing campaigns and offers that are most relevant to them. 

With real estate CRM software, you’ll be able to see what type of properties they are interested in, their budget, and other important factors. With this information, you can better target your marketing efforts, focus on their preferences, and save money and time by not marketing to people who are not interested in your properties.

7. Tracks Homes and Stay Current

You know that feeling when you’re evaluating a potential property and can’t get a hold of all the updates? It can be frustrating. But it doesn’t have to be if you use good CRM software. 

A good CRM software will help you keep an eye on all the essential details, like price changes, contact information, and notes about each property. That way, you’ll never miss a beat when making an offer or negotiating a deal.

It also sends you alerts when there are changes in the market so that you can stay ahead of the competition. When looking to land a new client, you can quickly search your database to see if any deals you have worked on in the past have any red flags. 

8. Automates Business Processes for Efficiency

Automates Business Processes

You can automate your business processes with CRM software to save time and make your life easier. Some of the tasks you can easily automate include managing and tracking leads, updating listings, managing appointments, and generating reports and metrics.

By automating these processes, you can save time on follow-up and speed up communications. You may have heard the quote, “it’s not about the machine but the operator .” This quote implies that maximizing efficiency with real estate software is a function of human efforts. 

Your staff may find navigating a new CRM system challenging at first, so you should also train them to use the tool effectively.

9. Streamlines Internal Communication

Customer relationship management is an effective strategy that enables you to receive a daily report of all new and closed deals to help you stay on top of your workflow and track any issues from the previous week. 

By setting up a CRM system for recording and sending sales leads, agents can keep track of their activities and quickly respond to new inquiries. 

This can also help reduce friction between your team members, as everything will be recorded in one place. For example, if a home inspection needs to be completed and the agent needs a partner to complete the inspection, setting up an automated system can pair the two agents together. 

One CRM tool that excels in this area is Freshsales. This software lets you segment communication with the different teams you have to work with – listing agents, support, legal, finance, marketing and so on. Therefore, internal deal-related conversations become easily findable and transferable.

10. Ensures Data Security

Data integrity is critical for any business that depends on IT systems for day-to-day operations. Real estate brokers work with a lot of sensitive information, especially when listing properties for sale or lease. 

This information needs to be protected both from external threats. And real estate CRM systems provide a secure platform to store and analyze data. Keeping all data in one place makes it easier to track who has access to what. 

Using strong encryption and efficient password protection measures makes it harder for unauthorized individuals to access your data. Also, regular data backups ensure you won’t lose any vital information if your system crashes.

HubSpot, allows you to automatically backup all your CRM data once per day with a feature known as Pro Backup.

11. Simplifies Document Generation

Some real estate agents like to keep track of their renewals, contracts, inspections, and other paperwork. With a real estate CRM, you can easily send emails with real estate documents attached, saving time and simplifying the process. 

With real estate software, agents do not have to spend time tracking documents and assembling them into files. Now, real estate agents can focus on more important tasks like reviewing details of their listings, such as staging the property or contacting buyers.

How to Choose the Best Real Estate CRM Software

There are different types of CRM software on the market, so it can be tough to decide which one is right for your real estate business. The following tips will help you make the best decision on which CRM to use.

Assess Your Needs

Before investing in real estate CRM software, you need to know what you want it to achieve. You need to understand your business processes and visualize how a CRM system can help. Consider your business goals, the number of employees using the software, and how many leads you want to manage.

For example, if you have several agents who need to use CRM software, you may be better off choosing cloud-based CRM software over desktop. Once you’ve assessed your needs, you’ll be better positioned to choose the right CRM software for your real estate business.

Determine Your Budget

Budget is one of the vital things to consider when shopping for real estate CRM software. CRM software can be expensive, so it’s important to find something that fits your needs and budget. Compare different features and pricing plans to find the right software for you.

Check if any compatible software providers offer a discount or sales promotion. And don’t forget to factor in the cost of implementation and training. It’s important to have a clear idea of the total cost before you make a decision.

Consider Simplicity

Simplicity is vital when using CRM software. The ideal CRM software is one that’s easy to use and doesn’t require a lot of training. And it should be customizable so that you can tailor it to your needs.

Most CRM software offer demos or learning resources to help users navigate the platform easily. Suppose you can’t find these resources on your own, contact customer care to direct you. The last thing you want is a tool that will slow you down or get in your way.

Consider the Security of the Provider

When choosing CRM software for your real estate business, you must ensure that the provider is reliable and has a good security track record. After all, you’ll be entrusting them with your most sensitive data.

So ask around, do your research, and study reviews before you make a decision. And if you’re unsure whether a particular CRM tool is right for you, don’t hesitate to reach out to the provider and ask them some questions.

Stay Ahead of the Curve with CRM Software

The bottom line is that real estate CRM software is essential for any real estate business that wants to stay ahead of the curve. If you’re not using CRM software, you’re missing out on a critical tool that can help you grow your business. Check out some of the best CRM software on our website. They all offer a free trial, so you try them out today risk-free.