The real estate industry is a people-centric business. Agents with the most listings and business also have a great reputation, and equally great people skills. Sure, business skill and neighborhood knowledge play a large part as well, but let’s face it, if you aren’t trustworthy or likeable, you aren’t going to get as far as you’d like in this industry.
So, what’s one bonus of having a great reputation and rapport with your clients? You're more likely to get referral business and not only does that allow someone else to essentially market and generate leads for you, referral leads are far more valuable than any other.
Why Referral Leads Are Valuable
1. They Trust You From The Start
When a friend or family member is referred to you, they come onboard already trusting you, with faith in your ability to either sell their home or help them buy a new one. This doesn’t mean that nurturing practices go out the window, but it does help that your leads are essentially already “warmed up” from the get-go.
2. They Stay Clients Longer
According to a Forbes report, client referrals are 18% more likely to stay with your business than others coming to you on their own. Just because you helped them buy a new house today doesn’t mean they won’t need you again. When the kids leave the nest or the grandparents move in, you’ll be their contact to help them with their housing needs.
3. Marketing is done, in part, for you
Most of us spend our days marketing and developing new lead generation practices, and while this certainly should be the case, it’s nice to get those referral leads that have essentially been marketed to for you!
4. More Satisfied Customers
For the most part, referral leads come in with a realistic expectation of how things will go. In turn, they are typically very satisfied. This satisfaction leads them to tell their friends and family, they are referred to you and the cycle continues.
So now that you know the real value of referral leads, let’s talk about how you can effectively boost you client referrals.
Tips for Increasing Referrals
1. Stay in touch after the transaction
Nurturing doesn’t have to stop after the initial transaction! Use this opportunity to continue to provide value and build relationships. See some neat neighborhood events happening in the area that your client just moved to? Send them an email and let them know! If you are connected on Facebook, this is a perfect opportunity to continue to build trust and solidify your relationship.
At Z57, many of our agents use PropertyPulse not just for lead generation and nurturing, but also to remain in contact with their past clients. Through the platform, articles and posts that appeal to homeowners as well as buyers and sellers are frequently circulated on your business page.
If you would like to learn more about PropertyPulse, call an account executive at 1-858-732-9418 or schedule a demo by clicking below.
2. Ask for a Referral
Many agents shy away from the direct approach of asking a client for a referral, but when it’s done respectfully, it can be a great way to get in contact with another lead. If you have some great listings on the market for families or specific properties for equestrians, for example, ask your client if they know of anyone that could be a good fit. When you are more specific, you stand a better chance of getting a referral
When you get a referral, update them on how things are going
Once you do receive a referral, it’s good form to keep your client up to date on how the referral is doing. This shows them that you care. Also, be sure to create a hand-written thank you note and sent it to your client for sending a referral your way. They more they see you appreciate the referral, the more likely they will be to send other people your way in the future.