5 Simple Tips for Generating More Referral Business

5 Simple Tips for Generating More Referral Business

Tips for Generating More Referral Business:

Are your past clients referring business to you each month? Do you get a decent number of referrals for the work you put in? If not, you may want to look a little closer at your real estate marketing strategies. Here are some simple and easy things you can do to help you stay in touch with clients, so you can get the kind of referral business you deserve.

Why Bother with Referrals?

Did you know that mainstream advertising cannot hold a candle to the opinions of people close to you? Studies show that most consumers (92%) value recommendations from family members and friends over all other advertising sources. Home buying and selling are major life decisions, and prospects will seek out their most trusted sources of information before they call you.

Referrals are like gifts that keep on giving. Once you set the process in motion, it takes care of itself over time. You do not have to blow your marketing budget on expensive marketing tactics. These people are already motivated, so you do not have to advertise to attract them. They are ready and eager to find out how you can help them.

People influence people. Nothing influences people more than a recommendation from a trusted friend. A trusted referral influences people more than the best broadcast message. A trusted referral is the Holy Grail of advertising.

Mark Zuckerberg, CEO Facebook

Do Your Clients Forget You?

Almost 3/4th (74%) of homeowners would use your services again or refer others, but less than 1/4th (24%) follow through. The main reason for this failure is they cannot remember who you are. You might not be getting referrals because previous clients have forgotten your name. Forgetfulness often happens in the real estate business because people do not use agents in the same way they use barbers, mechanics, or other professional services. It could be many years before someone needs the services again of a real estate professional like you.

If you have not reached out to past clients for some time, they will forget about you. Once someone forgets, they have no way to refer your real estate expertise to others. You could be a top-notch agent with some of the best services in the city, but it does little good if past clients cannot recall your name or have your contact information handy. Someone else will get the business that you should be getting.

Outdated Information

Has your phone number or business address changed in the past few years? People may have your business card from years ago, but these cards are pretty much useless if the information is outdated. Sure, they could look you up online and try to find you, but that takes time and effort, and they should not have to do that. You need to make it easy for people to refer you. How can you simplify the referral process? It may be as easy as keeping in touch to stay top of mind.

How to Stay in Touch

Make sure to ask for referrals at closing. Keep detailed records of your contacts in your CRM. Remember birthdays and special events. Provide referral gifts. You don't have to spend a lot of money on gifts, but send handwritten greeting cards for special occasions. Your CRM can take care of your monthly newsletters, send you birthday reminders, and give you a great source of reference.

Become an Expert

Housing is your business, and you should know who to call when the AC breaks or a plumbing issue arises. Why not use this expertise to help your clients? Let them know they can depend on you for professional service advice. Give them access to home improvement and maintenance articles. Keep a list of local services that you trust. This list will benefit you in the following ways:

  • Clients see you as a trusted source for advice.
  • Local businesses will appreciate your referrals and should return the favor.
  • You stay in touch with clients, so they remember you when it is time to refer your services.

Things to Remember

Ways of marketing to referrals are easy to use, inexpensive, and some of the most effective marketing tools available. Don't let your clients forget you with newsletters, thank you gifts, and professional advice services.  Keep in touch with your clients with a CRM and become an expert in home matters. The time you spend on cultivating your previous clients will yield amazing results.

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