Client Retention

REALTORS® – How Do You Add Client Value?

what to do when you feel stuck

People do business with people they know, like and trust.

 

In real estate, this phrase couldn’t be more true. Clients don’t choose a real estate agent based on the letters after your name or the awards on your desk – and they definitely won’t be referring their friends or family because of them either.

 

The truth is that real estate is about relationships. Our ability to connect with clients on a personal level and build meaningful, value-added relationships is how we grow our business and separate ourselves from the competition. In fact when the National Association of REALTORS® performs their survey of home buyer & seller trends, the most important characteristics when choosing an agent are if the agent is honest & trustworthy, whereas the agent’s brand and designations rank low on the list. So while those designations are great for building new skills, they won’t necessarily grow your client list.

 

So just why are relationships so important? Buying or selling a home is not only a huge financial commitment, but it also coincides with major life events- like getting married, deciding to have children or becoming empty nesters. Therefore, as a real estate agent we can’t just focus on the sale but instead how we can advance our relationships. As Brian Buffini contends, “Delivering a premium experience… means nurturing, building and preserving your relationship with your client.”

 

If we think about how real estate has changed over the past 20 years, it’s no wonder that relationships are becoming more and more central to the success of any agent. With the rise of technology – especially searching for properties and neighborhood information online – an agent can no longer simply supply listings to their clients. If our only service is providing info on homes for sale or posting a property online, we become a commodity.

 

Instead, if we emphasize building relationships we ensure we aren’t forgettable. This means a paradigm shift from being a real estate salesperson to being a real estate consultant. Salespeople complete transactions. Consultants educate clients about the buying & selling process, connect clients with a team of professionals ( like mortgage brokers, lawyers and home service providers), and stay connected with clients after closing. While this paradigm shift means spending more time with each client, it also means your business can grow exponentially. Each client becomes your ally, brand advocate & marketing team – they come to you with real estate questions, they remain loyal when they buy or sell in the future, and they refer you to their friends, family & colleagues. How do you build value-add relationships with your clients? 

 

With ClientLinkt by QuickLinkt, real estate agents can increase client value by sharing their team of trusted home service providers & local businesses via their own custom-branded mobile app. This allows agents to provide more client value, stay connected post-close and strengthen their client relationships. Learn more about ClientLinkt here or contact sales@quicklinkt.com  for more details.

 

Client Retention – Where’s the Gap?

building client loyalty

There’s no worse feeling than realizing your client found a new real estate agent. You helped them buy their first home – in the best neighborhood & under budget. You even sent an awesome closing gift. Now 3 years later, they’ve listed with a different agent. You’ve been dumped.

 

While we’d like to hope that our clients will remain loyal, data shows that the real estate industry has a problem with client retention. Despite the fact that nearly 90% of home buyers and sellers say that they like their agent and would use them again, only 10% do. We work so hard to help our clients buy or sell, but we drop the ball post close.

 

So why is it so difficult to retain clients? It turns out that most agents lack a strategy for staying in touch & top of mind with past clients. In a recent study, it was found that 15% of agents participate in no form of post-close marketing. And of those who do – it mainly consists of haphazard activities such as bumping into clients in the grocery store or sending a few random check-in emails. So with no strategy to stay connected with past clients and provide value after the sale, it’s no wonder agents have difficulty with client retention.

 

Now, think about the efforts you go through to find new leads. You’ll update our website, hire photographers to take awesome listing photos, buy ads on Zillow or Realtor.com, blog, use lead capture on our website, plan open houses,  advertise on billboards… the list goes on. The fact is, there tends to be huge discrepancy between the effort we use to attract new clients and the effort to retain past clients. What if we diverted even 5% of our prospecting time to post-close marketing? Would it increase repeat business? Lead to  more referrals? Decrease client acquisition costs?

 

The research says yes. According to the White House Center for Consumer Affairs, it’s 6-7 times more expensive to acquire a new client than it is to keep a current one. What strategies do you use to stay connected with past clients?