When it comes to sales and small businesses a referral is like money in the bank. A personal referral is an easy advertisement with a bit of a blessing attached. The person that is providing the referral must have had a pleasant experience with you and is more than willing to promote your business for you. A referral is an awesome lead that will very likely give you the chance to make a life-long customer in the process. There are benefits to having positive real estate client referrals and you must know how to create an environment that is conducive to receiving a recommendation from your client base to another person.
Real Estate Client Referrals are a Report of Personal Trust
When a person provides a referral to another person it shows that there is a measure of trust between you and the one giving the referral. It shows that the other person trusts you enough to pass your name on to potential new clients. Not just any person will give a referral to their friends. They will only give one if they have had a positive and pleasant experience with you and your company.
Don’t be afraid to offer incentives or discounts for real estate referrals. For instance, if you are a real estate agent, you can tell your clients that you will offer them a discount off the commission percentage if they give your business card out to three people. Or offer a housewarming party if one new client mentions their name when transacting business with you. A satisfied customer is the best advertisement because it comes with a personal testimony.
Plus, by gaining their trust, they will still come to you when they choose to move to a new city or even a new state. You can use this opportunity to refer them to an agent in that new location and continue to grow your network.
A Referral Today Saves You Money Later
This is an important benefit of a referral. This is a free advertisement piece for your real estate business. You don’t have to do much other than treat the customer well and meet their expectations. They take your name of the company and tell everyone about it because they have come to trust and enjoy doing business with you. You may also find that over time you can raise your rates some and people will still want to do business with you because you are worth every penny that someone is paying. In other cases, a referral keeps the listing and the sale inside the company which means more profit for you.
Real Estate Client Referrals Stick Around Longer
Most people want a company they can trust to do business in the long term. When a customer is from a referral, they are also more likely to become a trusted long-term customer because they found out about you from someone they trust. Client retention is also higher with referrals because of the trust factor. All you have to do is provide the best service for them. And they will keep coming back for more (and give your name to their friends in ALL locations).
Show That You are Concerned for your Customers and Their Needs
Marketing your real estate company by word of mouth provides you the opportunity to show that you care. Even referrals show your compassion because the referral is coming from a trusted friend. Homebuyers and sellers like to know that their agents care. By personally speaking with them and returning communications promptly will convey the message that you are interested in them as a person and not just their wallet. Don’t be afraid to ask your clients to refer you to their neighbors, friends and people they know who are relocating. You won’t have to spend as much money on an advertisement when your name is passed around by word of mouth.
Real Estate Client Referrals are Not Common
When a person provides another potential client with a referral that is a great honor. It shows that they care enough or at least were impressed enough to pass on the experience they had with your services. This also means that the next person coming through your door will expect the same kind of service that their friend received. Most people forget to pass on a referral. But when your service and actions stick with them because it was that good, then a referral becomes a major compliment. When the client mentions they were referred to you by another person take it as a compliment and strive to go beyond their expectations.
Interesting Facts to Motivate Your Referrals
It has been surveyed and found that most real estate referrals come not just from customers, but also other agents. This is a motivator for you to network with other agents. Do not be afraid to network with agents from other real estate companies. They are in the same business but if they cannot work with a particular client because of locale or some other reason, they might pass them on to you. It is important to stay connected and related to others in the business.
This is also where RealProcity comes into play. The nationwide network for city-to-city referrals can help you refer your clients without losing that commission. Not only is this good for your income, but like we mentioned above, a fantastic way to grow your personal network from coast-to-coast.
Referrals are extremely important for your real estate company. They can come from multiple sources such as past clients, other real estate agents, the home office and even from personalized advertising. You will want to stay connected with those around you. Take the time to work with each person and other agents on a personal level. Show that you care and are interested in them. You will find that it will pay off in the end. Your business will grow extremely fast once you focus on referrals. There is no such thing as a bad referral. Just the ones that you fail to take advantage of when they do come.