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Stay Connected With Past Customers
How much is your best customer worth to you?
Depending on your market, you may make anywhere from $5,000 to $30,000 on a single transaction, which is nothing to scoff at. But, if you focus on developing a rapport with your clients and maintaining that relationship, you might ultimately earn many times more than that.
The key is engagement – building a connection that makes your clients see you as "their" real estate agent.
Unfortunately, real estate pros often have a problem with engagement and the repeat business it offers. Research suggests that most real estate experts are going about things backward, especially early in a career.
The real estate industry spends more money than any other on new customer acquisition, estimated at around 20% of all real estate marketing dollars. By comparison, customer retention gets a paltry 3% of the budget.
And this isn't because former clients are unwilling to use the same agent in the future. According to the National Association of Realtors, 91% of customers surveyed say they would use their agent again.
In the long run, however, only 12% actually do! So, in short, the relationship is allowed to wither on the vine.
Customer Engagement's Role in Building the Real Estate Practice You Really Want
It's been said again and again that new real estate agents need to shift as quickly as possible from chasing cold prospects to drawing warm leads to their door. Digital real estate marketing, combined with the right digital marketing automation, makes this process easier, more effective, and more affordable.
And while you shouldn't have to pound the pavement 24/7 to meet potential customers, your existing customers are in a class by themselves. Since they know, like, and trust you, the effort you need to invest in winning their business a second or even third time is a fraction of what it takes to nurture a new lead.
Let's go back to that earlier question – "How much is your best customer worth to you?"
While you can only have one best customer, you can have many ideal customers. These are the people who fit your style like a glove. Your value proposition resonates with them, allowing you to exceed their expectations while meeting their every need. At the same time, you feel energized by working with them.
Now, we all know that people don't often move – in fact, many will put it off as long as possible.
If you earn $5,000 working with an ideal customer at the start of your career, that could lead to $10,000 more in about five to seven years. If you're in real estate for life, the relationship can yield another $10,000 later on. In effect, one single customer has provided you with a lifetime value of $25,000.
However, it really gets exciting when you consider how that customer can influence your referral business.
It's common to follow up with former customers four times throughout the year – a week after closing, a month, three months, and at the end of the year. That said, some agents have found great success getting referrals by following up every month – with the goal of getting one referral per customer per year.
Just like that, the lifetime value of that same ideal customer skyrockets to about $275,000!
When your most satisfied customers become a lasting part of your business, their ongoing contribution means you spend even less time drumming up new business. That means you can focus more attention on sharpening your skills, delivering exceptional customer care, and experimenting with new ways to differentiate.
By reducing the effort it takes to get one referral, you "create" both time and money.
Designing Customer Experiences to Foster Engagement and Raise Lifetime Value
If 90% of customers say they would use the same real estate agent again, it might seem like a very low bar to reach. The question, of course, is how you can make sure none of your customers become the 88% you'll never see again.
The answer isn't just follow-up. It's about creating the best possible experience for every customer. When they have an amazing time working with you, they are much less likely to consider looking elsewhere in the future.
It might seem like there are endless ways to stand out and no clear guidelines on what matters most. But after working with thousands of agents and brokers all across the country, some methods come up again and again.
Here's where to focus your energy to make the biggest difference:
• Create a Concierge Pre-Move Experience
The closer you can get to orchestrating an all-in-one pre-move experience under one roof, the better. Mortgage, insurance, closing, and home warranty are all pain points. What if you're a solo act? You can still coordinate with third-party vendors to provide white-glove moving services, taking one worry off clients' plates.
• Share Useful Content After the Move
The biggest reason so many customers don't use the same real estate agent over and over is simple – they forget! Keep your name and story fresh by continuing to provide content on homeownership and other topics that matter to them. Maintaining a real estate blog is great for your brand and raises your online visibility. My Customer for Life emails, provided by Delta Media Group® through DeltaNET® 6, are also an easy way to stay at the forefront of client's thoughts.
• Help Your Past Customers Save Money
Saving money is on everyone's mind, so make it easy for your customers. Reach out with personal reminders through email, social media, or even text, letting them know about refinancing opportunities and tax savings that could apply to them. This reminds them you're looking out for their interests!
• Leverage Trusted Local Services
New homebuyers tend to go pretty quickly from their real estate success- es to the next big thing on their list ... home improvement! Creating a solid network within your community allows you to refer customers to local brands they can trust. You can also end up getting referrals directly from your commercial partners.
Effective real estate agents always treat customers as relationships, not transactions. The most successful go the extra mile, maintaining those relationships for a lifetime – and you can, too!
