Monday, May 26, 2014

The Most Overlooked Marketing Tool in Real Estate

You might be surprised just how important repeat customers can be in the world of real estate. We all understand the importance of referrals; without them we are almost certainly doomed to failure but there is also a place for clients that require our services in the future.

Obviously there is a big difference in how often we can serve a client as compared to most traditional businesses such as the places that we buy gas or our morning coffee but repeat business does exist and if you aren’t focusing on that segment of your marketing you are doing yourself a great disservice.

First of all, in all businesses it costs about 5 times as much to find a new client/customer as it does to get the attention of someone that you have already done business with. Did you know that doing business again with only 2% of your clients is equal to cutting your total operating costs by as much as 10%? In addition repeat business can increase your profits anywhere from 25 – 125%! Although it is true that people don’t buy a home every day it’s well worth your time to be fresh in their mind when they do.

Here is some interesting information from the NAR Profile of Home Buyers and Sellers:
  • 18% of repeat buyers use an agent they’ve worked with before.
  • 70% of home buyers (repeat and first time) would use their real estate agent again and recommend the agent to others as well.
  • 26% of home sellers used an agent they’d worked with in the past.
  • 65% of sellers would definitely use their agent again and recommend the agent to others.
Although it is clear that “staying in touch” with former clients is worth your time it can certainly be a challenge. So how do you find a good reason to contact past clients even though they are no longer buying or selling a home? Well, you must find something that will interest them as home owners instead of home buyers or sellers! Maybe you’re doing this already. If you are blogging (as you should be) than surely you are talking about subjects that matter to homeowners such as local events, money saving tips for homeowners, DIY maintenance, local politics, something that would interest anyone living in the area, right? What about a monthly newsletter for both new and existing clients? Find your “niche” and the business will come!

Still feel that keeping in touch with previous clients is a waste of time? Here’s a bit of motivation for you. 44% of home sellers have been in their home for 5 years or less. If that fact alone doesn’t convince you of the value of staying in contact with past clients, nothing will!

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