3 Advantages of Using a Real Estate Client Referral Program

Client satisfaction is vital in the world of business. But it’s not the ultimate end goal when it comes to getting returns on your investment. Growing your initial capital is actually what matters, especially in a field as competitive as real estate. There are various ways to build your intended audience and get more people to subscribe to your offerings. This may be through marketing, advertising, or, better yet real estate referral programs.

Developing a solid strategy is the key to establishing an excellent referral program. First of all, what do you want to achieve? Getting people to buy from you may be the primary objective, but there’s always something else that you need to develop before getting there. For example, this may be to broaden your reach, grow your network, etc.

Once you’ve decided on what you want to work on, you’re all set. But is it worth the time and investment to develop a real estate referral program? Here are three advantages you’ll find with a good referral program:

1. Cost-efficiency

According to a Nielsen survey in 2012, 92% of new customers are more likely to invest in a business if they are referred by someone they know. This means that a lot of the legwork done by your customers will pay off in the long run. This also means that money that you’ll be using on paid ads and marketing strategies could be used elsewhere, like company development and R&D. You won’t have to worry about the costs once you have an excellent referral program in place. Your valued customers will do the talking for you.

2. Return on Investment

You won’t have to worry about the incentives you’ve offered clients to refer you to their friends, acquaintances, and relatives. The investment will return to you many times over. Similar to the first point, learning where to put your investments wisely is sure to pay off. Interestingly, studies show that non-cash incentives were a more significant motivator for clients to refer to others, than cash incentives. Improving your offers may be what it takes to get people interested, rather than shelling out.

3. Customer Retention

Customers who refer other customers through a real estate referral program are more likely to become loyal customers. This is because the incentives and premiums they receive are a great way to keep them invested. As for the customers, they referred? They’re more likely to stay as well since they were referred by a trusted individual. The customer retention you’ll expect from a referral program will not only benefit you monetarily but ensure happy, satisfied customers.

Planning, planning, planning!

There are many ways to attract people to your real estate business. These methods may include other forms of marketing and paid advertisements, but the best way to get customers is through a referral program you’ve carefully planned out. This will hit two birds with one stone – both retaining customers and getting new ones. The incentives you offer will be worth it, and the returns will far exceed the costs.

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