Statistics show that 70% of sellers would definitely use the same real estate agent, and that 73% of buyers feel the same way. So why do only 25% of people work with the agent they used previously to buy or sell a house? In this post, we look at what real estate agents can do stay at the top of a customer’s mind and increase customer retention rates.
The Struggle to Retain Real Estate Clients
In the Real Estate world, it is harder to retain customers than in other business settings. The average home buyer will stay in their home for 13 years before moving on. 13 years is a long time to maintain a relationship with a client to ensure they use you again when the time comes to move.
However, retaining clients is worth the investment to your company. It’s a well known fact in business that it is easier to retain clients than it is to acquire new ones. According to this Infographic, it costs a company five times more to acquire a new customer than to retain an old customer. This can vary by industry. Retaining customers is valuable to your business: the probability of selling to an existing customer is 60-70%. The probability of selling to a new prospect is 5-20%. So why are 44% of companies focusing more on customer acquisition?
We mentioned earlier that 70% of sellers said they would definitely use the same real estate agent, and that 73% of buyers feel the same way. But, when it comes time to sell, only 25% of people work with the agent they used before. These numbers may be inaccurate due to factors like:
- Sellers moving out of state
- Inaccurate reporting
- Financial/Market factors after the transaction
7 Ways to Retain More Customers
Retaining customers is a valuable source of income to a business. Because buyers stay in their homes for about 13 years before moving, how can a Real Estate Agent ensure they get the business? By staying at the top of their client’s mind. Here are 7 ways to retain more customers:
Send a Holiday/Birthday Card
You can establish a relationship with your client by sending a card on important events or holidays. Buyers and sellers are more likely to trust someone they know with their business.
Give Away Swag
Free: everyone’s favorite price. You can give something away to every client or you can hold a giveaway.
Organize an Event
Events are an effective way to show your clients you appreciate and care about them. They can also aide in building a relationship with your clients.
You can throw a:
- Holiday party
- Client Appreciation Barbecue
- Housewarming Party for a new buyer
Pick Up the Phone
Would you want your Real Estate Agent to disappear after collecting their commission? Regularly staying in touch with your clients and a quick customer service check in can go a long way.
Potential Conversation Points:
- How is the new house treating you?
- Are you making improvements to your house?
- Would it help if I gave you the contact information of contractors I trust that could help you?
Send a Personal Email
Email is another way of checking in with your client. You can use what you know about your client to send them links to things they might find interesting. This doesn’t have to be real estate related. Possible topics can include an article about their favorite sports team, an event they might be interested in, etc.
Connect on Social
Social media can kill two birds with one stone. First, any update you post has the potential to be seen by clients you have connected with. This keeps you at the top of mind. Secondly, it can help you keep track of their important life events (which you then can send congratulatory cards for).
Start a Loyalty Rewards Program
Incentive your clients to use you again, refer you to friends, or write a review for your social media page.
Prizes can include:
- Points towards free airline tickets
- Gift cards to grocery stores
- A bottle of wine
- Discounts on future purchases
In the Real Estate world, retaining clients is more difficult compared to other industries. Real Estate agents must maintain touch points with their clients between buys, which can take 13 years. Using these strategies, you can build a relationship with your client and turn them into repeat clients.
How 1bg Helps Real Estate Agents Retain Customers
At 1bg, we use our expertise in digital marketing to help Real Estate Agents become known as the local expert, gain more exposure, boost website rankings, and generate quality leads. Contact us today to learn more about how we can help you stay at the top of your client’s mind.