What Happened to All of Your Referrals?

One of the best sources for new business is the business of client referrals.

Not exactly a life-altering statement, is it? How about when you take into account the fact that 88% of buyers say they would use their agent again or recommend them to others, and yet only 25% actually do. Now you recognize how important your referral pipeline is or could be to the future health of your business.

So if you are questioning where your referrals went, it's time to re-evaluate your referral business.

How Would You Personally Rate Your Performance?

It might be time to take an introspective look at your level of service. If your referrals have slowed in recent months, take a look at what kind of service you're providing. Think of it this way—every transaction has three to five opportunities for you to go above and beyond. Don't settle for less. Do more than expected and leave a lasting impression that will turn your average clients into raving fans.

In order to manage all your transactions professionally and deliver exceptional services, you need to have the tools in place to assist you. The fact that your referrals have come to a halt is a pretty good indicator that the overall machine hasn't been flowing properly. It might be time to revisit your database and what your inner circle looks like. This stoppage in referrals might also be because you haven't been paying forward any referrals yourself. Keep track of the professionals who you can recommend to your database and they'll return the favor.

If you provide your customers with an unparalleled experience, you will be at the top of their mind when they want to suggest an agent to their network.

Have You Considered Asking for a Referral?

Part of the reason that your referral pipeline has dried up stems from the fact that you might not be actually asking for a referral in the first place, and you can't rely on the assumption that a client will. While 88% of buyers say they would recommend their agent to others, only 63% of buyers actually did so in the last year. Why is there a dip? That number would likely be a lot higher if agents were able to stay in front of clients in the months and years after the sale.

Agents also seemingly hesitate to ask for reviews, in fear of rejection, yet it should not hurt to ask. In fact, around 69% of recent home buyers surveyed said they would gladly write a review for their real estate agent if requested.

Capitalize on the "Closing" Window

"Post-sale follow-up is good business. It tells your customers that you are interested in their well-being, and it makes it easier to ask for referrals later on."

After you have completed the transaction, the window is open to ask for a referral—but it's also a crucial window to actually capitalize on. Let them know how much you appreciated their business and how it was a pleasure working with them. This is also a golden opportunity to learn from their feedback and build your foundation on customer satisfaction. Ask them how they would rate your service for constructive and actionable feedback to use. It provides a perfect springboard to ask if they would feel comfortable recommending you.

Are You Actually Keeping in Touch?

You could be providing the best customer service humanly possible throughout the process, but if you immediately drop off the radar after the close, it leaves a bad taste—and that's how you will be remembered. Building the foundation of a healthy relationship means establishing the lines of communication. However, it's a more common problem for many businesses that only really reach out when they need something.

With this being a steady problem for many agents that already have their focus commandeered, CRM provider IXACT Contact has designed a month after purchase nurturing plan which is specifically designed to address this very issue of keeping in touch after the transaction has closed. It provides a very targeted supplement to the monthly e-Newsletter.

Knowing that someone else took the liberty to recommend you speaks volumes. It brings instant credibility and trust to your business, brand and you! Instead of tearing it all down and starting from scratch all over again, the answers to your lack of referrals could be lying within your database—you just have to rethink how you approach it.

Summary

Every agent needs to look back at how they are running their referral business. If you see that your referral business has come to a halt or never really picked up, stop and smell the roses. You could either be making the mistake of never asking for referrals, never following up, or maybe not even providing the best possible service you can be.

To view the original article, visit the IXACT Contact blog.