Build a loyal following

14 ways to keep your clients coming back … and back … and back …

by Pat Zaby   In the 1960s, social scientist Stanley Milgram claimed that anyone could be linked to anyone else by a chain of only six people–the famous "six degrees of separation." Think of this small-world phenomenon in relation to the real estate business.

If you know about 200 people–friends and current and former clients–chances are each of them knows 200 people. That puts you two handshakes away from 40,000 prospects. The leverage is quite dramatic.

You must ensure that your 200 people are such raving fans that they wouldn’t consider buying or selling a home without you. Accomplish this and you have the nucleus of a very successful business. Assuming each of your 200 moves every eight years, that provides 25 opportunities each year. Half of them selling and buying another home accounts for 37 transactions sides.

This initial projection doesn’t take into consideration the referrals that you would expect from card-carrying members of your fan club. In fact, if you never did business directly with your initial 200, the amount of business you could expect from referrals would exceed it.

Loyalty like this comes from establishing relationships, whether business or personal. Simply making contact with a person doesn’t create the relationship. People don’t care how much you know until they know how much you care. Ralph Waldo Emerson said: "What you do speaks so loud that I cannot hear what you say." We need to show that we want to be our core group’s "REALTOR® for life."

Anyone can provide services to someone when they’re ready to sell or buy a home. We need to supply those 200 people with services for homeowners that are available between the time they buy and sell. If we want their loyalty and referrals, we must make them better homeowners.

Create a loyalty program that counts only your clients as members and treat them to an array of complimentary services. Here are some ways to show your members how much you care.

Consulting services

Is now a good time to sell a house or buy a vacation home? Do city regulations prohibit 12-foot fences? Inform your clients that they’re welcome to contact you for free advice regarding real estate transactions or regulations. They’ll rely on you for information and spread the word about your generosity.

Annual list of comparable properties

Let your clients know where their property stands in relation to the rest of the market with a rundown of what their neighbors’ homes are selling for. Some homeowners who are considering making a move may be prompted to act by your information–and surely will use you as their agent–while others will appreciate the data and feel more comfortable with their investment.

Energy-savers

Send each client a list of ways to make their home more energy efficient. Along with each idea or product, include an estimate based on a home’s square footage of how much money they could save. For example, let them know about weather-stripping that really keeps in the cool air or light bulbs that use 60% less electricity.

Reduce closing costs through special arrangements

Clients want to reduce their costs–this is not news. Make a deal with the closer and pass the savings to your client rather than improving your bottom line.

Tax sheet to keep track of the basis of their home

Sit down with a tax lawyer and draw up a form that homeowners can use to keep track of their real estate investment. Make it a general fill-in-the-blanks form that anyone can easily use.

Home-inventory form to record personal belongings

Many homeowners don’t think about a home inventory until the floodwaters reach their front door. Combine this form with advice on what documents the homeowner should copy and store elsewhere.

Challenging property-tax appraisals

When property-tax appraisals hit the mailboxes, send your own tax-related mailing. Inform your clients about the property-tax caps and exemptions that exist in their communities. Also, create a few scenarios that illustrate when a homeowner should consider challenging an appraisal. For example, if a storm destroys a homeowners’ garage, yet the appraisal goes up.

Contractor referrals and references

Using your clients, coworkers, and family as resources, compile a list of trustworthy contractors. Send this list to your loyalty-program members and, where possible, include other clients as references. Encourage clients who use a contractor from your list to act as a reference to ensure your referrals live up to your high standards.

You can complement your referral-and-reference list with general guidelines for various home-repair professionals, such as common hourly rates for plumbers and licensing qualifications for electricians.

Government giveaways

Does your community offer any discounts or home-goods giveaways? Some cities provide residents with free low-flow shower heads or discounts on shade trees and shrubs at local nurseries. Find out if your town has any such programs and alert your clients.

Resident directory

Whether new to town or longtime residents, your clients will benefit from a community directory. Include a new-restaurant guide, list of top playgrounds, or where to go for the freshest produce. Try to dig up a few little-known local activities that could impress even the most-jaded townie.

Office services

Allow clients to stop by your office to use your copy and fax machines. Set page limits to curb any abuse of the privilege. You can also offer to accept incoming faxes for people.

Free notary service

Let your clients stop by your office to get documents notarized and be on their way without paying a fee.

Home-maintenance newsletter

Send a seasonal list of tips for keeping their homes in good shape. In the spring, talk about maintaining air-conditioners; in the fall, give tips to prevent freezing pipes.

Refinancing analysis

When interest rates drop significantly, send out a note offering a refinancing analysis to your clients. Set them up with a broker in your company or arrange to have someone else talk with them about their mortgage.

Most of these services can be provided with very little effort but have a high perceived value. They demonstrate we care and want to protect our clients’ investment in real estate. Providing these services does more than just get your name in front of clients. It builds a relationship with those 200 people. And if they tell 200 people …

Pat Zaby is a nationally known author, software developer, CRS instructor, and real estate speaker. For information about having Zaby speak at your next event, contact seminars@patzaby.com or subscribe to his free e-mail newsletter at PatZaby.com.

Editor’s note: TAR’s legal staff recommends that anytime you refer another service provider, you disclose: you do not guarantee the service provider’s work; the basis of the referral; any potential appearance of conflict; and whether you will receive any direct or indirect compensation for the referral.

Illustrations © Artville.

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