Referral Marketing for Real Estate: 4 Tips on How to Do it

Referral marketing for realtors is today’s topic on the blog. Let’s talk about how industry strategies work.

Everyone knows that selling real estate and being part of the real estate market is extremely necessary to have close contact with customers and their loyalty. Given this, it is necessary to talk about referral marketing for real estate and its importance within the scope, as everyone knows that, in this area, deals are not closed overnight. 

In other words, it is not enough to have the best product, in this case, real estate, and not be able to present it to those who are really interested in this type of investment, which has a relatively high ticket. For this reason, several marketing strategies are used in negotiations in the area in order to enhance and move the market. 

And it is precisely one of these strategies that we are going to talk about today and which is of paramount importance – referral marketing for real estate agents. 

Want to know how it can be a great ally to capture potential customers? Keep reading the article and we will give you important tips. 

Real Estate Market Scenario:

Investment in the real estate market in Brazil is synonymous with a guarantee of security that, in most cases, goes virtually unnoticed during crises. This is because a property hardly depreciates, unlike other investments with a greater probability of risks.

In addition, a property also fits into the category of family heritage, that is, a good that can be passed on for generations. Not to mention that some data show that, despite the pandemic, the moment remains interesting for real estate investment in Pakistan. 

From 2020, there is a favourable outlook for low-interest rates and this represents a resumption of growth in the sector. Interest rates related to real estate credit have been much lower than in previous years.

In addition, within the scope of the private sector, according to data released by the Ministry of Economy, around 250 companies have shown their intention to invest more than 60 billion dollars in the country in the coming years.

Another interesting fact is that the Pakistan Chamber of Industry and Construction (PBIC) estimates that, this year, launches and sales of residential properties will grow by around 10% to 15%.

High and medium standard housing would be identified as the main responsible for this increase.

How is Marketing Done in the Real Estate Industry?

Advertising in the real estate industry is essential for you to attract not only customers but the right customers for your venture.

With all the tools available, such as the reach of a computer or smartphone connected to the network, you just need to know a little better about marketing and talk to your audience. Sky Marketing is quite good at dealing with the customers and offering marketing advice.

Obviously, your result will always be the answer to which strategy was used.  It is possible to use traditional outbound or inbound marketing, which uses content marketing strategies. Content marketing, for example, is used to nurture and educate your potential customer, even before contacting brokers.

Anyway, there are many options that can be applied to your business in order to obtain a satisfactory return and convert it into sales.

However, among all these possibilities, referral marketing for real estate companies, in my opinion, is one of the most relevant allies. After all, that’s what I always say, satisfied customers will always recommend your brand. Let’s see how referral marketing for real estate can further leverage the sector. 

A Real Sales Machine:

You already know that referral marketing is the method of generating sales using the customers that are already yours, right? 

That’s because if your customers are satisfied with a brand, they tend to indicate that the experience is positive for friends, relatives, and acquaintances. That is what selling by referral is. 

Once these customers are referred, they are much more likely to be retained than those from other sales channels.

Despite the proven efficiency in this type of strategy, the new word of mouth is still little remembered and used when companies conquer new customers. This happens here in Pakistan.

It is worth remembering that a well-planned referral program completely changes the history of any business, be it B2B, B2C, or any segment of the products and services market.

And the good news is that the results of the action of selling by referral can be constant for years and years.

Implementing and Organizing Referral Marketing for Real Estate Companies:

The human being acts from some triggers at the time of decision making and when he feels satisfied with the product or service, the trend of indication and recommendation happens naturally.

The reward within a good referral program plays a fundamental role in planning. This happens because the people who participate in the program – your customers – are directly involved with your brand when a “prize” is offered for the indication made.

At this point, a relationship is naturally created that is based on reciprocity. That is, when the customer is winning, the chances of them referring more than once potentially increases. This is the famous logic of reciprocity in the mental trigger technique.

The incentive ends up being given so that the indicated person chooses to want to buy your product or service. This means, that it is a decisive action whose objective is to incline the person to do business with you, leaving the “something more” to make your offer more tempting.

In the case of the reward, it is offered when your customer is already your brand ambassador; that is, he wins a prize for the indication. This is extremely viable within referral marketing strategies for real estate companies. The best reward is the one that “marries” your brand identity and the profile of your brand ambassador customer.

Right now, the goal is to enhance engagement within your referral program strategy, generating buzz around your brand. This stage of the referral program is essential, as it directly affects the moment of the client’s decision to join the program or not.

How to Carry Out a Strategy in the Real Estate Industry?

It is possible, within referral marketing for real estate agencies, to offer some advantages to your clients who make referrals, such as benefits for referring new people. 

In this sense, the nominees can receive benefits and this provides an exchange that encourages them. It is necessary to keep in mind that those who practice any indication are lending their reputation to the company. 

In this way, you need to provide this customer who will refer your company with the best possible shopping experience.

And how to implement this within your referral marketing program for real estate companies? Pay attention to these 4 tips. 

Deploying the Referral Program with 4 Simple Tips:

Using the referral marketing strategy for real estate can certainly be the key to success in real estate sales.

Explore and think about the best time to ask for the referral. It is necessary to know and keep in mind exactly how and when to ask for the indication. 

Timing is the key to strategy success. There are times when we are more satisfied with the company and times when we are neutral.

Always remember that you need to remind your customer to indicate enjoying their happy moment.

What does that mean? When he solves a problem through successful customer service, for example, or as soon as he achieves the first positive results with his product or service.

For that, never forget to use all the available channels of your company – including social networks, to enhance the results of referral marketing as well.

Facilitation should also be taken into account. The indicator needs to have clear “rules” to be encouraged to indicate. 

The reward is one of the key factors. At this point, your referral program should have a reward for the referral. Although in real estate, commissions are relevant, do a survey among your customers, what kind of reward they would like to receive for giving the indication. 

The reward is the second major factor in referral marketing.

Many think that the reward alone will make things happen, but in practice, that’s not quite how it works. To get started, the reward must fit into your Customer Acquisition Cost (CAC). You need to be clear about what the number is before you start thinking about the prize you intend to give.

A mistake often made is imagining giving a hyper-desired prize like a state-of-the-art cell phone, for example. The risk of attracting the famous “promotion hunters” is too great and doesn’t match your business persona.

Transparency is also important. As this is a high-ticket business with relevant value, it is important to be transparent both for the nominee and also for the person being referred. 

Obviously, it’s important to remember that referral marketing brings results, but it cannot be the only strategy for your business. Before that, your customer needs to find you so that they can recommend you. https://www.skymarketing.com.pk/park-view-city-lahore/  is following the same strategy to gain organic customers.

As recommendations are influenced by a number of factors within this experience, it is imperative that your company is aligned in all sectors: marketing, sales, service, and support.

Invest in After-Sales:

One of the most common mistakes most companies make is thinking that, after the sale, the job is done.

With the highly competitive market, we have today, developing after-sales is as necessary as convincing the customer to close the deal for the first time. This is the true importance of referral sales. Being present after the sale shows the customer that you are interested in their success.

Phone calls or even face-to-face follow-up meetings should be done regularly. Follow-up is an excellent way to measure customer satisfaction, ask for feedback, provide technical support, and answer questions about how your product or service works.

You can also use this time to educate your customers with quality material and information relevant to their needs. It is important to remember that leveraging end-of-year sales is an opportunity to make your business grow in the other months. 

After all, a twelve-month year cannot be limited to just a few days. No business survives that. Run your engine at full speed during this period so that it maintains constant speed throughout the year. 

Did you like the article? Leave your comment or contact me, and I will be happy to help you leverage your business. Is that you? Already selling by referral but never encouraging your customers to refer? Do you feel like you could be selling much more through your customers?

Dragan Sutevski

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan