The brief description for "referral" under the general marketing knowledge can be explained as a sale which is created by reference that made by past or current clients. It is normally communicated via words of mouth from each to others. Notwithstanding how well is a real estate agent, he or she only has limited times and resources to cope with numerous demands from the market. At the same time, under the fundamental marketing's framework, part of time of a good salesperson shall be spent on generating new leads where they will use a considerable time on promoting their goods or services.That is why creating words of mouth through customers is important, so that, the channels can be widely extended, and prospects are easily sought without the presence of the agent.
The followings are some of the factors of producing quality and deliverable referrals:-
1) Providing high level of services1
- Delighting customers is very different from fulfilling them. Real estate agent must always remember to service beyond customers' expectation. If the service offered is exceptional, the agent will not be forgotten, and recommendation is made when they are asked by close friend and relatives. At the same time, via good communication, clients tend to see the positive side of the agent and overlook mistakes that are made.
2) Selecting the right person1
- Try to avoid dealing peoples who tend to distrust everyone and everything. Real estate agent must always bear in mind that they shall be careful on screening and selecting prospects. If this was properly done, agent will save up substantial times and energies on those unwanted problems that created from these unfriendly clients. As we have always been told that business come first, real estate agent has to weigh the costs of having such troubles with the value to be created. So, he or she can decide whether to go for the deal. In my opinion, agent might see returns in short term, but it would not last in long run.
3) Asking for services1
- This shall not be executed only through mailing, but rather real estate agent must take initiative to ring past or existing clients to ask for a favour. By doing this, it will also beneficial where real estate agent can track the effectiveness of mailings. Moreover, they will have feedback on relevancy of information that provided in mailings. Agent must also aware that existing clients have greater potential to spread good words of your services. Especially first time home buyers who are still passionate with the transaction, and tend to talk about their experiences whenever they meet up with peoples.
4) Lastly, contacting past clients consistently1
- Real estate agent will have to sit down, and come up with an excellent plan which provides consistent communication's program and attractive rewards scheme. To make the interaction more effective , agent has to make calls personally or visit the clients in person. This is essential for delivering trust and belief to the clients, hence, more business will be referred to the agent. In addition, real estate agent can track effectively who is sending the best deals, and who shall be rewarded the most. The key point of this is to make "PERSONAL CONTACT" and make it "REGULARLY".
1 The factors were extracted from the article titled "Creating Referrals" by Dirk Zeller. It was published under the "Real estate Reading Room[Agents and Brokers] " in http://www.totalrealestatesolutions.com/