Companies, business owners and service providers are making a huge paradigm shift in the traditional sales and marketing strategies. Retention, loyalty and relationship sales is more important than ever.
How much time, money and energy as an agent do you spend on your past clients, centre of influence and existing relationships?
Check out these game changing statistics and facts we found that will have a huge impact on your game plan in real estate marketing in 2016. Are you planning your shift?
1) It costs FIVE TIMES more to acquire new customers than it does to keep current ones. [Forrester]
2) Client Retention - Reducing your customer defection rate by 5% can increase your profitability by 25% to 125%. [Destination CRM]
3) According to the Gartner Group, 80% of your future revenue comes from just 20% of your existing customers. [Gartner]
4) The probability of selling to an existing customer is 60–70%. The probability of selling to a new prospect is 5-20% [Marketing Metrics]
5) 58% of people buy from the businesses at least once a month, whose loyalty programs they belong to. [Daily Break Media]
6) Sales reportedly increase anywhere from 15-50% as a result of consistent customer communications. [Spot On]
7) 43% of consumers are more likely to buy or use a product or service when learning about it on social media. [Nielsen]
8) Customers are 77% more likely to buy a new product or use a service when learning about it from a family or friend. [Nielsen]
9) 92% percent of consumers around the world say they trust third party reviews, such as word-of-mouth or recommendations from friends and family, above all other forms of advertising. [Nielsen]
10) Peer Reviews or testimonials improve marketing and advertising effectiveness by up to 54%. [Market Share]
11) Referrals are 36x more valuable than a cold call, 10x more valuable than a trade show lead, and 4x more valuable than a web lead. [Inside Sales]
12) Referral marketing strategies generate a 3-5x higher conversion rate than any other marketing channel. [Incentive Fox]
13) Word of mouth for a product or service accounts for 20-50% of all consumer decisions. [McKinsey]
14) 72% of marketers including agents do not recognize and leverage client referrals. [Loyalty 360]
15) Only 38% of marketers including agents have and use a consistent referral marketing strategy. [Gigaom]
16) 45% of marketers and agents who use a consistent referral marketing strategy acquire more than 35% of their new customers with it. [Gigaom]
17) Most business owners and service providers lose 50% of their customers every 5 years for not keeping in touch. [The Loyalty Effect]
18) 2014 marked a dynamic shift where companies transitioned from spending the majority of there marketing budget on acquiring new customers to 86% of their budget on retention. [BIA Kelsey]
19) Email marketing is deemed as the most effective “digital or online” tactic for building awareness, acquisition, retention, and conversion. [Gigaom]
20) 48% of consumers say that the most critical time to gain their loyalty is when they make their “first” purchase or sale with you. [Click fox]
21) 67% of customers said surprise gifts are very important to customer loyalty. [Crowd Twist]
22) The response rate for text messages to clients is 98% compared to 22% for emails. [Venture Beat]
23) Businesses or service providers who send two to three communications per month see three times more referrals than businesses that do not send any communications. [Spot On]
So what did we learn? While it’s enticing to put all of your marketing efforts into obtaining new clients, these loyalty and marketing stats show that targeting your existing clients is the way to go. Not only can you significantly increase profits by bringing clients back more often, but they can be a great source of new customers as they bring their friends.
The statistics behind a communication based loyalty platform is overwhelming. Don’t let your customers go too long without communication and don’t worry about over communicating. Most business and service providers error on the side of under-communication rather than sending far too much. In the end, a dollar from an old customer is just as green as a dollar from a new customer, but it will be less costly to get that old dollar!
[ez_box title="Action Steps" color="red"]
- Assemble your database – Listing and sales files, 150 database builder questions, mobile phone contacts, email contacts, social media contacts
- Place your database into Outlook, Excel or a CRM
- Commit to a 2 touch a month loyalty 2016 marketing plan
- Watch your repeat and referral business grow!!
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Database 24 Touch Plan 2016
[ez_box title="January" color="grey"]
1) Best Year In Real Estate – Video, Video Email, Letter
2) Tax Fighter Kit – Property assessments
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[ez_box title="February" color="grey"]
1) Complimentary CMA’s
2) Video – Update on market in 2015 and your forecast on 2016
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[ez_box title="March" color="grey"]
1) Spring Pop By
2) Personal Hand Written Note after Pop By
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[ez_box title="April" color="grey"]
1) Newsletter – Just Listed, Just Sold, Stats, Best Buys
2) Phone Calls
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[ez_box title="May" color="grey"]
1) Business – Service Directory RLP Rewards App
2) Coffee – Lunches (best clients)
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[ez_box title="June" color="grey"]
1) Summer Pop By
2) Personal Hand Written Note after Pop by
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[ez_box title="July " color="grey"]
1) Video Mid-Year market report
2) Phone Calls
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[ez_box title="August" color="grey"]
1) Social Media – Facebook (Likes, Comments, Posts, Private message “How’s biz?”
2) Birthday and House a versary Cards
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[ez_box title="September " color="grey"]
1) Client Event
2) E Report – Item Of Value
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[ez_box title="October" color="grey"]
1) Fall Pop By
2) Personal hand written note after pop by
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[ez_box title="November" color="grey"]
1) Seminar
2) Phone Calls, Texts
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[ez_box title="December" color="grey"]
1) Client visits 45 minutes – Year in review letter, Calendar, Gift, Xmas Card
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I hope these statistics shed some light on the importance of retention and relationship marketing in your real estate business.
Strength and Courage,
Wade
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