The business of getting business from the potential gold mine that is our sphere continues to be a strong conversation. NAR's 2017 Home Buyer and Seller Generational Trends report claims referrals remain the way that most buyers find their real estate agent
Consistent with 2016 findings, 88% of buyers say they would use their agent again or recommend their agent to others. To break it down further, sphere referrals were higher among younger buyers such as 36 years and younger (52%, up from 46% last year) and 37 to 51 (39%) compared to older generations
The data indicates SOI business is alive and well and thriving. So then why do less than half of these referrals actually end up in a closed deal? The main factors that determine whether a referral will close include the seriousness of the client about buying and selling; their connection to the person who referred them; and whether they trust the person or system who referred them, How Many Agents Find New Business
The greater the connection to the source, the more likely the referral is serious and will lead to a closed sale,” the study notes.
As automated “touch points” prevail over the more personal methods of truly keeping in touch, many agents are finding that their sphere isn’t generating as much business as it should. Could it be because we’re treating all our contacts the same, when they in fact have very different potential to bring us business? In order to capitalize on your potential for word-of-mouth business, you must:
Look closely at SOI contacts to determine the strength of the relationship
Segment your sphere into three groups: Strong, Average, Weak
Work to maintain your strong relationships, build your average relationships and nurture your weakest relationships
Are you ready to get honest -- and real -- about the health of your sphere? As time permits, review each contact in your sphere to determine if your relationship is strong, average or weak. For most contacts, you should know immediately where you stand.
For those that are a bit murkier, answer in your head these ten questions below to give them a definitive ranking. Give yourself one point for every “yes.”
1. Do they know my first and last name?
2. Do I know them? Would I be able to greet them by name if I saw them on the street?
3. Could they easily contact me without having to look up my information online or finding an old marketing piece? In short, do they have me saved as a contact in their phone or email?
4. Have they used my services in the past?
5. Would I expect them to use my services in the future?
6. Have they referred me any business or attempted to refer me any business in the past?
7. Am I friends with them on Facebook, connected on LinkedIn -- or engaged in other online communities, including gaming, fantasy sports leagues or online networking groups?
8. Is there potential for me to engage with them organically, face-to-face? Am I connected to them in any “in-person” groups, including a book club, PTA, Chamber of Commerce? Are we fellow school parents or do we belong to the same church or fitness center?
9. Does this person consider me a friend?
10. Do I have any idea when this person might transact again?
Scoring:
1-3 points: Weak
4-7: Average
8-10: Strong
What comes next?
Next, you get to work. Once you’ve segmented your sphere into Strong, Average and Weak segments, it’s time to build on each of those relationships.
Maintain your strong relationships
Do this by keeping in touch naturally with each contact that represents your Strong segment. These are the people you know best, or the people who have most recently used (and loved) your services, so you shouldn’t overthink it. Work to keep in touch as often as you like and thank them vigorously for any business they send your way.
Build on your average relationships
This group represents your highest potential group, as they just need to be warmed up rather than re-introduced to you and your services. Consider inviting your Average contacts to lunch, coffee or on a walk so you can get to know them better. Send them personal emails when you see something that reminds you of them or post a message of congratulations on their wall when they mention a recent achievement. Focus on keeping each interaction natural and don’t sell too hard. Sphere building is all about the long game of building lasting relationships.
Nurture your weak relationships
This segment is, of course, the hardest one to squeeze business from. Whether the contacts within are old internet leads that didn’t go anywhere, or the product of a title list of homeowners, you’re going to have to work hard to get to know them. Nurture them with low-cost marketing products, add them on LinkedIn or to a Facebook group you have for their market area (using discretion). If you have their email address, try retargeting them with online or Facebook ads so they get to know your name and branding.
Want to win more business from every segment?
SmartTargeting Sphere, part of SmartTargetingPro, the all in one prospecting platform identifies opportunities within your sphere and your local market area. Our predictive analytics, automated marketing and mobile lead followup system has you covered. Reach out today for a quick demo.
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