Every agent knows that keeping their pipeline full of clients, both past, and prospective, is the secret to success. Over the years I have created a fairly nice portfolio of past clients that has helped sustain my business while I prospect for new clients.
Depending on which study you read, acquiring a new client is anywhere from 5 to 25 times more expensive than retaining one, and research shows increasing retention rates by just 5 percent can increase profits by 25 to 95 percent. That means by managing your prior customer relationships, you’re taking the most important step in maintaining consistent sales. Keeping in contact with past clients is the best way to make them clients for life.
For me, this year was one that saw me lose two valuable clients. These were clients that I had previously helped buy and sell multiple homes. One of the clients moved across the country and even though they chose me to help them sell their Phoenix home, it is unlikely that I will have the chance to serve them again. The other simply chose a new Realtor® to handle their sale and to purchase a new home in our local community. I have lost clients in the past, but these two bothered me because we had known each other for years. The second one was particularly disheartening because I thought I had done a good job of nurturing our relationship.
It really began to make me think, not only about them but also because I likely would be losing the additional referral business that comes along with a happy client. Both of these clients were a good source of referral business. So I didn’t just lose them but all the other friends and family that they would have sent my way. I realized that the value of an established client is far greater than any one new prospect.
So now I will rely on my prospecting engine to try and replace this loss, refill the pipeline and hopefully create new former clients that will again share their satisfaction and ultimately my name and number.
Joe Domino is a Realtor® serving the Phoenix & Scottsdale metro area. You can follow Joe's real estate blog at From The Outside Looking In or find more great information by visiting his website at www.Scottsdale-AZHomes.com