Savvy Referral Marketing: ROE or "Return on Enchantment!"

Services for Real Estate Pros with Napa Consultants DRE00893924

The concept of Enchantment Marketing was inspired by Guy Kawasaki.  It is applicable to all businesses. As a real estate marketing professional, you are well aware that referrals are the best way to ensure the success of your business. 


The number of referrals you get are indicative of the service you give, and the success you will continue to have. When you give your clients something remarkable to talk about, they will go out of their way to refer you.


A recent blog written by David Johnson, a digital marketing strategist whose niche is the automotive dealer industry, emphasized the importance of ROE (return on enchantment).

“Word-of-mouth is gold and social media is the vessel we use to promote it, but how exactly is it accomplished?  As businesses we are always looking for ways to lower the cost of acquiring new customers.  Give your customers something positive to talk about. This goes a long way to influencing a higher rate of word-of-mouth; let’s call it your ROE or "Return On Enchantment."


Many businesses and professionals, including those who market real estate, claim to “exceed’ clients’ expectations.  But, what does that really mean? 


Many consumers have come to expect less and less professionalism from service providers. Don’t fall in the trap of thinking that delivering excellent service and exceeding these lower expectations is the same as enchantment marketing.


Here is an example of enchantment marketing in the automotive world from Mr. Johnson’s blog:

“A customer comes in to your dealership to purchase a vehicle for his daughter’s 16th birthday. You decide to take things to the next level by getting the car wrapped for him, complete with a big bow on top. But you don’t stop there because you really want to enchant your customer so you give to his daughter a year’s worth of free oil changes, 5 complete details and a $150 gas card.”


This kind of service leads to buzz.  When it happens to you, you cannot wait to tell everyone you know about it, and chances are it will be on a social media platform.   Someone just made a customer for life, a customer who is enchanted.


One of our clients has an investment buyer who now keeps sending her business after experiencing her take on enchantment marketing.  Her buyer had always wanted to eat at the most famous (and most expensive) restaurant in her marketplace. But, the buyer knew that it took three months to get a reservation there.  


Since our client is a close friend of the owner/chef, she reserved a table for him, treated him to dinner, and had the chef sign the menu.  Furthermore, she had the menu framed with a picture of the chef and the buyer.  This is part of her enchantment marketing budget.  The cost of this is significantly less than a full page ad in a magazine. 


Thoroughly delighted, this buyer turned around and invited her to the Masters’ Tournament in Augusta, Georgia.  He sent his private jet for her so that she could be introduced to his friends at the Masters’. 


The return on enchantment continuously evolves and multiplies.  As a result of this trip, she now has several new potential buyers, people that she never would have met otherwise. 


Enchantment marketing goes far beyond what most real estate marketing professionals call exceeding expectations.  Professionalism should be a given.


You know that you have enchanted your client when your client goes out of their way to promote you, when your efforts truly spark significant word-of-mouth advertising about YOU.  That is your Return on Enchantment.


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                         Ron & Alexandra Seigel, Managing Partners


                   If Gaining or Sustaining Market Leadership is Your Quest, we can help!


Comments (30)

Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I like this approach Ron and Alexandra Seigel and I will have to figure out how to make it work for me as a Notary Public.

Nov 09, 2021 07:00 AM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much, for sharing your experience and your advice. I love the auto sale story.

Nov 09, 2021 08:25 AM
Tony Busanich
TD Bank - Freehold, NJ

Thank you for sharing this wonderful auto sales story. We have a saying at the Bank, always try to WOW your clients. 

Nov 09, 2021 09:25 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ

This is my kind of ROI Ron and Alexandra!  We have built our business on this type of thinking and it has been the most delightful journey over the years.  Never heard it called Return on Enchantment but it's perfect.  One of our clients so appreciated our service he gifted us a lovely stay at Enchantment of which we shared with others.

Nov 09, 2021 10:08 AM
Andrea Bedard
Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD
Fluent in Real Estate & German, M.A. ABR ASP CIPS

Enchantment marketing... that is definitely a new term for me, and I adore it! It sounds so much better than any of the hard sell terms. It IS better, too, a more natural and gentler way of marketing but highly effective.

Nov 09, 2021 10:12 AM
Aura Alex
Seattle, WA
Retired Real Estate Pro

Ron and Alexandra Seigel, by the time I scrolled down to my page to comment, my thoughts had already been said by AR members before me.  The only thing I have left to say is "Thank YOU" for sharing your thoughtful post. As always, I enjoy learning every day.  Have a great week!

Nov 09, 2021 12:51 PM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

so glad this was Featured Ron and Alexandra Seigel absolutly smashing post 

Nov 09, 2021 01:18 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

I too love the term Return on Enchantment!!! I can think of many service providers who have provided a service that took it a step beyond the minimum and what was expected. Needless to say...I always return and refer. 

Nov 09, 2021 01:18 PM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

I love return business (or referral business from a happy client). This is the best way to not only make money, but also make a happy customer even happier.

Nov 09, 2021 01:22 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

I've never found anything I could write or say that can ever come close to matching a good recommendation from a friend to a friend. 

Nov 09, 2021 02:42 PM
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Thanks for making me aware of "enchantment" marketing. It's how I'd like to be remembered.

Nov 09, 2021 05:59 PM
Patricia Feager, MBA, CRS, GRI,MRP
Selling Homes Changing Lives

Ron and Alexandra Seigel - Thanks for explaining what Return on Enchantment is. I haven't heard of that before but I do know that referral business is the best compliment a REALTOR can receive. I'm proud to say 85% of my business is by referrals since the beginning and I never take it for granted. Congratulations on a  great FEATURE!

Nov 09, 2021 07:07 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Alexandra my manager recomends me to all the agents in the office, because he knows I am the Land Man and no one else can do the job as I do...80% of the time they listen to him and it is a win-win for all, Endre

Nov 09, 2021 11:11 PM
Stephen Turner
House Broker Realty - York, PA

Love it. Great advice. I'd imagine the secret is knowing your client.

Nov 10, 2021 07:18 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I love the idea of return on enchantment. I should really start using that one

Nov 10, 2021 08:49 AM
Lynn B. Friedman CRS Atlanta, GA 404-939-2727
Atlanta Homes ODAT Realty - Love our Great City - Love our Clients! Buckhead - Midtown - Westside - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Ron and Alexandra Seigel 
Love the ROEnchantment
It is important to go more than the one extra step! 
All the best - Lynn

Nov 11, 2021 02:08 PM
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes™- by eXp Realty - Vancouver, WA
REALTORS® in Clark County, WA

Return on Enchantment sounds like a wonderful way operate. Appreciated the story. 

Nov 13, 2021 07:36 AM
Roberta Caputo
Capital Business Solutions - Deerfield Beach, FL
President of Capital Business Solutions

Return on Enchantment... that's great. That's what we should always aim for!

Nov 15, 2021 04:22 PM
MeLisa Minter, Realtor
Minter Real Estate Services - Taylor Lake Village, TX
Bay Area Houston Real Estate Agent

I love this!  It's something that I always try to do in various ways - call it value-added services.  But after reading this article, I can now see how  to put a spin on it.  

Nov 15, 2021 05:30 PM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Ron and Alexandra Seigel - ROE is knocking the socks off your client.  There are a lot of ways to be enchanting and you have to know your client and what works for them. 

Case in point...

I was able to get a client a home in a luxury community for under $900,000. My client was going to remodel it completely. My husband and I  volunteered to take videos and images of the remodel and create a special video presentation of the entire process.  We have been back 5 times to shoot different segments and now the remodel is done and we are ready to shoot the final pics and video.  Rick will put it together for my client for a keepsake.  My client put a little over $200k into this home and it is now worth around $1.5 million! I can't wait to present her with this special video.  I will probably create a coffee table album to go with it.  

Nov 16, 2021 04:55 PM