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Why Don't Realtors Retain Clients Better?

By
Services for Real Estate Pros with Kukun, Inc.

 

     Most people are satisfied with their realtors. Surveys suggest that 90% percent of clients would do business with their realtor again---and most would recommend their realtor to a friend. Yet, only 30% of the time do clients actually return. Now, of course, some clients are moving away from the area, but you would still expect people to use the realtor who helped them buy when they subsequently sell. Why don’t realtors see more client referrals and repeat business?

 

 

  1. Transactional Nature of Real Estate: Real estate transactions are typically infrequent compared to other industries, such as retail or service-based businesses. Clients may only need the services of a realtor when buying or selling a property, which means there may be long periods between transactions. During these long hiatuses, it is easy for realtors to lose touch with their clients.
  2. Highly Competitive Industry: The real estate industry is highly competitive, with many realtors vying for clients. Clients may be tempted to switch to a different realtor for various reasons, such as better marketing strategies, lower commission rates, or a more personalized approach.
  3. Lack of Differentiation: Some clients may perceive realtors as offering similar services, making it difficult for individual realtors to differentiate themselves from competitors. Without a unique value proposition or strong brand identity, it can be challenging to retain clients.
  4. Changing Market Conditions: Real estate market conditions can fluctuate, affecting both the supply and demand for properties. During downturns, clients may be more inclined to explore alternative options or delay transactions, leading to reduced client retention.
  5. Client Dissatisfaction: Client dissatisfaction can arise due to various reasons, such as ineffective communication, unmet expectations, or perceived lack of professionalism. Unsatisfied clients are more likely to seek out alternative realtors for their future transactions. However, as we noted above, this is not the primary cause: Most clients are quite happy with their realtor.
  6. Lack of Ongoing Engagement: Some realtors may focus solely on transactional interactions with clients, neglecting ongoing engagement and relationship-building efforts. Building strong, long-term relationships with clients requires consistent communication, follow-up, and personalized service beyond the initial transaction. These conversations take time, time realtors don’t feel they have. Furthermore, the “payoff” for this sort of interaction can be delayed; it takes years for someone to need the services of a realtor again. As I pointed out in an earlier article, no one starts off with client retention as a part of their strategy---and people tend to stick with what works. That said, if someone has been in the industry for a while, it might be time to think about how client retention fits into their plans.

Many of these problems can be solved by the use of the right tools. Our Kukun Portal, which provides nurture emails with interesting market updates, a homeowner dashboard, maintenance tips, a home value, an equity estimate, local market forecast, and more can help make sure your customers return to you. Prices are rising soon. Lock in a low price for life. Please check out our demo here:  www.kukun.ai

To improve client retention, realtors can focus on providing exceptional customer service, building strong relationships, staying informed about market trends, and continually adding value to their clients' experiences. Additionally, maintaining regular communication and staying top-of-mind through newsletters, social media updates, or client appreciation events can help reinforce the relationship between realtors and their clients: Or, of course, you can take a shortcut and use us.

Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

Client retention continues to be a challenge for most real estate agents. After 32 years I am blessed to say 85% of my business is from repeats and referrals!!!

To improve client retention, realtors can focus on providing exceptional customer service, building strong relationships, staying informed about market trends, and continually adding value to their clients' experiences. 

Apr 21, 2024 04:14 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Most agents do not retain clients because they do not stay in touch with their clients. I touch my client base 40+ times each year. As a result, 85+% of my business has been repeat and referral business for decades.

Apr 21, 2024 05:18 AM
Michael Elliott
Fathom Realty - Burlington Township, NJ
Burlington, New Jersey Residential Sales

What Nina Hollander, Broker  said.   In the past, I was miserable at staying in touch.   No longer, I don't have 40 touches a year but the number is significant.  

Apr 21, 2024 05:39 AM
Nina Hollander, Broker

Michael Elliott once I discovered Top Producer 25 years ago, I realized how easy it was to keep touching past clients. I no longer use Top Producer, but I do keep touching my clients. Mostly, it's setting up system and sticking with it.

Apr 21, 2024 06:35 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

It is our biggest challenge. Great information. Thanks for sharing, enjoy your weekend. Bill

Salvatore Arizona Elite Properties.

Apr 21, 2024 06:18 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello and I stay in contract with past clients 4 times a year whether it is a phone call, lunch, or a mailer.

 

Apr 21, 2024 08:17 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Kukun's VP of Analytics Franklin Carroll these are good reasons, and in my opinion your last point is the main reason.

Apr 21, 2024 12:46 PM