There’s an age-old saying that it’s easier (and cheaper) to keep the customers you’ve already earned than to find new ones. So why is it that real estate and mortgage professionals are so obsessed with generating new leads? Yes, it’s important to always have a fresh pipeline of opportunities, but only focusing on this keeps you in a cycle of constantly having to prove yourself over and over again. In other words, you don’t want to wake up every morning like the movie Groundhog Day!
What are the benefits of working with past clients?
- It saves you money. In this current market, where both buyers and sellers are sitting on the sidelines with a “wait and see” attitude, the top of the funnel simply dries up. Ergo, your cost to acquire new clients skyrockets.
- It allows you to continue building on the relationships you’ve already earned (especially when you’ve helped them with such large transactions).
- It reduces the time and energy of always getting to know someone new… (think Groundhog Day again)
- Communication is going to be more effective because past clients are likely to be more open and honest when discussing their needs and expectations since they have an understanding of each other’s working styles.
- When you provide value and solve problems for past clients, they will no doubt refer you to friends and family (i.e. this is basically free lead generation, and they too will already at least give you the benefit of the doubt because of the referring friend or family).
Not only does focusing on past clients save time and money by streamlining the sales process, but it also builds loyalty among current customers which increases referral rates over time—all signs of successful businesses in any industry!
Milestones was built to generate repeat and referral business from past clients, because it was built to provide value to your homeowners in between transactions (which is typically when most real estate professionals disappear).
Stop searching for the needle in the haystack (i.e. the ever-elusive “hot lead”), and go all in on your past clients. By planting the seeds today, you will reap the rewards for years to come.
Or, as a simple exercise, every time you’re slipping back into chasing hot leads, remember you don’t want to end up in Groundhog Day!
Watch the video below to hear more thoughts on the benefits of working with past clients…