Past Clients Are Critical To Long-Term Success

The numbers speak for themselves. Nearly three quarters of home buyers and sellers would use their agent again in their next sale or purchase. However, much of that future business is falling through the cracks due to poor tracking and follow-up.

In today's competitive marketplace, repeat and referral business is the life blood of a successful real estate agent. How much of that business are you getting? Do you have a marketing system in place for repeat and referral clients?

The numbers add up quickly. An agent averaging 8 sales a year would have created an additional 60 plus transactions over a 20-year period simply by staying in touch with his past clients. With the average homeowner moving every 7 to 10 years on average, there is a ton of opportunity for repeat business, not to mention referral business that can be generated with just a little additional work.

However, there seems to be a disconnect with some agents.

A recent survey by the National Association of REALTORS® shows that repeat business accounted for a median 21 percent of activity in 2012 and is higher for those with more experience – for members in the business 16 years or more, repeat business was 40 percent of their activity. Referrals accounted for an additional 21 percent of all business.

Obviously, it takes time to build a book of business and older agents should close a higher percentage of repeat business, but even the veterans are missing out on a good percentage of that business.

Many agents close the transaction, send a closing gift (maybe) and then are never heard from again. Or the client reaches out and the agent has moved, has outdated contact info or is out of the business.

The typical NAR member has 13 years of experience and works 40 hours per week; 57 percent are women, who account for 52 percent of brokers and 63 percent of sales agents. Ninety-four percent of Realtors® are certain they will remain in the business for at least two more years.

However, the demographics are changing and a new generation of real estate agents is coming on board. If you are an agent that is fairly new to the business, it is not too late to set up a marketing plan for your past client database and begin capturing that business through your website.

Once you've spent the time and money promoting yourself and your company, don't let poor customer service undo all your hard work after the closing. A reputation for good service helps provide new business. It's easier to attract new business if consumers feel your level of service is higher than that of your competition.

And repeat business won't happen without quality service. It's easier to attract referral and repeat business from people who have had a pleasant experience with you or your organization. However, none of that hard work and "good will" can be translated into closed transactions without the proper systems in place. Make sure you're not leaving money on the table.

To view the original article, visit the WebsiteBox blog.