Marketing Blunders Part Nine: Not Using A Referral Program

Marketing Blunders Part Nine: Not Using A Referral Program

March 31st, 2016

Last week we talked about how important testimonials are for social proof. Along with this comes a great opportunity for homebuilders to maximize referrals. You’re not going to want to miss #9 in our ongoing series “Marketing Blunders To Avoid”!

If you’ve done an excellent job performing for your buyers and they are proud of their home, they will want to refer you to their friends and family. You don’t have to pay them to do so, just show that you still value and appreciate them.

If you have a Customer Appreciation or Loyalty Program in place that keeps your past buyers engaged and part of your family, then they’ll be eager to spread the good word about you. This is 180 degrees from how most salespeople attempt to get referrals. You take the action first, and the referral is the reward.

With a well-thought-out program, the cost of getting a referral sale is a fraction of the cost of acquiring a new customer through marketing. Referrals are easier to sell and close faster, with less negotiating. In short, referral sales are your most profitable sales.

What’s The Bottom Line?

Implications: Focusing on a Customer Appreciation Program will keep your best customers engaged and eager to refer new business to you. It will also result in higher customer satisfaction. Up to 40% of your sales or more should be coming directly from referrals of some sort.

Solution: Outline what your Customer Appreciation Program should look like. Make this a line item as part of your marketing budget. Then, begin implementing the program beginning with your most recent customers and WOW them.

By this point, you already know I’m a pretty straight forward guy, so when I say we’ve saved the biggest mistake to avoid for last—I’m not kidding! If you simply can’t wait to discuss what just could be the best marketing strategy you’ve likely never thought of, you have two choices. One, you can check back next week for all the details, or, two, you can give me a call at 301.416.7861!