Customer Loyalty Program
Some of you may have thought about having a Customer Loyalty Program, but were unsure about what it is exactly. You may have wondered about its value, practicality, or return. We want to explore this idea and encourage you to create a program of your own. Having a Customer Loyalty Program is a great way to help keep your clients happy and loyal in addition to standing out from your competitors. Furthermore, it can help you generate a steady flow of referrals from your client base. Let us explain further in this blog designed as a Frequently Asked Question list.
Question: What is a Customer Loyalty Program?
Answer: A customer loyalty program, is a systematic approach to letting people know that you care. It is a tool for you to prove to people in your sphere that you should be their professional of choice in your respective field.
Most Customer Loyalty Programs in the Real Estate Sales Industry successfully rest on the top of the Four Pillars: Friends, Neighbors, Relatives or Past Clients. Most sellers use agents that were referred to them through a friend, neighbor, or relative. It logically follows that we should invest time, energy, and resources into people that are more likely to refer clients to us. Therefore, we will make more money while building and maintaining relationships that statistically speaking, will exact a return.
Q: Is having such a program relevant for all businesses?
A: We would argue that yes it is. Specifically, it is especially relevant for those service-oriented businesses which serve the Real Estate Industry. The National Association of Realtors 2019 profile report states that 66% of Sellers and 53% of Buyers found their Agent through one of the four pillars: Friends, Neighbors, Relatives, & Past Clients. One way to generate leads with past clients is to remain relevant to them. Having relevance to your sphere creates primacy in people’s minds. Creating primacy in people’s minds makes people suggest your name or business first. Whether in a conversation or on some corner of Facebook, a name suggestion could give you an instant lead. Therefore, we would argue, a loyalty program is relevant for all businesses.
Q: Why is it important for a business to have such a program?
A: In short, because it works. According to Agent-Broker Geoffrey Green of Green Team Realty, “if we spend the most amount of time, energy, & resources with people who are most likely to refer clients to us, we will make the most amount of money, in the least amount of time and have the most amount of FUN!” Green encourages his Realtors to build their own program. His agency offers lessons and other supportive Professional Development to show them how. A well-run customer loyalty program provides a major ROI for any service-oriented business. According to Forbes magazine, you should find ways to measure your ROI by assigning dollar amounts to things like positive comments online, client retention, client referrals, and actual returns.
So, What’s Next?
It is essential to understand what a Customer Loyalty Program is and why it is important before embarking on the journey of setting one up. You want to be fully invested in the process and understand that your return may not be immediate, but is something worth doing over time. Stay tuned with more from us about this topic including next steps and tips on how to set-up your own loyalty program. In the meantime, check out one of our previous posts on how to turn Buyer-Agent Frustration into Fortune.