“People influence people. Nothing influences people more than a recommendation from a trusted friend. A trusted referral influences people more than the best broadcast message. A trusted referral is the Holy Grail of advertising.” – Mark Zuckerberg, CEO
The real estate business is different from other businesses. It simply does not end after a home or a project purchase from a buyer. It is rather a business of relationships and networks that helps establish your brand over time. The real work lies in building a satisfied base of customers who can help to grow your business further.
Referrals are a big source of revenue and account for a large number of sales. A referral is in fact one of the biggest compliment, a client or buyer can pay you. Not only they increase your reach but it also brings a sense of credibility. Referrals are often done by present home buyers or potential clients.
What is the Referral Curve?
By studying the real estate industry, we have come upon an interesting phenomenon that occurs in the referral business.
The amount of real estate referrals increases during various stages of a project from the booking to possession of the property. Putting this in a graph form we see a clear representation of this phenomenon.
The referral curve is a graph where the number of referrals made by your customers is plotted against time. It shows us how the number of referrals made varies over different stages of your engagement with the customer. In the Real Estate industry, customers who have chosen to purchase property in a housing complex will start suggesting to their family and acquaintances to purchase property at the same complex, since everyone likes to live close to their friends and family.
This means that the number of referrals by a client is high at the time of the booking of the property. This rate of referrals drops drastically over time post the booking as clients wait for the building of the project to be finished before their property is handed over to them.
Often it drops nearly to zero as it is common for real estate projects to take much longer than the stipulated period to finish construction, causing frustration and dissatisfaction in the customer. Once the project is completed and the handover is done, the number of referrals shoots back up if the customers are satisfied with the property and the overall quality of the whole estate and feel that the wait was worth it.
Post the handover the referrals also increase due to the renewed and reinforced desire of the customer to have their close friends and family living in close proximity, preferably in the same complex, especially if the customer is impressed by the quality of residence in the complex or apartment.
How Loyalie can help in generating more referrals?
Knowing the referral patterns among the real estate projects puts you as a developer in an advantageous position. You can utilize Loyalie, which is a digital, legal RERA Compliant Platform not only as an easy platform for referrals but also use our engagement services. Home buyers as well as prospectors can simply use the Loyalie app to make more referrals.
You can choose them to engage at the certain peak points of the referral curve. Loyalie will help you to engage your home buyers through different kinds of engagement programs that can be customized by you. They will be able to access all your events and participate in them through the app. They will be able to avail different kind domestic services that Loyalie has tie ups with at special discounts. These kinds of events and offers will generate huge word of mouth marketing and loyalty that will help to establish your firm and brand.
Loyalie will help generate your buyer’s loyalty, the ultimate currency that can be leveraged by you in many ways, the best being to generate more referrals. Click here to know how to increase your referrals.