English
From Resource to Supporter: Building Your Inner Feedback Loops
Internal Circles:
Internal circles consist of three main types of people: allied resources, advocates, and core advocates.
- Allied Resources: Service providers who serve the same customer base (e.g., mortgage lenders, title insurance companies).
- Advocates: Satisfied former customers who become brand ambassadors.
- Core Advocates: Influential individuals with extensive networks who can provide a steady stream of qualified leads.
Importance of building❓ Internal Circles:
- Increased qualified referrals.
- Reduced marketing costs.
- Stronger brand.
- Predictable revenue.
Transforming Allied Resources into Partners:
- Strategies: regular❓ meetings, mutual❓ education, reciprocal referrals, collaborative events, referral rewards.
- Measuring Partnership Effectiveness:
- Mutual Referral Rate (MRR): (Number of referrals received❓ ÷ Number of referrals sent) * 100. Aim for close to 100%.
- Referral Value (RV): (Number of closed referrals) * (Average deal value) * (Commission rate). Track RV to identify valuable allied resources.
- Example: Joint seminar with a mortgage lender on pre-mortgage approval.
Turning Satisfied Customers into Enthusiastic Advocates:
- Exceptional Customer Service: Empathy, effective communication, efficient systems.
- Advocate Appreciation Program:
- 33 Touch: Regular communication plan with valuable items.
- Referral Reward: System to track and reward referrals, focusing on positive aspects.
- Examples of “Wowing” Customers: Sending flowers after offer acceptance, providing a DIY kit as a housewarming gift, or organizing a housewarming party.
- Measuring Customer Loyalty:
- Net Promoter Score (NPS): % Promoters - % Detractors. A high NPS indicates a loyal customer base❓❓ ready to refer.
Building and Nurturing Relationships with Core Advocates:
- Build relationships through existing connections to targeted core advocates.
- Provide top-notch service to referrals.
- Reciprocity: Offer personalized services or solutions, such as referring potential employees or providing real estate investment advice.
- Personalized interaction: Engage in social gatherings, dinners, and frequent calls. Send higher-value gifts.
- Example: Offering employee referral services or real estate investment advice to the CEO of a startup.
Importance of a Database in Relationship Management:
- Store personal information, hobbies, interests, and birthdays.
- Record all past correspondence and transactions.
- Train team to review the database before contacting individuals.
Chapter Summary
The chapter aims to explain how to transform business relationships❓ from mere suppliers into genuine advocates for real estate referrals by building strong❓ and interconnected internal circles.
Key Points:
- Internal Referral Circles: Divided into three main categories:
- Allied Resources: Providers of real estate-related services (mortgage companies, insurance, inspection) serving the same customer base. Importance is placed on careful selection and periodic performance evaluation. One-on-one meetings should be allocated to train them on presenting team value and defining customer service expectations.
- Advocates: Previous clients who are highly satisfied, becoming loyal advocates. Maintaining continuous communication through a dedicated appreciation program (33 Touch: Advocate Appreciation) is emphasized.
- core advocates❓: Influential people with extensive networks, capable of providing a continuous stream of qualified referrals. These are built through strong, mutually beneficial relationships. Highly personalized interactions should be allocated to them, providing reciprocal services.
- Building Loyalty Through Exceptional Customer Service: Exceptional customer service is considered the surest way to earn customer loyalty and encourage referrals. Staff training should include: a customer-oriented attitude; effective, regular, and friendly communication; high efficiency supported by clear work systems.
- Customer Appreciation Program: Importance is placed on having two dedicated customer appreciation systems:
- 33 Touch: Advocate Appreciation: Continuous communication program to remind Allied Resources, Advocates, and Core Advocates to send referrals.
- Referral Reward: System to track and reward incoming referrals at each stage of the deal, keeping the referrer informed of progress.
- Importance of the Database: A database containing personal information and details about correspondence and past transactions is essential. The team should be trained to refer to the database before contacting any client to understand their needs and expectations.
Conclusions:
- Building strong internal circles of Allied Resources, Advocates, and Core Advocates is an effective strategy for increasing real estate referrals.
- Transforming suppliers into advocates requires continuous effort in building trust and providing mutual value.
- Exceptional customer service is the cornerstone of building loyalty and encouraging customers to provide referrals.
- An integrated system for customer appreciation and referral tracking is essential for ensuring the effectiveness of the referral program.
- The database is an essential tool for providing personalized and effective customer service.
Implications:
- Real estate agents need to invest in building strong relationships with Allied Resources and provide necessary training.
- Real estate teams should dedicate time and effort to maintaining communication with past clients and activating a customer appreciation program.
- Real estate agents should invest in developing their customer service skills and training their team to provide exceptional service.
- Real estate companies should create an effective system for tracking referrals and rewarding referrers.
- Real estate agents should invest in building a strong database and training the team to use it effectively.
