Real estate brokerages waste valuable growth opportunities by over-focusing on new client adoption and agent recruitment instead of implementing solutions for the retention of both. Industry research shows that repeat clients spend 67% more than first-time clients, so agent and client turnover reduces a brokerage’s potential return-on-investment (ROI) for marketing and training dollars. The key to capturing these high yield sales is enabling agents to efficiently communicate with clients throughout the sales process and beyond. A Customer Relationship Management (CRM) solution significantly boosts the ability of agents to foster long-term relationships, driving repeat—and more profitable– sales.
The potential benefits of an experienced agent’s digital rolodex, or CRM, cannot be understated. Given that 80% of buyers would use their agent again, or refer their agent to others, an agent doesn’t have to engage in costly marketing tactics to convince prospects of their value—they’ve already proven it. Agents who have been with a firm for a number of years have cultivated a broad network of the most fruitful prospects. Since client acquisition costs five times more than retention, it makes business sense to provide a targeted CRM tool for agents to maintain positive client relations before and long after the sale, with the added benefit of acquiring additional new referrals.
A CRM enables agents to show their professionalism and dedication at every client touch-point, maintaining a top-of-mind presence even years after a sale. Agents can create a 360 degree client view to deliver anticipatory service that increases trust and loyalty. This relationship deepens even after the sale through continued outreach via e-Newsletters, drip campaigns, social media posts and personalized communication on important dates such as anniversaries of new home purchases. More powerfully, a CRM can track response metrics such as how many past clients clicked on electronic links, providing insight into potential leads for harnessing repeat business.
Providing effective tools to bolster agents’ achievement positively influences a sense of loyalty toward the firm. As consumer expectations continually rise, brokerages are coming under increased pressure to reduce commissions—which makes it difficult to retain top performers. However, an effective CRM can reduce agents’ time spent on attracting new leads, managing the end-to-end processes of closing the deal, and maintaining communication with existing and past clients. In effect, a CRM increases production with less ‘hands-on’ investment from the agent, making their time spent on each transaction more financially worthwhile. A satisfied agent is one who will stay devoted to their brokerage.
Agents who have the right CRM tools for success tend to stay with a firm for a number of years, not only bringing a broad network of repeat prospects but also the know-how for becoming managers and mentors to develop the skills of junior agents. As a result, agents at all levels develop a sense of allegiance to the firm, increasing the likelihood of retaining high-performers—and their ever-broadening network of high-profit repeat clients.