Referrals can be the most effective way to generate new leads. Friends and family trust one another’s opinions and are looking to mimic positive experiences they’ve heard about. And these clients last – a Wharton School of Business study found that referred customers had 16 per cent more lifetime value than those who weren’t referred, not to mention they generated higher profit margins.
This is especially true for mortgage brokers, since people have so much tied up in buying a home, including lots of savings and emotions. Therefore, a strong referral, or lack thereof, can make or break your business.
Here are a few ways to improve your chances of getting solid referrals.
Think about the long-term
The connections you make with clients should be meaningful and set up for the long-term. This means that after the mortgage process is complete, you should continue to check in with them and act as a resource. Learn about their life goals, family and ask follow-up questions.
Think of your relationship more as a partnership than a transaction. Because partnerships foster loyalty.
Approaching client relationships this way will ensure that you not only get clients’ business again if they buy another home in the future, but you’ll be more likely to be on their mind when a friend asks them for a referral.
Trust is a major part of any client-business relationship, making this a big focus for brokers looking to get meaningful referrals. One way to approach trust-building is to hold off on asking for a client’s business straight away.
Your first concern should be understanding your audience and their pain points, then showing them how your business has value that meets their needs.
Then, once you’ve built that base-level trust, they’ll be more likely to give you their business and to tell others about their positive experience.
Be a referrer yourself
Connecting individuals doesn’t just have to be on the shoulders of the client. To grow your network further and increase your likelihood of receiving referrals, consider connecting a client with someone else in your network for a different service.
These gestures foster the kind of network you want for your business, and only truly happen if you give back to the community as well.
Finsure provides brokers with several support services to help them along the path to success, including free marketing support and business strategy sessions. Get in touch with our team to learn more about how we can help you transform your marketing plan and lead generation strategy.