I sat on a tech panel recently with the founder of First.io, and he shared some fascinating survey results.
88% of all homeowners surveyed said they would use their real estate agent again if they bought or sold a home.
Only 12% of homeowners actually did.
In other words, most agents are not tapping into their most valuable resource (their database) and they are literally losing most of their past clients.
I realize that these statistics are thrown around often, but I found them particularly interesting b/c they hit home (we too lose far too many past clients) and b/c the problem is so easily addressed in this day and age.
More importantly – b/c so many tech-based firms are now so adept at using technology to garner leads, the competition for our databases is more intense than ever.
If we don’t stay in front of our databases, we will eventually lose everyone to the likes of Zillow, Opendoor, Redfin, Offerpad, Quicken, Bankrate, etc.
Those firms may not close the deal, but they will sell the leads they steal from our databases to other agents or lenders, as that is really what so much of tech game is all about (as I mentioned in this blog).
iBuyers, for example, convert less than 2% of their offers, but they do a brilliant job of garnering listing leads.
TWO THINGS TO DO TO NOT LOSE PAST CLIENTS
- Stay in front of your database with VALUABLE INFO. I address this often, but there are many effective ways to stay in front of your database with info your clients will want to see.
- Old school – postcards, mailers and magazines. Many agents still swear by this, but it is expensive and much less effective nowadays.
- Automated client touches with valuable info/Homebot. I have blogged about Homebot a few times, as it is an excellent example of a very easy, inexpensive and automated way to stay in front of past clients with info they love. Homebot shares relevant info (value, equity, interest rates, amortization, etc.) with homeowners on a monthly basis.
- Individual client touches. This can be cumbersome and time-consuming and difficult to scale, but it works. Many agents we work with frequently share my blogs with their clients, as one example.
- Retargeting Ads. These are digital ads that everyone who has worked with you or visited your website will see all over the web. They too are very effective, easy to set up, and inexpensive. We recommend Reach 150 for retargeting ads.
- Monitor your database with Predictive Analytics. I beat this dead horse often too but it is so valuable and so easy that I am amazed that everyone does not do it.
- First.io. I have blogged about First.io a few times now too. It is a predictive analytics company that we love to recommend b/c they are so effective and so inexpensive (we have no affiliation, but can garner discounts for our agent-partners). First.io uses over 700 different data points to monitor entire databases to predict who is the most likely to sell – with amazing accuracy.
Agents who don’t use First.io are all losing a stunning number of clients.
First.io’s founded talked about an agent he worked with who fed 160 buyers into their database only to find out that 39 of them had already listed with another agent!
If that agent had been using First.io, he likely could have captured the bulk of those listings.
NOT IN CANADA
This has no effect on our businesses but it is an interesting twist. First.io’s Director of Strategic Partnerships is Canadian, and he points out how Predictive Analytics do not work in Canada b/c of the country’s much stricter privacy laws. Predictive analytics do, however, work beautifully in America, but possibly not for long, as the clamor for more privacy is increasing. Hence, this is a service we should take advantage of while we still can.
Once again – please email us if you like more info in regard to predictive analytics and First.io.
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Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 310167