He's trying to sell his services, but I think his info about handling referrals is good...
Want Loyal Clients? Let Them Know They’re Appreciated!
Commentary by Brian Buffini
from RISMedia http://www.rismedia.com/index.php/article/articleview/14959/1/1/
I’ve now spent over a decade teaching people about building business by referral, and I often meet agents and lenders who wonder why their clients don’t refer them to others.
This business can actually be very simple, but it requires a systematic approach to building a high-referring database, regardless of the state of the market. First, people have to want to refer you—i.e. you must do a good job for them. If you take care of their needs and concerns before, during and after the transaction, you build a strong loyalty and they’ll be happy to refer you to others. The key is to remind them that you appreciate referrals and this is where you must implement systems to ensure this occurs. Your past clients must be reminded that you work by referral and would appreciate the business.
This element is critical and cannot be overemphasized. People want you to stay in contact with them. You might be reluctant to call them, yet what I see over and over is that people are happy to hear from you. Introduce them to what I call a Client Appreciation Program.
In my own business, I implemented a Client Appreciation Program (CAP) to stay in touch with my clients. This was just one element in the referral systems that grew my real estate company, and is now an integral part of what we teach to our members.
A CAP is basically a systematized care program. It communicates both your trustworthy character and your professional competence through written communication and personal contact. To successfully work by referral, the CAP has three steps that must be followed diligently. This is not about mailing out something to your clients and then just forgetting about it. It is about committing yourself to the building of relationships based on competence and character. Zero in on your A+ clients, and follow through on all three steps:
1. Send out a monthly Item of Value to your database (we produce millions of these every month so our clients have a first-class product to send to their database)
2. Follow-up with a phone call or a short visit (Pop-By)
3. Send a Personal Note
Why should you do this? The Client Appreciation Program helps you put the “Give, Ask, Receive” principle into action, allowing you to give value, ask for referrals and receive them! It’s the best way to produce a steady stream of referrals by consistently staying in touch with your “A” clients. Sending out an Item of Value, similar to the ones we produce for our Realtors and lenders, gives you a great reason to have personal face-to-face or voice-to-voice contact with your database. You ultimately end up working with clients you enjoy and they’re glad to hear from you.
Client Appreciation: Step by Step
Build, sort and qualify your database.
Send a letter with an Item of Value to past clients letting them know of your commitment to doing business by referral.
Send introduction letters to those with whom you have never done a transaction, and introduce them to your CAP.
Send out letters to only as many clients as you can call or Pop-By within the following couple of days. Continue to do this until you have gone through your entire database.
Make calls to qualify each person as to their likelihood of referring you to others.
Further explain what the CAP is and get their permission to keep them on your program.
Follow-up by sending a personal note.
Every month, we send our members Items of Value to mail to their database, but we also remind them that they themselves are the real Item of Value! The CAP is simply a way to remain at the forefront of your clients’ minds whenever they hear of someone who wants to buy or sell a home. It can be difficult to communicate your value, but when you allow your clients to refer you to others, they will always do a better job referring you than you could ever do.
Send out your Item of Value on a regular schedule every month. Your clients will come to expect it. One of the greatest gifts you give to your clients is your time. Be sure to follow-up after you have mailed the Item of Value with a phone call or a Pop-By.
Get feedback from your clients. Ask them if there is anything they would like to see as an Item of Value.
Put other businesses on your CAP mailing list. Identify and qualify reputable businesspeople to whom you can refer your clients, and from whom you can receive reciprocal referrals.
Consistently resort and qualify your database. It is about quality, not quantity in your database.
Results:
A client of ours met a judge at a community meeting. She added the judge to her CAP, explaining that she sends out informative mailings to keep in touch with individuals who send her referred business. The judge thought her mailings were very well done, and two months later, recommended her services to an attorney that needed help with an estate sale. The referred attorney called our client to handle the transaction. It was a $3 million estate! Our client double-ended that sale and earned a commission of $120,000. This story highlights the power of adding qualified people to your database and following up with an Item of Value on a monthly basis.
It’s important to remember that the CAP is a complimentary service you provide to clients if you want to work exclusively by referral. It is two- dimensional in that it is designed to communicate both your character and competence. To generate results, the items must be professional and followed up with personal contact. In these days of lengthening market times, implement an appreciation program for your current and past clients. You’ll build the thriving business you’ve always dreamed of.
Brian Buffini is the founder and chairman of Buffini & Company. For more information, visit www.buffiniandcompany.com.
