Several months back I wrote an article about the benefits of retaining your current customers and how to take advantage of the 7 year sales cycle. With the lack of new home buyers entering the market recently, I thought it might be beneficial to repost the article. So here it is in its entirety, "Repeat Customers Exist in the Housing Market too."
If youve ever heard the old adage it costs a lot less to retain a current customer than it does to obtain a new one then youre already ahead of the game. For those of you who havent, then its time to adopt a different strategy and start paying attention to one of the biggest untapped resources you have: your existing clients!
Its hard to believe that todays home builders overlook their clients as often as they do, the reality though, is that it happens daily. Once a consumer has purchased his or her home, builders generally assume that their work is done and they must move on to secure the next potential buyer. The truth of the matter is that past buyers will benefit as much from literature and sales information as prospective buyers will. According to a U.S government study, almost 70% of all current home owners will purchase their second home from a different builder due to no other reason than indifference. Thats a lot of business that could have been retained had a strategy for retention been put in place.
The key to having a successful retention strategy lies within communication. Communicating to a consumer on a continual basis creates lasting value and recognition of both your company and its products. Its simple to create a successful communication strategy. All you need to remember are these three easy steps
Make it a common practice of your company to diligently collect new home buyers information at the time of purchase. Besides the general contact related information ensure that you ask value adding questions such as what is your preferred size of home? And what is your desired price range? Even socio related questions are important and can be used to paint a vivid picture of your consumer and his or her lifestyle.
Use the information you have gathered from your consumers and create information rich content that incorporates their lifestyle. Use a combination of both informative articles and subtle product placements to captivate home owners attentions and keep them informed of new products. Deliver the message through various forms of media including email and print, this ensures the message remains fresh and relevant.
Ensure that you are constantly updating consumer information and keeping your messages timely. Keep up to date with home owners from time to time as their wants and needs change over the course of their home life cycle. The message to your consumers will constantly change, but they manner in which they are delivered will remain.
It is imperative that in order to have a successful rate of return you must time your messages accordingly to coordinate with the buyers sales cycle. On average a person changes residences once every seven years. Ensure that your current customers are aware of your new product offerings and the key benefits and features attached to them. This way when its time for them to move in seven years time they are already well aware of your product offerings.
If you ensure that you keep the customer happy and up to date there is a greater chance that they will be inclined to stay with you and your company. After all, the alternatives are researching new developments, getting to know the developers, weighing the pros and cons of each one and then comparing them to one other. Save buyers the trouble and hassle. By having an effective retention program youll convert more of your clients into repeat customers and your customers will thank you for it.
Frank Guido
President and CEO
Aareas Interactive
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