To subscribe to the 'Grow Your Business' podcast, go here:  Grow Your Business

Years ago, 60 minutes article, talked about a grocery chain who had done a survey which revealed that the cost of keeping a current customer is a small fraction of the cost of acquiring a new customer.

REALTORS have knows this for decades, and in fact many have built their business almost completely on referrals by past clients.

Everything I’m going to talk about is based on one basic premise:  That you provide an excellent service or sell an excellent product.  For this to work, you need to start with happy customers.  If you do a shoddy job, I can save you some time right now, nothing I say will help with that.

First step is to simply ask for a referral at the right time.  Whats the right time?  When your customer is at their happiest.  You’ve just shown them the fancy features on their new furnace, or gone over the paint job you just did.  They are happy, and at their most agreeable state.  That’s a great time to ask for a referral….   Make sure it’s a referral, not a lead…..  I’ll explain the difference in another episode.

Maybe they’ll give you a referral, maybe not.  But they’re happy, so you’re happy, and you leave thinking they’ll send you business down the road.  Right????

Not so fast.  There was a study done where they asked home owners this question:  The agent you used to buy or sell your last home, would you use them again?  80% said YES.

Follow up question:  What was that agents name?  20% knew the answer.

Buying or selling a house is arguably the most important financial step most people will ever make.  Yet only 20% remembered their agent.

So if 80% don’t remember them, do you really think they will remember you, just because you painted their house, shingled their roof or sold them a car?  They need to be reminded about you and your excellent service.

Entire systems have been creating to make it easier for real estate professionals to keep to a schedule of staying in touch with past clients.  But those systems don’t need to be JUST for real estate agents.

A little side note here:  Studies have shown that letters sent in the standard #10 envelopes often receive the same level of attention and love associated with bills and notices.

So if you’re going to send out personal touch-points, try using postcard-sized envelopes, which have a much higher opening rate.

So, you can develop your own system, but as you add more clients to it, it might become confusing…..especially if you chose to send cards on the anniversary of your interaction with them……  so for example, 1 year AFTER they bought a new car, installed a new furnace, etc etc.

Incidentally, you will WANT to send cards outside of the normal dates.  Everyone gets Christmas cards, Easter  etc…..

Pick dates when no one else sends them.  Check your own industry to see if they have a nationally recognized day, or send a card on the anniversary of your dealings with them. Their birthday (if you remember to ask), or other holidays which are not the usual days where people send cards.

There is a system out there that has many of the answers and solutions for these kind of issues:  SendOutCards can

• Start with one client and work up to an infinite number
• Add clients throughout the year, as your business grows
• You select the number of touch-points per client
• Their cards are sent as postcards, with script style addressing, and faux postage stamps.

Lets talk with a friend of mine, who is an affiliate with SendOutCards, Ted Vailas.  I have a few questions for him on how this system...