The most successful real estate agents understand that when they take care of a client the right way, the reward isn’t merely a one-time commission. Instead, world-class service and carefully planned networking can translate into a stream of steady business spread out over many years.
Lifetime Value of a Customer indicates how much revenue a single customer will generate for you—from repeat business and referrals—over the course of a lifetime. As an example, what begins as a commission of $3,000 from the sale of the home has the potential to balloon into hundreds of thousands of dollars over the following decades.
How do leading real estate agents convert their clients into long-term customers? It’s an ongoing process of hard work and professional relationship cultivation. The goal is to create a galaxy of satisfied clients with you in the center of their home buying/selling universe.
The formula for success starts the same as with any professional business:
Provide your customers with exceptional, honest service. Listen to their needs and work diligently to help them reach their goals. Be accessible. Practice common courtesies—even when the situation turns stressful. Follow up regularly to ensure customers are satisfied, ask for referrals, or stay in touch.
Finally, surround yourself with vendors who will make you look even better in the eyes of your customers. This step is critical. It only takes one bad experience with a deferred maintenance or repair contractor to turn a potential lifetime customer into a one-and-done.
At the top of your list should be referring certified, experienced home inspectors who deliver the same level of care you provide to your clients. However, before you begin your search, it is essential to recognize that not all home inspection services are the same.
“By finding a home inspector you can trust, you solve two major areas of concern,” says Greg Mangiaracina, founder, and president of A-Pro Home Inspection, a nationwide provider since 1994. “First, you have the peace of mind of knowing your clients will receive a top-quality home inspection and proper treatment from a genuine professional. Second, you benefit from knowing, once the deal is closed, that the real estate agent or client won’t be responsible for unreported problems with the house.”
To make sure you are hiring a home inspector who will help you foster real estate customers for life, look for the following:
Professional designations that indicate advanced training and experience, such as CHI®, Certified Home Inspector, PHI®, Professional Home Inspector, and Certification by the International Society of Home Inspectors (ISHI)
Detailed visual inspections that cover all major systems of the property
Prompt delivery of reports, preferably within 24 hours of the inspection
Guarantees that if the home inspector doesn’t report a problem, they will pay for repairs at no cost to the client.
A comprehensive home inspection report documents not only the problems with the home but also the positive attributes. This step takes extra time for the home inspector but helps keep the home in proper perspective.
Added value, such as free Foundation Level Surveys
A home inspector who treats your clients in the same professional manner as you do
More About the Lifetime Value of a Real Estate Customer
Several factors come into play when calculating the lifetime value of a customer: average home price, average commission, age of the client, average years in a home, likelihood of repeat business, and an average number of referrals. To see for yourself how this works, click here and try out this free Client Lifetime Value Calculator. Click the link below to schedule an inspection.