Referral marketing is a form of advertising in which businesses encourage customers to recommend their services, products or experiences to other people. Some may say that this is usually done by word-of-mouth, but the truth is that referral marketing is a deliberate marketing strategy involving incentives and rewards for customers in exchange for successful referrals, rather than relying on clients spontaneously sharing information or recommending your brand, product or service.  

Think about your own suppliers or brands that you use… How many of them were recommended to you? According to Sprout Social, at least one person you know will share their satisfaction or enthusiasm for one product or service they’ve used.

For both estate agents and suppliers to the property industry, referral marketing can be a valuable strategy you can benefit from.

We’ve put together 10 steps for you to run a successful referral marketing campaign:

1. Build strong relationships: A solid foundation of trust and goodwill is essential for a successful referral marketing strategy. If your clients like your product or service, the chances of being recommended will dramatically increase if they trust you and your brand.

2. Provide exceptional service: This will usually lead to referrals. Your clients like feeling important and being looked after and that’s something that they’ll talk about to others.

3. Actively ask for referrals: Don’t be afraid to ask your satisfied clients for referrals. There are ways to do this in a polite and non-intrusive manner, like at the end of a successful deal or during regular follow-up calls or meetings.

4. Incentive referral programs: Consider offering incentives to clients who refer a lead to you. This could be a discount, a commission, or other rewards. You can also establish a formal referral program. Keep track of referrals and ensure you acknowledge and reward clients who refer prospects to you promptly. Recognition goes a long way in maintaining a positive referral relationship.

5. Provide referral resources: Make it easy for your clients to refer prospects by providing them with marketing materials, brochures or any information about your product and services.

6. Network in the industry: Attend industry events, conferences, and trade shows, expand your network and connect with agents or other suppliers you can partner with. Humans like humans and personal relationships can lead to business.

7. Build an online presence: Make sure your website looks professional and supplies an excellent user experience. Maintain an active presence on social media, and showcase your expertise, client testimonials and case studies to build credibility and a good online reputation.

8. Content marketing is key: Share value content related to the property industry. This can be blog posts, whitepapers, checklists, webinars… anything to educate your clients and prospects on industry trends and best practices. This can position you as an industry expert and will attract referrals.

9. Collaborate with associations: Partner with national associations or organisations. They often have networks of people who may be interested in your services.

10. Follow-up: Once you receive a referral, follow up promptly and professionally with the referred client. Ensure their experience with your business is the best it can be, at the highest standards, as this can encourage future referrals.

Referral marketing is a powerful marketing tool. Humans, by nature, tend to share experiences with other people. But also, there are some other benefits for you:

• It’s cost-effective: there are only a few upfront cost to this strategy. You only need a good client database and some strategic and creative marketing referral ideas.

• High customer lifetime value: A study from the Wharton School of Business shows that referred customers have a 16% higher lifetime value than average customers!

• High conversion rates: Higher than other forms of advertising. The leads supplied are usually already engaged and they’re excellent quality.

If you want to run a referral marketing campaign, but don’t really know where to start or what to do, we are here to help.

Email us at lee@angelsmedia.co.uk or call us on 020 8663 4989 and we’ll be in touch soon!