Home Builder Referral

Why Should you Target Getting a Home Builder Referral?

As the home building industry continues to experience a drop in sales and the housing surplus on the rise, marketing becomes even more important if you want to stay in business. At the same time, you must explore different marketing methods to reach new people and generate new business, increase profits and reduce the time involved in running your business. A home builder referral could do just the trick.

So far, you have tried traditional advertising and marketing methods to target new customers. Now try the power of referral marketing, targeting to receive a home builder referral. And you will soon discover that it is a great tool to build your business. It is no surprise that leading home builders generate almost 50% of their sales from referrals. That’s because referrals are twice as likely to bring you sales than marketed prospects.

So how do you go about getting a home builder referral? It’s quite simple. All you have to do is discover innovative ways to encourage your existing and loyal customers for referring more prospects. Offering incentives, such as gift certificates for referring someone they know looking to purchase a new home from you, works very well. You could also get creative as you try to get your client's to tap their personal and professional networks to market your business, giving you more opportunity to get a home builder referral.

There is huge potential in this type of marketing when you recognize that every existing customer represents a large personal network of friends, family and colleagues, and therefore a huge marketing opportunity. Plus, while your business is being promoted to a large number of people, you are paying for next-to-nothing in marketing costs! Importantly, when these referrals come to you they already are aware of your business standards. So in a way they already know you and trust you. That makes it easy for you to close a sale. Remember, research shows that a referred prospect is twice more likely to buy than a regular prospect, and a home builder referral is even better!

Here are some ways you can ensure that your existing customers are satisfied, and will consequently get you referrals:

1. Involve the buyer in the construction process. Give them an opportunity to ask questions and raise concerns. When you educate and engage them, they feel that you’re partnering with them.

2. Set realistic expectations: So that when they move into their new home they know that they are getting exactly what you promised.

3. Know Your Customers: What drives your customer? Is it the aesthetics? Budget? When you know how they think about the homes you build, you are able to communicate with them better and know what will satisfy their needs. This is also the start of building a relationship with them, giving you more opportunity to receive a home builder referral. And when a customer knows that you give what you promise, make the effort to meet their needs, they feel satisfied with the homes and the service that you offer. Naturally, this reflects in the home builder referral volume that you will receive.