May is Commission and Compensation Month here at Inman. We’ll sort through the noise and misinformation and provide you with the most up-to-date facts and strategies about how to prosper in the wake of the commission settlements. And look for straight-to-your inbox updates with Inman’s new weekly digest, Commission Chronicles.
We have all been there. The life of a supervising broker is busy — you are in the heat of a hot streak, working with active clients and helping your team members. Then, all of a sudden, you realize that you have not reached out to your past clients in over six months, and your team’s pipeline reflects that unintentional neglect.
In a regular business cycle, team members come and go, but the clients who have done trusted business with your brand still need customer service.
These six strategies will help you ignite meaningful conversations with former clients and take action, providing them with current customer service tasks to help them understand that your team is still there to assist their real estate needs.
What is a neglected client?
Past clients (people who bought or sold through a real estate company) become “neglected” when their original agents leave a company. I’ve always referred to these clients as “orphans,” because they’ve been left behind, and a majority have never had a follow-up. Because there was no designated contact within the organization, they were often left without a go-to resource for their real estate needs.
This scenario presents a unique opportunity if you’re up for the challenge. Embracing these neglected clients not only helps agents build their portfolios, but it also ensures that the company maintains continuity in client service and provides consumers with a reliable point of contact for their real estate inquiries. How’s that for a win-win?
This approach is particularly beneficial for emerging agents aiming to establish their businesses or seasoned agents seeking to reinvigorate their sales because so many buyers and sellers have tremendous misconceptions and big questions about what all this commission lawsuit noise means to them, their return on investment, and their future relationships with real estate agents.
There are many agents who aren’t wading into those conversations, and we get that. It can be a little intimidating. But for the ones who do? The ones who arm themselves with the training, skills and knowledge to answer questions with confidence? Those will be the agents consumers trust to help them navigate the new norms in our industry.
The 6-step strategy to cultivate neglected leads for immediate and long-term growth
Step 1: Collaborate with your broker to identify any neglected client files from the past one to five years.
Step 2: Obtain authorization to send out a communication, ideally a letter, under your broker’s guidance. This letter should introduce you as the new point of contact for these clients, replacing the previous agent. Alternatively, you might choose to send a personalized letter stating that you are now taking over on behalf of the company. (The broker letter is stronger, however.)
Step 3: Follow up the initial letter with a phone call to these neglected clients. Apologize for the company’s previous lack of communication, explain the departure of their former agent, and assure them of your commitment to serve as their new representative.
Step 4: Establish a connection by asking open-ended questions to gauge their satisfaction with their current living situation and any potential interest in moving. Questions could include how they are enjoying their home, whether they’ve made any major updates, and, given all the recent market upheaval, whether they have any real estate questions.
Step 5: Offer a complimentary, updated annual Neighborhood Market Report. (Think CMA on steroids, but with a more consumer-centric name.) This provides clients with a current valuation of their property and insight into local market trends, similar to receiving a yearly health checkup.
Step 6: Develop a regular follow-up strategy using a mix of email, direct mail and personal visits to foster and maintain relationships with these clients. The aim is to transition them from prospects to integral members of your business circle and sphere of influence.
Take action now
In a fiercely competitive market, it’s time to put your ingenuity and innovation pedals to the metal and prove to buyers and sellers why you are the service professional to turn to in your market. Ask yourself what you can do to bring value continuously and raise your exposure in your area.
Know the answers to the lawsuit questions so that you can help consumers separate the facts from the headlines. Keep learning and growing in mindset, tools, strategy and skills — especially skills that revolve around your ability to communicate with confidence, authenticity and transparency.
Darryl Davis is the CEO of Darryl Davis Seminars. Connect with him on Facebook or YouTube.
