Highlights:
- 4x ROI Achieved: Leveraging just three simple marketing actions, Faircreek Homes realized a ~4x return on investment within the first month of marketing Locorum.
- High Engagement: Despite the referral program being a secondary message in emails, a 50% open rate from 6,000 recipients led to meaningful engagement and clicks.
- Effective Referrals: Four new clients were referred, demonstrating the power of combining digital marketing with strong incentives.
Company Background:
Our client has requested to remain anonymous, and we’ve respected their request by using the alias “Faircreek Homes” for this case study. The remainder of the information in this case is actual data from their use of Locorum.
Faircreek is a developer with multiple active sites, including low-rise condominiums and single-family homes. They have constructed 1,400 homes since 2011. During this case study, they had 3 active sites running referral programs. Homes in the actively selling communities ranged from $550,000 to $1M and included both condominiums and single-family homes.
Introduction:
Faircreek Homes is recognized as a leading builder in their area. Striving to ensure their client loyalty initiatives mirror the excellence of their construction, Faircreek Homes recently partnered with Locorum to revolutionize their referral program. This collaboration aimed to digitize and streamline the referral process, making it more accessible and user-friendly for their clients. The primary goals of this initiative were to boost client acquisition, lower acquisition costs, and elevate the overall client experience within the referral program.
This case study explores the strategies Faircreek Homes implemented, examines the significant outcomes realized within the first month, and highlights the substantial return on investment they achieved by transforming their approach to digital referral acquisition and cultivating deeper client loyalty.
Strategies Employed:
- Email Marketing: Faircreek Homes sent out two emails to a segmented 4,800-strong recipient list, achieving a 40% open rate. The referral program was only subtly introduced in the email footer, directing attention to their Organization Page on Locorum.
- Social Media Outreach: A targeted LinkedIn post was made featuring a short video and copy that introduced the referral program.
- Incentive Introduction: A $2,500 incentive was offered for both the referrer and the buyer ($5,000 total budget per closed deal), creating a compelling reason for participation in the referral program.
Outcomes:
- The marketing efforts resulted in six clicks through to the Faircreek referral landing page, ultimately leading to three new clients being referred.
- At the time of this case, one deal closed. Thanks to a warm introduction by a trusted source, Faircreek realized a significant cost saving in their client acquisition cost compared to traditional acquisition methods through brokers at 2% of the sale price.
- The initial four weeks post-launch saw a ~4x ROI, highlighting the effectiveness of the integrated marketing strategy and the Locorum platform.
- The remaining four deals are currently underway, presenting the potential for even greater returns in the upcoming months.
Key Insights:
- The subtle integration of the referral program in email footers, coupled with a strong call-to-action, proved to be an effective strategy. This indicates a dedicated email may have increased engagement even further.
- A multi-channel approach that included social
- The introduction of substantial incentives for both the referrer and the buyer significantly contributed to the program's success.
- As the program progresses, face-to-face introductions by the sales team at closing have been identified as a highly effective strategy for promoting the program.
Conclusion:
Faircreek Homes' strategic use of the Locorum platform for marketing their referral program has demonstrated remarkable efficiency, with a substantial return on investment within just the first month. Faircreek's ongoing strategy innovations have led to progressively improved results, with further success beyond the scope of this case study.
This commitment to strategic innovation not only underscores Faircreek's dedication to enhancing their client experiences but also sets them apart as a benchmark for quality in every facet of their business.
This case study exemplifies the potential of well-thought-out digital marketing strategies combined with enticing incentives to drive client referrals and enhance business growth.