Building Client Loyalty: Tying Rewards to Referrals

In the competitive world of real estate, building strong relationships and generating referrals are key to success. Offering rewards is one effective way to incentivize referrals.

By tying rewards to referrals and leading with reciprocity, you not only encourage referrals but also strengthen client relationships.

In this blog, we'll go through why reciprocity matters, ways to reward and how to build a rewards strategy for your business.

Leading with Reciprocity

Reciprocity plays a crucial role in encouraging referrals. When clients feel appreciated and valued, they are more likely to refer others to you. By leading with reciprocity, you can create a sense of mutual benefit that encourages clients to refer their friends, family and colleagues. It's not just us saying it, 69% of consumers say that they’re more likely to try a brand if it gives rewards.

One way to lead with reciprocity is by offering rewards not only for successful referrals but also for the actions that lead to referrals. For example, you could offer rewards for attending an event or sharing your services on social media. This approach not only incentivizes referrals but also encourages ongoing engagement with your brand.

Another way to lead with reciprocity is by acknowledging and thanking clients for their referrals right away. Even if the referral isn’t successful, a simple thank-you note or personalized message with a $20-50 reward can go a long way in showing your appreciation and strengthening your relationship with your clients. This personal touch can make clients feel valued and more likely to refer others in the future.

Finally, reward customers just because. Staying in touch and sending a small reward for birthdays, holidays, home anniversaries, and other special occasions is a thoughtful gesture that will stay in their minds.

Choosing the Right Rewards Strategy

When it comes to choosing a rewards strategy, consider what will resonate most with your clients. Monetary rewards, such as gift cards or cash incentives, are often effective, as they provide tangible benefits for clients who refer others. 

Offer rewards that are meaningful and valuable to your clients when they’ll most appreciate it. Consider surveying your clients or running social polls to understand their preferences and tailor your rewards accordingly. This personalized approach can make your rewards more appealing and increase client engagement.

Frequency and Timing of Rewards 

The frequency and timing of rewards can play a significant role in the success of your referral program. Here are some key considerations:

1. Frequency: Determine how often you will send rewards to clients who refer others. You want to stay within a budget but constantly stay in touch and encourage referrals. A good rule of thumb is to choose the most important/impactful moments. For example, if you have a budget of $100 per client, instead of sending it all at once, consider spreading it out like this:
   
   • $50 Home Anniversary 
   • $20 Happy Birthday reward
   • $20 Thank You For Your Referral
   • $10 Merry Christmas

   You can spread it out as much or as little as you’d like, but increasing your touchpoints is a great way to stay in their minds.

2. Timing: Consider when to send rewards to maximize their impact. Sending rewards when clients are likely stressed (i.e., moving day) will likely not leave a lasting impact. Sending them too late may diminish their effectiveness. Put yourself in your client’s shoes and decide when you’d most appreciate a reward. Maybe they have a wedding coming up that they don’t expect you to remember, so a reward will surprise and delight them. This not only reinforces positive behavior but also maintains a positive relationship.
3. Seasonal Opportunities: Take advantage of seasonal opportunities to send rewards, such as holidays or special occasions. We talked a bit about sending rewards on these occasions. Something else you can do is offer seasonal promotions or bonuses that can incentivize clients to refer others during these times. For example, earning an extra $100 on each successful referral summer promotion can boost your referral program's effectiveness.
4. Personalization: Personalize your rewards strategy to match the preferences of your clients. Consider offering different types of rewards based on client demographics or interests. You can do this with the message you send along with your rewards cards, giving recommendations to what your clients like and can spend their rewards on.

By carefully considering the frequency and timing of rewards, you can ensure that your referral program is effective in encouraging clients to refer others and building strong client relationships.

Want to start sending rewards? Get in touch with our team!