BY Edmund Bogen | January 25, 2023
In the dynamic world of real estate, the significance of sustaining relationships with past clients is paramount. The cost difference between acquiring new clients and selling to existing ones is substantial, with acquiring a new customer being 6-7 times more expensive than retaining an existing one. This highlights the immense value of past clients in the real estate sector.
These past clients are more than just previous transactions; they are crucial to a sustainable business model. The likelihood of making a sale to a new client is only 5-20%, whereas with an existing client, this probability soars to 60-70%. This stark contrast underlines the importance of nurturing relationships with past clients, which not only leads to a higher probability of repeat business but also boosts referral chances.
The lifetime value of a real estate client over 25 years is significant. For example, an average person moves approximately 11.4 times and buys three to five homes in their lifetime, offering multiple opportunities for repeat business. A single client could potentially refer two people per year, leading to substantial income over a 30-year career. For instance, if an agent earns $3,000 per client and a client transacts every 5 years, the 20-year lifetime value (LTV) of that client would be $12,000. If this client also refers one person each year, the LTV could double to $24,000. In a database of 100 loyal clients, this could mean a cumulative value of $2.4 million over 20 years.
Incorporating ChatGPT into business development and relationship management can revolutionize realtors’ approach. ChatGPT can be used for personalized communication, generating market analysis and reports, creating informative content for FAQs and client education, and setting up automated follow-ups and reminders. It’s also useful for crafting newsletter content, preparing speeches and presentations, managing social media, drafting contracts and documents, qualifying leads, conducting client surveys and feedback, developing content marketing materials, and for training and coaching.
Leveraging ChatGPT in these ways can enhance realtors’ business development and relationship management efforts, leading to increased efficiency, improved client satisfaction, and business growth. However, it’s important to remember that while AI tools like ChatGPT are powerful, they should complement, not replace, the personal touch and expert judgment that clients value in a real estate professional.
Sources:
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Adwerx.com
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KinderReese.com Blog
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RealtyONEGroup.com
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TheStorySeller.com
This approach emphasizes the dual strategy of valuing existing relationships and harnessing modern technology to maintain and grow these connections, providing a solid foundation for long-term success in the real estate industry.