When it comes to marketing, the ultimate goal is to aquire and keep new customers. But few title companies realize that the best way to do that is by having your existing customers recommend you to their colleagues.
Word of mouth and referrals have been, are and will forever be THE leading source of steady new business. And this is valid for any type of specialist business (ie involving services rendered by specialists, like lawyers, doctors, and yes, title agents).
Now, there’s also something called ‘The Pareto Law’, you may have heard of it, that states that 80% of your results come from 20% of your efforts, 80% of your revenue comes from 20% of your clients, and so on.
It’s important you focus on those 20% of clients that most active, most stasfied. They will bring in 80% of new business. And that’s a fact. Millions of businesses across the world focus on these as a means to reduce work and maximize output.
Here are 3 strategies that help you increase your output and minimize your efforts:
Here’s what we believe ‘most active clients’ means: Those realtors or lenders who phone you most frequently to ask for quotes or have questions related to taxes or the closing process in general. 20% of clients who have had closings with you in the past, etc.
Now, if you don’t keep track of your clients’ activity you will never be able to identify that category throroughly. One way is to have some sort of excel spreadsheet where you just start recording who phones in, what problem they have, etc, and in time, you’ll start seeing a pattern.
The other way is when you have an online tool, like TitleCapture’s title quote app, that allows you to track all your clients activity in the app, like how many quotes they generated, net sheets, HUDs, and the amounts.
Once you know who’s who, you can start phoning them, taking them out for dinner, sending them birthday cards, useful insight. Really whatever networking and socialization approach you feel is necessary to become these people’s first option when it comes to closing.
Forget about the rest 80%. The effort is not worth it. They need to earn their way into your Top 20% list.
We are definitely against discounts, but this is a special case. First of all, you’re only giving a discount to the people who really matter. The rest of your clients don’t get this treatment but if you could actually gently let them know, it would be great (as mean as it may sound).
This is achieving two goals. First of all your premium clients will feel valued and better than the rest. They will probably become die hard fans. The rest of your clients will feel like they need to push harder in order to get to that premium club.
If 80% of you revenue comes from residential properties and cash deals, DO THAT. Ignore the rest. Why?
We know the natural thing to do is not decline new business, and when you read this you’re probably thinking ‘This is wrong!’, but this statistic really tells you one thing: Either this is the market (and probably for solid fundamental reasons) or this is what you are percieved as being good at.
There’s an old saying among succesful stock traders and it goes like this: “Do more of what’s working and less of what’s not”.
Hopefully you found this article insightful. If you did and you want to check our a title quote app that allows you to track who your most active clients are, check our TitleCapture. Our staff is always willing to give you a demo so you see how your title quote app will work.
TitleCapture helps you capture more clients