REFERRAL BASE MARKETING



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Subject: PERSONAL RELATIONSHIP AND REFERRAL SOURCE MARKETING

Submitted by Bill Erickson

Guiding Principles

• In general, most of your customers for general home inspections will come to you from REFERRAL SOURCES such as Realtors and bankers. The home inspection industry is primarily a referral industry. Advertising, such as Yellow Pages and Direct Mail, can bring you some business, but the mainstay of your business will be referrals.

You can round out your business with other inspections for relocation companies, field service companies, builder's warranty inspections, etc, but you will always need a referral base (including past customers).

• Market constantly. It is not enough just to introduce yourself to referral sources. You need to work with each referral source to develop an ongoing relationship. It is also a mistake to assume that business will keep coming your way without continuous action on your part. A successful marketing program never stops. You need to keep priming the referral base for more customers. The number of customers that come your way is directly related to the amount of ongoing marketing contact you have with the right people.

• Remain impartial. Accept referrals but remember that your customer is the home buyer or seller who is paying for your inspection service. Never pay referral fees, directly or indirectly, for referrals from Realtors, lenders or any other party.

WHAT TO ACCOMPLISH

• Become known to referral sources. You want to become a familiar face and recognizable figure in the community of players that serve the real estate industry. Many aspects of the National Property Inspections marketing plan are designed to do just that – through regular Realtor and affiliate visits, attendance at Realtor and affiliate functions, press coverage, and public appearances.

• Develop "relationships" with referral sources. The National Property Inspections marketing plan offers you some options for contacting referral sources, such as our listing program .. Also, advertising in real estate companies' buyer’s guides and making special presentations to realtors on business topics (such as a presentations on mold, stucco, siding, etc.) that concern them is recommended.

• Watch for opportunities to be helpful. Stay informed about Realtor issues. Know what the hot issues are in the real estate industry and keep in touch with what realtors are worried about. Maintaining contacts will keep you informed. Then look for ways that you can help the realtors with these issues.

• Take every advantage to communicate. National Property Inspection's marketing plan advocates an active post-inspection follow-up program, not only because it is a smart and necessary business practice, but because it makes marketing sense. Every follow-up step with the Realtor – post-inspection calls and thank-you correspondence – is another opportunity for additional contact. Don't forget to make follow-up contact with both agents involved in the real estate transaction-- the buyer's and the seller's agents. You will typically get the customer referral from the agent working with the buyer, but don't neglect to make contact with the seller's agent after the inspection is completed to introduce yourself. If you impress the seller's agent, you increase your chances of getting referrals from that agent. Make it a point to call and meet the agent so you can start to build a relationship for future business.

Notes of congratulations to top-achieving Realtors or promoted bankers are also opportunities for more communications.

STEP-BY-STEP GUIDE

The following is a guide to your marketing activities regarding developing

personal relationships with referral sources.

• Opening Promotions (business launch)

A concentrated 2-week program of introductory visits to a target list of top-performing realtors, lenders, and affiliates to the real estate industry. The purpose of these initial visits is to make personal contact with the players in the industry, to introduce yourself, to distribute promotional materials, and to get your first referrals.

• Ongoing Visits

A continuing program of unannounced visits to the referral base of Realtors and mortgage brokers. The purpose of the visits is to replenish the brochures and business cards for potential customers, to increase referrals, and to maintain and expand personal contacts within the industry. Top-priority targets are visited on a monthly basis and smaller players on a 6-week or 2-month schedule.

• Realtor Presentations

A program of presentations made to realtors at Realtor office meetings. The purpose of scheduling these presentations is to have longer, more significant contact with realtors in which attention is focused on you as a helpful participant in their business.

. Special Realtor Programs

Programs designed to commit realtors to business relationships with your company, including the listing program and continuing education seminars.

• Advertising

A program of advertising in realty buyer’s guides. The purpose of placing these ads is to reach and influence the clients of the Realtor and to deepen the relationship between you and the Realtor. You may not receive many calls from potential customers (home buyers or sellers), but you would do this to show your support to the real estate broker.

• Exposure

A program of publicity, public relations, and appearances at industry events. The purpose of these actions is to become known personally and as a respected business colleague in the industry.

• Post-Inspection Follow-Up

A rigorous program of communications with Realtors and other proven referral sources after each inspection and over extended periods. The award winning NPI newsletter, The Inspector, is a great way to keep your name in front of referral sources on a monthly, quarterly, or annual basis. Drop off copies or mail them an ongoing basis.

• Evaluation

A program of tracking contacts with the referral base and monitoring the results of those actions. The purpose of evaluating marketing performance is to confirm the parts of the marketing plan that are working for you and to correct or delete approaches that have proven ineffective.

REALTOR VISITS

Your top-priority Realtor targets should be visited on an ongoing basis for the purpose of

maintaining Realtor contacts, replenishing customer materials, and generating more

referrals. The smaller realtors should be visited too, although you may not stop in quite as

often.

The Second Visit

Make your second visit to each Realtor a month after the first opening-promotion visit (6

weeks or so for smaller realtors). Bring along these supplies:

• Another “treat”.

• Cards for each agent (rolodex if they use it).

• Brochures and business cards for the display box.

You will always need to get past the receptionist's desk. Use the candy as an excuse if you

have to, explaining that you need to get to the display area to refill the “treat”. Actually,

use any excuse you can think of to get past the “gate keeper.”

The first rule of any Realtor visit is to greet and meet as many agents as possible. Keep

your unannounced supply-run stops on a casual, social level. Agents should be happy to

see your friendly face and enjoy talking to you – and seeing what candy you have brought

this time. It is certainly all right to talk shop with agents, but do not back them up against

the wall with a sales pitch.

Give agents your business cards personally during the conversation. For those that are

out, leave the cards on their desks.

In the designated display area, put enough brochures and business cards in your display

box to last until the next visit. It is a good idea to keep some display boxes in your car,

just in case yours has disappeared from the area.

Ongoing Visits

Visit your top-priority realtors each month and smaller realtors on a 6-week or 2-month

schedule. These visits are for the purpose of replenishing customer supplies, socializing,

and increasing the number of referrals you are getting. But you do not have to wait for the

monthly visit. If you are in the neighborhood, you can always drop in before or after an

inspection just to say “hi”.

GOLDEN RULE: For your regular supply runs, always bring in a new “treat”. After a few

visits, agents will expect a special treat and will be happy to see you. Try to vary the type

of treat you bring – Hershey’s Kisses one time, hard candy and wrapped toffee another,

and sometimes kid’s candy like a mix of miniature candy bars, tootsie rolls, and little bags

of M & M’s. Be creative. If you should come across an office of health-conscious agents

who do not like candy, try a bag of peanuts in the shells, pistachio nuts, or some health

snack. But ALWAYS bring something in the bag.

You should not have to spend a lot of money bringing gifts such as notepads, pens, and

nail files each time you make a casual visit. We would rather you saved such gifts for

special occasions like scheduled presentations at office meetings. But, if you like, you can

leave a few notepads at the secretary’s desk.

Use these visits to promote the idea of your making a presentation at one of the Realtor’s

regular office meetings. Ask the broker if he or she would like you to cover any particular

topics for the agents. Or propose that you come in to present the special Realtor programs

you offer. Try to get a presentation booked.

AN IDEA: Here is an idea to make your regular supply-run stops more effective. Offer

to come in late in the afternoon each month and hang around for an hour to answer any

questions the agents may have –- from 5:00 to 6:00 pm, for example.

Be sure to record each visit you make to each real estate office on the Realtor Record

Sheet. And always make a note of when you should stop in next.

AFFILIATE VISITS

The National Property Inspections marketing plan calls for ongoing contact with the

community of people affiliated with the real estate industry, although not as rigorous a

program as with the Realtors themselves.

Mortgage Brokers

We do suggest ongoing visits with mortgage lenders. Ask if you can place a brochure

stand in their office (reception area is good). They have contact with consumers and while

they don't represent the same power of Realtors to your business, they can send you some

customers. Also, if you are marketing DRAW inspections to banks, contact their Real

Estate Construction Loan officers to offer your services for doing draw or phase

inspections.

Stop in for a second visit within 2 months of your opening visit to check the customer

display box. It may be that there are still plenty of brochures and business cards. If you

find the display box is empty, ask the head of the department how often you should stop in

to refill it.

It's okay to just stop by when you are in the neighborhood just to say hello and to keep in

touch with particularly good contact you have made with this segment of the referral base.

We rate these banker visits as a second priority to Realtor visits and do not suggest that

you have to stop in every month or even every 2 months. You be the judge of when it is

necessary to replenish supplies and how effective the visits are in bringing you customers.

Other Affiliates

The National Property Inspections marketing program does not call for ongoing visits to

the other affiliates – attorneys, appraisers, title companies, and so on. Just mail them

business cards if you see they were involved in a real estate transaction in which you

performed the home inspection. Ask them to refer customers to you when they have the

chance.

REALTOR PRESENTATIONS

A presentation is a scheduled time slot during a Realtor’s office meeting at which you

stand in front of the agents and deliver a talk. The purpose of the presentation is to have a

longer, significant contact with the whole staff of a real estate company. It is a time

when you can be viewed as a helpful participant in their business.

Booking A Presentation

Scheduling a presentation will not come automatically. You will have to work at it.

Best Approach--A face-to-face approach to getting permission to make a presentation is

best. Take advantage of the ongoing supply-run visits to mention that you would like to

come in to talk to the agents during their regular office meeting. Suggest it to the broker,

office manager or sales manager, and agents until you find the person in each office that

can get you scheduled. When you talk to agents at inspection sites or call them for a post-

inspection call, ask for their help in getting you on the office meeting agenda.

Second Choice--Another approach is to use the phone. Call the broker or the office or

sales manager – whoever is responsible for the meetings – and ask for the booking.

When you are making the request, always stress the following:

• You want to make a short presentation.

• You want to introduce your company.

• You will present for only about 5 minutes and then answer questions.

• Any time, 10 to 20 minutes would be fine, whatever they have available.

• You would like to bring refreshments.

• You would come before the meeting to lay out the food.

Third Approach--A third approach is to send a request letter. You should follow up this

letter with a personal call to the broker.

Preparation

Once you have booked a presentation with a real estate company, put it on your calendar

and begin to prepare for it. You should be doing the following:

• Send the person who arranged the appointment a letter of confirmation.

• Plan to take food to the meeting if you received permission to do so. Bring doughnuts or pastries for morning meetings and do not be cheap. Locate a bakery that makes good ones. Arrange for pizzas (or some finger food that appeals to most people) for afternoon meetings. Get a box of heavy-duty napkins or paper plates to bring along for the pizza

CAUTION: Be sure you schedule the food to be ready to pick up so you can get to the meeting about 15 minutes before it starts. You do not want to arrive with food after the meeting begins.

• Organize the materials you will need for the meeting. We suggest you plan on giving each agent the following set of materials paper clipped together:

➢ 1 Business Card

➢ 1 Announcement Flyer

➢ 1 Gift (like a notepad, optional)

➢ 1 Brochure

➢ Sample partial GPI inspection report

• Prepare the props you will need for the presentation. Take these with you:

➢ NPI Property Inspection Report with the inspector pages removed and each remaining customer page stamped “Sample”.

➢ FREE 6 MONTH NPI WARRANTY BROCHURE.

Presentation Skills

You may or may not feel comfortable getting in front of a group of people. If you are not

comfortable with group presentations, start with the smaller real estate offices and work

your confidence up to working the larger offices. You might also feel more comfortable

meeting agents one on one at OPEN HOUSES, so do what you can to meet Realtors and

begin forging relationships.

The purpose of the presentation is to sell yourself, to let realtors see you as an articulate

professional – as their business equal. The presentation is really a show of your

communication skills.

The spoken message you want to deliver at this presentation is simple. It is that you take

good care of their clients. You do that by simply telling them how your company does it –

preparing clients for inspections, providing quality inspections, and knowing how to

communicate with them. You already know this.

The underlying points are that you realize agents are concerned about how their clients

are treated at inspections. You understand what you do reflects on the agent who

referred the client to you.

The unspoken message is that you are confident, competent, and qualified professional

who understands the real estate industry and their side of the picture. You are a person

who can be trusted to provide good services and treat their clients well. Which gets us

back to the purpose of the presentation – to sell yourself.

• Deliver the whole presentation. Give the presentation in your own words. Use an outline as a guide. Practice this until it flows smoothly. Try to talk rather than give a speech. A conversational tone is best. Practice using props while you are giving the presentation – the inspection report, brochures, etc.

• Time yourself. Keep your initial presentation to about 5 minutes, then open the meeting up to questions and answers.

• Pay attention to the physical aspects. You want to appear confident and comfortable in front of a group. It is all right to move around and gesture while you are talking. Take a look in the mirror. Do you look frozen like a deer in headlights? Do you look too stiff? Figure out some moves and gestures that seem natural to you.

• Have someone listen to you. Have a dress rehearsal with a spouse or friend. Keep in mind that you are talking to them.

• Get rid of the outline if you can. This is the last step in getting you ready for the presentation. Try to give it without the outline. The best of all worlds is to be able to get in front of the agents without any notes at all. But if that simply does not work for you, copy they key points onto index cards or a little cheat sheet.

At the Meeting

The office meeting may take place in a conference room at the Realtor’s office or in the

office itself, where agents remain at their desks. Some realtors rent an off-site room for

their meetings. The day before the meeting call your contact at the office to confirm:

• The time the meeting starts.

• The time you are scheduled to talk.

• The location, if not at the office.

Arrive at least 15 minutes before the meeting starts so you have time to set up the food and

lay out supplies. You can stack notepads or gifts near the food area, but try to hand out

promotional materials to each agent personally. Use the time before the meeting to mingle

with the agents.

When giving the presentation, remember your purpose is to let them see you for the

professional you are. Be casual, relaxed, and confident.

A WORD ABOUT QUESTIONS: It is more important to address what agents want to hear

than what you came there to say. So take the question period seriously. If you cannot

answer a question, do not try to fake an answer. Say honestly that you do not know but

will call them back tomorrow with the answer. Be sure to send a thank you card with a

personal note to the person who ran the meeting and anyone else who helped you get on the

agenda.

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