Why social media fails to generate referrals.
Social media fails to generate referrals for a number or reasons, let’s look at some of them. It’s no secret. In the era of social media, we also have Neurochemistry. What does brain chemistry have to do with marketing? Everything! I’ve mentioned the “Infinite Scroll Model” before. A Neurochemical process occurs when we search for things that we’re interested us. A dopamine rush happens with each flick of the page or scroll of the mouse. Endlessly scrolling at lunch, in coffee shops, possibly right now reading this blog post, and it’s here to stay. Facebook, Twitter, LinkedIn, TikTok are among the most successful examples.
Here’s the real question. “How does this addictive process help me get more referrals?”
The answer is, “it doesn’t!” Past clients aren’t connected to the workings of the industry the way you are so they scroll past posts about Fannie, Freddie, and the Fed as a whole. For years now, “relevant content” was the catchphrase of the day, and it never worked to generate referrals from past clients, and it never will. Past clients aren’t interested in the inner workings of the real estate industry after the deal closes, they’re only focused on it while they’re in it. Once they have the home, they don’t care much for the industry sausage making. Can you blame them?
Using social media ads and marketing is expensive, time-consuming, and referrals never come from it in a way that justifies the resources spent. The main problem with marketing to past clients is using retail marketing processes when there’s no Buyer’s Journey. Social Media marketing requires a buyer’s journey to complete the equation. The interest is the hook, the buyer’s journey is the path to purchase a product or service.
Past clients aren’t buying a new home, getting another loan for an average of 8 to 12 years. If you’re marketing to them for that 10th-year loan or sale, well, that’s a lot of resources spent and it doesn’t add up profitably.
Whether a client has lousy Credit, can’t decide, never satisfied or outstanding Credit, knows what they want, have all their ducks-in-a-row. Easy or complex, the commonality between these types of sellers, buyers, or borrowers is that you develop a relationship with them.
Putting ads on social media looks like you’re placing ads on social media. However, sharing yourself and your knowledge using a newsletter works far better at maintaining the relationship you developed during the process. These relationships are crucial to generating referrals, and that’s why LO’s and Realtors that use the Exodus newsletter continue to do so, month after month, year after year, and never consider going without it.
Your past client knows when you send them insincere ads and emails. When you have a newsletter in your client’s home within the first 30 days of the transaction closing, you remain part of the home buying experience. We help LO’s and Realtors share themselves, share their knowledge and become family. And those who do are infinitely more successful than those who don’t. That is a fact.
Want to see what our clients experience? Set up a call today and see how easy it is to turn your past clients into a referral source that lasts a lifetime. Or call us directly 800-315-1910
– Keith Shapiro