Referral software belongs in your marketing toolbox.
Like most marketers, sales professionals, and business leaders in new home construction, you’ve most likely seen how positive word-of-mouth impacts sales and customer satisfaction.
After all, research shows that referred customers:
have a lower cost of acquisition;
close more quickly;
are easier to work with; and
are more likely themselves to refer, too.
So you might be thinking: ‘how can I encourage more word of mouth and translate it into more referral sales.’ Great question! To answer, let’s review the benefits of word-of-mouth and referral marketing.
Word of Mouth Marketing
A Timeless Strategy
Ever since Eve first convinced Adam to sink his teeth into the forbidden fruit, people have been recommending products and services to each other. It’s in our DNA. Which means, unlike other marketing trends than come and go, word-of-mouth marketing is here to stay.
The Most Trusted Form of Advertising
Traditional advertising (digital advertising included) is becoming increasingly ineffective. Homebuyers are exposed to media channels over-saturated with unwanted, skippable advertising messages that lack value, relevance and authenticity. Little wonder consumer trust in advertising continues to decline. Conversely, recommendations from peers are more authentic, relevant and full of value, and therefore proven to be more effective. Here are a few stats to back that up:
83% of consumers say they either completely or somewhat trust recommendations from family, colleagues, and friends about products and services — making these recommendations the highest ranked source for trustworthiness. [Nielsen]
81% of people said they’re influenced by what their friends share on social media. [Market Force]
84% of millennials don’t trust advertising [McCarthy Group]
47% of consumers are fatigued with repetitive influencer posts [Edelmen]
Technology Offers Huge Opportunities
Thanks to the Internet and social media, one-to-one word-of-mouth interactions are now one-to-many. Not only is it easier to make a recommendation or share a referral online, it can be shared with hundreds of people in our personal networks. This gives homebuilders and real estate developers the opportunity to amplify their word-of-mouth programs in ways previously undreamed of.
Cost Effective and Highly Measurable
Compared to every other marketing channel, word-of-mouth costs less, generates higher ROI and is easier to measure what you care about most: sales. On the flip side, social media marketing is now pay-to-play. Digital advertising channels often use competition to drive up prices. Influencer marketing usually has outrageously high CPM’s. And non-traditional channels are as expensive as ever, while still as difficult to measure. While there will always be place for advertising, one thing is clear: word-of-mouth gives you the most bang for your buck.
You Get the Best Customers
Referred customers end up being your best customers. The reasons? They’re up to 4 times more likely to close, tend to have a higher Net Promoter Score, are 25% more profitable and are 4-5 times more likely to refer new customers, too.
With all these benefits, why aren’t more homebuilders and developers making modernized referral programs a more integral part of their marketing playbook?
The lack of industry specific tools and technology is a big part of the problem. As new home marketers ourselves, we know the days of setting up a simple, analog referral program and expecting it do to all the work are long gone. It’s time to get more intentional and intelligent with our homebuilder and new community referral programs. And it’s time for a cost-effective software solution that is specifically designed for the new home construction space.
The Believer Advantage
Believer consists of two complementary software products designed to help builders upgrade their word-of-mouth programs. Built by new home marketers for new home marketers, Believer was born out of a depth of industry knowledge and experience and a passion for developing and applying innovative solutions that drive marketing and sales results.
Referral Marketing Software
Believer’s referral marketing software for homebuilders and real estate developers is based on digitizing the referral intake form and using online tactics that are tried and tested in countless other market verticals, particularly in the software and technology space. At its core, the software gives builders the ability to invite customers to generate and share personalized, trackable referral URL’s with their friends. When friends click on the URL, they are brought to a landing page where they are invited to schedule a new home consultation. This simple framework combined with the online referral registration form, offers a host of benefits, including powerful reporting and analytics around referral activity, lead conversion, and sales attribution. It also increases referral sales.
Advocate Engagement App
Part of the value of being a Believer customer is giving your homebuyers access to the Believer app. The app was designed to solve the problem builders have of maintaining engagement with loyal customers long after they take possession. The app powers the Believer program and the Believer program is simple: incentivize users to share the social media content, give them useful content and make it easy for them to earn referral commissions.
We’re a technology company on a mission to modernize the homebuilder referral program.
As a bootstrap SaaS startup, we rely heavily on customer partnerships and collaboration. Our products currently have a limited set of critical features that we’re testing with a small handful of builders. But we would love to put you on the waiting list. We’d also love to chat about your current situation, get insight into your referral program challenges and discuss how our products could help you get more referral sales.