Nobody can sell your properties quite like your own tenants. Let’s talk about some of the benefits of tenant referrals, some common challenges, and how you can build a tenant referral program that helps your property management business grow revenue.
Benefits of a tenant referral program
Here are a couple of the reasons you should consider setting up a referral marketing program.
- It works: Trust for traditional marketing is at an all-time low. But customer referrals work precisely because it’s so different from traditional marketing. While paid ads are often ignored, tenants trust the opinions of their social networks.
- It’s cost-effective: Because referrals leverage the trust tenants have for friends and family members, leads that come in from referrals are more cost-effective than leads that come in from other channels. According to McKinsey, customer referrals generate 2x the sales of paid advertising.
Why collecting referrals is so hard
Why don’t more tenants refer your business? Usually, it’s because your tenants are busy and don’t actively think about promoting your business when they’re with family and friends. To get great results, make the process easy. Ideally, a winning referral program allows tenants to refer your business with just a few clicks. No matter how busy they may be, they’ll still be able to spread the word about you with little effort.
Creating a successful tenant referral program
Here are a few steps that your business can take to build a referral program that converts.
Send referral requests via email and text
Again, getting tenants to refer your business is all about making the process easy. We recommend sending referral requests via text messaging and email with direct links to share your business on social media.
Get the timing right
Sending a referral request six months after a tenant has already moved in is too late. They may have already forgotten the joy that they experienced when they moved in. Aim to send referral requests when your business is fresh in the tenant’s mind. This might be after a move-in, a service request, or a move-out.
Determine the right incentives
Determine the right incentives for your referral program. This can be cash, gift cards, or discounted parking and utilities. If you’re not sure what reward to offer, take some time to experiment and see what leads to the best results. In addition, take a look at what competitors in your area are offering.
Use referral tracking software for incentives
It’s incredibly difficult to track referrals and incentive payouts manually. But taking too long to send rewards will frustrate your tenants. We recommend using a referral tracking software instead. Instead of having to track down referrals from different sources on your own, you’ll be able to see all the different tenant referrals in one place and pay out incentives in a timely manner.
While implementing a successful tenant marketing referral program isn’t easy, it’s a worthwhile investment in growing business. By leveraging the power of word-of-mouth, you can make sure that more people are aware of your brand than ever before.