The Key Element Behind Word of Mouth

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Hey friend,

Welcome to the 12th weekly edition of Pillow Talk! This is where I share my personal thoughts on property management topics.

This week, I’m talking about the key element behind word of mouth marketing.

Most property managers have some sort of tenant and agent referral program, but thanks to varying laws and regulations, it’s tough to incentivize owners to make referrals.

Which stinks! In a different world, owner referrals would be the best source of property management leads for growing your management portfolio because they have a $0 marginal cost, and they’re high-quality! Plus, recent research shows that referred customers make 31%–57% more referrals than nonreferred customers, leading to a perpetuation effect.

Even if you’re in a state where you can’t offer owners a reward for referrals, you can still cultivate word of mouth by going beyond expectations.

Some call it “delighting the customer,” and there are many case studies we can look at that show this is a key element of word of mouth. For example, Chewy sends a HANDWRITTEN card to all customers on their pet’s birthday and other occasions. The average consumer doesn’t expect a personal touch from large corporations, which Chewy uses to their advantage. Based on the massive response on social media, we can see that they’re beloved for this practice, and have turned their customers into their ambassadors.

How can you go above and beyond for your clients?

Don’t take my word for it

Referral platform mention-me has generated more than 6 million referrals, and they claim social capital is the “beating heart” of referrals, and one of the strongest levers you can pull.

Social capital refers to your standing within your network of relationships. The theory basically states that humans want to be perceived as a valuable resource within their network, and therefore have a natural incentive to help others achieve their goals.

How does this apply to owners? If you delight clients with service that goes above and beyond, they’re more likely to refer you because it will make them look good when their network gets the same treatment. They’ll look like a savvy shopper and someone with professional connections. Their network will think highly of them because they helped solve the daunting challenge of finding a great property manager.

Good night 😴

Lior Abramovich
Co-founder, CEO