In the fast-paced world of real estate, the goal of acquiring new clients often takes center stage. After all, generating leads and closing deals drives business growth. However, while attracting new buyers and sellers is critical for long-term success, client retention should be an equally—if not more—significant focus for REALTORS® looking to build a sustainable and profitable business.

As mentioned, acquiring new clients is necessary for business growth, especially for agents just starting out or for those looking to expand their reach. A well-executed marketing strategy, continuous networking efforts, and a consistent online presence can all help to bring in fresh opportunities, and these new opportunities can potentially lead to more transactions.

For REALTORS® with an already full rolodex of clients, it’s also important to remember that some clients will naturally move on at some point. Some may relocate, others may settle into “forever” homes, and some may just no longer need real estate services for one reason or another. Because of this, fresh business is essential. 

But client acquisition does come with challenges—it can be costly, time-consuming, and highly competitive. In fact, research shows that, depending on the industry you’re in, acquiring a new customer can cost five to seven times more than retaining an existing one. Alternatively, a study by the Harvard School of Business shows that an increase in customer retention by just 5% can lead to a company’s profits growing by 25% to 95% over a period of time. 

So, while acquisition does have its place in helping REALTORS® expand their business, retaining past clients can potentially yield greater long-term benefits. 

First, while real estate may not have the same frequent transactions as other industries, keep in mind that the average American moves about 11 times during their lifetime, according to the U.S. Census Bureau. And, once they turn 18, most Americans will move their household once every 5 to 7 years. So, while transactions are more spread out, there are opportunities for repeat transactions if you stay connected to previous clients. 

Plus, clients who have worked with you before already know and trust you, making them more likely to re-engage, and satisfied clients are also one of your most powerful marketing tools. Word-of-mouth recommendations from happy clients carry much more weight than any ad campaign or online review. 

Just as it’s important to have a strategy in place for acquiring new clients, a strong client retention strategy is also crucial. Here are just a few effective ways to maintain and strengthen client relationships:

• Personalized communication: Send birthday wishes, holiday greetings, milestone congratulations, and home anniversary reminders. A quick text, a friendly email, or a simple handwritten note shows that you truly value the relationship. 
• Offer homeownership resources: Provide continuous value by sharing market updates, home maintenance tips, or community news through emails or social media. Providing industry education and updates positions you as a trusted expert. 
• Host client appreciation events: Organize events such as a holiday party, an informal summer BBQ gathering, or even an educational seminar. Creating opportunities to touch base face-to-face really helps strengthen relationships.
• Leverage social media: Not only is it important to interact with clients by commenting on their updates and posts, it’s also important to keep your own profile up-to-date. A consistent social media presence fosters loyalty and increases the likelihood of referrals, as past clients are more likely to recommend an agent they see as active and engaged. 
• Be a connector: Position yourself as the go-to resource. When homeowners need a trusted contractor for a renovation, a landscaper for their new yard, or any local service provider, they’ll hopefully turn to their agent. By maintaining a network of reliable professionals and offering trusted referrals, you become more than just a REALTOR®—you become a lifelong advisor, keeping clients engaged and increasing the chances of repeat business and referrals.
• Be exceptional from the start: As we all know, successful customer retention begins with that great first impression and personalized experience. By exceeding expectations during the buying or selling process, you increase the likelihood of long-term loyalty.

So, while acquiring new clients is essential for growth, it’s important for REALTORS® to maintain a well-balanced approach that prioritizes retention. By focusing on building lasting connections, REALTORS® can reduce their reliance on constant prospecting and, instead, develop a loyal client base that sustains their business for years to come.