Systematized Contact: 12 Direct & 8 x 8 Marketing

Systematized Lead Generation: Database Marketing for Real Estate

Lesson: Systematized Contact: 12 Direct & 8❓ x 8 Marketing

I. Introduction to Systematized Contact Strategies

A. The Contact Frequency Problem: Humans are forgetful. The forgetting curve, mathematically modeled as E(t) = e^(-kt), where E(t) is the retention at time t, and k is the forgetting rate constant, demonstrates that memory decays Exponentially❓❓ over time if not reinforced. Consistent contact combats this decay. (Ebbinghaus, H. (1885). Memory: A Contribution to Experimental Psychology.)

B. The Mere-Exposure Effect (Zajonc, 1968): Repeated exposure to a stimulus (e.g., your brand) increases liking and trust. This psychological phenomenon, sometimes expressed as a dose-response relationship, suggests that the more frequently people encounter your name, the more favorably they will view you, up to a saturation point.

C. Database Segmentation & Personalized Communication: Segmentation allows tailored messaging based on prospect characteristics. This increases relevance and engagement, aligning with communication theories emphasizing receiver-centric messaging.

II. 12 Direct Marketing: Establishing Brand Presence in “Haven’t Met” Database

A. Definition and Purpose: 12 Direct is a systematic direct mail campaign targeting a “Haven’t Met” database (prospects with whom no prior relationship exists). Its primary goal is to generate leads and convert prospects into “Met” contacts.

B. Statistical Probability in Mass Marketing:

1. Response Rate❓❓ (RR): The percentage of recipients who respond to a direct mail campaign. Typical RR for real estate direct mail can be low (0.5%-3%).

2. Conversion Rate (CR): The percentage of responders who become clients.

3. Calculating Required Database Size: To achieve a target number of clients (TC) from a 12 Direct campaign, the required database size (DS) can be estimated: DS = TC / (RR * CR * Number of Touches per year). For instance, if TC = 50, RR = 0.01 (1%), CR = 0.10 (10%), and Touches = 12, then DS = 50 / (0.01 * 0.10 * 12) ≈ 4167 contacts.

C. Key Considerations for 12 Direct Campaign Design:

1. Target Audience Demographics: Geographic, socioeconomic, and lifestyle factors influence message resonance. Understanding these factors allows for crafting targeted and relevant content. Data sources like census data, market research reports, and demographic profiling tools can inform these decisions.

2. A/B Testing: Testing different marketing materials (e.g., postcards vs. newsletters, different headlines) to optimize response rates. A/B testing relies on statistical hypothesis testing (e.g., t-tests, chi-squared tests) to determine if the differences in response rates are statistically significant. The null hypothesis is that there is no difference between the versions being tested. The p-value determines whether to reject or fail to reject the null hypothesis.

3. Call to Action (CTA): A clear and compelling CTA encourages recipients to take the desired action (e.g., call for a free market analysis, visit a website). CTAs should be prominently displayed and relevant to the marketing message.

D. Example 12 Direct Campaign Plan:

Table 1: Sample 12 Direct Campaign Calendar

III. 8 x 8 Marketing: Intensive Relationship Building with New “Met” Contacts

A. Definition and Purpose: 8 x 8 is an intensive, eight-week marketing campaign designed to rapidly build rapport and establish a strong relationship with newly acquired “Met” contacts (individuals who have engaged with you directly, such as through an open house or initial inquiry).

B. Principles of Social Psychology:

1. Reciprocity❓❓ (Cialdini, 1984): Providing value upfront (e.g., useful information, small gifts) increases the likelihood of the recipient reciprocating (e.g., considering you for their real estate needs).

2. Commitment and Consistency (Cialdini, 1984): Getting a small initial commitment (e.g., agreeing to receive your newsletter) increases the likelihood of larger commitments later on.

C. 8 x 8 Campaign Structure and Justification: The eight-week structure allows for consistent exposure and relationship building without overwhelming the prospect. The variety of touchpoints caters to different communication preferences and increases the chances of resonating with the prospect.

D. Example 8 x 8 Campaign Plan:

Table 2: Sample 8 x 8 Marketing Campaign Schedule

E. Measuring Effectiveness of 8 x 8:

1. Conversion Rate: Track the percentage of “Met” contacts who become clients after completing the 8 x 8 campaign.

2. Referral Rate: Monitor the number of referrals generated from the 8 x 8 campaign.

3. Customer Lifetime Value (CLTV): Estimate the long-term value of clients acquired through the 8 x 8 campaign. CLTV can be calculated using the formula: CLTV = Average Transaction Value * Number of Transactions per Year * Customer Lifespan * Profit Margin.

IV. Integration and Synergy

A. Transitioning from 12 Direct to 8 x 8: When a prospect from the “Haven’t Met” database responds to a 12 Direct campaign (e.g., requests a CMA), they transition into the “Met” database and become a target for the 8 x 8 campaign.

B. Overlap & Reinforcement: While distinct, both campaigns contribute to overall brand recognition and trust. The 12 Direct builds initial awareness, while the 8 x 8 fosters deeper relationships.

V. Ethical Considerations

A. Permission Marketing (Godin, 1999): Obtain explicit consent before adding individuals to your database and sending marketing materials. Comply with all applicable privacy regulations (e.g., GDPR, CCPA).

B. Transparency and Honesty: Be upfront about the purpose of your marketing efforts and avoid misleading claims. Build trust by providing accurate and valuable information.

References:

• Cialdini, R. B. (1984). Influence: The psychology of persuasion. New York: William Morrow.
• Ebbinghaus, H. (1885). Memory: A contribution to experimental psychology. New York: Dover Publications.
• Godin, S. (1999). Permission marketing: Turning strangers into friends and friends into customers. Simon & Schuster.
• Zajonc, R. B. (1968). Attitudinal effects of mere exposure. Journal of Personality and Social Psychology, 9(2, Pt.2), 1-27.