Systematized Communication: Implementing Touch Programs & Contact Management

Systematized Communication: Implementing Touch Programs & Contact Management

I. Introduction to Systematized Communication

Systematized communication in real estate focuses on establishing consistent, predefined, repeatable, and automated interactions with leads and clients. This approach is crucial for maintaining engagement, nurturing relationships, and ultimately converting leads into successful transactions. Scientific principles underpin the effectiveness of systematized communication by leveraging established psychological and behavioral patterns.

II. The Science of Touch Programs

Touch programs are pre-designed communication sequences designed to maintain consistent contact with leads. The effectiveness of touch programs relies on several key principles:

• A. The Mere-Exposure Effect: This psychological phenomenon, described by Zajonc (1968), suggests that repeated exposure to a stimulus increases liking and familiarity. In real estate, consistent contact, even if brief, reinforces brand recognition and perceived trustworthiness.
  • Equation: F(x) = a + b(log x) where F(x) is the favorability score, x is the frequency of exposure, and a and b are constants representing initial favorability and the rate of increase, respectively (adapted from modeling exposure effects).
• B. The Forgetting Curve (Ebbinghaus, 1885): This demonstrates the exponential decay of memory over time. Consistent touch points counteract the forgetting curve, ensuring that leads retain awareness of the agent’s services.
  • Equation: R(t) = e^(-t/S), where R(t) is the retention rate at time t, and S is the relative strength of memory (a time constant). Regular touch intervals (e.g., every Δt) aim to maintain R(t) above a critical threshold.
• C. The Principle of Reciprocity (Cialdini, 1984): Providing value through “items of value” creates a sense of obligation, increasing the likelihood of leads engaging with the agent’s services.
• D. Social Exchange Theory: The perceived benefits of maintaining a relationship with an agent (information, expertise, opportunities) must consistently outweigh the costs (time, effort). Touch programs are designed to maximize perceived benefits.

III. Touch Program Examples: The 8x8, 33 Touch, and 12 Direct

These are specific implementations of systematized touch programs.

• A. The 8x8 Plan: Designed for immediate application to new leads, this plan involves 8 contacts over 8 weeks.
  • The blend of personal visits, phone calls, valuable items, and handwritten notes aims to quickly establish rapport and perceived expertise.
  • The rapid succession of touches leverages the initial heightened interest of a new lead and the power of short-term exposure to influence perception.
• B. The 33 Touch Plan: Aims to maintain year-round contact with prospects, business contacts, and past clients.
  • The plan’s diversity (mailings, cards, calls, holiday greetings) is designed to prevent habituation, where recipients become desensitized to a single type of communication.
  • Optimizing touch frequency aims to maximize ROI according to the equation: ROI = (Profit from lead – Cost of 33 Touch) / Cost of 33 Touch.
  • Consistency, personalization, and a long-term orientation enhance relationship building.
• C. The 12 Direct Plan: Utilizes direct mail pieces sent monthly over 12 months to a targeted audience.
  • This plan prioritizes physical presence and branding over email marketing.
  • The reduced frequency compared to the 8x8 mitigates the risk of perceived spam while maintaining a consistent, low-intensity presence.

IV. Contact Management Systems (CMS): The Technological Foundation

A CMS is a critical tool for implementing and managing touch programs. It provides the infrastructure for:

• A. Data Storage and Organization: Contact information, communication history, and lead source tracking are essential for personalized and targeted communication.
  • Database normalization is crucial for preventing data redundancy and ensuring data integrity. Relational database models are commonly used to establish relationships between different data entities (contacts, properties, activities).
• B. Automation: Action plans can be automated to trigger specific communication activities based on predefined criteria (e.g., lead source, property interest, time elapsed since last contact).
• C. Segmentation: Leads can be segmented based on various criteria (e.g., demographics, geographic location, interest in buying or selling). Segmentation allows for tailored communication that is more relevant and engaging.
  • Clustering algorithms (e.g., k-means) can be used to automatically group leads with similar characteristics.
• D. Reporting and Analytics: Tracking communication activities and conversion rates allows for optimization of touch programs.
  • Conversion rates can be modeled using logistic regression to identify factors that predict successful lead conversion. P(Conversion) = 1 / (1 + e^(-(β0 + β1X1 + β2X2 + …))), where P(Conversion) is the probability of conversion, βi are regression coefficients, and Xi are predictor variables (e.g., lead source, number of touches).
• E. Integration: Seamless integration with email, calendar, and other relevant tools enhances efficiency and productivity.

V. Overcoming Challenges and Optimizing Performance

• A. Database Hygiene: Regularly update and cleanse the database to remove inaccurate or outdated information.
• B. Opt-Out Management: Respect opt-out requests and immediately remove contacts from communication plans. Failure to do so can result in legal and reputational damage.
• C. Personalization: Generic communication is less effective. Tailor messages to the individual lead’s needs and interests. A/B testing of different message variations can optimize effectiveness.
• D. Continuous Improvement: Regularly review and adjust touch programs based on performance data and feedback.
• E. Time Management: Prioritize database management tasks to ensure consistent execution of touch programs. Time allocation to database duties should be based on the potential ROI of each task.

VI. The Millionaire Real Estate Agent Database Model

This model emphasizes building a valuable database and strategically communicating with its members. The premise rests on the idea that a substantial, well-managed database is a critical asset for long-term real estate success. Unresponsive contacts may be placed on less intensive touch programs (e.g., a 12 Direct or email-only plan) to minimize cost while maintaining some level of engagement.

VII. Sourcing and Funneling Leads

Systematic lead sourcing and funneling are vital for a healthy database:

• A. Lead Sources: Identifying the origin of each lead is crucial for evaluating the effectiveness of different lead generation strategies.
• B. Funneling: Moving leads through stages (e.g., initial contact, qualified, active, under contract, closed) allows for targeted communication and resource allocation.
• C. Tracking and Analysis: Monitoring conversion rates at each stage of the funnel allows for identification of bottlenecks and optimization of the lead generation and nurturing process.

VIII. Conclusion

Systematized communication, supported by touch programs and contact management systems, is a scientifically sound approach to lead generation and client relationship management in real estate. By understanding and applying psychological principles, leveraging technology effectively, and continuously optimizing performance, agents can achieve significant growth and build a sustainable business.

IX. References

• Cialdini, R. B. (1984). Influence: The psychology of persuasion. William Morrow.
• Ebbinghaus, H. (1885). Memory: A contribution to experimental psychology. Teachers College, Columbia University.
• Zajonc, R. B. (1968). Attitudinal effects of mere exposure. Journal of Personality and Social Psychology, 9(2, Pt.2), 1-27.