Contact Classification, Aggregation, and Relationship Building.

1. Foundations of contact❓ Classification and Grouping:

Classification organizes contacts into groups based on shared characteristics. Grouping assembles these groups based on broader criteria. Success depends on understanding potential customer❓ characteristics and needs.

• Relationship Marketing: Focuses on long-term customer relationships instead of individual transactions. Contact classification and grouping are essential for understanding each group’s needs and tailoring marketing messages.
• Pareto Principle (80/20 Rule): 80% of results come from 20% of causes. In real estate, 80% of profits may come from 20% of clients. Contact classification and grouping help identify and focus on high-value clients.

• Social Network Theory: Social relationships significantly influence individual behavior. Contact classification and grouping can identify key influencers in different social networks and leverage their influence.

• Relationship: Met or Haven’t Met.

• Importance: Importance to business (potential client, referral source, business partner).
• Needs: Needs of the person (buying a house, selling a house, real estate investment).
• Interests: Interests of the person (location, price, property type).
• Demographics: Age, gender, profession, income, education level.
• Behavior: Purchasing behavior, interaction with marketing messages.

1. Haven’t Met:
   • General Public: Broad group of people not yet targeted.
   • Target Group: People identified as potential clients based on specific criteria (e.g., residents of a specific area, interested in a specific type of property).
2. Met:
   • Network: People met in person or by phone who may be interested in dealing with you.
   • Allied Resources: Professionals in real estate-related fields (e.g., lawyers, contractors, financial❓ experts) who can refer clients or deal with you directly.
   • Advocates: Satisfied former clients willing to recommend your services to others.
   • Core Advocates: Influential figures in the community (e.g., executives, athletes, public figures) who can refer a large number of clients to you.

2. Building Relationships:

Requires patience, perseverance, and understanding of client needs.

• Regular Communication: Maintain regular contact via email, social media, phone calls, and personal meetings.
• Message Customization: Customize marketing messages to suit the needs and interests of each contact group.
• Value Provision: Provide added value by providing useful information about the real estate market, investment advice, or free services.
• Trust Building: Be honest, transparent, and reliable.
• Active Listening: Listen attentively to the needs and concerns of contacts and try to provide appropriate solutions.

• Customer Appreciation: Express appreciation through thank-you notes, small gifts, or invitations to special events.

• Conversion Rate (CR):

  CR = (Number of new clients resulting from a specific group of contacts) / (Total number of contacts in that group) * 100%
  * Customer Lifetime Value (CLTV):

  CLTV = (Average transaction value) * (Average number of transactions per client) * (Average duration of the relationship with the client)
  * Net Promoter Score (NPS):

  NPS = (Percentage of Promoters (rating you 9 or 10)) - (Percentage of Detractors (rating you 0 to 6)). Calculated through a simple survey.

Marketing and sales efforts should focus on moving contacts from the “General Public” to the “Target Group,” then to the “Network,” and finally to “Allied Resources,” “Advocates,” and “Core Advocates.” Each stage requires a different communication strategy.

3. Tools and Technologies:

• Customer Relationship Management (CRM) Programs: Powerful tools for contact classification and grouping, tracking interactions, and automating marketing tasks. Examples include Top Producer, Online Agent, ACT!. Should be easy to use and customizable to your needs.
• Data Analysis Tools: Analyze customer behavior and identify trends and marketing opportunities.
• Social Media: Effective platforms for building relationships and communicating with potential clients.
• Email Marketing: Send customized messages to different contact groups.

4. Practical Applications and Related Experiences:

• Case Study: A real estate strategist uses a CRM to classify contacts based on location, budget, and property type, then sends customized marketing messages to each group, resulting in a 30% increase in qualified leads in three months.
• Experiment: A real estate agent uses LinkedIn to identify people interested in real estate investment in a specific area, contacts them personally, and provides valuable market information, successfully building strong relationships with many investors.
• Example: A real estate company uses NPS to measure customer satisfaction and analyzes the results to identify areas❓ for improvement and provide better services.