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8x8 Plan: Customer Relationship Development
Relationships with customers are the cornerstone of success in real estate, requiring trust and credibility. The 8x8 plan aims to create a strong relationship with potential new clients in eight weeks through a series of organized touchpoints. This plan relies on relationship marketing, social psychology, and effective communication.
Theoretical Foundations:
- Social Exchange Theory: Human relationships are based on cost-benefit analysis. The 8x8 plan should provide tangible value to the potential client (information, advice, assistance) to increase the likelihood of future benefit exchange (contracting as a real estate agent).
- Reciprocity Principle: People feel motivated to reciprocate favors. This can be applied by providing❓ valuable, free content❓, increasing the likelihood of a positive response.
- Mere-Exposure Effect: People tend to favor things they are repeatedly exposed to. The 8x8 plan aims to increase exposure to the agent’s name and brand.
- Relationship Marketing: Focuses on building long-term relationships with clients beyond completing a transaction.
Components of the 8x8 Plan:
The 8x8 plan consists of eight “touches” over eight weeks. These include:
- Direct Mail: Sending letters, postcards, or marketing materials. Content should be engaging, useful, and relevant.
- Phone calls❓: Personal calls to connect, answer questions, and offer assistance. Calls should be friendly, professional, and non-intrusive.
- Email Marketing: Sending valuable content such as market updates, tips for buyers/sellers, or event invitations.
- SMS Marketing: Using text messages for reminders, quick updates, or special offers.
- Social Media Engagement: Interacting with potential clients on social media, sharing valuable content, and answering inquiries.
- In-Person Meetings: Meeting in person to build a stronger relationship and provide personal consultation.
- Promotional Items: Sending small branded gifts like pens, notebooks, or refrigerator magnets.
- Educational Materials: Providing free educational materials such as market reports, e-books, or videos.
Designing the 8x8 Plan:
- Segmentation: Different 8x8 plans should be designed for different client segments (e.g., potential sellers, potential buyers, property owners).
- Timing: Determine the optimal timing for different touchpoints.
- Integration: Touchpoints should be integrated and consistent.
- Tracking and Measurement: Track the results of the 8x8 plan to measure its effectiveness. Track responses, meetings, and closed deals.
Examples of Customized 8x8 Plans:
- 8x8 Plan for Potential Sellers (FSBO):
- Week 1: Call to schedule a property viewing and leave an “FSBO package.”
- Week 2: Send a postcard: “How to Avoid the 5 Fatal Mistakes When Selling Your Home: Mistake #1 - Pricing the Home Incorrectly.”
- Week 3: Send a postcard: “How to Avoid the 5 Fatal Mistakes When Selling Your Home: Mistake #2 - Not Displaying Your Home Attractively.”
- Week 4: Phone call: Introduction and mentioning a buyer client who saw the house.
- Week 5: Send a postcard: “How to Avoid the 5 Fatal Mistakes When Selling Your Home: Mistake #3 - Using a Hard Sell Approach During Showings.”
- Week 6: Send a postcard: “How to Avoid the 5 Fatal Mistakes When Selling Your Home: Mistake #4 - Not Paying Attention to Showing Feedback.”
- Week 7: Send a postcard: “How to Avoid the 5 Fatal Mistakes When Selling Your Home: Mistake #5 - Believing Open Houses and Newspaper Ads Will Sell Your Home.”
- Week 8: Phone call: Introduction and inquiring about hiring an agent if unable to sell independently.
- 8x8 Plan for Potential Buyers:
- Week 1: Send a handwritten note: “Happy to meet you,” with a market report and business card.
- Week 2: Send market statistics.
- Week 3: Send market statistics.
- Week 4: Phone call: Introduction and inquire about questions regarding buying a dream home.
- Week 5: Send a free report.
- Week 6: Send advice on real estate investment or home maintenance.
- Week 7: Send a usable promotional item with contact information.
- Week 8: Phone call: Follow up on gift and reiterate the desire to be their real estate agent for life.
Customer Relationship Management (CRM) and the 8x8 Plan:
CRMs are crucial for implementing and managing the 8x8 plan.
- Data Logging: Record all potential client data❓ in the CRM.
- Task Assignment: Assign specific tasks for each touchpoint.
- Automated Reminders: Set up automated reminders for upcoming tasks.
- Interaction Tracking: Record all interactions.
- Performance Analysis: Use the CRM to analyze plan performance.
Relevant Formulas and Equations:
- Conversion Rate (CR):
CR = (Number of Leads Converted to Clients / Total Number of Leads) * 100% - Return on Investment (ROI):
ROI = (Net Profit from Clients Acquired Through 8x8 - Cost of 8x8 Program) / Cost of 8x8 Program * 100% - Response Rate (RR):
RR = (Number of Responses Received / Number of Contacts Made) * 100%
After the 8x8 Plan: Transition to the “33 Touch” Plan:
After completing the 8x8 plan, potential clients should be moved to a continuous “33 touch” plan. This involves a series of diverse touchpoints throughout the year, such as newsletters, event invitations, or periodic phone calls.
The 8x8 plan is a tool for building customer relationships in real estate. By applying theoretical principles, designing customized plans, and using an effective CRM, agents can increase their chances of success. The ultimate goal is to build long-term relationships based on trust and mutual benefit.
Chapter Summary
The 8x8 plan aims to establish strong, long-term relationships with new clients❓ in real estate marketing through systematic and consistent communication over eight weeks, to become the client’s first choice.
Key scientific points:
- The plan relies on organized communication instead of random contacts.
- Modifying the plan to suit individual needs and target audience characteristics is encouraged, maintaining regular communication.
- A Customer Relationship Management system (CMS) is crucial for efficient implementation to track communication stages, remind staff of tasks, and record notes about each contact.
- Developing different versions of the 8x8 plan for different client segments is advised.
- Communication should provide valuable content❓, such as real estate market information, advice to avoid common selling❓ mistakes, or free reports.
- After completing the 8x8 plan, new clients are integrated into the existing client database and subjected to a continuous 33 touch❓ program.
- Noting observations about each client contact in the CMS allows for personalized subsequent communications.
- Each communication should include a reminder and guidance on how to refer potential clients.
Conclusions:
- The 8x8 plan is an effective tool for building strong relationships with new clients in real estate marketing, provided it is implemented systematically and consistently.
- Customization and adaptation to different client needs increases the plan’s effectiveness.
- Using a CMS is necessary to track and organize communication efforts.
- Providing valuable content builds trust and establishes the real estate agent as a reliable source.
Implications:
- Increased number of potential clients who become actual clients.
- Improved reputation of the real estate agent and building trust with clients.
- Increased number of referrals from existing clients.
- Increased sales and revenues in the long term.
- Building a loyal and lasting customer base.
