Managing and Servicing Your Leads

Effective lead management and servicing are critical for converting potential clients into loyal customers. This chapter delves into the scientific principles, practical applications, and step-by-step methodologies necessary to master this essential aspect of lead generation.

I. The Importance of Systematic Communication

A. Maintaining Contact with Unresponsive Leads

Even contacts who haven’t immediately translated into business hold potential future value. Removing them prematurely can be detrimental.

• Rationale: Circumstances change. An unresponsive lead today might become a valuable client tomorrow.

• Modified Approach: Instead of complete removal, adjust the frequency and intensity of contact.

  1. Reduce Touch Frequency: Transition from a high-touch plan (e.g., 33 Touch) to a less frequent one (e.g., 12 Direct). This reduces costs while keeping you top-of-mind.
  2. Email-Only Plan: Leverage email marketing for cost-effective communication, delivering valuable content and updates.

B. The Power of Consistent Follow-Up

• Empirical Evidence: Consistent communication drastically increases the likelihood of securing business.
• Competitive Advantage: Staying in touch differentiates you from competitors who may not prioritize regular engagement.
• Real-World Application: Consider the real estate agent who consistently contacts their network, proactively seeking referrals. This proactive approach significantly boosts their business.

C. Strategic Culling: When and How

• Database Size Threshold: Only begin removing contacts after your database reaches a significant size (thousands of contacts).
• Rationale: Maintaining a large database incurs marketing and prospecting costs. Removing truly unresponsive contacts becomes necessary for efficiency.
• Data-Driven Decision: Culling should be based on concrete data indicating a lack of engagement despite consistent contact efforts.

II. Handling Opt-Out Requests: Legal and Ethical Considerations

A. Respecting Contact Preferences

Treat opt-out requests with utmost seriousness. Ignoring them is not only counterproductive but also potentially illegal.

• Legal Framework: Anti-spam and “Do Not Call” legislation impose significant penalties for contacting individuals who have explicitly requested removal.
• Penalties: Fines can be substantial (e.g., exceeding \$11,000), and Internet Service Providers (ISPs) may terminate your service.

B. Implementing a Systematic Opt-Out Process

1. Record the Request: Document the opt-out request in the contact’s notes field within your CRM. Alternatively, create a dedicated “Opt-Out” field (Yes/No).
2. Immediate Action: Immediately cease the communication method the contact objected to. For example, if they request no more calls, delete all scheduled calls.
3. Team Communication: Ensure all team members are promptly notified of opt-out requests to prevent accidental re-engagement.

C. Strategic Retention (with Caution)

Instead of deleting opt-outs, flag them as such.

• Rationale: This prevents accidental re-addition and subsequent unwanted contact, mitigating legal risks and preserving your reputation.
• Data Integrity: Maintaining a record of opt-outs ensures compliance and demonstrates a commitment to respecting contact preferences.

D. Maintaining Professionalism

• Courtesy is Key: Always respond to opt-out requests with courtesy and respect.
• Reputation Management: Rudeness can lead to complaints to your broker, real estate board, or worse, damaging your professional standing.

III. The FAST System: A Methodology for Lead Servicing

A. Core Disciplines of Lead Generation

Careful lead tracking and conversion are cornerstones of successful lead generation. This requires a robust process that captures leads and monitors their progress.

B. Benefits of Effective Lead Tracking

• Performance Analysis: Determines which prospecting and marketing activities are most effective.
• Referral Tracking: Identifies key referral sources, allowing for targeted appreciation and relationship building.
• ROI Optimization: By understanding where business originates, resources can be allocated more strategically for maximum return on investment ($ROI$). The ROI can be tracked with the formula $ROI = \frac{Gains - Cost}{Cost}$.

C. The FAST System Framework

A structured approach to lead management:

1. Funnel: Centralize leads into a single entry point.
2. Assign: Allocate leads to appropriate marketing plans and/or team members.
3. Source: Identify the origin of each lead to calculate the return on investment for various activities.
4. Track: Monitor leads to ensure proper servicing and conversion.

D. Detailed Breakdown of the FAST System

1. Funneling Leads

• Definition: Channeling leads from all sources (website, phone, etc.) through a unified system.
• Strategic Implications: Enables comprehensive tracking and analysis.

• Key Benefits:

  1. Identify high-yield lead sources.
  2. Track lead follow-up effectiveness.
  3. Calculate conversion rates.
  4. Reward referral sources appropriately.

• Unity in Marketing: Maintain consistent branding across all marketing materials.

  1. Use the same email address, website, and phone number (except for IVR).
  2. Ensure consistency across signs, flyers, ads, direct mail, promotional items, and business cards.
  3. Standardize email signatures and website information.
  4. Team members must use the team’s contact details.

2. Assigning Leads

• Objective: Effectively convert leads into business through proper assignment.

• Assignment Criteria:

  1. Classify leads into specific database groups.
  2. Assign leads to appropriate marketing action plans.
  3. Delegate action plan activities to team members (if applicable).

• Contact Types: Use detailed classifications for targeted marketing.

  1. Primary Contact Types: Network Group, Allied Resources, Advocates, Core Advocates.
  2. Sub-Classifications: Geographic Farm, Team Member (Buyer Specialist), Co-op Agent, Referring Agent, Investor, Adopted Buyer, Sphere of Influence, Past Client.

3. Sourcing Leads

• Importance: Determines which lead generation methods are profitable.
• Analogy: Without sourcing, lead generation is like “playing darts blindfolded”.

• Methodology:

  1. Create a “Source” field in your database.
  2. Record the source of every lead.

• Lead Source Examples:

  1. Past Client Referral
  2. Agent Referral
  3. Network Referral
  4. Sign Calls
  5. Open House
  6. Farm
  7. FSBO/Expired Listings
  8. IVR Calls
  9. Website
  10. Magazine/Newspaper Ads
  11. Newsletter
  12. Repeat Business
  13. Just Sold Cards
  14. Sponsorships

• Granularity: Create distinct sources for different websites or publications for precise tracking.

4. Tracking Leads

• Definition: Monitoring leads throughout the entire process.

• Key Aspects:

  1. Lead follow-up
  2. Leads per source
  3. Ratio of leads to closed business

• Lead Follow-Up Tracking:

  1. Provide a quick overview of new leads
  2. Record follow-up attempts and results.
• Leads Per Source Tracking:
  1. Track number of leads generated by each source
  2. Divide marketing expenses by lead volume per source to determine cost per lead ($CPL$) where:
     $$CPL = \frac{\text{Total Marketing Expense}}{\text{Number of Leads Generated}}$$
• Ratio of Leads to Closed Business:
  1. Track closed sales attributed to each lead source.
  2. Compare earned commissions to marketing expenditures per source to calculate ROI.

IV. Integrating Technology for Efficient Lead Management

A. Leveraging eEdge and Similar Platforms

• Email Integration: Automatically store sent emails and attach incoming emails to contact records.
• Website Integration: Use lead capture forms on your website to automatically create contact records in your database.
• Interactive Voice Response (IVR) Systems: Capture caller information and funnel it directly into your CRM.

B. Interactive Voice Response (IVR) Systems

• Functionality: Provide detailed voice descriptions of listings.
• Lead Capture: Capture caller phone numbers when they inquire about properties.
• Integration: Funnel caller information into your contact management system.

V. Overcoming Common Challenges and Misconceptions

A. Addressing the “Delete” Mentality

Resist the urge to delete contacts prematurely. Adjust communication strategies instead.

B. Balancing Automation with Personalization

While automation is essential, ensure that communication remains personalized and relevant to avoid alienating contacts.

C. Maintaining Data Hygiene

Regularly update and cleanse your database to ensure data accuracy and prevent wasted efforts on outdated information.

VI. Conclusion: The Four Laws of a Powerful Contact Database

1. Build a Database: Create a comprehensive database of all contacts.
2. Feed it Every Day: Add new contacts daily and update existing information.
3. Communicate Systematically: Implement marketing action plans (e.g., 8x8, 33 Touch, 12 Direct).
4. Service All Leads: Funnel leads, assign action plans, record sources, and track progress from initial contact to closed transaction.