Database Management and Lead Servicing

I. Managing Unresponsive Contacts: Balancing Persistence and Respect

A. The Dilemma of the Unresponsive

It is common to encounter contacts within your database who haven’t actively engaged in business or provided referrals. The question arises: how to handle these individuals?

B. The Case for Retention

Deleting contacts prematurely can be detrimental. Consider the potential for future business, even from seemingly inactive individuals.

C. Strategic Prospecting Adjustments

Instead of complete removal, consider adjusting your communication strategy:

1. Reduced-Frequency Plans: Transition them to a less intensive plan (e.g., a “12 Direct” plan versus a “33 Touch” plan), which reduces costs while maintaining contact.

2. Email-Only Communication: Utilize email campaigns for minimal cost, keeping your brand visible without excessive resource expenditure.

D. Real-World Application: The Allen-Lancaster Team Approach

Staying top-of-mind is crucial. As Andy Allen of the Allen-Lancaster Team emphasizes, consistent contact, even without immediate results, can significantly increase your chances of securing business when the opportunity arises.

E. The Culling Threshold: A Matter of Scale

Once your database expands to thousands of contacts, culling may become necessary due to resource constraints. However, this decision should be data-driven and based on consistent, documented contact attempts. Until then, avoid premature deletion.

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

A. The Seriousness of Opt-Outs

Respecting opt-out requests is paramount. Continuing to contact individuals who have explicitly requested removal is not only a waste of resources but can also have legal repercussions.

B. Legal and Financial Consequences

Anti-spam and “Do Not Call” regulations carry significant penalties, ranging from ISP restrictions to substantial fines (e.g., exceeding $11,000). Non-compliance can also damage your business’s reputation.

C. Step-by-Step Opt-Out Management

1. Record the Request: Document the opt-out request in the contact’s notes field within your database. Create a dedicated “Opt-Out” field (Yes/No) for easy tracking.

2. Immediate Action: Immediately cease the communication method the contact objected to (e.g., stop phone calls if they requested no more calls).

3. Team Communication: Establish a protocol for team members to promptly report opt-out requests to the database manager or designated personnel.

D. The Paradox of Retention After Opt-Out

While it may seem counterintuitive, consider not deleting opt-out contacts. Instead, flag them.

• Prevention of Accidental Re-Addition: Flagging prevents the accidental re-addition of the same individual, avoiding further unwanted contact and potential legal issues.
• Historical Record: Maintain a record of past communication preferences for compliance and training purposes.

E. Maintaining Professionalism

Always respond to opt-out requests courteously. Rude or dismissive behavior can lead to complaints to your broker, real estate board, or even legal action.

III. Lead Servicing: The FAST System

A. Core Discipline: Lead Tracking and Conversion

Effective lead generation hinges on meticulous lead tracking and conversion processes. Establish robust systems for capturing leads and monitoring their progress throughout your business.

B. Benefits of Proper Lead Management

• Identifying Effective Strategies: Determine which prospecting and marketing activities are most effective.
• Recognizing Referral Sources: Identify who is sending you business and their value.
• Rewarding Referrals: Properly acknowledge and reward referral sources to foster continued business.

C. The FAST System: A Comprehensive Approach

The FAST system provides a structured methodology for lead management:

1. Funnel: Channel all leads into a single, centralized point of entry.
2. Assign: Assign leads to the appropriate marketing plan, contact type, and/or team members.
3. Source: Identify the origin of each lead to calculate the return on investment (ROI) for different prospecting and marketing initiatives.
4. Track: Monitor leads to ensure proper follow-up and conversion into clients.

IV. Funneling Leads: Centralized Intake for Efficient Management

A. The Concept of Funneling

Funneling involves directing leads from all sources through a single point of entry into your business’s systems. This centralization facilitates efficient tracking, analysis, and follow-up.

B. Benefits of a Centralized Funnel

1. Source Identification: Determine which lead generation sources are producing the most leads.
2. Conversion Rate Analysis: Determine which sources generate leads with the highest conversion rates.
3. Follow-Up Tracking: Ensure leads are being followed up on consistently and promptly.
4. Performance Metrics: Track overall conversion rates from initial contact to closed deals.
5. Referral Management: Streamline the process of identifying and rewarding referral sources.

C. Unity in Marketing: Consistency Across Channels

A unified marketing approach is critical for effective funneling. Ensure consistency in contact information across all marketing materials:

1. Signs
2. Fliers
3. Ads
4. Direct Mail Pieces
5. Promotional Items
6. Business Cards (for all team members)
7. Letters and Email Signatures (for all team members)
8. Website(s)

Team members should market and prospect to your database using the team’s email address and telephone number.

D. Lead Capture Methods

1. Phones: Implement structured phone scripts and forms (e.g., Buyer Interview, Daily Lead Log) to capture pertinent information during initial conversations with new leads.
2. Email: Utilize email integration features within your CRM to automatically store sent emails and manually attach incoming emails to the corresponding contact records.
3. Websites: Implement lead capture forms on your website, enabling visitors to submit their information in exchange for valuable content or services. Prefabricated forms can simplify this process and automatically create new contact records in your database.
4. Interactive Voice Response (IVR) Systems: Employ IVR systems to provide detailed property information and capture caller phone numbers for follow-up.

V. Assigning Leads: Categorization and Targeted Action

A. Classifying Leads for Effective Follow-Up

Once leads are funneled into your system, proper classification is crucial for targeted follow-up. Assign leads to specific groups in your database and appropriate marketing action plans.

B. Contact Types: Granular Categorization

Employ a detailed contact type system for precise categorization. An individual can be assigned multiple contact types.

1. Network Group
2. Allied Resources
3. Advocates
4. Core Advocates

These primary groups can be further segmented. Examples of specific contact types include:

1. Geographic Farm
2. Name of Team Member (e.g., Buyer Specialist)
3. Co-op Agent
4. Referring Agent
5. Investor
6. Adopted Buyer (buyer who bought your listing)
7. Sphere of Influence
8. Past Client

VI. Sourcing Leads: Identifying Effective Channels

A. The Importance of Source Tracking

Determine which lead generation methods are producing the most leads. Without this data, your efforts are akin to “playing darts blindfolded.”

B. Creating Lead Sources in Your Database

For every lead source, create a corresponding “Source” entry in your database and meticulously record the source of each new lead.

C. Common Lead Sources

1. Past Client Referral
2. Agent Referral
3. Network, Advocate, Core Advocate, or Allied Resource Referral
4. Sign Calls
5. Open House
6. Farm
7. FSBO/Expired Listings
8. IVR Calls
9. Website
10. Magazine Ad Calls
11. Newspaper Ad Calls
12. Newsletter
13. Past Client (Repeat Business)
14. Just Sold Cards
15. Sponsorship (Little League)

D. Granularity in Source Tracking

For advertising channels with multiple variations (e.g., different magazines, multiple websites), create unique sources for each to gain granular insights into performance.

VII. Tracking Leads: Monitoring Progress and Measuring ROI

A. Comprehensive Lead Tracking

Begin tracking leads the moment they enter your database. Monitor their progress throughout the lead servicing lifecycle.

B. Key Tracking Metrics

1. Lead Follow-Up: Track whether leads have been followed up with, the methods used, and the results of each interaction.
2. Leads Per Source: Analyze the number of leads generated by each source to determine the cost per lead.
3. Ratio of Leads to Closed Business: Calculate the conversion rate for each lead source to determine ROI.

C. Calculating Return on Investment (ROI)

Determine your lead generation ROI by:

1. Tracking commissions earned from sales originating from each source.
2. Comparing the total commissions earned to the expenditures on that source.

VIII. Maintaining a Robust Database

1. Build a Database: Start building and populating your database.
2. Feed it every day: Strive for 10 new contacts daily through consistent lead generation activities.
3. Communicate with it: Implement systematic marketing action plans for each contact.
4. Service all the leads that come your way: Implement and refine the FAST system.