Building Your Foundation: From Haven't Met to Met

Building Your Foundation: From Haven’t Met to Met

This chapter focuses on the critical initial step in building a robust contact database: converting individuals from “Haven’t Met” (cold leads) to “Met” (acknowledged contacts). This transition is foundational for cultivating relationships and, ultimately, generating business.

The Psychology of Connection: Building Rapport

The journey from “Haven’t Met” to “Met” hinges on establishing initial rapport. This involves understanding the psychological principles that govern first impressions and relationship building.

• The Primacy Effect: Studies in social psychology demonstrate the “primacy effect,” where the first information we receive about a person disproportionately influences our overall perception. This underscores the importance of a positive and impactful first interaction.

• Reciprocity Principle: People tend to reciprocate actions. Offering something of value upfront (information, assistance) can trigger a sense of obligation, making the recipient more receptive to future interactions. Formula:

  • Value Provided (Vp) → Perceived Obligation (Po) ∝ 1/Distance
    • Vp: Value of the initial offering
    • Po: Perceived obligation by the recipient
    • Distance: Social or geographical distance between parties.
  • Mere-Exposure Effect: Repeated exposure to a stimulus (e.g., your brand) increases liking. Consistent, non-intrusive contact can gradually build familiarity and trust.

Strategic Conversion: From Anonymous to Acknowledged

Converting a “Haven’t Met” to a “Met” requires a strategic and multi-faceted approach.

1. Initial Contact Methodologies:

   • Direct Mail & Targeted Programs (12 Direct): Direct mailers, personalized postcards, and neighborhood-specific programs are effective for reaching broad groups of contacts. The key is to add a personal touch, such as hosting events (ice cream socials, networking gatherings) to connect the mailer with a real person.
   • Digital Engagement:
     • Website Lead Capture: Offer valuable content (eBooks, market reports) in exchange for contact information. Optimize your website for search engines (SEO) to attract relevant traffic.
     • Social Media Interactions: Engage in meaningful conversations on social media platforms. Respond to comments, participate in groups, and share valuable content that positions you as an expert.
     • Email Marketing: Utilize targeted email campaigns to nurture leads. Segment your audience based on interests and demographics for personalized messaging.
   • Face-to-Face Interactions:
     • Networking Events: Attend industry events, community gatherings, and local meetings to meet new people. Focus on building genuine connections rather than simply collecting business cards.
     • Open Houses: Host open houses strategically to attract potential buyers and neighbors. Engage visitors in conversations and gather contact information.
     • Referrals: Actively solicit referrals from existing clients, friends, and family. Referrals are often warm leads and have a higher conversion rate.

2. The “Value-Add” Proposition:

   • Content Marketing: Create and share valuable, informative content that addresses the needs and interests of your target audience. This can include blog posts, articles, videos, infographics, and case studies.
   • Free Consultations: Offer free consultations to potential clients to assess their needs and provide expert advice.
   • Market Insights: Provide regular market updates and analysis to demonstrate your knowledge and expertise.

3. Systematic Follow-up:

   • CRM Integration: Immediately enter newly acquired contacts into your CRM (Contact Relationship Management) system.
   • Touch Programs (8x8, 33 Touch): Assign appropriate touch programs to new contacts based on their lead source and level of engagement. These programs automate follow-up activities and ensure consistent communication.

Branding vs. Junk Mail: Walking the Fine Line

A crucial consideration is distinguishing your marketing efforts from unwanted “junk mail.”

1. Maintain Physical Presence: Ensure your marketing materials are associated with a real person. Include your photo, contact information, and a personal message.
2. Avoid Over-Communication: Excessive emails or mailers can be perceived as spam. Monitor your communication frequency and adjust as needed. Optimal Communication Frequency (f) = Relevance (r) / Intrusiveness (i) A higher relevance of content allows for a higher frequency.
3. Maximize Value: Focus on providing value to the recipient. Every communication should offer something of interest or benefit.

Case Study: The Neighborhood Ice Cream Social

A real estate agent organizes a neighborhood ice cream social. Residents who attend are asked to provide their contact information for a drawing. The agent uses this opportunity to:

• Introduce themselves and their team.
• Share local market insights.
• Build rapport with potential clients.

The event creates a positive first impression and converts “Haven’t Met” individuals into “Mets” within the database.

Systematizing Your Database: The Power of Automation

Effective database management requires a systematic approach. The story of “Gary and the Box” illustrates the importance of starting with whatever system is available. However, as your business grows, automation becomes essential.

1. Avoiding the Technology Trap: Be mindful of Todd Duncan’s “Technology Trap,” where technology intended for convenience becomes a time-consuming burden. Choose a system that streamlines your workflow rather than complicating it.

2. Time Management: The exercise included helps determine how much time it really takes to manage contacts in your database. The following action items are examples of tasks to consider when calculating time spent:

   • Adding new contacts
   • Managing new leads
   • Making calls
   • Writing notes
   • Sending emails
   • Scheduling follow-up activities

3. Contact Management System (CMS): Invest in a robust CMS to automate tasks such as scheduling, tracking, and communication.

   • Benefits of a CMS (eEdge Example):
     • Action Plans: Automate follow-up sequences (8x8, 33 Touch, 12 Direct).
     • Marketing Materials: Integrate with pre-designed templates.
     • Prompts & Reminders: Receive daily reminders of tasks.
     • Contact Information Management: Easily add, update, and import contact details.
     • Contact History: Track all interactions with each contact.
     • Calendar Integration: Schedule appointments and reminders.
     • Email Automation: Send automated emails and track responses.
     • Lead Source Tracking: Monitor the effectiveness of different lead sources.
     • Reporting: Generate reports to analyze marketing performance.
     • Accessibility: Access your database from anywhere with an internet connection.
     • Transaction Management: Track listings and transactions.

4. Action Plan Customization: Tailor action plans for different contact types (FSBOs, Expireds, Buyers, Sellers) to deliver targeted messaging.

Common Challenges & Misconceptions

1. Myth: “I don’t have enough leads to bother with a CMS.”

   • Truth: Even with a small number of leads, a CMS can help you stay organized and implement effective touch programs.

2. Challenge: Unresponsive Contacts:

   • Solution: While it may not be necessary to spend the same amount of time on personal touches with unresponsive contacts, continue to provide them with valuable information and market updates.

   Key Performance Indicators (KPIs) for “Haven’t Met” to “Met” Conversion

• Conversion Rate: Percentage of “Haven’t Met” contacts that transition to “Met” within a specific timeframe.
• Cost Per Acquisition (CPA): The average cost of converting a “Haven’t Met” to a “Met.”
• Engagement Rate: Percentage of contacts who interact with your marketing materials (email opens, website visits, social media engagement).
• Lead Source Effectiveness: Track which lead sources generate the highest conversion rates and ROI.

Conclusion: Building a Sustainable Foundation

Converting “Haven’t Met” individuals to “Met” contacts is the cornerstone of a successful contact database. By understanding the psychology of connection, employing strategic conversion tactics, and leveraging automation tools, you can build a sustainable foundation for long-term relationship building and business growth. The key is consistency, value, and a genuine desire to connect with your audience.