Systematizing Your Contact Database: From Mets to Action Plans

The Science of Connection: From Haven’t Met to Met

The Personal Touch in a Digital World

In the realm of lead generation, the initial contact is paramount. Transforming a “Haven’t Met” into a “Met” is a critical first step. This process involves fostering a personal connection, particularly in the context of direct marketing.

Strategies for Personalization:

• Events: Hosting events tailored to specific contact groups. Examples include neighborhood ice cream socials or niche networking events.
• Consistent Communication: Establishing consistent engagement through regular mailings or personalized correspondence.

Branding Versus Junk Mail: A Delicate Balance

The transition from impersonal outreach to valuable engagement hinges on the perception of your communication. The difference between branding and junk mail boils down to perceived value and relevance.

Key Considerations:

1. Physical Presence:
   • Ensure your target audience associates your communications with a real person or entity.
   • Absence of a physical connection often leads to immediate dismissal.
2. Frequency of Communication:
   • Avoid overwhelming contacts with excessive emails, as this can lead to being marked as spam.
   • Optimal frequency is a function of audience, content, and channel. This can be analyzed via A/B testing:
     • Define two frequencies: f1 and f2.
     • Randomly assign contacts to group A (f1) or group B (f2).
     • Measure engagement (E) for each group (e.g., open rates, click-through rates).
     • Determine the optimal frequency using the equation: Optimal Frequency = argmax(f) E(f), where E is the engagement metric.
3. Value Proposition:
   • Prioritize delivering maximum value to the recipient.
   • Content should be informative, engaging, and relevant to their needs and interests.

From Mets to Management: Systematizing Your Database

The Foundation: Choosing Your System

The core objective of a contact database is to systematize and automate action, thus actively driving business.

Historical Perspective: The “Gary and the Box” Analogy

Gary Keller’s initial database system, utilizing a black box and index cards, highlights the fundamental principle that a sophisticated system is not a prerequisite for effective database management.

The Technology Trap: Avoiding Over-Engineering

Todd Duncan’s concept of the “Technology Trap” underscores the importance of not letting technology become a hindrance.

Key Principle: The goal is to systematize actions, not get bogged down in system configuration.

Time Management: Quantifying Database Management Efforts

Understanding the time investment required for database management is crucial for efficient operations.

Exercise: Time Allocation Analysis

1. Group Formation: Divide participants into small groups (4-6 people).
2. “Index Card” Simulation: Utilize provided index cards representing individual contacts.
3. Timekeeping: Assign a timekeeper to track activity duration.
4. Task Execution: Follow instructor-led exercises simulating common database management tasks.

Data Collection and Analysis:

Total Time: T = t1 + t2 + t3 + t4

Calculate the average time spent per contact per week/month to assess efficiency.

Core Database Duties: A Comprehensive Overview

Effective database management entails a range of duties performed at different intervals.

1. Daily Duties:

• Adding new contacts
• Managing new leads
• Keeping appointments
• Making calls
• Writing notes
• Sending/receiving emails
• Scheduling follow-up activities
• Managing listings and closings
• Completing tasks

2. Weekly Duties:

• Sending letters, postcards, and mailers
• Sending listing service reports/making calls to sellers

3. Monthly Duties:

• Sending monthly mailers and emails
• Maintaining contact records

4. Yearly Duties:

• Sending seasonal mailers
• Reviewing and updating contact records
• Reviewing effectiveness of lead sources
• Developing and implementing business plan

Contact Management Systems (CMS): Scaling Your Efforts

Evolution Beyond Basic Tools

While tools like Microsoft Outlook offer basic database functionalities, a dedicated CMS becomes essential as your business scales.

Microsoft Outlook: Capabilities and Limitations

Strengths:

1. Email Management: Familiar interface for email handling.
2. Calendar Integration: Scheduling appointments and setting reminders.
3. Contact Storage: Storing contact information and assigning contacts to groups.
4. Categorization: Assigning customizable categories to contacts.
5. Mail Merge: Creating data files for mailings and personalized letters.
6. Data Export: Exporting contact information for external vendors.

Weaknesses:

1. Contact History Limitations: Limited field for detailed interaction tracking.
2. Action Plan Automation: Inadequate capabilities for automating action plans like 8x8, 33 Touch, or 12 Direct.

Transitioning to a Contact Management System

A CMS is a specialized software designed to automate and track prospecting, marketing, lead conversion, and transaction management tasks.

Key Functions:

• Automated scheduling and reminders for priority actions.
• Centralized platform for contact information and interaction history.
• Scalability to manage both small and large contact databases.

Myth vs. Truth:

• Myth: A CMS is unnecessary for small lead volumes.
• Truth: Implementing touch programs becomes virtually impossible without an automated system, even with a modest number of leads.

The Power of Automation: Action Plans and Targeted Communication

The 8x8 Plan: Nurturing New Leads

The 8x8 plan is an aggressive strategy designed to make eight touches in eight weeks with a new lead. This plan aims to quickly build rapport and move the lead further along the sales pipeline.

Components of an 8x8 Plan:

1. Week 1:
   • Day 1: Personal phone call to introduce yourself and understand their needs.
   • Day 3: Send a personalized email summarizing the conversation and offering valuable resources.
2. Week 2:
   • Day 8: Mail a handwritten thank-you note expressing appreciation for their time.
   • Day 12: Share a relevant article or blog post via social media, tagging the lead if appropriate.
3. Week 3:
   • Day 15: Call to follow up on the resources shared and answer any questions.
   • Day 19: Send a market update tailored to their interests or location.
4. Week 4:
   • Day 22: Invite the lead to a local event or webinar.
   • Day 26: Offer a free consultation or market analysis.
5. Week 5 - Week 8: Continue consistent communication with the lead based on their specific interests and needs.

The 33 Touch Plan: Maintaining Relationships with Your Network

The 33 Touch plan is a long-term strategy for nurturing relationships with your existing network. The goal is to make 33 touches throughout the year to stay top-of-mind and reinforce your value proposition.

Principles of the 33 Touch Plan:

• Variety: Utilize a mix of communication channels, including phone calls, emails, direct mail, social media, and in-person meetings.
• Value: Provide relevant and valuable content that addresses their specific interests and needs.
• Consistency: Maintain a consistent level of communication throughout the year.

The 12 Direct Plan: Targeted Communication Through the Year

The 12 Direct plan focuses on sending a targeted piece of direct mail each month. These mailers should be personalized and relevant to the recipient’s interests and needs.

Examples of 12 Direct Mailers:

• January: New Year’s greetings with market predictions for the coming year.
• February: Valentine’s Day card with tips for home improvements.
• March: Spring cleaning checklist and decluttering tips.
• April: Local event calendar and community highlights.
• May: Gardening tips and lawn care advice.
• June: Summer safety tips and BBQ recipes.
• July: Independence Day greetings and local fireworks schedule.
• August: Back-to-school tips and school district information.
• September: Fall home maintenance checklist and energy-saving tips.
• October: Halloween safety tips and pumpkin carving ideas.
• November: Thanksgiving greetings and holiday recipe ideas.
• December: Holiday card and end-of-year market summary.

Case Study: Martin Bouma and Customized Action Plans

Martin Bouma exemplifies the power of tailored action plans for different contact types, enabling targeted marketing messages.

Key Takeaways:

• Develop action plans for various contact types (FSBOs, expired listings, prospective sellers).
• Create action plans for all aspects of the business (lead follow-up, listing management, transaction closing).
• Systematization streamlines operations and ensures consistent execution.

Maximizing Your CMS: Implementation and Best Practices

Key Actions for Success

1. Immediate Implementation: Add your next contact and import your existing database into the CMS.
2. Incremental Approach: Start with basic functionalities and gradually explore advanced features.
3. Active Engagement: Assign action plans and utilize the CMS’s prompting features to guide daily activities.

Data Hygiene: Managing Unresponsive Contacts

It’s crucial to manage unresponsive contacts effectively. While complete removal may not be necessary, adjust communication strategies.

Strategies for Unresponsive Contacts:

• Reduce Personal Touches: Decrease the frequency of personalized communication.
• Maintain Value Delivery: Continue providing valuable content through newsletters or market updates.
• Re-engagement Campaigns: Periodically attempt to re-engage contacts with targeted offers or surveys.