Systematizing Your Database with a CMS

The Imperative of Systematization

In the realm of contact management, haphazard approaches are a recipe for inefficiency and lost opportunity. Systematization is the cornerstone of a robust and scalable contact database. It’s about imposing order, consistency, and automation to transform raw data into actionable intelligence.

Gary and the Box: A Foundational Principle

Gary Keller’s “Gary and the Box” story illustrates the fundamental principle: begin systematizing with whatever resources are available. While technology has evolved significantly, the underlying need for a structured approach remains paramount.

• Core Concept: Systematization is independent of technology. The mindset matters more than the tools, especially in the initial stages.

Avoiding the Technology Trap

It’s tempting to believe that technology alone will solve contact management challenges. However, Todd Duncan’s concept of the “Technology Trap” warns against this pitfall.

The Technology Trap: A Formal Definition

The Technology Trap is defined as a situation where technology, intended for convenience, becomes a burden, consuming time and hindering productivity.

Mathematically:

Let T be the time spent using a technology solution.
Let P be the productivity gained from using the technology.
Let E be the efficiency of using the technology.

E = P/T

The Technology Trap occurs when E approaches zero or becomes negative, indicating that the time invested outweighs the productivity gains.

Key Strategies to Avoid the Trap

1. Focus on Action: The database should facilitate action, not become a time-consuming project in itself. “Ready, Fire, Aim!” should be the guiding principle, rather than endless preparation.
2. Purpose-Driven Configuration: Avoid unnecessary complexity. Configure the system to address specific business needs and workflows.
3. Regular Evaluation: Periodically assess whether the technology is truly enhancing efficiency. If not, re-evaluate the configuration or consider alternative solutions.

Time Audit: Quantifying Database Management Efforts

To effectively systematize, it’s crucial to understand the time commitment involved. Conduct a time audit to quantify the time spent on various database management tasks.

Step-by-Step Methodology for a Time Audit

1. Task Identification: List all database-related activities (e.g., data entry, lead management, follow-up, reporting). Refer to “Database Duties of an Agent” below for a comprehensive list.
2. Time Tracking: Use a time tracking tool or manual log to record the time spent on each task over a defined period (e.g., one week).
3. Data Analysis: Calculate the total time spent and the percentage of time allocated to each task.
4. Optimization: Identify areas where time can be saved through automation, process improvements, or delegation.

Database Duties of an Agent: A Comprehensive List

Daily Duties:

1. Adding new contacts
2. Managing new leads
3. Keeping appointments
4. Making calls
5. Writing notes
6. Sending and receiving emails
7. Scheduling follow-up activities
8. Managing listings and closings
9. Completing tasks

Weekly Duties:

1. Sending letters, postcards, and mailers
2. Sending listing service reports/making calls to sellers

Monthly Duties:

1. Sending monthly mailers and emails
2. Maintaining contact records

Yearly Duties:

1. Sending seasonal mailers
2. Reviewing and updating contact records
3. Reviewing effectiveness of lead sources
4. Developing and implementing business plan

Transitioning to a Contact Management System (CMS)

As a contact database grows, manual management becomes unsustainable. A CMS provides the automation and scalability needed to handle large volumes of contacts and activities efficiently.

What is a Contact Management System?

A CMS is a software application designed to automate and track tasks related to prospecting, marketing, lead conversion, and transaction management. It serves as a central repository for contact information and interaction history, enabling targeted communication and streamlined workflows.

Benefits of a CMS

1. Automation: Automates tasks such as scheduling follow-up calls, sending emails, and generating reports.
2. Centralized Data: Consolidates contact information, interaction history, and related data in a single location.
3. Segmentation: Enables segmentation of contacts based on various criteria (e.g., demographics, interests, lead source) for targeted marketing.
4. Reporting and Analytics: Provides insights into lead sources, marketing campaign performance, and overall database health.
5. Scalability: Adapts to the growing needs of the business as the contact database expands.

Leveraging a Specific CMS (e.g., eEdge)

When selecting a CMS, consider its integration capabilities with existing systems and its alignment with business processes. Many real estate firms such as Keller Williams offer their own solutions, let’s call it eEdge for discussion purposes.

Key Features and Functionality of eEdge

1. Action Plans: Allows customization of lead generation plans (e.g., 12 Direct, 8x8, 33 Touch) and assignment to contacts. Think of action plans as algorithms that execute over time on each contact.
2. Marketing Materials: Integrates with professionally designed marketing templates, automatically populating contact information.
3. Prompts: Provides a daily dashboard with prioritized tasks, appointments, and reminders.
4. Contact Information Management: Facilitates easy addition, import, and export of contact data.
5. Contact History Tracking: Records all interactions with each contact, providing a complete view of communication history.
6. Calendaring and Appointment Scheduling: Manages appointments and integrates with other calendar applications.
7. Email Integration and Automation: Automates email communication and captures incoming emails as new contacts.
8. Lead Sourcing and Tracking: Tracks the progress of leads from initial contact to closed transaction.
9. Reporting and Analytics: Generates reports on marketing campaign performance, lead conversion rates, and other key metrics.
10. Web-Based Access: Enables access to the database from any device with an internet connection.
11. Transaction Management: Tracks activities and milestones throughout the transaction process.

Keys to CMS Success

1. Immediate Implementation: Add the next contact to the CMS and import the existing database.
2. Incremental Adoption: Start with basic features (e.g., contact information, follow-up calls) and gradually explore more advanced functionalities.
3. Active Engagement: Utilize the automated features and prompts to guide daily activities. Treat the CMS as a proactive assistant, not just a passive repository.

Mathematical Optimization of Action Plans

The effectiveness of action plans can be modeled mathematically.

Let C be the number of contacts in the database.
Let A be the number of action plans.
Let R_ij be the response rate of the ith action plan on the jth contact segment.
Let V_ij be the value generated by the ith action plan on the jth contact segment.
Let Cost_i be the cost of implementing the ith action plan.

The total value generated by all action plans is:

Total Value = Σ_i=1^A Σ_j=1^C (R_ij * V_ij) - Σ_i=1^A Cost_i

The goal is to maximize Total Value by optimizing the selection and targeting of action plans.

Customization and Segmentation

Tailoring action plans to specific contact segments is crucial for maximizing engagement and conversion rates.

Case Study: Tailored Action Plans for Different Contact Types

Martin Bouma’s success demonstrates the power of customized action plans. By creating plans for various contact types (e.g., FSBOs, expired listings, prospective sellers) and transaction stages, he ensures targeted communication and efficient workflow management.

• Key Takeaway: Customization is key. A generic approach is less effective than targeted communication.

Segmentation Strategies

1. Demographics: Age, location, income, occupation.
2. Lead Source: Website, referral, yard sign, seminar.
3. Contact Type: Buyer, seller, expired listing, FSBO.
4. Engagement Level: Active, inactive, unresponsive.
5. Transaction Stage: Prospecting, negotiation, closing.

Data Hygiene: Maintaining Database Integrity

Maintaining a clean and accurate database is essential for effective contact management.

Strategies for Data Hygiene

1. Regular Updates: Periodically review and update contact information to ensure accuracy.
2. Duplicate Removal: Identify and merge or delete duplicate records.
3. Data Validation: Implement data validation rules to prevent errors during data entry.
4. Address Standardization: Standardize addresses to improve mail delivery rates.

Handling Unresponsive Contacts

While it’s tempting to delete unresponsive contacts, consider alternative approaches.

1. Reduced Frequency: Reduce the frequency of communication for unresponsive contacts.
2. Re-engagement Campaigns: Implement targeted campaigns to re-engage inactive contacts.
3. Segmentation: Segment unresponsive contacts into a separate group for specialized treatment.
4. Archiving: Archive inactive contacts instead of deleting them, preserving historical data.

Conclusion

Systematizing a contact database with a CMS is a strategic imperative for any organization seeking to maximize lead generation, improve customer relationships, and drive business growth. By adopting a systematic approach, avoiding the technology trap, customizing action plans, and maintaining data hygiene, businesses can transform their contact databases into powerful engines for success.