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Systematizing Your Contact Database
Systematizing Your Contact Database: From Zero to Hero
3. Communicate with It in a Systematic Way
Systematizing Your Database
Systematizing your contact database is the cornerstone of efficient lead generation and conversion. It’s about implementing structured processes for managing, nurturing, and extracting value from your contacts.
Gary and the Box: A Historical Perspective
Before the proliferation of digital tools, real estate professionals like Gary Keller utilized rudimentary systems. Keller used a simple black box and index cards to manage his contacts.
Key Takeaway: Systemization is not contingent on advanced technology. The core principle is implementing a structured approach, regardless of the tools at hand.
The Technology Trap: A Cautionary Tale
Todd Duncan, in Time Traps, identifies the “Technology Trap” where tools intended for convenience become sources of wasted time.
Definition:
The Technology Trap: When technology intended for convenience actually ties us down and steals our time.
The primary goal of a contact database is to systematize and automate business development activities. The chosen system should facilitate, not hinder, direct engagement with your “Mets” (contacts).
Efficiency Metric: Time spent configuring the system should be significantly less than the time saved through its automation capabilities.
Ready, Fire, Aim! Adopting a bias for action is more effective than protracted planning.
How Much Time Does It Really Take to Manage Your Database?
(Refer to the included index card exercise within the source material).
This exercise provides a practical demonstration of the time investment required for manual database management. The exercise is a good way to visualize the amount of time spent on managing contacts.
Database Duties of an Agent
Effective database management involves consistent execution of various duties.
1. Daily Duties
* Adding new contacts
* Managing new leads
* Keeping appointments
* Making calls
* Writing notes
* Sending and 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
Microsoft Outlook: A Starting Point
Many agents initially leverage Microsoft Outlook due to its familiarity.
Capabilities:
1. Email: Native email management capabilities.
2. Calendar: Appointment scheduling with reminders.
3. Contact Information: Storage of contact details with easy updating.
4. Categories: Assigning customizable categories to contacts.
5. Mail-merge: Creating mailing labels or personalized letters using data files.
6. Exporting Information: Exporting mailing lists for external vendors or migrating to a CMS.
7. Contact History: The program provides a Notes field where you can record details regarding your contacts and your interaction with them.
Limitations:
- Limited Contact History: Basic note-taking functionality lacks structured tracking. Information about children’s names and details about mailings, phone calls, and touches are all stored in the same field which is limiting.
- Restricted Action Plans: Difficult to automate complex “8x8”, “33 Touch”, and “12 Direct” plans. Automation requires scheduling individual activities for each contact.
It’s Time to Use a Contact Management System (CMS)
As your business scales, a dedicated CMS becomes indispensable.
Definition:
A Contact Management System (CMS) is a computer program that can automatically schedule and track many of the tasks you need to complete in order to do prospecting, marketing, lead conversion, and manage transactions on either a small or massive scale. It can remind you of the priority actions you need to complete each day to successfully seek out business and close transactions.
Myth Busting:
Many agents believe they do not need a CMS unless they have a lot of leads.
Truth: Even with 20 to 80 leads, consistent database management and touch programs are difficult without automation.
Gary Keller’s Perspective:
“A contact management system simply records the name, address, phone numbers, and contact information of the individuals, and then puts them into a contact program that automatically causes you to stay in contact and touch those individuals.”
The Benefits of eEdge
eEdge is Keller Williams’ proprietary CMS.
Key Advantages:
- Action Plans: Customization of “12 Direct,” “8x8,” and “33 Touch” plans. These act like a $50,000/year accountability assistant.
- Marketing Materials: Integration with professionally designed templates. Automated population of contact information.
- Prompts: Daily “dashboard” displaying scheduled activities and reminders through cell phone synchronization.
- Contact Information: Easy data import/export and detailed contact information storage.
- Contact History: Instant access to interaction history with each contact.
- Calendaring and Appointment Scheduling: Integrated appointment management.
- Email Integration and Automation: Automated email capture and sending for various action plans.
- Lead Sourcing and Tracking: Tracking lead progress from source to closed transaction.
- Reports: Generation of comprehensive reports to analyze marketing effectiveness.
- Web-based Software: Accessibility from any internet-enabled device.
- Transaction Management: Tracking activities required to service listings and close transactions.
The Key to Success
Maximizing the value of eEdge requires consistent implementation:
- Use It! Start entering new contacts immediately and import existing data.
- Take Baby Steps: Start with basic functionalities like scheduling follow-up calls and assigning an “8x8” program. Gradually implement more advanced features.
- Listen to It: Leverage eEdge’s automated prompts and reminders.
Customized Action Plans
Tailoring action plans to specific contact types optimizes marketing relevance.
Case Study: Martin Bouma (The Bouma Group)
- Utilizes customized action plans for various contact types (FSBOs, Expireds, prospective sellers).
- Implements transaction plans to standardize team workflows.
- Benefit: Streamlined operations. The system tells the team exactly what needs to be done.
Don’t Touch That Delete Key!
Resist deleting contacts prematurely. Focus on nurturing relationships and expanding your database. Until you have grown your database (and your business) to the point where you have several thousand people in your Mets database, you really shouldn’t be removing anyone from your database.
What About Unresponsive Contacts?
Even if contacts are unresponsive, consider retaining them in your database for long-term engagement.
Chapter Summary
Systematizing Your Contact Database: A Summary
Main Concepts:
This chapter emphasizes the importance of systematizing your contact database to effectively manage and nurture leads. It covers the evolution from manual systems (like Gary Keller’s “black box”) to automated Contact Management Systems (CMS), highlighting the pitfalls of getting bogged down in technology (“Technology Trap”). It stresses the need for consistent communication and the advantages of using a CMS like eEdge to automate tasks, track interactions, and customize action plans. The chapter also underscores the significance of maintaining contacts, even unresponsive ones, and the agent’s duties related to managing a contact database.
Key Takeaways:
- Systematization is Key: A systematic approach to your database is crucial for consistent lead nurturing and conversion.
- Avoid the Technology Trap: Choose technology that simplifies, not complicates, your lead generation process. Don’t let the system become an excuse for inaction.
- Consistent Communication: Maintain regular contact with your database through systematic action plans like 8x8, 33 Touch, and 12 Direct.
- Leverage a CMS: Utilize a Contact Management System (CMS) like eEdge to automate tasks, track interactions, and streamline your communication.
- Don’t Delete Contacts Prematurely: Unless you have thousands of contacts, keep nurturing unresponsive leads; their circumstances may change.
- Action Plans: Tailored action plans for different contact types allow you to target audiences with specific marketing messages.
Connection to Real Estate Principles:
These concepts directly support core real estate principles:
- Lead Generation: Systematization ensures consistent lead follow-up, a cornerstone of successful lead generation.
- Client Relationship Management: A well-managed database fosters stronger client relationships through personalized and timely communication.
- Business Planning: Understanding the effectiveness of different lead sources through database tracking allows for informed business planning and resource allocation.
- The 80/20 Principle (Pareto Principle): Effective database management helps identify and focus on the 20% of contacts that generate 80% of your business.
Practical Next Steps:
- Evaluate Your Current System: Assess your current contact management system (if any) and identify areas for improvement.
- Choose a CMS: If you’re not already using one, select a CMS that fits your needs and budget (e.g., eEdge).
- Import Your Contacts: Migrate your existing contacts into the chosen CMS.
- Implement Action Plans: Customize and implement action plans (8x8, 33 Touch, 12 Direct) for different contact segments.
- Set Up Daily Reminders: Configure your CMS to provide daily reminders for scheduled tasks and follow-ups.
- Commit to Consistent Use: Dedicate time each day to manage and update your database. Start with small steps and gradually incorporate more advanced features.
- Analyze Lead Sources: Track the effectiveness of your lead sources to optimize your marketing efforts.
Areas for Further Exploration:
- Advanced CMS Features: Explore advanced features of your CMS, such as email marketing automation, segmentation, and reporting.
- Integration with Other Tools: Investigate how to integrate your CMS with other real estate tools (e.g., CRM, marketing platforms).
- Data Segmentation Strategies: Learn advanced techniques for segmenting your database to personalize your communication further.
- Compliance and Data Privacy: Stay up-to-date on data privacy regulations (e.g., GDPR, CCPA) and ensure your database practices are compliant.
- Behavioral Economics in Lead Nurturing: Research how principles of behavioral economics can be applied to your lead nurturing strategies to improve conversion rates.
