Systematizing & Automating Your Contact Database

The Foundation: Defining Systematization and Automation

Systematization is the process of organizing your contact database into a coherent and efficient system. Automation, on the other hand, leverages technology to execute repetitive tasks and workflows with minimal human intervention. Combining these two allows for scalability and consistent engagement.

Gary and the Box: A Historical Perspective

Before digital solutions, agents like Gary Keller used physical systems. His “box” system, using index cards and a filing cabinet, illustrates the foundational principles of database management:

• Organization: Contacts are categorized and easily retrievable.
• Tracking: Interactions and notes are recorded for each contact.
• Follow-up: The system prompts timely follow-up activities.

Avoiding the Technology Trap

Todd Duncan coined the term “Technology Trap” to describe the scenario where technology, intended to improve efficiency, actually hinders it.

Mitigating the Trap:

1. Focus on Outcomes: Define clear goals for your database (e.g., lead generation, client retention).
2. Prioritize Action: Choose a system that facilitates real-world action rather than becoming a time sink for configuration.

Quantifying Database Management Time: An Exercise

(Refer to the provided text for the “How Much Time Does It Really Take to Manage Your Database?” exercise)

This exercise underscores that manual database management is time-intensive. Automation aims to reduce T_manual, the time spent on manual tasks.

• T_manual = T_entry + T_update + T_followup + T_reporting

Where:

• T_entry = Time spent entering new contact data.
• T_update = Time spent updating existing contact data.
• T_followup = Time spent scheduling and executing follow-up activities.
• T_reporting = Time spent generating reports and analyzing data.

Automation aims to minimize T_manual by shifting some tasks to automated processes.

Database Duties of an Agent: A Structured Approach

Daily Duties

1. Adding New Contacts: Implement a standardized data entry process.
2. Managing New Leads: Qualify leads based on pre-defined criteria.
3. Keeping Appointments: Synchronize your database with your calendar.
4. Making Calls: Prioritize calls based on lead source and engagement level.
5. Writing Notes: Use a consistent note-taking format to capture key information.
6. Sending and Receiving Emails: Segment your email list for targeted communication.
7. Scheduling Follow-up Activities: Automate reminders for timely follow-up.
8. Managing Listings and Closings: Track key milestones and deadlines.
9. Completing Tasks: Break down larger goals into smaller, actionable steps.

Weekly Duties

1. Sending Letters, Postcards, and Mailers: Automate personalized mailings based on contact segments.
2. Sending Listing Service Reports/Making Calls to Sellers: Provide timely updates and maintain open communication.

Monthly Duties

1. Sending Monthly Mailers and Emails: Provide valuable content and stay top-of-mind.
2. Maintaining Contact Records: Verify and update contact information regularly.

Yearly Duties

1. Sending Seasonal Mailers: Leverage holidays and seasonal events for targeted communication.
2. Reviewing and Updating Contact Records: Identify outdated or inaccurate information.
3. Reviewing Effectiveness of Lead Sources: Analyze which sources are generating the highest-quality leads.
4. Developing and Implementing Business Plan: Set goals and track progress.

Transitioning from Spreadsheets to a CMS

Limitations of Spreadsheets (e.g., Microsoft Excel)

• Scalability: Becomes unwieldy with a large number of contacts.
• Automation: Limited ability to automate tasks.
• Segmentation: Difficult to segment contacts effectively.
• Reporting: Basic reporting capabilities.

Microsoft Outlook: A Stepping Stone

Strengths

1. Email Management: Familiar interface for email communication.
2. Calendar Integration: Scheduling appointments and reminders.
3. Contact Information Storage: Centralized location for contact details.
4. Categorization: Grouping contacts based on various criteria.
5. Mail Merge: Creating personalized mailings.
6. Exporting Information: Sharing contact lists with third-party vendors.

Limitations

1. Contact History: Limited note-taking capabilities.
2. Action Plans: Difficult to automate complex follow-up sequences.

Contact Management Systems (CMS): The Next Level

A CMS automates tasks such as:

• Lead Nurturing: Sending automated email sequences based on lead behavior.
• Task Management: Assigning tasks to team members and tracking progress.
• Reporting: Generating reports on key metrics (e.g., conversion rates, lead source effectiveness).

Formula:
ROI = (Gains from CMS - Cost of CMS) / Cost of CMS

Where:

• ROI: Return on Investment
• Gains from CMS includes increased leads, reduced manual time, improved follow-up

The Benefits of eEdge (or similar CMS)

1. Action Plans: Automating 8x8, 33 Touch, and 12 Direct campaigns.
2. Marketing Materials: Integrating contact information with professionally designed templates.
3. Prompts: Displaying daily tasks and reminders.
4. Contact Information Management: Streamlining data entry and import/export.
5. Contact History Tracking: Providing a complete record of interactions.
6. Calendaring and Appointment Scheduling: Centralizing scheduling activities.
7. Email Integration and Automation: Automating email communication.
8. Lead Sourcing and Tracking: Tracking the progress of leads through the sales funnel.
9. Reporting: Analyzing marketing effectiveness.
10. Web-Based Access: Accessing the database from anywhere with an internet connection.
11. Transaction Management: Tracking the activities required to close deals.

Key Actions for Success with a CMS

1. Use It!: Import your existing contacts and enter new ones immediately.
2. Take Baby Steps: Start with basic features and gradually explore more advanced functionality.
3. Listen to It: Pay attention to the prompts and reminders generated by the system.

Customized Action Plans: The Key to Personalization

Tailoring action plans to specific contact types and lead sources allows for more relevant and engaging communication.

Example Action Plans:

• FSBO (For Sale By Owner): Targeted messaging addressing their pain points and offering solutions.
• Expired Listing: Communication focusing on the reasons for the listing’s failure and offering a fresh approach.
• Prospective Seller: Providing market insights and demonstrating expertise.

Data Integrity: Don’t Touch That Delete Key!

• Until your database reaches a critical mass, avoid deleting contacts unless absolutely necessary (e.g., incorrect information, explicit opt-out).
• Consider segmenting unresponsive contacts into a separate “dormant” list for less frequent communication.

Re-engagement Strategies

• Value-Added Content: Continue providing valuable content, even to unresponsive contacts.
• Periodic “Check-In” Emails: Send occasional emails to re-engage dormant contacts.
• Segmentation: Segment your contact list based on engagement level to tailor your communication strategy.