Database Construction: Contacts and CRM Software

Building a robust \data\\❓\\-bs-toggle="modal" data-bs-target="#questionModal-323182" role="button" aria-label="Open Question" class="keyword-wrapper question-trigger">customer database❓ is a cornerstone of successful marketing and sales strategies. It’s a repository of information enabling understanding of potential and current customers, allowing organizations to customize efforts, improve customer experience, and achieve sustainable growth.

Four key laws govern building a customer database, which is part of lead generation:

1. Building a database: A solid foundation for customer relationships.
2. Feeding the database daily: Continuously adding new information and updating existing data.
3. Systematic communication: Using planned strategies to reach customers.
4. Serving all potential customers: Providing high-quality service regardless of size or potential.

Core contact information should include:

1. Name: Full name of the person.
2. Phone Number: Home, mobile, work, fax.
3. Email Address: For communication.
4. Home Address: Mailing address.
5. Notes on Previous Correspondence: Record of past conversations and interactions.
6. Source: How contact information was obtained (e.g., trade show, website, referral).
7. Database Group: Classification (e.g., prospects, current customers, partners).
8. Status: Actively looking to buy/sell (active) or potential customer (inactive).
9. Status Level (A, B, C): Based on the likelihood of becoming actual customers (A: High, B: Medium, C: Low), considering:
   • Interaction: Customer responsiveness.
   • Interest: Customer interest in products/services.
   • Ability: Customer’s ability to make a purchase decision.
10. Type of Contact: (e.g., FSBO, Expired, PTA).

additional information❓ for internal circles (high-value❓ clients) includes:

1. Date of Birth: For personal greetings.
2. Spouse/Children Birthdates: For enhancing personal relationships.
3. Children’s Names: To personalize communication.
4. Anniversary Date: To show interest and appreciation.
5. Hobbies: To offer relevant content or personalized gifts.
6. Job Title: To understand the client’s role.
7. Company: Client’s employer.

Database updates should occur:

1. Upon Transaction Completion: Update contact information and categorize appropriately.
2. Upon Plan Termination: Update status and determine next steps.
3. When Logging Notes: All team members should record interaction notes.

Customizable fields in CRM allow targeted marketing. Examples:

1. Buyer/Seller Specialist Name: Identify contact person.
2. Year of Closing: Track sales performance.
3. Cooperating Agent: Track relationships with other agents.
4. Referring Agent: Track referral sources.
5. Investor: Identify investor clients.
6. Adoptive Buyer: Classify customers who bought specific properties.
7. Sale Price: Track transaction value.
8. Home Description: Store property information.
9. Interest Rates: Track financial information.
10. Loan Type: Track financing types used.

CRMs offer:

1. Rapid Access: To contacts for e-marketing.
2. Direct Mail: Facilitate direct mail campaigns.
3. Centralized Storage: For all contact information.
4. Plan Generation: Create action plans for teams.
5. Synchronization: Sync data with mobile devices and online access.

When selecting a CRM, consider:

• Database Size: Ability to handle current and future data volume.
• Frequency of Use: Ease of use for daily application.
• Categorization: Contact classification for targeted marketing.

Essential CRM features:

1. Contact Information Management: Fields for detailed information.
2. Contact Import/Export: Ability to transfer data with other programs.
3. Transaction Management: Task management, contract storage, and transaction tracking.
4. Calendar and Scheduling: Recording events, setting appointments, and reminders.
5. Email Integration and Automation: Mass email integration and automated campaigns.

Additional CRM Features:

1. Reporting: To analyze business performance.
2. Marketing Materials: Integrate contacts with marketing materials.

Relevant formulas:

• Conversion Rate (CR): CR = (Number of Actual Customers / Number of Potential Customers) * 100
• Customer Acquisition Cost (CAC): CAC = (Total Marketing and Sales Costs / Number of New Customers)
• Customer Lifetime Value (CLTV): CLTV = (Average Purchase Value * Number of Purchases per Year * Average Customer Retention Period in Years) - Customer Acquisition Cost

Examples:

• A real estate company uses CRM to track and categorize leads by interest and budget, enabling targeted marketing.
• A retailer uses CRM to track purchases and offer personalized deals, increasing customer loyalty and sales.
• A sales team uses CRM to log interactions, allowing access to the latest information for consistent service.