Database Development: Contacts and Management Software

This chapter focuses on developing a customer database, specifically contacts and management programs, as a vital aspect of building successful customer relationships. The chapter emphasizes the creation of a strong and effective customer database and its effective management to maximize return on investment (ROI). It focuses on the importance of collecting customer data accurately and completely, categorizing it systematically, and updating it continuously. The chapter explores Customer Relationship Management (CRM) programs, evaluating key features and how to choose the most suitable program for an organization or business.

A customer database is the lifeblood of any organization seeking sustainable growth. Understanding customer needs, preferences, and behaviors allows organizations to design products and services that better meet these needs, provide exceptional customer experiences, and build long-term relationships based on trust and loyalty.

Effective database management is a scientific process based on the principles of statistics, data analysis, and targeted marketing. By analyzing the data in the database, organizations can discover hidden patterns and trends, predict future customer behavior, and make informed marketing decisions that increase the effectiveness of advertising and promotional campaigns.

1. building❓ the Database: Contacts

A database is essential for organizing customer❓ information, aiming to collect relevant and accurate data.

• Basic Contact Information:

  • Name (First, Last)
  • Phone Numbers (Home, Mobile, Work, Fax)
  • Email Address
  • Address (Residence or Work)
  • Notes on Previous Correspondence: detailed record of conversations, meetings, agreements.
  • Source: Where the contact information was obtained (Referral, Exhibition, Website).
  • Database Group: Categorization based on shared characteristics (potential❓ Clients, Current Clients, Partners, Suppliers).
  • Active: Whether the contact is actively seeking services or products.
  • Status Level: Importance level (A: Key Client, B: Potential Client, C: General Contact). Uses Expected Value (EV): EV = P(Conversion) * Estimated Deal Value (P(Conversion) is the probability of converting the contact into a client).
  • Contact Type: Categorization based on role or interests (Direct Seller, Expired Lead).

• Additional Information (“Inner Circle”):

  • Date of Birth: For sending personal greetings.
  • Spouse/Children Birthdates: Showing interest in family.
  • Children’s Names: For personal conversations.
  • Anniversary Date: Expressing appreciation.
  • Hobbies: Understanding shared interests.
  • Job Title: Understanding role in the company.
  • Company: Knowing where they work.

These dates should be noted and reminders set.

• Updating the Database:

  • Update contact information.
  • Place the contact in the correct category.
  • Apply the correct database plan.
  • Update notes.

Detailed notes about correspondence are necessary. All team members should record dates and important points.

• Customizable Fields:

  • Buyer/Seller Specialist.
  • Closing Year.
  • Cooperating Agent.
  • Referring Agent.
  • Investor.
  • Adopting Buyer (Purchased team listing).
  • Sale Price.
  • Home Description.
  • Interest Rates.
  • Loan Type.

2. Contact Management Software (CMS)

Generating leads depends on the size and effectiveness of the database.

• Using Contact Management Software:

  • CMS examples: Top Producer, Online Agent, Act.
  • Benefits:
    • Fast access for email marketing.
    • Facilitates direct mail: Print labels or export the database.
    • Central location for storing all contact information.
    • Facilitates team collaboration.
    • Create pre-programmed action plans for team members.
    • Synchronization with mobile devices and web access.

• Choosing the Right CMS:
  Average database size for top agents is 3600 contacts. They use their contact databases daily, add 17❓❓ contacts weekly, and remove 7 weekly.

• Basic CMS Features:

  • Contact Information Management: Fields for detailed information (birthdays, professions, hobbies, children’s names). Customizable fields and detailed correspondence records.
  • Address Book Import/Export: Import to avoid re-entering contacts, export for backups and direct mail.
  • Transaction Management: Assign tasks, store contracts, track listings, closings, and other transactions.
  • Calendar and Appointment Scheduling: Record events, schedule appointments, set reminders.
  • Email integration❓ and Automation: Integrate contacts into mass emails for marketing.

• Additional Features:

  • Reports: Analyze areas of business, such as marketing campaign effectiveness.
  • Marketing Materials: Integrate contacts into marketing materials.