Building a Real Estate Database: Contact Aggregation and Classification

Importance of Contact Collection and Classification:

• Improves customer targeting by segmenting customers based on criteria like interests, budget, and preferred location.
• Builds stronger relationships through personalized service based on understanding customer needs and preferences.
• Increases operational efficiency by organizing the database and facilitating quick access to information.
• Measures and improves performance by analyzing customer data to identify strengths and weaknesses in marketing and sales strategies.

Sources of Contact Collection:

• Haven’t Met:
  • General Public: Reached through mass marketing (TV, online, print ads) and prospecting (directory search, real estate❓ exhibitions, informational events).
    • Formula for evaluating mass marketing campaign❓ effectiveness:
      • Leads = Impressions * CTR * CR
      • Cost Per Lead (CPL) = Cost / Leads
  • Target Group: Reached through direct marketing (mail, email) and targeted advertising (social media ads based on demographics or interests).
    • Example: A Facebook ad campaign targeting individuals❓ aged 30-45 with an interest in real estate in a specific area.
    • Formula for evaluating Return On Investment (ROI) for Direct Marketing:
      • ROI = (Revenue - Cost) / Cost
• Met:
  • Network: Reached through personal communication❓ (social gatherings, phone calls, text messages) and targeted marketing campaigns. Strategies like 8x8 and 33 Touch involve regular communication.
  • Allied Resources: Individuals in related fields (mortgage lenders, home inspectors, real estate lawyers). Reached through joint ventures, mutual services, and personal relationship building.
  • Advocates: Previous clients willing to recommend services. Reached through referral programs and appreciation gestures.
  • Core Advocates: Influential individuals (sports team owners, executives, builders). Reached through value-added services and strong personal relationships.

Contact Classification: A Strategic Model:

• A hierarchical classification of contacts, progressing from the general public to core advocates.

• Strategic Pyramid of Contacts:

  • Level 1: General Public (Haven’t Met)
  • Level 2: Target Group (Haven’t Met)
  • Level 3: Network (Met)
  • Level 4: Allied Resources (Met)
  • Level 5: Advocates (Met)
  • Level 6: Core Advocates (Met)
• Progression Strategies:
  • General Public to Target Group: Effective targeted marketing campaigns.
  • Target Group to Network: Personal relationship building through regular communication.
  • Network to Allied Resources: Strategic partnerships through joint ventures.
  • Allied Resources to Advocates: Excellent service exceeding customer expectations.
  • Advocates to Core Advocates: Strong personal relationships and value-added services.

Customer Relationship Management (CRM) Programs:

• CRMs facilitate efficient contact collection, classification, and management.

• Features:

  • Recording and storing customer information.
  • Classifying contacts.
  • tracking❓ customer interactions.
  • Automating marketing tasks.
  • Generating reports and analytics.

• Types:

  • On-Premise.
  • Web-Based.

• Selection Factors:

  • Features and functions.
  • Ease of use.
  • Integration with other systems.
  • Cost.

Entering Contacts into the Database:

• Establish procedures for regular contact entry into the database.

• Timing:

  • After receiving a call from a potential client.
  • After meeting a potential client, allied resource, or advocate.
  • After completing a seller or buyer interview form.

• Process:

  • Use seller or buyer interview forms.
  • Update contact information with personal details (birthdays, hobbies) using VIP questionnaires.
  • Place new contacts on automated action plans.