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Database Construction: Contacts and CRM Software
Building a robust database is critical for lead generation, serving as a strategic asset for communication, relationship building, and converting leads into clients. Success depends on the size, quality, and management of the database.
Law #1: Build a Database
Database construction is the initial step in lead generation strategies, forming the basis for marketing and sales efforts.
1. Contacts
1.1 Contact Information
The goal is to populate the database with as many customers and acquaintances as possible, including relevant information.
1.2 Basic Information for All Contacts
Required information for each contact:
- Name: Full name.
- Phone Number: multiple❓ numbers (home, mobile, office, fax) for increased accessibility.
- Email Address: Essential for cost-effective and timely communication.
- Home Address: Necessary for direct communication and marketing campaigns.
- Notes on Past Correspondence: Records of past interactions (calls, emails, meetings) for personalized communication.
- Source: How the contact information was obtained (referral, website, event) to evaluate lead generation channel effectiveness.
- Database Group: Categorization into groups (potential buyers, sellers, past clients) for targeted marketing.
- Active: Whether the contact is actively looking to buy or sell, or is simply a potential client for prioritization of follow-up.
- Status Level: Classification based on the likelihood of conversion (A, B, C) to focus on high-value leads.
- Contact Type: Categorization based on affiliations (FSBO, Expired, PTA, Women’s Symphony League, etc.) to customize marketing messages.
1.3 Additional Information for Inner Circles
Recommended information for close contacts:
- Date of Birth: For sending personalized birthday greetings.
- Spouse/Children Birthdays: Showing personal interest in the family.
- Children’s Names: For building personal relationships.
- Anniversary Date: For sending personalized greetings.
- Hobbies: To personalize marketing content and offer relevant products/services.
- Job Title: To understand the contact’s needs and position in the company.
- Company: To understand the contact’s professional background.
Schedule important❓ dates and set reminders to contact individuals on those dates.
1.4 Database Updates
Upon completion of a transaction or plan, ensure:
- Updated Contact Information: Verify the accuracy of all contact details.
- Correct Category and Group Placement: Classify contacts based on their current status.
- Correct Database Plan Placement: Implement appropriate follow-up strategies for each contact category.
- Updated Notes: Record all important communications with the contact.
Record dates and significant highlights in communication.
Contact management software should allow customizable fields to retain specific client information. These fields facilitate quick database searches for targeted marketing. Examples include:
- Buyer/Seller specialist name.
- Closing year.
- Cooperating agent.
- Referring agent.
- Investor.
- Adopted buyer.
- Sale price.
- Home description.
- Interest rates.
- Loan type.
2. Contact Management Software
2.1 Using Contact Management Software
Lead generation depends on database size and effectiveness. Managing a large number of contacts requires Contact Management Software (CMS) for efficiency.
CMS (e.g., Top Producer, Online Agent, Act) facilitates effective lead generation. A computerized contact database provides:
- Quick access for email marketing.
- Direct mail facilitation via label printing or database export.
- Centralized storage of contact information, enabling team access.
- Creation of processes/campaigns/plans for team members.
- PDA synchronization and web-based versions for database accessibility.
2.2 Selecting Appropriate Contact Management Software
High-performing agents distinguish themselves through the size and usage frequency of their contact databases. A Keller Williams survey indicated an average database size of 3600 contacts, used daily.
These agents add an average of 17 new contacts weekly and remove 7. Contacts are grouped by importance for targeted marketing.
Managing databases of this size requires contact management software to leverage sales potential.
2.3 Expected Features
Contact management software should include:
- Contact Information Management: Fields for detailed contact information, including birthdays, professions, hobbies, and children’s names, with customizable fields and detailed correspondence records.
- Address Book Import and Export: Import existing contacts❓ and export contacts for backups and outsourced direct mail.
- Transaction Management: Assign tasks, store contracts, and track listings, closings, and other transactions.
- Scheduling and Appointment Setting: Record events, schedule meetings with team members, and set reminders, including 8x8 and 33 Touch plans for automated client contact reminders.
- Email Integration and Automation: Integrate contacts into mass emails for marketing and recruiting, either individually or in pre-programmed campaigns.
2.4 Desirable Features
Advanced programs offer:
- Reports: To analyze business areas like marketing campaign effectiveness.
- Marketing Materials:
Chapter Summary
building❓ a robust database is fundamental for effective lead generation. It should be comprehensive and continuously updated.
Essential contact❓ information includes: name, phone numbers (home, mobile, work, fax), email address, residential address, notes on previous correspondence, contact source, database group, activity status (active or potential), importance level (A, B, C), and contact type.
For close or important❓ contacts, additional information is recommended: birth date, spouse’s/children’s birth dates, children’s names, anniversary date, hobbies, job title, and company name. These dates should be recorded in a calendar with reminders.
Contact information should be updated after each transaction or business plan completion, ensuring correct categorization, group assignment, and note updates. Detailed communication notes allow any team member to understand the client’s history and continue the dialogue easily.
Advanced CMS programs allow creating custom fields❓ for recording specific customer information, enabling quick searches for contact groups and targeted marketing messages.
Using a CMS is necessary for efficiently managing a large database. These programs offer: fast contact access❓ for email marketing, facilitated direct messaging, centralized contact information storage, data sharing among team members, business plan and programmed operation creation, and synchronization with mobile and web devices.
An appropriate CMS should provide: detailed contact information management, contact importing/exporting, transaction management, calendar and scheduling, and email integration/message automation. Reporting and marketing materials are beneficial additions.
Database size and management efficiency directly impact lead generation success. CMS programs are productivity tools that maximize contact potential with minimal effort.
