Database Mastery: Lead Generation & Systematic Marketing

Chapter 3: Systematic Database Marketing: 12 direct❓❓, 8x8 & 33 Touch❓❓

This chapter delves into the core strategies for systematic database marketing, focusing on three key approaches: 12 Direct, 8x8, and 33 Touch. These systems provide a structured framework for engaging with potential and existing clients, maximizing lead generation, and building lasting relationships. The underlying principle is consistent, planned communication across various channels, leveraging the power of repetition and strategic content delivery.

3.1 The Foundation: Understanding the Need for Systematic Marketing

Real estate sales is fundamentally a contact-intensive process. The more effectively and systematically you engage with your database, the greater your chances of converting leads into clients. The reality is that many agents underdo consistent and frequent communication. These systems combat that tendency by providing a roadmap for consistent, multi-channel engagement. These structured plans are to-do lists, typically implemented within a Contact Management System (CMS), that serve as reminders for how and when to interact with each contact.

3.2 12 Direct: Nurturing the “Haven’t Met” Database

The “Haven’t Met” database represents individuals who are potential clients but with whom you haven’t yet established a direct, personal connection. The 12 Direct program is designed to systematically introduce yourself and your services to this group over a year.

3.2.1 Core Concept

12 Direct involves sending One direct mail piece per month❓❓ (12 pieces annually) to your “Haven’t Met” database, which typically includes targeted mailing lists for specific geographic farm areas or demographic groups. This system leverages scale, allowing you to reach a large audience with a consistent message.

3.2.2 Strategic Objectives

• Brand Awareness: Increase your visibility within the target market.
• Lead Generation: Generate inquiries and convert “Haven’t Met” contacts into “Met” contacts.
• Market Positioning: Establish yourself as a knowledgeable and trusted real estate resource.

3.2.3 Scientific Principles

The effectiveness of 12 Direct relies on principles from marketing and communication theory:

• The Rule of 7 (Marketing): A prospect needs to see or hear your marketing message at least seven times before they take action. The 12 Direct campaign ensures consistent exposure.
• Mere-Exposure Effect: Repeated exposure to a stimulus (your brand, your name) increases the likelihood of positive attitudes towards it. This effect contributes to brand familiarity and trust.
• AIDA Model (Attention, Interest, Desire, Action): Each direct mail piece should aim to capture attention, generate interest, stimulate❓ desire for your services, and prompt action (e.g., visiting your website, calling for a consultation).

3.2.4 Practical Application and Examples

• Content Planning: Develop a year-long content calendar for your 12 Direct campaign. Examples of direct mail pieces include:

  • Market updates and real estate trends reports.
  • Neighborhood newsletters featuring local events and community information.
  • Home maintenance tips and seasonal advice.
  • Personalized postcards introducing yourself and your services.
  • Promotional offers or invitations to local events.

• Cost-Benefit Analysis: Conduct a cost-benefit analysis to determine the optimal database size and mailing frequency. Consider factors such as printing costs, postage rates, and expected conversion rates.

• Mathematical Considerations:

  Let:

  • C = Cost per mailing piece (printing, postage, design)
  • N = Number of contacts in your “Haven’t Met” database
  • R = Response rate (percentage of recipients who respond)
  • CR = Conversion rate (percentage of leads who become clients)
  • Profit per client = Average commission earned per transaction
  • Annual marketing cost = 12 * C * N
  • Number of new clients = N * R * CR
  • ROI = (Number of new clients * Profit per client - Annual marketing cost) / Annual marketing cost

  Optimal database size (N) can be determined by estimating R and CR and balancing Annual marketing cost with Profit per client

• Experiment: A/B test different direct mail designs or messaging to optimize response rates. For example, send one version of a postcard to half of your mailing list and a different version to the other half. Track the number of inquiries generated by each version.

3.2.5 Key Considerations

• Database Accuracy: Maintain an accurate and up-to-date mailing list to minimize wasted mailings and maximize reach.
• Targeted Messaging: Tailor your messaging to the specific interests and needs of your target audience.
• Call to Action: Include a clear and compelling call to action in each direct mail piece.

3.2.6 Expected Return

The provided text estimates a 50:1 ratio of contacts to sales. For every fifty unmet people you market to twelve times a year, you can reasonably expect to generate only one sale. This implies a very low conversion rate requiring large database for achieving sales objectives.

3.3 8x8: Intensive Engagement to Build Rapport

The 8x8 program is a short-term, high-intensity campaign designed to rapidly❓ build rapport and establish a relationship with new leads or contacts. It is typically used when adding new leads to your “Met” database and serves as a springboard for the longer-term 33 Touch program.

3.3.1 Core Concept

The 8x8 involves eight touches (interactions) with a prospect over an eight-week period. These touches utilize a variety of communication channels to create multiple points of contact and reinforce your message.

3.3.2 Strategic Objectives

• Accelerated Relationship Building: Quickly establish a connection with new leads.
• Top-of-Mind Awareness: Position yourself as the go-to real estate expert in the prospect’s mind.
• Lead Qualification: Identify the prospect’s needs, timelines, and motivation for buying or selling.

3.3.3 Scientific Principles

• Frequency Heuristic: Frequent exposure to information leads to increased credibility and trustworthiness. The 8x8 program leverages this principle by creating multiple points of contact within a short timeframe.
• Multi-Channel Marketing: Reaching prospects through different channels (mail, phone, email) increases the likelihood of capturing their attention and reinforcing your message.
• Reciprocity: Providing value to prospects (e.g., helpful information, free reports) can trigger a sense of obligation, making them more likely to respond positively to your outreach.

3.3.4 Practical Application and Examples

The provided text includes a basic plan. Here is a slightly more detailed example:

• Week 1: Personalized welcome email with a link to your website or online resources.
• Week 2: Send a handwritten note with your business card and a small gift (e.g., a branded notepad).
• Week 3: Share a relevant article or blog post on social media and tag the prospect.
• Week 4: Phone call to introduce yourself, ask about their real estate goals, and offer assistance.
• Week 5: Send a market report or neighborhood analysis specific to their area of interest.
• Week 6: Invite them to a local event or open house.
• Week 7: Share a client testimonial or success story.
• Week 8: Follow-up phone call to answer any questions and offer a free consultation.

3.3.5 Experimentation and Optimization

• Channel Prioritization: Experiment with different combinations of communication channels to determine which ones are most effective for your target audience.
• Message Personalization: Tailor your messaging to the individual prospect’s needs and interests. Use information gathered from previous interactions to make your communication more relevant and engaging.
• Response Tracking: Track the response rates and conversion rates for each touch in the 8x8 program. Identify which touches are generating the most engagement and optimize your campaign accordingly.

3.4 33 Touch: Sustained Relationship Nurturing

The 33 Touch program is a long-term strategy for maintaining consistent communication with your “Met” database and nurturing those relationships to generate Repeat Business❓❓ and referrals.

3.4.1 Core Concept

The 33 Touch involves 33 planned interactions with each contact in your “Met” database over a year. These interactions are designed to provide value, build rapport, and keep you top-of-mind.

3.4.2 Strategic Objectives

• Relationship Maintenance: Strengthen existing relationships with clients and past clients.
• Repeat Business: Encourage clients to use your services again in the future.
• Referral Generation: Prompt clients to refer you to their friends, family, and colleagues.
• Brand Loyalty: Foster a sense of loyalty and advocacy among your client base.

3.4.3 Scientific Principles

• Consistency Principle: People tend to act in accordance with their previous behaviors and commitments. By consistently providing value and maintaining communication, you reinforce their positive perception of you and increase the likelihood of them using your services again.
• Social Proof: Sharing testimonials, success stories, and client reviews provides social proof of your expertise and credibility, making potential clients more likely to trust you.
• Gamification❓❓: Incorporating elements of gamification into your communication strategy (e.g., loyalty programs, contests) can increase engagement and motivate clients to participate.

3.4.4 Practical Application and Examples

While the text does not provide a detailed example of a 33 touch program, here are some potential elements:

• Monthly Newsletter: Provide valuable market updates, home maintenance tips, and community information.
• Birthday Cards: Send personalized birthday cards to each client.
• Holiday Greetings: Send holiday cards or e-cards to acknowledge special occasions.
• Quarterly Phone Calls: Check in with clients to see how they are doing and offer assistance.
• Annual Client Appreciation Event: Host a party or gathering to show your appreciation for your clients’ business.
• Personalized Gifts: Send small, thoughtful gifts to clients to celebrate milestones or special events.
• Social Media Engagement: Interact with clients on social media by liking their posts, leaving comments, and sharing relevant content.
• Referral Incentives: Offer rewards or incentives for clients who refer new business to you.

3.4.5 Key Metrics and Analysis

• Client Retention Rate: Track the percentage of clients who return for repeat business.
• Referral Rate: Measure the number of referrals generated by existing clients.
• Customer Lifetime Value: Calculate the total revenue generated by each client over their relationship with you.
• Net Promoter Score (NPS): Use surveys to measure client satisfaction and loyalty.

3.5 Integrating 12 Direct, 8x8, and 33 Touch

These three systems are not mutually exclusive; they can be integrated into a comprehensive database marketing strategy:

1. New Lead Acquisition: Use marketing and prospecting to generate new leads, adding them to your database.
2. 8x8 Onboarding: Enroll new leads in the 8x8 program to rapidly build rapport and establish a relationship.
3. Transition to 33 Touch: After the 8x8 program is complete, transition the leads to the 33 Touch program for long-term relationship nurturing.
4. Strategic 12 Direct Usage: Periodically, segment portions of the “Met” database into smaller “Haven’t Met” lists for strategic direct mail campaigns related to specific neighborhoods or property types.

3.6 Ethical Considerations

• Data Privacy: Comply with all applicable data privacy regulations (e.g., GDPR, CCPA) when collecting, storing, and using client data.
• Permission-Based Marketing: Obtain explicit consent from clients before sending them marketing communications.
• Transparency: Be transparent about your data collection and usage practices.
• Opt-Out Options: Provide clients with clear and easy-to-use opt-out options.

3.7 Conclusion

Systematic database marketing is crucial for long-term success in real estate. By implementing the 12 Direct, 8x8, and 33 Touch programs, you can build a robust pipeline of leads, nurture strong client relationships, and generate consistent revenue. Remember that these systems are not static; they should be continuously evaluated, optimized, and adapted to meet the changing needs of your business and your clients.