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Systems for Sustained Relationship Marketing: 8x8 & 33 Touch
Chapter 3: Systems for Sustained Relationship Marketing: 8x8 & 33 Touch
Introduction
In the realm of real estate, establishing and nurturing relationships is paramount to long-term success. This chapter delves into two systematic approaches designed to cultivate robust and enduring connections with potential and existing clients: the 8x8 and 33 touch system❓❓s. These strategies are not merely arbitrary marketing tactics; they are founded on principles of behavioral psychology, marketing science, and relationship management. The goal is to move beyond transactional interactions and establish yourself as a trusted advisor and “Realtor® for life.”
1. The Theoretical Framework: Relationship Marketing and the “Rule of 7”
Before exploring the specifics of the 8x8 and 33 Touch systems, it’s crucial to understand the underlying theoretical framework. These systems operate on the principles of relationship marketing, which emphasizes building customer loyalty and long-term engagement rather than focusing solely on short-term sales.
A key concept informing these systems is the “Rule of 7” (though modern interpretations often suggest a need for more than seven touches in today’s saturated media environment). The original rule suggested that a prospect needs to see or hear your marketing message at least seven times before they take action and are converted into a customer. While the exact number is debatable and dependent on factors like message quality, target audience, and product complexity, the core idea remains valid: consistent exposure is vital for brand recognition and trust-building.
1.1. The Primacy and Recency Effects
These systems leverage the primacy effect❓❓ and the recency effect, psychological phenomena that influence memory and decision-making. The primacy effect suggests that information presented at the beginning of a series is more likely to be remembered, while the recency effect suggests that information presented at the end of a series is also more likely to be recalled. The 8x8 and 33 Touch programs strategically use both effects. The initial interactions in the 8x8 aim to make a strong first impression (primacy), while consistent ongoing contact through the 33 Touch keeps you top-of-mind (recency).
1.2. Social Exchange Theory
Social Exchange Theory (SET), a sociological and psychological framework, suggests that relationships are formed and maintained based on a cost-benefit analysis. Individuals are motivated to engage in interactions that maximize rewards (benefits) and minimize costs. The 8x8 and 33 Touch systems aim to create a positive social exchange by providing value to the client (e.g., market reports, useful tips, personalized greetings) while minimizing the “cost” of the interaction for them (e.g., non-intrusive communication, relevant information). This balanced approach can lead to a positive and sustainable relationship.
2. The 8x8 System: Initial Engagement and Value Proposition
The 8x8 system is an intensive, eight-week follow-up plan designed to establish a relationship with a prospective client – often a seller who hasn’t yet listed their property. It’s a focused effort to demonstrate your value and expertise.
2.1. Core Principles:
- Consistent Communication: Maintaining contact every week for eight weeks.
- Value-Driven Content: Providing information that is genuinely helpful and relevant to the prospect’s situation (e.g., market updates, selling tips).
- Call-to-Action (Subtle): Gently reminding the prospect of your services and encouraging referrals.
- Personalization: Tailoring the content to the specific needs and interests of the prospect whenever possible.
2.2. Sample 8x8 Plan for Prospective Sellers (from the provided document, expanded):
| Week | Contact Method | Content | Referral Reminder | Psychological Principle Leveraged |
|---|---|---|---|---|
| 1 | Handwritten “Nice to Meet You” Letter | Market Report, Business Card. Focus on local market trends and recent sales in their area. | “If you know anyone else considering selling, please don’t hesitate to share my name!” | Primacy, Liking (building rapport) |
| 2 | Direct Mail (Postcard/Letter) | Market Statistics. Key performance indicators (KPIs) like median sale price, days on market (DOM), inventory levels. | “Your referrals are the greatest compliment! Thank you for thinking of me when real estate comes up.” | Authority (demonstrating expertise), Scarcity (highlighting market opportunities/limitations) |
| 3 | Direct Mail (Postcard/Letter) | Further Market Statistics. A visual representation of local data, such as pie charts or line graphs showing price trends. | “Know someone looking to move? I appreciate your referrals! Contact me today” | Consistency (reinforcing expertise), Reciprocity (providing valuable market info) |
| 4 | Telephone Call | Checking in to see how their home-selling efforts are progressing. Addressing any questions regarding the market report. | “If you know anyone contemplating a move, I’d be honored if you’d share my contact information.” | Personal Connection, Reciprocity (offering guidance) |
| 5 | Direct Mail (Report/Article) | Free Report (e.g., “10 Mistakes Home Sellers Make,” “Staging Your Home for Maximum Value”). | “Referrals are my business lifeline! Who do you know who needs a real estate expert?” | Value Proposition, Authority (providing expert advice) |
| 6 | Direct Mail (Tip Sheet) | Real Estate Investment or House Maintenance Tip. Practical, actionable advice (e.g., “Preparing Your Home for Winter,” “Maximizing Curb Appeal”). | “Your trust means everything! Please recommend me to anyone buying or selling property” | Reciprocity, Value Proposition |
| 7 | Usable Giveaway | Refrigerator Magnet, Notepad with Name/Logo/Contact Information. Choose a high-quality item that will be kept and used regularly. | “Helping your friends and family find success in real estate? Share my name with your circle today!” | Top-of-Mind Awareness, Endowment Effect (increasing the perceived value of your services) |
| 8 | Telephone Call | Follow-up on the previous touches, reiterate expertise, ask for the listing, request referrals. | “If you are aware of individuals who might benefit from buying or selling property, sharing my details would be highly appreciated.” | Close the Loop, Reciprocity |
2.3. Mathematical Considerations (Example):
Let’s define the probability of converting a prospective seller after each touch as pi, where i represents the week number (1 to 8). Assume the probability of converting after each touch increases over the 8 weeks. Then, the overall probability of converting the prospect after the 8x8 program, P8x8, can be approximated (simplified and assuming independence) by:
P8x8 = 1 - ∏8i=1 (1 - pi)
Where:
- ∏ represents the product (multiplication) of all terms.
This equation highlights the cumulative effect of each touch. Even if each individual touch has a small probability of conversion, the combined effect of eight touches significantly increases the overall probability. The model assumes independence; in reality, the touches may be correlated - one successful touch may increase the impact of subsequent touches.
2.4. Experiment:
A real estate team could conduct an A/B test. Group A would receive the standard 8x8 program. Group B would receive a control group with no planned initial follow ups. Compare the listings acquired from each group after three months. Measure the number of new listings signed, the average sale price of listings from each group, and client satisfaction levels. Statistical significance tests (e.g., t-tests) could be used to determine if the differences between the groups are statistically significant, thereby demonstrating the effectiveness (or ineffectiveness) of the 8x8 system.
3. The 33 Touch System: Sustained Engagement and Brand Reinforcement
The 33 Touch system is designed for maintaining ongoing engagement with your existing database of contacts (past clients, prospects who completed the 8x8, and other business connections). It is a systematic approach to keep you top-of-mind and cultivate long-term relationships.
3.1. Core Principles:
- Consistent Contact Throughout the Year: Ensuring regular interactions to maintain a consistent presence.
- Variety of Communication Channels: Utilizing a mix of mailings, emails, phone calls, and personal interactions.
- Value-Added Content: Providing information that is relevant and useful to the recipient (e.g., market updates, home maintenance tips, community events).
- Personalization: Tailoring the communication to the specific interests and needs of the individual contact.
- Referral Reminders: Subtly and consistently prompting contacts to refer potential clients.
3.2. Basic 33 Touch Plan (from the provided document, expanded):
| Touch Type | Quantity | Example Content | Referral Reminder Example | Frequency |
|---|---|---|---|---|
| Mailings/Emails/Drop-Offs | 14 | Market reports, personal newsletter, Just Sold/Just Listed cards, community calendars, recipes, property alerts. | “Helping a neighbor buy or sell a home? Send them my way for expert guidance.” | Monthly/Bi-Monthly |
| Thank You/Thinking of You Cards | 8 | Handwritten notes expressing gratitude or acknowledging a milestone. | “Have friends needing real estate assistance? I’m dedicated to giving them the best experience!” | Bi-Monthly |
| Telephone Calls | 3 | Personal check-in calls, asking about their well-being, and any real estate needs. | “Who do you know who’s looking for a dedicated Realtor® like me? Your referrals are invaluable.” | Quarterly |
| Personal Observance Cards | 4 | Birthday cards, anniversary cards (especially anniversary of home purchase). | “Refer a family member who will appreciate my service” | Event-Driven |
| Holiday Cards | 4 | Thanksgiving, Fourth of July, Christmas, New Year’s cards. | “Sharing the joy of homeownership with others? Remember me when your circle needs assistance with real estate.” | Holiday Season |
3.3. Customization and Segmentation:
The document emphasizes the importance of customizing the 33 Touch plan for different segments of your database (e.g., Clients for Life, Sphere of Influence, Allied Resources). This is crucial for maximizing relevance and engagement. Different segments will have different needs and interests, so tailoring the communication accordingly will increase its effectiveness.
3.4. Mathematical Considerations (ROI Estimation):
The document suggests that for every twelve people in your database who receive the 33 Touch, you can expect two sales (one repeat and one referral). This implies a conversion rate of 2/12 = 16.7%. Let’s analyze this from a Return on Investment (ROI) perspective.
Let:
- C = Total cost of implementing the 33 Touch system for 12 contacts (includes printing, postage, CRM software, time spent).
- P = Profit from one sale (average commission minus marketing expenses specific to that sale).
Then, the estimated ROI can be calculated as:
ROI = ((2 * P) - C) / C
Example: Suppose the cost of the 33 Touch system for 12 contacts is $500 (C = $500), and the average profit from a sale is $10,000 (P = $10,000).
ROI = ((2 * $10,000) - $500) / $500 = ($20,000 - $500) / $500 = $19,500 / $500 = 39 or 3900%
This is a highly simplified model, but it illustrates the potential for a significant ROI with a well-executed 33 Touch program. Accurate ROI calculations require careful tracking of all associated costs and sales attributable to the program.
3.5. Experiment:
Divide a portion of your database into two groups. Group A receives your standardized 33 Touch Plan. Group B receives a highly customized version of the 33 Touch, carefully tailored to individual preferences and needs based on previously collected data (e.g., past conversations, expressed interests). Track the number of referrals and repeat business generated from each group over a year. Additionally, measure engagement metrics such as email open rates, click-through rates, and responses to phone calls. Compare the results to determine which approach yields a higher return. Analyze the cost difference between the standardized and customized approaches to ensure the increased effort is justified by the results. A chi-square test or similar could be used to see if there are statistically significant differences in referrals or repeat business between the two groups.
Conclusion
The 8x8 and 33 Touch systems are not just marketing tactics; they are structured approaches to building and maintaining relationships. By consistently providing value, personalizing communication, and subtly reminding contacts of your services, you can increase brand awareness, build trust, and generate referrals. The effectiveness of these systems can be further enhanced by tracking and analyzing results, customizing approaches for different customer segments, and continuously optimizing the content and delivery methods. Remember to apply data-driven decision-making to maximize the ROI of your relationship marketing efforts.
Chapter Summary
Systems for Sustained Relationship Marketing: 8x8 & 33 Touch
This chapter introduces two systematic marketing approaches, the “8x8” and “33 Touch” systems, designed to cultivate and maintain❓ client relationships within a real estate context, focusing on consistent communication❓ and referral generation. The 8x8 system is an intensive eight-week follow-up plan typically deployed after an initial listing consultation to demonstrate the value of working with a specific real estate team. It involves a combination of mailed marketing materials (market reports, statistics, free reports, real estate tips, and branded giveaways), handwritten notes, and telephone calls. The primary goal is to educate potential sellers about the market and subtly solicit their business. Each touch includes a reminder of how the contact❓ can refer business to the real estate agent.
Once a contact completes the 8x8 program, they transition into the 33 Touch system. This system ensures consistent, year-round communication with prospects, business contacts, and past clients. The core 33 Touch plan incorporates 14 mailings (letters, cards, emails, drop-offs), 8 thank you/thinking of you cards, 3 telephone calls, 4 personal observance cards (birthdays, anniversaries), and 4 holiday cards, all strategically spaced throughout the year. The critical element is that every touch should include a reminder about referral opportunities and articulate the benefits of working with the real estate team. The chapter emphasizes customizing both 8x8 and 33 Touch plans to target specific client segments, such as past clients, sphere of influence, or allied resources, to enhance lead generation effectiveness. The chapter strongly suggests logging any communications into a CMS system, to help personalize the relationship.
A key conclusion presented is the cost-effectiveness of marketing to an established database using the 33 Touch system. The content claims that for every twelve people in a Met contact database who receive 33 touches, approximately two sales are generated—one from repeat business and one from referral business. While the stated 12:2 conversion rate may vary, the chapter highlights that incrementally growing and nurturing a database through consistent marketing can yield substantial returns over time.
The implications are significant for real estate professionals aiming to build a sustainable business based on relationships. Implementing these systems requires consistent effort and organization, facilitated by a robust contact management system. The systems provide a structured approach to stay top-of-mind with clients and prospects, increasing the likelihood of repeat and referral business. Customization is crucial for maximizing❓ the impact of these systems and requires a good understanding of your client base.
