Mastering Lead Management: FAST System

This chapter focuses on the FAST system, a framework designed to optimize lead management within your database. The FAST system consists of four key components: Funnel, Assign, Source, and Track. By implementing these components effectively, you can streamline your lead management process, improve conversion rates, and maximize your return on investment (ROI).

1. Funnel: Creating a Centralized Lead Entry Point

The initial step in the FAST system is to funnel all leads into a single point of entry. This centralized approach allows for better organization, consistency, and tracking of lead information. Scientifically, this addresses the concept of systematic data collection, crucial for accurate analysis and effective decision-making.

1.1. Principles of Centralized Data Collection

The principle of funneling aligns with database management best practices. Key considerations include:

• Data Integrity: A single entry point reduces the risk of duplicate entries, inconsistent data formats, and incomplete information, all of which can negatively impact data analysis.
• Accessibility: Having all leads in one place makes it easier to access, manage, and analyze lead data.
• Process Standardization: A single entry point allows you to standardize the lead capture process, ensuring that all leads are captured and recorded in a consistent manner.

1.2. Implementation Strategies

Consider these strategies for funneling leads into your database:

• Dedicated Email Address: Use a single email address for all marketing campaigns❓ and lead generation❓ activities. This ensures that all email inquiries are directed to a central location.
• Unified Website: Ensure all marketing materials (signs, flyers, ads, etc.) direct leads to a single, consistent website.
• Interactive Voice Response (IVR) System: Implement an IVR system that captures caller information and automatically enters it into your database.
• Webpage Lead Capture Forms: Embed lead capture forms on your website to automatically collect prospect information.

1.3. Practical Applications and Experiments

• A/B Testing for Lead Capture Forms: Conduct A/B testing on your website’s lead capture forms to optimize their effectiveness. Vary the fields requested (e.g., name, email, phone number) and the call-to-action to see which version generates the most leads. Analyze the results using statistical significance tests (e.g., Chi-squared test) to determine which version performs better.

  • Null Hypothesis (H0): There is no significant difference in lead generation between Form A and Form B.
  • Alternative Hypothesis (H1): There is a significant difference in lead generation between Form A and Form B.

  • Chi-squared Test Statistic:

    Χ² = Σ [(Observed - Expected)² / Expected]

    Where:

    • Observed = actual number of leads from each form.
    • Expected = expected number of leads if there was no difference between forms.

  • If the calculated Χ² value exceeds the critical value at a chosen significance level (e.g., 0.05), reject the null hypothesis and conclude that there is a statistically significant difference between the forms.

  • Tracking Lead Source Effectiveness: Assign unique tracking parameters (e.g., UTM parameters in URLs) to different marketing campaigns. This allows you to track which sources are driving the most traffic and leads to your website. Analyze this data using web analytics tools to identify the most effective lead generation channels.

2. Assign: Segmenting and Routing Leads for Targeted Engagement

Once leads are funneled into the system, the next step is to assign them to appropriate groups, marketing plans, and team members. This process involves classifying leads based on their characteristics and needs, enabling personalized and effective engagement. This aligns with the principles of market segmentation and personalized marketing.

2.1. Principles of Lead Segmentation

• Contact Types: Categorize leads based on factors such as their relationship to your business (e.g., network group, allied resource, advocate, core advocate, sphere of influence, past client, geographic farm, co-op agent, referring agent, investor, adopted buyer).
• Buying Stage: Segment leads based on where they are in the buying process (e.g., awareness, consideration, decision).
• Demographic Information: Use demographic data (e.g., age, income, location) to segment leads and tailor your messaging accordingly.

2.2. Assigning Marketing Action Plans

Based on the lead’s segment, assign them to the most relevant marketing action plan. This ensures that leads receive timely and targeted communications.

• 8x8 Plan: An 8-week (8x8) marketing plan designed to onboard new leads quickly.
• 33 Touch Plan: A year-long marketing plan (33 Touches) designed to maintain consistent engagement with leads.
• 12 Direct Plan: A year-long marketing plan (12 Direct) plan that relies heavily on physical touchpoints (letters, gifts, etc.)

2.3. Practical Applications and Experiments

• Testing Different Marketing Plans: Conduct a controlled experiment to compare the effectiveness of different marketing plans. Randomly assign new leads to either an 8x8 plan or a 33 Touch plan and track their conversion rates. Use statistical analysis (e.g., t-tests) to determine if there is a significant difference in conversion rates between the two groups.

  • T-test Formula (for independent samples):

    t = (M1 - M2) / sqrt[(s1²/n1) + (s2²/n2)]

    Where:

    • M1 = Mean conversion rate of group 1 (e.g., 8x8 plan).
    • M2 = Mean conversion rate of group 2 (e.g., 33 Touch plan).
    • s1² = Variance of group 1.
    • s2² = Variance of group 2.
    • n1 = Sample size of group 1.
    • n2 = Sample size of group 2.
    • Dynamic Content Personalization: Use dynamic content personalization to tailor email and website content to each lead’s specific interests and needs. For example, if a lead has expressed interest in buying a home in a particular neighborhood, display listings and information related to that neighborhood.

3. Source: Identifying and Evaluating Lead Generation Channels

Understanding where your leads originate is crucial for optimizing your marketing efforts. By accurately sourcing leads, you can determine which channels are most effective and allocate your resources accordingly. This aligns with the principles of marketing analytics and ROI measurement.

3.1. Importance of Source Tracking

• ROI Calculation: By tracking the cost of each lead source and the revenue generated from those leads, you can calculate the ROI for each channel. This allows you to prioritize the most profitable sources.
• Resource Allocation: Understanding which sources are most effective allows you to allocate your resources (time, money, and effort) to those channels.
• Performance Optimization: By analyzing the performance of different lead sources, you can identify areas for improvement and optimize your marketing strategies.

3.2. Common Lead Sources

Common lead sources include:

• Past client referral
• Agent referral
• Network, Advocate, Core Advocate, or Allied Resource referral
• Sign calls
• Open House
• Farm
• FSBO/Expired Listings
• IVR calls
• Website
• Magazine ad calls
• Newspaper ad calls
• Newsletter
• Past client (repeat business)
• Just Sold cards
• Sponsorship (Little League)

3.3. Practical Applications and Experiments

• ROI Analysis of Different Lead Sources: Calculate the ROI for each lead source using the following formula:

  ROI = [(Revenue - Cost) / Cost] * 100

  Where:

  • Revenue = Total revenue generated from leads from that source.
  • Cost = Total cost of generating leads from that source.

  Compare the ROI of different sources to identify the most profitable channels.
  * Attribution Modeling: Implement attribution modeling to understand how different touchpoints contribute to lead conversion. Consider using models such as first-touch attribution, last-touch attribution, or multi-touch attribution to gain a more comprehensive view of the customer journey.

4. Track: Monitoring Lead Progress and Performance

The final step in the FAST system is to track the progress of leads as they move through the sales funnel. This involves monitoring lead engagement, follow-up activities, and conversion rates. This aligns with the principles of sales performance management and continuous improvement.

4.1. Key Performance Indicators (KPIs)

• Lead Follow-Up Rate: The percentage of leads that are contacted within a specified timeframe.
• Leads per Source: The number of leads generated by each lead source.
• Conversion Rate: The percentage of leads that convert into clients.
• Cost Per Lead (CPL): The cost of acquiring a single lead.
• Customer Lifetime Value (CLTV): The total revenue a single customer is expected to generate over the course of their relationship with your business.

4.2. Data Visualization and Reporting

Use data visualization tools (e.g., dashboards, charts, graphs) to track key performance indicators and identify trends. Generate regular reports to monitor lead progress and performance.

4.3. Practical Applications and Experiments

• Implementing a Lead Scoring System: Develop a lead scoring system to prioritize leads based on their likelihood to convert. Assign points to leads based on factors such as their demographics, behavior, and engagement with your marketing materials. Focus your efforts on leads with the highest scores.

• Analyzing Conversion Funnels: Analyze your conversion funnels to identify bottlenecks and areas for improvement. Track the percentage of leads that move through each stage of the funnel and identify points where leads are dropping off. Optimize your marketing and sales processes to address these bottlenecks.

  • Conversion Rate (Stage N to Stage N+1):

    Conversion Rate = (Number of Leads at Stage N+1 / Number of Leads at Stage N) * 100

4.4. Maintaining Compliance

• Always be courteous to anyone who requests to no longer be contacted. Being rude to someone who asked to opt out can result in a complaint.
• Keeping contacts who do not wish to be contacted labeled as such in your database prevents accidentally adding the same individual after deletion and contacting them again.

Conclusion

The FAST system provides a structured approach to lead management, enabling you to optimize your lead generation, nurture, and conversion efforts. By implementing the principles of Funnel, Assign, Source, and Track, you can improve your lead management process, increase your ROI, and grow your business. Remember to continuously analyze your data, experiment with different strategies, and adapt your approach to stay ahead of the competition. The key is consistent implementation and iterative optimization.