Your database is an overhead contributor so doing more is not necessarily the answer. Your database is a foundational lead generator, customer pleaser, and exit strategy. Doing nothing has you accomplishing the production standard of “just getting by.” Like all other real estate strategies that I have systemized, this foundational system of the mega real estate agent is one of your highest priorities for business planning.
Whatever you call it -- past client, sphere of influence, people farm, or your database -- you first have to decide who goes in it. Put people in it who don’t care about you and you waste overhead when you contact them. Miss people and you will lose some great opportunities. Here is my checklist for the people who are included in our database:
A. People We Touch: Ad Or Informational Calls; People We Meet And Help
The relationships we build everyday are memorialized in our database. This is contrasted by putting in low conversion leads like your alumni database, expires, or other people that do not know you.
B. Class A,B,C Buyer And Seller Leads: Current Clients And Past Clients
These are the people who really understand your service commitment and represent your repeat and referral base.
C. Family, Friends, And Affiliates
As the old saying goes…"You can’t pick ‘em,” but if you are good at what you do, they will know it and become your biggest cheerleaders.
D. People You Spend Money With
Go through your check registers and remind them of your business loyalty. When buying your next car, deal with the salesman who is buying or selling real estate within the next year. Send your business card with your bills. Tell your mechanic it’s time for him to use your services and if nothing materializes, use a mechanic who understands your need to increase business!
E. Snag The Co-Ops Client
"Ouch!" you say? Here are the conditions to step on the other agent’s toes, knowing it may cause some bad blood. I don’t do it when the co-op is a personal friend or when I don’t believe someone has much of a follow-up program. I know it may sound a little tough, but it is business. After a transaction, no one owns the client. Send the buyer who bought your listing, a letter explaining that you can pass on questions to the seller or demonstrate different aspects of the property. Send them a waiver certificate, waiving the "first time deductible" on the home warranty policy that you helped negotiate! Then call them and add them to your database.
F. New Address Cards
Offer your "closed client" a new address, phone number, and email card. Send it to local friends, family, and associates. Your client will have to supply the contact information. It’s a great service to your "closed clients" plus you get to do a little horn blowing to your client’s associates. In about three weeks, send a copy of the testimonial letter that you get from your client to the same list. After you are done, add this whole list to your database.
Now we have to decide what to send. You can send just about anything including recipes, refinance notices, Thanksgiving cards, newsletters, customized anniversary letters – it’s up to you. I personally like the real estate information writings, but the warm and fuzzy stuff works too!
There are as many things to email, mail, deliver and call with, as there are clients. Usually, stuff that answers the question "What’s in it for me?" to the client has its best response.
How to contact is very important. Email is the cheapest and since you know these people, you have asked them all for an email address. Since there are so many emails in your client’s mailbox, you may get lost in the shuffle unless you have very interesting content. A personal visit is the most expensive form of contact and is usually impractical. Direct mail seems to balance that personal touch and cost, with the telephone giving you the most bang for your buck! I have used all four, with the personal visit reserved for parties or chance meetings.
Determination of frequency will be your next step. Newer agents should control their database more often than a veteran, because they lack the reputation and experience with their clients. Also, it is more practical, because their database is smaller. When I left direct sales, I had over 17,000 people in my database. The least amount of "frequency in contact" that I could get away with was four emails/direct mails a year and two phone calls. I had to hire someone to help me with the volume of phone calls. The phone calls were the most important because they allowed me to get feedback and information, re-establish a calendar or call back date and ask for referrals. I tried to eliminate them by beefing up emails and direct mail, but I failed miserably. You gotta talk to them! I even included my sellers who have moved out of town, but they still have local friends!
Staying in touch with your sphere of influence and maintaining a cap on overhead is one of your most important business plans. This year, let’s give all the people you care about the gift of great real estate service.
