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Your Database Is Your Business
- A database is a strategic asset that determines the ability to generate potential customers and expand business.
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A database is an intangible asset that accumulates over time, providing a sustainable competitive advantage.
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Value of Database (VD) can be expressed as:
VD = N * ACR * Avg. CommissionN: Number of active contacts in the database.ACR: Annual Conversion Rate from contacts to customers.Avg. Commission: Average commission earned from each real estate transaction.
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The value of a database is a crucial measure of business in any industry that relies on relationships and personal services.
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Choose a CRM system capable of handling large amounts of data and providing effective tools for segmentation, communication, and tracking.
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Data Sources:
- Personal Contacts: Sphere of Influence (SOI).
- Past clients❓: Maintaining strong relationships ensures repeat business and referrals.
- Events and Conferences: Building relationships with professionals.
- Social Media: Platforms like LinkedIn, Facebook, and Twitter.
- Advertising and Marketing: Collecting data through online and email ads.
- Real Estate Exhibitions: Meeting potential clients in one place.
- Landing Pages: Creating dedicated pages to collect data from interested customers.
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Segment customers based on:
- Geographic Location.
- Real Estate Interests.
- Budget.
- Purchase Stage.
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Improve data quality by:
- Continuous Verification.
- Removing Duplicate Data.
- Enriching Data.
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“8x8” Program: A marketing strategy to build strong relationships with new clients during the first eight weeks, involving eight different contacts.
- “33 Touch” Program: A long-term strategy to maintain continuous❓ relationships with existing and potential clients, involving 33 contacts throughout the year.
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“12 Direct” Program: Focuses on sending 12 direct marketing messages❓ throughout the year.
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Return on Investment (ROI) calculation:
ROI = (Profit from Marketing - Cost of Marketing) / Cost of Marketing -
Challenges of managing a database:
- Time and Effort:
- Delegate tasks to administrative assistants or marketing specialists.
- Automate repetitive tasks.
- Maintaining Data Quality:
- Update data regularly.
- Use data verification tools.
- Complying with Privacy Regulations:
- Obtain customer consent.
- Provide an unsubscribe option.
- Time and Effort:
Chapter Summary
- The chapter emphasizes the importance of a database❓ in building and developing real estate businesses.
- The size and quality of the database of potential and current customers are directly related to the success of the real estate agent.
- The database is the fundamental asset upon which lead generation strategies and sustainable growth are based.
- The ability to generate leads is the essence of the real estate business.
- There is a difference between active lead generation strategies (e.g., direct prospecting and marketing❓) and passive lead reception strategies (e.g., relying on traditional advertising or incidental referrals). Sustainable success depends on adopting active and organized lead generation strategies.
- The database is the core of the real estate business. A larger and higher quality database increases the chances of success. Building a large database is key to generating more leads.
- Targeted and database-driven marketing is important. Using the database, the real estate agent can send customized marketing messages❓ to the target audience, increasing the chances of attracting potential customers.
- Focus on lead generation must be continuous❓ and constant. Agents who stop generating leads once they achieve a certain level of success often suffer a decline in their business. Lead generation should be an ongoing process.
- Utilize available resources, such as hiring specialized telephone marketers and training the team on effective scripts and dialogues.
- Be proactive in hiring and do not wait until the workload increases before hiring assistants.
- Success in real estate depends heavily on the ability to generate leads effectively and continuously.
- A large and organized database is the foundation for successful lead generation strategies.
- Real estate agents should focus on building a large, high-quality database and use it to direct their marketing efforts.
- Lead generation should be a continuous and constant process and should not stop even after achieving a certain level of success.
- Real estate agents should develop a strategic plan to build and grow their database, setting goals and identifying the resources needed to achieve those goals.
- Real estate agents should invest in appropriate customer relationship management (CRM) software that allows them to organize, track, and activate their database.
- Real estate agents should train and develop their team on lead generation and database-driven marketing skills.
- Real estate agents should regularly measure and evaluate the results of their lead generation efforts and adjust their strategies as needed.
- Real estate agents should focus on building strong relationships with their customers and providing excellent customer service, increasing the chances of obtaining❓ referrals and repeat customers.
- Real estate agents should allocate the majority of their time❓ and resources to lead generation efforts.
