Fundamentals: 8x8 for New Customers and 33 Touch for Relationship Building

8x8 Strategy for New Clients:

This strategy involves an intensive and organized communication plan during the first eight weeks after meeting a new potential client. It aims to leave a positive and lasting impression, build trust, and establish a strong professional relationship.

The strategy is based on the following principles:

• recency effect❓❓: Recent information is more impactful on memory and decisions. Frequent communication in the initial weeks ensures the agent’s name and services remain top-of-mind.
• Mere-Exposure Effect: People tend to prefer things they are exposed to repeatedly. Repeated contact increases familiarity and comfort.
• Social Exchange Theory: Human relationships are based on the exchange of benefits. Providing value to the client (useful information, advice, small gifts) creates a sense of obligation, increasing the likelihood of future cooperation.

The 8x8 strategy consists of eight structured contacts over eight weeks. Examples of contacts include:

• Week 1: Handwritten thank-you note + market report + business card.
• Week 2: Market statistics.
• Week 3: Updated market statistics.
• Week 4: Phone call to check in and answer questions.
• Week 5: Free report on a relevant topic.
• Week 6: Advice on real estate investment or home maintenance.
• Week 7: Useful branded item (e.g., refrigerator magnet, notepad).
• Week 8: Follow-up phone call and referral request.

Customization is essential to tailor the strategy to the client’s needs and interests.

The effectiveness (E) of the 8x8 strategy can be represented by the equation:

E = k * (R + A + V)

Where:

• k = Customization factor (0 to 1)
• R = Recency effect
• A = Affinity effect
• V = Value provided

33 Touch Strategy for Long-Term Relationship Building:

This strategy is a regular and diverse communication plan throughout the year with current and former clients, as well as other contacts in the database. It aims to maintain strong relationships, build loyalty, and increase referrals.

The strategy is based on the following principles:

• Rule of 7: A potential client needs to see or hear a marketing message at least seven times before making a purchase decision.
• Relationship Marketing: Focuses on building long-term relationships with clients rather than just individual transactions.
• Communication Theory: Emphasizes the importance of continuous and effective communication in building relationships.

The 33 Touch strategy consists of 33 contacts throughout the year, including a variety of methods:

• 14 Contacts: Emails, letters, postcards, newsletters, or other marketing materials.
• 8 Contacts: Thank-you or “thinking of you” cards.
• 3 Contacts: Phone calls.
• 4 Contacts: Personal greeting cards (birthdays, anniversaries, etc.).
• 4 Contacts: Holiday greeting cards.

Each contact should include a reminder of the services offered and how the client can provide referrals.

Customization is important to tailor the strategy to the needs and interests of each client group.

Important notes:

• Record notes about each contact in a CRM system.
• Apply the plan consistently throughout the year.
• Modify the plan as needed to meet client needs.

Research indicates that marketing to the client database is generally the most cost-effective way to generate leads. For every 12 people in the contact database who are marketed to 33 times (33 Touch), one can reasonably expect to achieve two sales transactions. One sale is likely to be repeat business, and the other, referral business. A conversion rate of 12:2, 300❓❓ people are needed in the database to achieve 50 sales.

The return on investment (ROI) for the 33 Touch strategy can be estimated using the equation:

ROI = (GPM * CR * LTV) - C

Where:

• GPM = Gross Profit Margin
• CR = Conversion Rate
• LTV = customer lifetime value❓❓
• C = Total Cost