Database Growth: Building and Maintaining Contacts

Chapter 2: Database Growth: Building and Maintaining Contacts

Introduction

This chapter delves into the critical aspect of database growth, focusing on building and maintaining contacts within the context of lead generation. We will explore the scientific underpinnings of effective contact management, emphasizing data integrity, efficient organization, and strategic utilization for optimal lead generation. Drawing upon principles from information science, network theory, and marketing science, this chapter equips you with the knowledge and practical tools necessary to cultivate a thriving database of potential leads.

2.1 The Foundation: Contacts and Information Architecture

The core of any successful database lies in the quality and quantity of its contacts. Each contact represents a potential lead, and the information associated with that contact is the fuel that drives effective communication and lead nurturing.

2.1.1 Mandatory Contact Information

The following data points are essential for all contacts within your database:

1. Name: Full legal name (first, middle, last) for accurate identification and personalization.
2. Phone Number: Multiple phone numbers (home, mobile, office, fax) to maximize reachability. Prioritize mobile numbers, as these are often the primary communication channel.
3. Email Address: A valid email address is crucial for digital marketing and communication. Implement email validation techniques to ensure accuracy and reduce bounce rates.
4. Home Address: Physical address for direct mail campaigns, geographic targeting, and property-related information (if applicable).
5. Notes on Past Correspondence: Comprehensive records of all interactions (phone calls, emails, meetings) to provide context and personalize future communication. These notes must include the date of the interaction, the method of interaction (e.g., phone, email, in-person), the team member involved (for accountability), and a summary of the interaction.
6. Source: Identification of the origin of the contact (e.g., website form, referral, open house). This information is critical for evaluating the effectiveness of different lead generation channels.
7. Database Group: Categorization of contacts based on shared characteristics (e.g., potential buyers, past clients, investors). This enables targeted marketing and communication strategies.
8. Activity Status: A binary flag indicating whether the contact is actively searching or selling (Active = TRUE) or is a prospective buyer or seller (Active = FALSE). This allows for prioritization of leads.
9. Status Level: Assigning a status level (e.g., A, B, C) based on the contact’s potential value and engagement level. This facilitates lead scoring and prioritization.
10. Contact Type: Categorization of contacts based on specific attributes (e.g., FSBO, Expired, PTA, Women’s Symphony League).

2.1.2 Enhanced Information for Inner Circles

For contacts within your “inner circle” (e.g., close friends, family, high-potential clients), capturing additional information is highly beneficial:

1. Birthday: Essential for personalized greetings and relationship building.
2. Spouse’s/Children’s Birthdays: Demonstrates a deeper level of care and consideration.
3. Children’s Names: Allows for more personalized and relevant conversations.
4. Anniversary: Another opportunity for personalized greetings and relationship building.
5. Hobbies: Provides insights into the contact’s interests, enabling targeted communication and relevant content sharing.
6. Job Position: Useful for understanding the contact’s professional background and potential networking opportunities.
7. Company: Important for business-to-business (B2B) lead generation and understanding the contact’s industry.

2.2 Database Design and Mathematical Considerations

Database design is a crucial aspect of database growth. Efficient databases save time, and effort and reduce errors.

2.2.1 Relational Database Principles

Employ relational database principles to ensure data integrity and efficient querying. This involves structuring your data into tables with defined relationships, minimizing redundancy, and ensuring data consistency.

• Normalization: A database design technique that reduces data redundancy and improves data integrity by dividing the database into two or more tables and defining relationships between the tables. The goal is to isolate data so that changes to a field can be made in only one table.

  • First Normal Form (1NF): Each column in a table should contain only atomic values (indivisible units).
  • Second Normal Form (2NF): The table must be in 1NF, and all non-key attributes must be fully functionally dependent on the primary key.
  • Third Normal Form (3NF): The table must be in 2NF, and all non-key attributes must be non-transitively dependent on the primary key.

2.2.2 Scalability and Growth Metrics

As your database grows, scalability becomes a critical concern. You should choose a database management system (DBMS) that can handle increasing data volumes and user traffic.

• Growth Rate (GR): The percentage increase in the number of contacts over a specific period (e.g., monthly, quarterly, annually).

  • GR = ((Contacts_t - Contacts_t-1) / Contacts_t-1) * 100

    Where:

    • Contacts_t = Number of contacts at time t
    • Contacts_t-1 = Number of contacts at time t-1

• Churn Rate (CR): The percentage of contacts that are removed from the database over a specific period.

  • CR = (Contacts Removed / Total Contacts at Start) * 100

• Net Growth Rate (NGR): The difference between the growth rate and the churn rate.

  • NGR = GR - CR

Monitoring these metrics will provide valuable insights into the health and growth trajectory of your database.

2.3 Leveraging Contact Management Software (CMS)

CMS is indispensable for managing a large contact database effectively. Choose a CMS that aligns with your specific needs and business processes.

2.3.1 Essential CMS Features

Any CMS should include the following features:

1. Contact Information Management: Detailed fields for storing comprehensive contact information, including customizable fields.
2. Address Book Importing and Exporting: Seamlessly import and export contacts for data migration and backups.
3. Transaction Management: Track listings, closings, and other transactions associated with contacts.
4. Calendaring and Appointment Scheduling: Schedule appointments, set reminders, and integrate with your 8x8 and 33 Touch plans.
5. Email Integration and Automation: Send mass emails, create email campaigns, and track email performance.

2.3.2 Desirable CMS Features

Consider CMS programs with these functionalities:

1. Reporting: Analyze marketing campaign performance, lead conversion rates, and other key metrics.
2. Marketing Material Generation: Create marketing flyers, presentations, and other collateral directly within the CMS.

2.4 Updating and Maintaining Your Database: Data Integrity

Maintaining data integrity is paramount for database effectiveness. Implement processes to ensure that contact information is accurate, complete, and up-to-date.

2.4.1 Updating Information Post-Transaction

After a contact completes a transaction, ensure the following:

1. Contact Information Update: Verify and update all contact information (address, phone number, email).
2. Database Category and Group Adjustment: Re-categorize the contact based on their current status (e.g., past client, referral source).
3. Database Plan Assignment: Assign the contact to the appropriate database plan for ongoing communication and nurturing.
4. Notes Update: Record all relevant details of the transaction and any future communication plans.

2.4.2 Data Validation Techniques

Implement data validation techniques to prevent errors and ensure data accuracy:

• Format Validation: Ensure that data entered into specific fields conforms to the correct format (e.g., phone number format, email address format). Regular Expression (regex) can be utilized for this purpose.

  • Example: Email address regex = ^[a-zA-Z0-9._%+-]+@[a-zA-Z0-9.-]+.[a-zA-Z]{2,}$

• Range Validation: Limit the values that can be entered into numeric or date fields to a specific range.

• Lookup Tables: Use lookup tables to restrict the values that can be entered into certain fields (e.g., state abbreviations, country codes).
• Data Cleansing: Regularly cleanse your database to remove duplicate entries, incorrect information, and outdated contacts.

2.4.3 The Importance of Consistent Note-Taking

Consistent and detailed note-taking is crucial for maintaining context and personalizing communication. All team members should record the dates and relevant highlights of any correspondence with a contact.

2.5 Experimentation and Continuous Improvement

Database growth is an ongoing process that requires continuous experimentation and improvement.

2.5.1 A/B Testing of Lead Generation Strategies

Conduct A/B tests to compare the effectiveness of different lead generation strategies (e.g., different website forms, different email subject lines). Track conversion rates and identify the strategies that yield the best results.

2.5.2 Analyzing Database Performance Metrics

Regularly analyze database performance metrics (growth rate, churn rate, conversion rates) to identify areas for improvement. Use these insights to refine your contact management strategies and optimize your lead generation efforts.

Conclusion

Building and maintaining a thriving contact database is the cornerstone of effective lead generation. By understanding the scientific principles of information architecture, database design, and contact management, you can create a powerful engine for generating leads and driving business growth. Remember to prioritize data integrity, leverage the capabilities of CMS, and continuously experiment and improve your strategies to maximize the value of your database.