Database Marketing: 12 Direct, 8x8, & 33 Touch

## Database Marketing: 12 Direct, 8x8, & 33 Touch

This chapter focuses on systematizing your marketing approach to your database, particularly within the context of lead generation and relationship building in real estate. We will explore three distinct yet interconnected strategies: 12 Direct, 8x8, and 33 Touch. These systems provide a structured framework for consistent communication with both potential and existing clients, maximizing your reach and building lasting connections.

### 1. The Foundation: Systematic Database Marketing

Before diving into the specifics of each strategy, it's crucial to understand the underlying principle: **consistent, targeted communication is key to successful database marketing.**  The real estate industry, as noted, is a "close contact sport" that demands frequent and systematic engagement.

*   **Goal:** Transform a collection of names and numbers into a valuable network of prospects, clients, and advocates.
*   **Challenge:**  Reaching a large audience with personalized and relevant messages.
*   **Solution:** Employing structured marketing plans that allow for efficient and effective communication.

### 2. 12 Direct: Nurturing the "Haven't Met" Database

The 12 Direct strategy is designed for your "Haven't Met" database – individuals you haven't established a personal relationship with. This typically includes mailing lists for farm areas and other demographic groups you wish to target.

*   **Definition:** Twelve direct mail marketing pieces sent annually (one per month) to a targeted "Haven't Met" audience.
*   **Objective:**  To generate leads from the "Haven't Met" database and convert them into "Met" contacts.
*   **Key Concept: Targeted Marketing** Understanding your audience is vital.

#### 2.1.  Scientific Principles: Direct Mail Marketing & Response Rates

Direct mail marketing, while sometimes perceived as outdated, can be an effective tool when strategically implemented.  Its effectiveness is governed by several factors, which can be analyzed using probability and statistics:

*   **Reach (R):** The total number of individuals in your mailing list.
*   **Response Rate (RR):** The percentage of recipients who respond to your mail piece (e.g., by calling, visiting a website, or attending an event).
*   **<a data-bs-toggle="modal" data-bs-target="#questionModal-116113" role="button" aria-label="Open Question" class="keyword-wrapper question-trigger"><span class="keyword-container"><a data-bs-toggle="modal" data-bs-target="#questionModal-400832" role="button" aria-label="Open Question" class="keyword-wrapper question-trigger"><span class="keyword-container">conversion rate</span><span class="flag-trigger">❓</span></a></span><span class="flag-trigger">❓</span></a> (CR):**  The percentage of respondents who become qualified leads.
*   **Closing Rate (CLR):** The percentage of qualified leads who ultimately become clients.

The number of clients generated (C) can be modeled as:

    *   *C = R * RR * CR * CLR*

**Example:**

Suppose you send 1,000 mail pieces (R = 1000). Your response rate is 1% (RR = 0.01), your conversion rate is 10% (CR = 0.1), and your closing rate is 5% (CLR = 0.05).  Then:

    *   *C = 1000 * 0.01 * 0.1 * 0.05 = 0.05*

This suggests you'd generate approximately 0.05 clients from this campaign, highlighting the need for <a data-bs-toggle="modal" data-bs-target="#questionModal-400830" role="button" aria-label="Open Question" class="keyword-wrapper question-trigger"><span class="keyword-container">high volume</span><span class="flag-trigger">❓</span></a> and optimized rates.

**Empirical Rule Application:** The Empirical Rule (or 68-95-99.7 rule) can be applied to response rates. If you track the response rates of multiple 12 Direct campaigns, you can establish a mean response rate and standard deviation.  This allows you to predict the range of likely response rates for future campaigns, helping you set realistic expectations.

#### 2.2 Practical Applications & Experimentation

*   **A/B Testing:** Send two slightly different versions of your mail piece (e.g., different headlines, images, or calls to action) to different segments of your mailing list. Track the response rates to determine which version performs better.
*   **Segmentation:** Divide your mailing list based on demographics, interests, or past behavior. Tailor your messaging to each segment to increase relevance and response rates.
*   **Offer a Valuable Incentive:** Providing value is important for increasing the chances of a response.

#### 2.3 Caveats & Considerations:

*   **Spam Filters & Mail Clutter:** The digital age has trained people to filter out unsolicited mail. Your direct mail needs to be highly engaging and visually appealing to stand out.
*   **Data Accuracy:** Ensure your mailing list is up-to-date and accurate to avoid wasted resources.

### 3. 8x8: Intensive Engagement with New "Met" Contacts

The 8x8 program is designed to rapidly build rapport with new "Met" contacts – individuals you've recently connected with, such as leads from open houses or online inquiries.

*   **Definition:** Eight touches over eight weeks designed to establish a strong connection and position you as the go-to real estate professional.
*   **Objective:** Jumpstart your 33 Touch program and create a lasting relationship.
*   **Key concept: Reciprocity** Giving something of value increases the likelihood of them returning the favor.

#### 3.1 Psychological Principles: The Foot-in-the-Door Technique & Mere-Exposure Effect

The 8x8 strategy leverages several psychological principles to build trust and influence:

*   **Foot-in-the-Door Technique:**  Starting with small, easy-to-agree-to requests (e.g., sending a postcard) increases the likelihood of the individual agreeing to larger requests later (e.g., referring clients).
*   **Mere-Exposure Effect:** Repeated exposure to your name, face, and brand increases familiarity and likeability.  The more someone sees you, the more comfortable they become. This effect can be mathematically modelled using a decaying exponential function:

    *   *L(t) = L<sub>0</sub> * e<sup>-kt</sup>*

        Where:

        *   *L(t)* is the likeability at time *t*.
        *   *L<sub>0</sub>* is the initial likeability.
        *   *k* is a decay constant (representing the rate at which likeability increases with exposure).
        *   *t* is the number of exposures.

This model suggests that the increase in likeability diminishes with each subsequent exposure. This explains the importance of spreading touches out over a period of time (as opposed to hitting someone with 8 touches at once).

#### 3.2 Implementation & Examples

*   **Week 1:**  Introduction letter, brochure, market report, business card.
*   **Week 2 & 3:** Postcards, inspirational cards, community calendars, market statistics.
*   **Week 4 & 8:** Phone calls to check in and ask for referrals.
*   **Week 5 & 6:** Free reports, real estate investment tips, or home maintenance advice.
*   **Week 7:**  A useful giveaway (refrigerator magnet, notepad).

Each communication should subtly reinforce your value proposition and include a clear call to action (e.g., "If you know anyone looking to buy or sell, please share their name with me").

#### 3.3 Monitoring and Analysis

*   **CRM Integration:** Use your CRM to track all 8 touches for each contact.
*   **Response Tracking:** Monitor responses to each touch (e.g., phone calls, emails, website visits) to gauge effectiveness.
*   **Sales Cycle:** Measure the time it takes for contacts who have gone through the 8x8 program to convert into clients.

### 4. 33 Touch: Sustained Relationship Building

The 33 Touch program is designed for your "Met" database – current clients, past clients, and other key relationships.  It's about nurturing these relationships over the long term to generate repeat business and referrals.

*   **Definition:** 33 interactions throughout the year, aimed at staying top-of-mind and providing value.
*   **Objective:** Maintain strong relationships, encourage repeat business, and generate referrals.
*   **Key Concept: Consistency** A consistent presence over the long term builds trust and loyalty.

#### 4.1 Relationship Marketing Principles: Customer Lifetime Value (CLTV)

Understanding the lifetime value of a customer is crucial for justifying the investment in the 33 Touch program.  CLTV estimates the total revenue a customer will generate for your business over their relationship with you. It is calculated as:

    *   *CLTV = (Average Transaction Value) * (Frequency of Transactions) * (Customer Lifespan) * (Profit Margin)*

**Example:**

A client buys or sells a home every 7 years (lifespan). Your average commission is $10,000 (average transaction value) with a 30% profit margin. Their CLTV is:

*CLTV= $10,000 * (1 sale/7 years) * 7 years * 0.30 =$3,000*

By maintaining a strong relationship with this client through the 33 Touch program, you increase the likelihood of them using your services again and referring others to you, significantly boosting your overall CLTV.

#### 4.2 Examples of "Touches"

The 33 touches can include a variety of communication methods:

*   **Personal Notes:** Handwritten thank-you notes, birthday cards, or holiday greetings.
*   **Phone Calls:** Check-in calls, market updates, or invitations to events.
*   **Email Newsletters:** Valuable content, market insights, and local events.
*   **Social Media Engagement:** Liking, commenting on, and sharing their posts.
*   **Client Appreciation Events:**  Parties, workshops, or exclusive previews.
*   **Gifts:** Small, thoughtful gifts relevant to their interests or needs.
*   **Personal Visits:** Coffee, Lunch, or an invitation to your office.

#### 4.3 Measurement and Optimization

*   **Referral Tracking:** Track the source of your referrals to determine which touches are most effective at generating new business.
*   **Client Feedback:**  Regularly solicit feedback from your clients on your service and communication methods.
*   **CRM Analysis:**  Use your CRM to analyze client engagement and identify opportunities to personalize your touches.

### 5. Integrating 12 Direct, 8x8, and 33 Touch: A Holistic Approach

These three strategies are not mutually exclusive. They work best when integrated into a cohesive database marketing plan.  A new contact might start with the 8x8 program and then transition to the 33 Touch program.  Individuals in your farm area who haven't yet expressed interest might be targeted through 12 Direct.

By understanding the underlying principles of these strategies and continuously measuring and optimizing your efforts, you can build a powerful database marketing system that generates consistent leads, fosters lasting relationships, and drives significant business growth.