from Florida Realtor Magazine, December 2007 | by Walter Sanford | page 24

Contact Management: Who Goes Into Your Database?

By marketing to other sales associates, you can build lasting relationships that net you business.

Who really goes into your contact management database? “Everyone” is the answer that I receive the most. However, the more names, the more the overhead—because you have to write, e-mail and call your database. The real goal is to have people in your database to whom you have given a piece of your heart or people who are holding “IOUs” on past deeds that you’ve performed for them.

After you know who goes in, you’ll want to know how to contact them, how often and with what message. When you have all that planned out, you can check off one more item for your lead-generation system.

At my office, I have a list of the leads that go into my database. Here’s how it works:
1. Family, friends and associates. They qualify because at some point in the past, I’ve earned a piece of their heart. They know me, and with continued service-oriented contact, I have a great chance to get their business.

2. Past customers and current leads. These people qualify, because they’re experiencing or have experienced my free services; therefore, the “IOUs” are in place. (Some 99 percent of our services are free prior to the signing of a contract.)

3. Web site, direct mail or call-ins. If they’ve made the effort on their end, you can spend the overhead to service them.

4. Open house attendees. They squeezed my hand and looked me in the eye—this makes future phone or e-mail contacts easier.

5. People who “drink from your trough.” If you do business with them, they’ll generally do business with you. Be firm. Ask your accountant for leads. Before you buy a car, ask the salespeople, “Who’s buying or selling a home in the next 24 months?” Pull out your check register and credit card bills. Then, make a list of those locally frequented business contacts for your database entries.

6. Orphaned customers. As a young sales associate, I was completely broke and looking for business. Inside my file cabinets were closed files, with representing agents who were no longer with my office. Since my broker owned the information and the listing, I asked her to write all these past customers a letter to tell them that I was their new representative, that I had superb abilities and that I had asked for them to accept my phone call or e-mail.

7. Customers whom I did not represent but who did buy my listing. I met them during the negotiations, underpromised and overdelivered.  Therefore, if I believed soliciting that representative’s customer after closing was not in violation of any moral, ethical or legal rules—then I might add them to my database.
This method of customer solicitation may not be appreciated by the other sales associate so you must think about the ramifications before you do this.

8. You might have noticed that I left out your Lions Club, church group and college alumni association. If you’re not well known by the groups, don’t service its members’ real estate needs and don’t make live presentations to them on real estate subjects. These people may not be very good leads.

Once you have these people in your contact management database, you can further categorize them as A, B or C leads. A leads are those closest to you who are ready to buy or sell right now. B leads are those you think will be ready to buy or sell in the next few months. C leads are those who recently bought or sold and who may be good sources of referrals.

In addition, it’s vital to record in your database every conversation, e-mail or handwritten note sent to you. You’ll sound like you have the greatest memory in the world if you can recall what Johnny did on his last birthday or that Mr. and Mrs. Smith planned to plant a large garden at their new home. 

Walter Sanford is an Illinois-based real estate coach and trainer.