Now that we've covered how to organize your database, let's talk about the most effective ways to touch it for repeat and referral business.
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We previously talked about how to organize your database, but how often should you communicate with the people in your database?
Your CRM contains contact info and important dates for people who might do business with you. Your sphere of influence in that database should also contain core advocates who refer you two to 10 people a year; you'll communicate with them differently.
Gary Keller's "Millionaire Real Estate Agent" contains the 33-touch and the 8x8, which is the basis for how to communicate with your database.
When you first meet someone and ask them if they know anyone looking to buy or sell a home, they should go into the database once you have their permission to do so. You'll ask them if they'd like to receive information about real estate and if they say yes, they go into your database. If they say no, don't waste your time. Enter their name, email, address, and any other notes you can find out about them so you can communicate well with them. You should 'touch' that person when you first put them in your database.
33 touches a year is the sweet spot.
The 8x8 concept states that all new contacts should be communicated with once a week for the first eight weeks. After that, they move into the 33-touch category, meaning you'll communicate with them 33 times over the next year. This could include phone calls, emails, note cards, social media posts, or even in-person appearances. You can also send letters, gifts, and videos.
Some people do more than 33 touches and some people do fewer, but 33 has been found to be the sweet spot.
So what portion of your business should be repeat and referral business? It should be a strong component in your business; anywhere between 25% and 35%. Even if you strive for 40% to 50%, you'll have a solid business that keeps moving along regardless of market conditions.
If you'd like to learn more about how to leverage your database or you have any questions about the real estate business, don't hesitate to give me a call or send me an email. I'm always happy to help.
