Here’s a look at the role your database plays in generating new business.
In the third part of our video series on lead generation, we’re talking about my favorite subject: your database!
Your database is a tool that centrally stores all of your information for your clients and your business. It helps you nurture clients through the process from start to finish and grow and build deeper relationships with your clients.
In our lead generation model, there are two segments. The first is your daily lead generation efforts, and the second is your database. Leads are people who have reached out for information, but you have not gotten permission to have a two-way conversation with them.
After you’ve spoken with them and earned their permission, they become a contact. Your leads are who you try to connect with, and your contacts are people you already have connected with. It’s important to have a purposeful and consistent form of communication between you and your contacts. We do this through drip campaigns, or regular, personal touches to those contacts.
Turning a lead into a contact usually takes around 19 touches. This includes four quarterly phone calls, twelve monthly emails, two pieces of promotional direct mail, and one annual event.
After you’ve connected with those leads, it takes 36 more touches to convert them, on average. This includes the same four phone calls, but also bi-weekly emails (26), two events, and four pieces of promotional direct mail. The promotional direct mail could be door knockers, magnets, calendars, or anything else with your company featured on it.
The majority of people who do the 36-touch program convert their database at a 16% rate. That means for every 100 people that are effectively being communicated with, you should get 16 transactions. Here at KW United, we have agents who are converting at 20% to 25%. This means you can have a smaller database with a bigger impact or a bigger database with an even greater impact.
I’ve helped many agents in this market center grow their businesses using nothing other than this lead generation model from Gary Keller’s“‘Millionaire Real Estate Agent.”
If you have any questions for me or want to learn how to build your unique 36-touch program, don’t hesitate to reach out via phone or email. Stay tuned for the fourth video in this series where we’ll talk about how to convert these contacts into closings. I hope to hear from you soon.