The simple question facing any business person is
do you have a Prospecting Database.
See a recent article for real estate agents we
published recently :
Past Real Estate clients can be an absolute gold
mine of future business if worked properly. You don’t need to
reward them with elaborate gifts for their support of you and what
you do. A few simple well thought-out systems will enable you to
hit the mother load of referrals.
The first step to developing a bulletproof past
client follow-up system is to computerize. There are still many top
Agents who do not effectively use a contact management software
program. There is a tremendous selection available to Agents. You
can get real estate specific programs like Top Producer, Prep,
Online Agent or general contact management software like ACT! Or
Goldmine. All these programs work well if you know how to use
them.
There are two key ingredients that one should
look for beyond the bells and whistles features. They are
components that many people would not even consider when selecting
a software package.
Training. Does the software come with solid training or
can someone local provide it for you for a fee? Most of us are not
going to read and study the voluminous manuals that come with
software. If you cannot learn to use it quickly and efficiently, do
not buy it. Most of us will not carve out the time in our schedule
necessary to really become proficient with our
software.
Network Time. Make sure the software networks now. Do not buy
on the promise it will network shortly.
Your database is your lifeblood. The more
information you have on your clients, the more transactions they
will help you generate. Harvey McKay, “Mr. Networker”,
who wrote Swim With The
Sharks Without Being Eaten, has the McKay 66 questions that all his sales
people work to find out about all their prospects and clients. His
salespeople have a tremendous advantage over their competition
because they get to know their clients.
The basic bare minimum should be:
children’s names, ages, client and spouse birthdays,
anniversary, move-in date, hobbies, interests, business address,
phone number and title. With the advent of e-mail, the e-mail
address is crucial, efficient, and inexpensive correspondence. Load
the gun in your favor, so you have the ammo to hit the mark. Do not
leave to chance whether they will do business with you
again.
Separate your past clients and sphere of
influence into two categories of people: the regular group of
people who will probably refer your business and the group that are
advocates of you and your service. You will get 80% of your
referrals from your advocate group. Since they will do more for
you, you should treat them differently.
Create a system to keep in touch with both
groups. The advocates you are going to keep in tighter contact with
and should hear from you more often. Look for opportunities to
touch base with your database at least three to four times a year.
This should be the minimum standard. There truly are excellent
ideas on how to do this effectively.
Newsletters. Birthday Cards. Holiday Greetings.
Anniversary Cards. Reports on issues that affect them. Home Move-in
Date.
This is just a short list of
options.
If you really want your phone to ring with
referrals, you need to build your database fast. It's amazing at
how many Agents mail without a phone follow up. If you truly desire
tremendous results in the referral area, call your past
clients!
Here are the numbers that show why you should
consider making these calls. When you send out direct mail, you
will receive at best a 1% to 2% return. If you phone follow-up
behind it, you will receive at least an 8% to 10% return. Take a
look at what you mail regularly. Multiply the income you would
receive if you made a few easy calls. The increase in income is
enormous. Every client of ours has had these results over time.
They have also found out their clients love them, and they have fun
doing it. Truthfully, they have had fun prospecting their
database.
Most Agents could add another 25% to their
business if they really worked their past clients, if they
developed a system to separate the best clients from the rest, then
keep in touch with both groups regularly. There is a 25% increase
in those 3x5 cards or in your computer waiting right now. Take the
time to plan for it daily. Don’t let another Agent set up his
sales operation in your past client’s front
yard.
