Stay in touch with your database they tell you.
I get it, you’re tired about hearing what you need to be doing, especially something called database marketing.
I mean why would any agent implement a database marketing campaign instead of doing something like Facebook ads or getting the latest autoresponder with the super duper drip email campaign that is “CRUSHING IT”. I got news for ya!
Quit chasing the shiny objects because they can bankrupt you!
Over 60% of Realtors’ business comes from referrals and repeat business so let’s use our common sense and focus on that before you start chasing the shiny objects. Shiny objects are great for drumming up new business, but they can also be very costly. What do you think is more important in running your real estate business; setting up a database marketing campaign that targets where 60%+ of all agent business comes from or investing a hefty chunk of money to adapt the latest shiny object that goes after complete strangers?
Set up your real estate business to win in the long run first.
You don’t get referrals and repeat business from strangers, you get them from the relationships you have established in life.
Want to know how you get more referrals and repeat business?
I want to address the 3 most common excuses Realtors make to avoid setting this up in their business. My goal here is to help you understand this isn’t something you should be doing, it’s something you MUST be doing.
Here are the top 3 excuses Realtors have for not running a database marketing campaign.
Database Marketing Reservation #1- “I don’t know what to send my database”.
Great reservation, but let me answer this correctly. You get referrals and repeat clients from your relationships you have in life, not complete strangers. However, your relationships don’t want you to always be talking about real estate either. Constantly talking about your latest open house or why they should “buy now” will turn people off. People don’t want to talk about real estate until they are in the market to buy or sell in general. Let me ask you a question:
When you go out to dinner with your friends do you always talk about real estate?
No, of course not so you shouldn’t always be talking about real estate with your database either.
If you stopped communicating with your friends, would you still be friends? Chances are they wouldn’t be inviting you to the next outing, would they?
Well, your database feels the same way about sending you referrals or returning to you again for another trasnaction.
The goal of running an effective database marketing campaign is not to generate leads, it’s to remain on top of mind.
This article will explain further why.
The most important part of running a database marketing campaign, is to nurture your relationships without talking about real estate. The goal is to stay relevant in front of your largest source of business.
Look at it form this point of view.
Why does Coca Cola run holiday campaigns? They need an excuse to remain on top of mind.
Why wouldn’t you do the same thing with your real estate business?
This article will outline exactly how to sell without every selling anything at all.
Don’t overthink what to send your database. Send them holiday greetings or fun fact based direct mail campaigns. The truth is it doesn’t really matter as long as you remind them you exist. It could be a magnet or a gift, but the key is to stay in touch the same way you would any with any of your friends or they are more likely to reciprocate with referrals.
Database Marketing Reservation #2- I don’t know how often to communicate with my database
That’s exactly why you need a database marketing system running for you.
The reason why it works is because it’s consistent. Agents who farm certain areas commit to do so over a period of time. Typically, after 7 months, the cost and work start to pay off with listing appointments.
Why does it work?
Over time an agent begins to brand themselves as the neighborhood expert and the residents begin to associate their brand with “real estate”. One day one of the residents decide to list their house and they call the first person they think of. It takes multiple touches to brand a farm area as it also takes multiple touches to remind your database what you do for a living.
If direct mailing a bunch of random strangers works, how could the same concept not work marketing your relationships? Why not farm your relationships?
People do business with agents they know, like, trust, but also REMEMBER!
When you are marketing your relationships you shouldn’t ever have to talk about real estate. All you need to do is stay in touch, BUT
YOU MUST DO IT WITH CONSISTENCY BECAUSE…
Out of sight is out of mind!
A good database marketing system will give you the content to do this for you without you having to think much about it, HINT HINT HINT.
Database Marketing Reservation #3- My Database already knows what I do for a living
I got news for you…
You ain’t that cool!
Do you really think your entire rolodex of relationships instantly associates your name with real estate?
When a referral situation pops up it’s almost always because there is an ongoing conversation occurring about real estate. Yes, people may know what you do for a living, but do they instantly associate your name with real estate without having to think about it?
Let’s do an exercise.
I want you to think about what your significant other’s best friend does for a living.
Is it finance?
Is it construction?
Is it technology related?
Ok let’s say he’s in construction.
Now let’s say you are at a party and one of your friends is hinting about getting their kitchen redone.
Do you instantly associate your significant other’s BFF with construction and automatically introduce his name into the conversation?
No, you don’t because you have no idea what kind of construction he does.
Does he rehab houses?
Does he work in concrete?
Does he build skyscrapers?
Is he a general contractor?
Just because he’s in construction does not mean you really know what he does for a living.
It’s no different with your database. Yes, they might know you are in real estate, but do they really know over 60% of your business comes from referral?
No, they don’t.
Do they instantly associate your name with real estate and as a Realtor who can help their friends, family, and co-workers with their real estate needs when they come across a real estate conversation?
One of the worst things that can happen to you is when you learn of a past friend or family member who bought or sold a house without you. It happens to every agent!
It’s not our database’s job to remember what we do for a living, it’s our job to remind them.
Your database wants to refer you business, you just have to make it easier on them to do so.
I really hope I was able to address any reservation you may have about database marketing and if it works. Quit thinking about why you should not implement a database marketing system and start thinking about how much money you are leaving on the table by not doing it.