Building out your database will set you up for an incredible return on investment for repeat and referral business.
Last time, you may remember me having mentioned something called the “36-Touch System.” The philosophy behind this system is that when you execute it at a high level, you can expect a 10% annual return on investment in terms of closed transactions.
Let’s take the example of a database containing 500 people. If you reach out to those 500 people with quality content on a consistent basis, you can expect to have 50 closed transactions a year as a result of forming those relationships.
At this point you may be thinking, “That sounds great, but how do I set up my database in the first place?” Actually, it isn’t as difficult as you think. Let’s go through a few specific points.
First, who should be in your database? The answer to this is really simple if you think back to the purpose of the system: to further relationships with people you have already met. Now, these don’t need to be people with whom you are especially close. It could even be someone you’ve only met once.
All that matters is that, at some point, you have met and made contact with these people. Internet leads are an entirely different matter. For your database, focus on those you have actually met. Any person you’ve met is a person who should be in your database.
"Any person you’ve met is a person who should be in your database."
Also, because you are delivering quality content to the people within your database, I highly encourage you to treat your database as a membership.
Now that you understand who should be in your database, let’s move on to the information you’ll need to record about the members of your database. The most important information is that which will make it easy for you to contact them. This will include first and last names, home and mailing addresses, phone numbers, and email addresses.
If you want to go to higher levels with your database, you can also include information such as birthdays, anniversaries, and other personal information. However, this kind of information is not critical.
In order to manage the information in your database, you’re going to make use of a CRM. Whichever CRM you choose, there are four essential functions it must have:
1. You need to be able to call through it.
2. It needs to be able to send text messages.
3. It needs to be able to send emails.
4. It needs to be able to store critical contact information.
A quality CRM will be one which is geared towards managing relationships. If you’d like specific advice, I would be happy to talk to you about your options.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.