A successful business today requires a strong focus on profitability for the investment of time, energy and money. To accomplish this, today’s smart entrepreneur needs to re-assess every nuance of how we have been conducting our business to really scrutinize profit factors, and change those activities that may no longer be profitable investments.

We’ve been told countless times that it is easier to secure new business and referrals from people who know, like and trust us. Sales statistics still indicate that this is the case…retain, revive and maintain past clients and customers and save the more intense costs of developing new business. For a strong step in the "profit before productivity strategy" begin with the foundational step that allows you the freedom and flexibility to maximize the positive, organizing your database.

The reason most agents have not organized this precious asset is because they don’t quite understand the ongoing power of this information. Agents are frustrated and confused about what software system to use to begin quantifying this valuable asset. Products designed for real estate like Online Agent™ or Top Producer ™ offer the integration of communication and database for our real estate business. Other software products are available as well, like ACT! or Goldmine.

The Challenge:

Most agents have no interest, training, or time to begin organizing this project.

Solution:

Take a tip from Michael Gerber "E-Myth" and begin working on your business instead of in your business. For under $10 an hour, you can hire a college student or “rent a person” to do this data entry job. By organizing this facet of your business, you create several smart options for both business development and cross selling platforms, along with the eventual opportunity to sell your business should you decide to leave the business some time in the future

Another benefit of organizing your database besides the obvious is the updating your contact information. This offers you the opportunity to make a personal “phone call” to re-connect with your past prospect in a friendly way, a great way to extend new information and services about your website, your services, with a valuable “personal touch”

Current database query fields must include the current email address of your contacts, offering you the ability to send HTML -communications, newsletters, notes, or reports to this group, in a simple and easy electronic application. Regular contact was previously accomplished through direct mail farming, a costly and time consuming strategy. Although direct mail has traditionally served us, it has in many cases, lost effectiveness due to the fact that it offers little opportunity for personalization or flexibility, which is so easy with electronic farming.

To get moving here are a few simple steps:

1. Hire a professional to load a contact database program with your past clients, customers, farming information

2. Set up a 5-a-day program to contact at least five contacts a day to re-connect and ask for current email addresses. While you are at it, ask to confirm birthdays, anniversaries, etc.

3. Use a script like this one: “Hi! I’m just calling to say hello and see how things are going. I wanted to call and offer you an opportunity to get my new email update services. We’ve put together a simple short e-communication that will be sent monthly with current neighborhood information. Are you currently using email, and what is your address? By the way, if you hear of anyone wanting to buy or sell in your neighborhood, I’d be delighted to find you a new neighbor!

4. Buy an HTML electronic communication template that brands you and allows you to easily send simple communications to your database on a regular basis.

5. Set up the database with a field for birthdays and anniversaries. A personal phone call on a birthday is a wonderful and personal way to stay “connected” to your past prospects in a friendly and value-added way.

6. Begin studying the costs of your current communication farming and use ways to begin integrating your current direct mail marketing with your electronic information by offering information and reports on your website. Study how using the email communication can defray costs and augment your contact with VALUABLE information to your past clients and customers to keep information up and costs down.

7. To build your database, offer web information in printed marketing to drive new prospects to your site through sign riders.

8. Get a website that offers automatic sign up to your database for information and newsletter. Be sure your web solution offers a back end with AutoResponders that services reports and information automatically.

The power of your database is the first and most critical step in taking control of your business and building profits. It’s never too late to take this first and most important step to doing more profitable business this year.

Published: January 31, 2002

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