Our new database value proposition plan has 5 key components and was created in response to the changes we've been observing as agents in the real estate market, and our goal is to add even more value to contacts in our database this year. I'll be teaching how to effectively implement the following plan and a number of other essential scalable systems in my upcoming course, Systems of Real Estate.
The disruptors to the database industry we predicted a little over a year ago are now taking place. The percentage of business that comes from our database is decreasing and consumer loyalty is at an all-time low.
It's important to note that the decreasing loyalty from consumers isn't necessarily a result of poor service on our part. In fact, you may still be doing the same things you've always done with regard to staying in touch with your clients and sphere of influence, however, our relationships with our clients have changed because of new options available to them. These options, like the ability to receive a cash offer for their home within hours, simply by browsing the internet or social media, have been attracting consumers away from the traditional process of hiring a professional real estate agent. The competition is now more intense than ever before, and it's up to us to find new and innovative ways to add value to our clients and retain their loyalty.
The decline in the percentage of business we receive from our database is a reality that we have to acknowledge and adapt to. To overcome this decline, we have three options: we can add more people to our database, add value to the people already in the database, or do both. Our team has chosen to do both simultaneously. Adding people to the database is now a part of our daily accountability calls. This focus on constantly growing the database, while also adding value to those already in it, is key to our success in this competitive market. This will help offset any potential decline in business.
Now that I've explained why it’s crucial to consistently add value to your funnel, I am going to share with you our 2023 database value proposition plan - a strategy for adding value to your database.
IF YOU NEED HELP IMPLEMENTING YOUR NEW DATABASE PLAN, ENROLL IN SYSTEMS OF REAL ESTATE, A 16-WEEK ONLINE COACHING COURSE WITH TAYLOR KERRIGAN.
We've been using a less comprehensive version of this plan for several years, but we decided to improve it for two reasons: Firstly, we weren't fully utilizing social media. Secondly, if the market softens, we need to make more contacts to compensate for the loss. It's simple mathematics. This year, we budgeted for a 30% decline in the ratio of listings taken to listings sold. For example, if we expected to take 100 listings in 2022, we are anticipating taking only 70 listings in 2023, a 30% decline.
If you're like many real estate agents, you might struggle with adding value to your database. Or, perhaps you don't have a database plan at all. This plan is based on what we actually did to take our team's business from 900 to 1,000 transactions in 2022 to even higher in 2023, without adding additional agents. So, let's start by learning the formula for success in 2023.
The Database Formula: 4x4x2x12x24
The formula we follow is this: 4 calls, 4 mailers, 2 events, 12 emails, and 24 social media posts. When we distribute our Quarterly Database Plan to our agents, we include options for each of these items and a checklist for each month. They can check off the components they're executing each month.
Here are the 5 key components of a real estate agent database plan:
Database plan component #1: Calls
We have a total of four calls in a calendar year, where we either add value to our database or ask for business.
In January and July, we make calls using the "I have a goal script" to ask for business. On the other hand, in March and November, we make two calls to add value to our database, without asking for business.
In March, we invite our clients to a client event. During the week of Thanksgiving, we make a warm and fuzzy call to thank our clients for their business and continued referrals, which we've been doing for years. This is known as our "Database Days".
To summarize, we have four calls in total, two for adding value and two for asking for business. January and July are for asking for business, March is for the client event invite, and November is for thanking our clients for their business.
You can download Jeff's entire script book for free here.
Database plan component #2: Mailers
The agents on our team execute a minimum of 4 mailers every year.
Year in Review Letter: This will go out in late January or early February and it will be focusing on what happened the previous year.
Client Event Invite: Send this out at least 1-2 months in advance to your entire database.
This Year's Letter: Sent out in July, this letter provides an update on the first six months of the current year.
Calendar: A small fridge magnet calendar is sent out by December 1st. It's recommended to choose a calendar with adhesive stripping on the back for easy placement.
Database plan component #3: Events
Our team hosts one big client event per year, Detroit Tigers Opening Day, and we encourage and support our agents to host their own events. Some of our top agents organize events of 50-150 clients every quarter.
There are two types of agents: agents who are great with their database, but not so good at adding people to it (because that involves prospecting, lead follow-up and rejection), and agents who are great at adding people to their database, but not good at taking care of them once they're there. Fortunately, through great leadership, coaching and exposure, I have figured out how to bridge the two, and that's what we teach.
Client events add value to your database and get your clients talking about you. The law of reciprocation tells us that doing good for our clients will come back to us. We allow our clients to invite guests to maximize exposure to new potential clients.
To increase your seller inventory in the new market, it's recommended to host an event 60 to 90 days before the biggest listing month in your market. For example, in the Midwest, the biggest listing month is May or June. By holding the event 60 to 90 days prior, we can tap into our clients' decision-making process, as they start thinking about getting their house on the market in the spring.
Note: Choose events with significance that resonate with your clients.
Database plan component #4: Emails
Sending monthly updates to your database is an important aspect of maintaining strong relationships with your clients. Regular communication keeps you top of mind and demonstrates your commitment to their needs. It also provides an opportunity to share valuable information and updates about the real estate market, new listings, and other relevant topics.
Want an example of my team's database email? You can purchase our exact Q3 Database Plan here. Want our database plan for free? Enroll in Systems of Real Estate, starting July 18th!
Database plan component #5: Social Media
I recommend that you follow a social media content calendar throughout the year, but here are two ideas to execute on a monthly basis:
Market Update
By sharing insights and statistics on the local real estate market, you demonstrate your expertise and knowledge in the industry. This keeps your followers informed and engaged with your content, increasing the likelihood of them reaching out to you for real estate services in the future and potentially attracting new clients.
Personal/Very Important Client
Having a "Very Important Client" Facebook group is essential for real estate agents and their teams. This group allows agents to interact with clients and keep them updated on industry news and events. By inviting clients to the group, they will receive notifications every time the owner posts, leading to increased engagement and impressions. The cost per impression is zero, making it a cost-effective way to reach clients.
Going "Live" is also recommended to increase engagement and reach a larger audience on social media. Posts are often buried, but videos have staying power and can be viewed later by those who received a notification or were interested in the content.
Overview: the 5 components of a real estate agent database plan
Calls
Mailers
Events
Emails
Social Media
As a real estate agent, your database is one of your most valuable assets. The database plan for 2023 is designed to add value to clients and increase business through various touch-points such as calls, mailers, events, and emails. The key is to be creative and constantly add value to your clients to keep them engaged and interested.
Staying in touch with your database is essential for building strong relationships with your clients, staying top of mind, and gaining valuable insights into your clients' needs and preferences. By investing time and effort into staying in touch throughout the year, you can build a strong pipeline of potential clients and grow your business over time.
About Taylor Kerrigan
Taylor Kerrigan has been the Director of Operations (now, Director of Sales) of Glover Agency and Live Unreal Companies for over 10 years. Taylor started out in the real estate industry as a Marketing Assistant and transitioned to execute every operational role on Jeff's team, ultimately earning the title of Director of Sales.
When Taylor started with Jeff, the team sold around 250 homes a year and now they sell over 1,000. Jeff attributes much of the growth and success of his team to Taylor's operational contributions. You can learn exactly how Taylor runs the most awarded real estate team in Michigan by taking her 16-week online course, Systems of Real Estate.