Customer Relationship Management (CRM) and

The Real Estate Sales Professional

What Will Be Covered

What is Effective Customer Relationship Management

The Need for Customer Relationship Management

Forming a Customer Relationship Management Process

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Selecting the Right CRM Program4

What is Customer Relationship Management (CRM?)?

What CRM is NOT!

• A simple list of names, addresses and

phone numbers

• A bought list of unqualified leads from

a website

• A computer program

• Customer notes jotted on a yellow lined

note book

What CRM is!

CRM is the process of collecting relevant information on clients over time, storing

that information in a safe, organized manner, and then searching and filtering

that information for insight into your business

in order to drive more relevant and personalized communications.

IT’S AN ATTITUDE/BUSINESS BEHAVIOR

CRM BUILDSRELATIONSHIPS

not just transactions

Sellers: % Reuse or Recommend

85% would at least probably reuse or recommend you

NAR 7/2012

Buyers: % Reuse or Recommend

89% would at least probably reuse or recommend you

NAR 7/2012

Source: National Association of Realtors – 2012 Members Survey

What Do We know?

From the Keller Williams Facebook Page…

There is more……….

From Realtor Study Done By Activerain…

There is even more……….

• Rich real estate agents invest 6 times as much in technology as poor real estate agents.

• Every year the average rich real estate agent spends $3,000-5,000 per year on technology, while the poor real estate agent only spends $500-1,000 per year.

• Rich Real Estate Agents spend 10x more on marketing

• A CRM was found to be a top real estate tool in among agents. The survey found that the highest earning Realtors spend more on their CRM and website then the lowest earning ones.

• Almost twice as many rich real estate agents use a CRM than poor real estate agents.

• The top two sources of business for real estate agents are referrals and past clients.

From The Referral & Repeat Marketing Book

There is even more continued……….

• Research from the National Association of Realtors: the average person knows between 3-5 people who will move each year (think about the next ten years and the value of the relationships you’re building with people).

• You should be in contact with the homeowners in your community at least 17 times per year.

• Realtors can expect a 13% return from their database. That is 13 transactions for every 100 people in the database to whom they market.

• Number one reason Realtors do not like to call past clients is because they haven’t communicated with them in a long time and are not sure what to talk about!...

Lets Do Some Math

Number “A” Contacts in Database 50

Number of Moves every 10 Years 1

Average Commission $ 5,000

Total over 10 Years From A List $250,000

“A” List Referrals Gold Mine

“A” list Gold Mine

Number “A” list referrals in 10 Yrs 150

Average Commission $ 5,000

Total from A List Referrals $ 750,000

Total over 10 Years From A List $1,000,000

$1,000,000 / 10 Years = $100,000 Per YearIs Staying In Touch Worth

It?

If you follow a customer relationship management process you will develop better relationships with your contacts which will lead to a sky-rocketing volume of referrals and repeat business.

CONCLUSION…..

How Do You Build a Gold Mine Through Customer Relationship Management ?

CRM is a process and an approach to doing business that develops stronger client relationships.

CRM versus a CRM System

A CRM System on the other hand, is typically a software tool that enables and automates the process of customer relationship management.

Every Successful Sales Rep Has a CRM System Your platform/System is the Key to Success

CRM

Implementing an effective CRM approach is virtually impossible without an effective and easy to use CRM system as a platform to build upon.

“Quite simply, a name, a phone number and a home address is not enough to develop a strong customer relationship and in turn raise your earning potential … YOU NEED TO KNOW AND MANAGE MORE”

First Step & The Key to CRM Success is Developing “Rich Contact Profiles”

“We need to get to know our contacts on a personal level so that we feel confident speaking with them and can have meaningful interactions with them on an ongoing basis.”

“Rich Contact Profiles Continued”

• Birthday and Spouse’s birthday

• Last discussion

• Where they work

• Hobbies and interests outside of work

• Wedding date if married

• Names of children (ages, hobbies etc.)

• Date they moved into their home

• Mortgage details

• Current home vs. dream home

• Names of referrals they have given

What information should you gather? How will you stand out from the competition ?

Don’t Get Frustrated ! It’s a Process !

In CRM ABC = Always Be ConversingInformation Gathering Is Imperative

There is always one thing people want to speak about……………

Showing Genuine Interest will ultimately lead to complete success

when gathering pertinent personal information from clients or prospects !

We have to Show Some Interest !

Interest? You Have Formed a Database. What’s Next?

Build a Plan to Keep In Touch

Step 1: Analyze and Categorize Your Contact List

• Business-to-Business contacts are those people that you deal with strictly on a business basis. Examples include other Realtors, Mortgage Brokers, Bankers, Home Inspectors, etc.

• Personal contacts are really friends and family, or people you have a relationship with but you don’t expect to do business with them.

• Prospects are people who you believe you have a realistic chance to do business with at some point in the future.

• Clients are those people who have agreed to use you as their Realtor or who you’ve done business with in the past.

Step 2: Assign Your Contacts to Groups

Group Examples

• A List• B List• High School or College Friends• Other Realtors• Members of your Church• Members of your BNI Group• Members of your Local Chamber • Members of Your Children's School• Charity Members

Step 3: Define a Communication Plan for Each Category

The key is to target the appropriate messages with the appropriate frequency to the needs and interests of your different contact types and groups.

A Communication Plan Consists of ALL or SOME of the Following:

• Face to Face Meetings• Phone Calls• Email Correspondence• Direct Mail Correspondence

The Communication Plan should be recurringAnd last a lifetime.

Forms of Communication within the Communication Plan

Email

Pros• Very Low Cost• Reach• Scalability• Easy to Automate• Easy to Track and Measure• Ability to Identify High Quality Leads!

Cons• Spam• Deliverability• Open Rate

Forms of Communication within the Communication Plan

Direct Mail

Pros• Can Be Highly Informative• Can Be High Impact• Total Control Over Presentation

Cons• Very Costly• Open Rate• Junk Mail• Time Sensitive

Forms of Communication within the Communication Plan

Phone Call

Pros• Very Personable• Low Cost• Large Reach• Easy To Track and Note• Can Be Highly Informative

Cons• Possible Inconvenience to the Prospect or Client• Time Intensive• Hard To Reach People

Forms of Communication within the Communication Plan

Face to Face Meetings

Pros• Can Be Highly Informative• Very Personable• Very Effective in Rapport Building• Easy To Track and Note

Cons• Very Time Consuming• Not Scalable• Can Be Costly (Travel, Lodging, Entertainment Etc).

Example Communication PlanFor an Expired Listing

Selecting the Right Real Estate CRM

Basic Real Estate CRM Features…..

• Rich Contact Profiles and Contact History

• Powerful Contact Search Capabilities

• Conversation Logging

• Robust Calendar and Task List Features

• Automated Appointment and Task Reminders

• Mail Merge Emails and Letters

• Pre-Built Business Management Reports

• Online Document Storage

Advanced Real Estate CRM Features…..

• Powerful Email Marketing

• Personalized Graphic Mass Emails

• Drip Mail Nurture Campaigns

• Email Campaign Reporting (who opened, clicked

through, etc.)

• Monthly E-Newsletter

• Professionally Designed and Written

• Complete and Ready-to-Go

• Customizable

• Auto Pilot Communication Plans/Activity Plans

• Website Integration with Lead Capture

• Wireless Sync Capabilities

Advanced Real Estate CRM FeaturesContinued…..

• Active Business Management

• Manage All Your Listings and Buyers

• Pre-Defined Listing and Closing Plans

• Automated Website Lead Capture and Instant Email

Alert

• Smartphone Wireless Sync

• iPhone, Android, BlackBerry, Windows Phone,

etc.

• Sync to Native Address Book, Calendar, and

Task List Built Into Smartphone

• Runs on all Devices: PC’s, Mac’s, iPads, Tablets

SUMMARY

• Effective Customer Relationship Management

(CRM) is one of the corner-stones of a successful

career in real estate sales.

• Successful real estate agents use a real estate

CRM to help them keep in touch with past

clients, nurture leads, and stay organized and in

control.

• The right real estate CRM for you is the one that’s

easy enough for you to learn and use, while still

offering all the capabilities you need today and in

the future.

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