How to Convert Your CRM Database into Commissions

The following is an excerpt from RE Technology's latest Success Guide:

The best strategy for growing your business today is to leverage your CRM. Everyone that you know should be a customer record in your CRM.

Developing a database of customer contacts with complete information including telephone numbers, addresses, and email addresses is fundamental for your success, as a well-groomed database in your CRM becomes a significant asset. The more you communicate effectively with your customers, the greater the likelihood of converting those contacts into relationships that lead to future transactions.

But be careful: remember that nobody wants to be spammed. You need to establish an appropriate cadence of communication from your CRM. An out-of-market customer who is not actively working with you to buy or sell may simply want to hear from you on a monthly basis. You can tag these customers to a sales stage that will only send them market reports by email each month, perhaps a flyer or postcard once a quarter and a telephone call once a month. Be sure that you spend time thinking about each customer and putting them into the right group that will deliver the correct amount of contact appropriate for them.

A significant amount of time should be spent on lead development. Our industry has done a great job of focusing on lead generation, but for the most part, the follow-up is a single phone call or email response from the agent. Most leads convert around 300 days after they are generated. The beauty of a CRM is that you can stay in touch with these leads using your CRM to incubate them during this time though a lead follow-up schedule.

It is a bad idea to dump a bunch of names into your CRM of people that you do not know or that have not given you permission to contact them. If you have purchased a list, work the list until you have some type of successful engagement with that person before you add them into your CRM.

A key number to focus on is 2500 contacts in your farm area. If you can develop some level of relationship with 2500 households, you are likely to produce about 12 transactions a year.

Download Success Guide: CRM to learn more about CRM trends, how to evaluate a CRM, and more.