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What is “database marketing”?
It could mean several things. Calling your sphere of influence, email marketing, and following up in your CRM could be considered marketing to your database. Referral marketing tools that keep you top-of-mind like market snapshots and homeiversary cards could be considered an element of marketing to your database.
In this instance, I use it to refer to software and strategies that seek to go beyond traditional CRM and platform features to maximize conversions in your database. These include reverse prospecting tools, predictive analytics to people likely to buy or sell soon, and tools to convert cold leads.
Especially for those spending money on leads, getting the most out of every contact is essential to maintaining a positive ROI for your real estate business. Leveraging your database intelligently can be a great step to realizing that ROI.
Unlike most of my review lists, these tools aren’t mutually exclusive. For example, you could use Buyside to promote yourself on listings and pair buyers and sellers in your own database, Revaluate to flag likely movers in your database, and SquadVoice to call and convert cold leads in your database.
$TBD. Buyside is an enterprise brokerage software that helps you work your database. The main feature from which the name comes is being able to match your listings to buyers in your brokerage’s database, increasing the odds that you capture the “buy side” of the transaction. It also includes tools for following up with your past clients and the ability to quantify and market the benefits of your buyer database in your listing presentation.
$139+/mo. Revaluate is a predictive analytics AI tool that seeks to use third party external data to predict likely movers in your database. Divorces, graduating kids, marriage, and other events can trigger the attention of your marketing efforts and deserve a phone call.
Your CRM or platform solution may have some tools that overlap with this category. Quite a few have predictive analytics that try to surface past contacts that are ripe for reaching out.
I’ve separated “database marketing” from “referral marketing”. The former identifies opportunities. The latter is marketing to your database. Referral marketing includes strategies like cards, gifts, client events, regular market reports, and other relationship management designed to generate leads through both repeat business and referrals.
Examples of some services that would work for a referral marketing strategy include:
Tools like Buyside are ideal for real estate professionals interested in reverse prospecting.
Reverse prospecting describes when you already have a client – a seller – and are going through your own (or someone else’s) database to find a buyer.
Your MLS may already have some reverse prospecting tools. Matrix, for example, allows you to search which agents have sent out listing alerts that featured your listing. You can follow up with those agents to try to find a match with a buyer.
When doing it with your own database, you can maximize the odds that perhaps the buyer will come from you or your brokerage, and allow you to complete both sides of the transaction. It’s an ideal tool for larger teams and brokerages who have lots of listings and buyers they can match in-house.
These aren’t likely things you’ll be purchasing in your first year or two as a real estate agent. But for mature businesses that are seeking an edge to their ROI, or have a large database of past cold leads they don’t know what to do with, there are some popular solutions that can move the ball forward.