Introduction: Systematic Referral Marketing: Implementing the 8x8 and 33 Touch PlansReferral marketing leverages existing relationships to generate new leads. It is rooted in social network theory, which posits that individuals are connected through various social ties, creating opportunities for information dissemination. The strength of these ties, a factor explored in social capital research, influences the likelihood of referrals. These planned systematic marketing plans, the 8x8 and 33 Touch programs, are strategies designed to cultivate and maintain these relationships with the goal of systematically increasing the frequency of referrals. The 8x8 plan provides an initial focused 8-week communication strategy while the 33 Touch plan is intended to be an ongoing annual contact strategy.The scientific importance of systematic referral marketing stems from its potential to optimize marketing spend and improve lead quality. Studies in behavioral economics indicate that consumers are more likely to trust recommendations from their social network than traditional advertising. Understanding the psychological principles of reciprocity and social proof can inform the design and implementation of effective referral programs. Quantifiable metrics, such as referral rates and conversion rates, can be used to assess the efficacy of these programs, providing data for iterative improvement.Learning Objectives:1. Define the core principles of the 8x8 and 33 Touch referral marketing plans.2. Explain how the 8x8 and 33 Touch plans can be adapted to target different customer segments, referencing examples such as prospective sellers, past clients, and sphere of influence contacts.3. Identify the key components of a 33 Touch plan, including mailings, telephone calls, and personal observance cards.4. Describe methods for customizing the 8x8 and 33 Touch plans.5. Explain the estimated conversion rates of the 33 touch program to real sales.

Systematic Referral Marketing: Implementing the 8x8 and 33 Touch Plans1. Introduction to Systematic Referral Marketing1.1. Definition and ImportanceReferral marketing is a systematic process of encouraging existing customers and contacts to recommend a business's products or services to new potential customers. It leverages social networks and trust to acquire leads and sales. It is posited that referrals often convert at higher rates and lower costs than traditional marketing channels due to the implicit endorsement and pre-existing relationship between the referrer and the referee (Buttle, 1998).1.2. Theoretical FrameworkThe effectiveness of referral marketing is rooted in several key psychological and sociological principles: Social Proof: Individuals are more likely to adopt behaviors or make decisions that are perceived as popular or endorsed by others (Cialdini, 1984). Trust and Credibility: Referrals come from trusted sources, reducing the perceived risk associated with trying a new product or service (Duhan et al., 1997). Network Effects: The value of a product or service increases as more people use it (Katz & Shapiro, 1985).2. The 8x8 Referral Marketing Plan2.1. Definition and PurposeThe 8x8 plan is a focused, eight-week communication strategy designed to nurture leads and potential clients, especially after an initial engagement such as a listing consultation. The primary goal is to demonstrate value, build rapport, and subtly solicit referrals.2.2. Components and ImplementationThe 8x8 plan consists of eight targeted "touches" over eight weeks. Each touch should be designed to provide value and keep the business top-of-mind. Examples of these touches, following the material provided, include: Week 1: Handwritten "Nice to Meet You" letter + Market Report + Business Card Week 2: Market Statistics Week 3: Market Statistics Week 4: Telephone Call (Inquiry about the Market Statistics, Home Selling Efforts) Week 5: Free Report Week 6: Real Estate Investment or House Maintenance Tip Week 7: Usable Giveaway (Refrigerator Magnet, Notepad) Week 8: Telephone Call (Follow-up and Referral Request)2.3. Customization and TargetingThe content and delivery method of each touch should be tailored to the specific audience and their needs. Segmentation based on demographics, interests, and past interactions can significantly increase the effectiveness of the 8x8 plan. A generalized formula for tailoring touches could involve:Touch_Content = f(Audience_Data, Value_Proposition, Communication_Goal)Where: Touch_Content: The specific material or message delivered in a given touch. Audience_Data: Data about the recipient, including demographics, preferences, and past interactions. Value_Proposition: The unique benefits offered by the business. Communication_Goal: The desired outcome of the touch (e.g., increased brand awareness, lead generation).2.4. Example Experiment: Comparing 8x8 PlansExperiment Design: Two groups of potential sellers who did not list immediately are selected. Group A receives a standardized 8x8 plan. Group B receives a customized 8x8 plan based on their specific needs and interests identified during the initial consultation.Metrics: Conversion Rate: Percentage of potential sellers who eventually list with the business. Referral Rate: Number of referrals received from each group. Customer Satisfaction: Measured through surveys after the 8-week period.Expected Outcome: The customized 8x8 plan (Group B) is expected to yield higher conversion and referral rates due to increased relevance and engagement.3. The 33 Touch Referral Marketing Plan3.1. Definition and PurposeThe 33 Touch plan is a sustained communication strategy designed to maintain relationships with existing clients and contacts over the course of a year. Its purpose is to foster loyalty, generate repeat business, and solicit referrals.3.2. Components and ImplementationThe 33 Touch plan involves a combination of various communication channels, including mailings, emails, phone calls, and personal interactions. 14 Mailings/Emails/Cards/Drop-offs 8 Thank You/Thinking of You Cards 3 Telephone Calls 4 Personal Observance Cards (Birthdays, Anniversaries) 4 Holiday Cards3.3. Frequency and SpacingThe frequency and spacing of touches should be strategically planned to maintain consistent engagement without overwhelming the recipient. Mathematical modeling can optimize the timing of touches based on factors such as customer lifecycle, purchase frequency, and responsiveness to marketing communications. One example of a formula for calculating optimal timing could be:T_optimal = α Customer_Lifecycle + β Responsiveness_FactorWhere: T_optimal: The optimal time between touches. Customer_Lifecycle: The typical duration of a customer's relationship with the business. Responsiveness_Factor: A measure of how receptive the customer is to marketing communications (e.g., click-through rates, open rates). α and β: Weighting factors determined through empirical testing and data analysis.3.4. Data Analysis and OptimizationThe effectiveness of the 33 Touch plan should be continuously monitored and optimized through data analysis. Key metrics to track include: Referral Rate: Number of referrals generated per contact. Customer Lifetime Value (CLTV): The total revenue generated by a customer over their relationship with the business. The formula for CLTV is: CLTV = (Average_Purchase_Value Purchase_Frequency) / Churn_Rate. Where churn rate is the rate at which customers stop doing business with you. Net Promoter Score (NPS): A measure of customer loyalty and willingness to recommend the business.4. Integrating the 8x8 and 33 Touch Plans4.1. Transitioning from 8x8 to 33 TouchUpon completion of the 8x8 plan, contacts should be seamlessly transitioned into the 33 Touch plan to maintain ongoing communication and nurture the relationship.4.2. Continuous ImprovementBoth the 8x8 and 33 Touch plans should be viewed as dynamic strategies that require continuous refinement based on data analysis and feedback. A/B testing can be used to compare different approaches and identify the most effective tactics.5. Ethical Considerations5.1. Transparency and ConsentIt is crucial to be transparent with contacts about the purpose of the 8x8 and 33 Touch plans and obtain their consent to receive marketing communications. Adherence to privacy regulations and ethical marketing practices is essential.5.2. Avoiding Spam and Over-CommunicationThe frequency and content of touches should be carefully considered to avoid overwhelming or annoying contacts. Personalized and relevant communication is key to maintaining a positive relationship.6. ConclusionSystematic referral marketing, through structured programs like the 8x8 and 33 Touch plans, provides a data-driven approach to lead generation and relationship management. By understanding the underlying psychological principles, tailoring communication to specific audiences, and continuously monitoring and optimizing performance, businesses can effectively leverage the power of referrals to drive growth and build lasting customer relationships.7. ReferencesButtle, F. A. (1998). Word of mouth: understanding and managing referral marketing. Journal of Strategic Marketing, 6(3), 241-254.Cialdini, R. B. (1984). Influence: The psychology of persuasion. New York: William Morrow.Duhan, D. F., Johnson, S. D., Wilcox, J. B., & Harrell, G. D. (1997). Influences on consumer use of word-of-mouth recommendation sources. Journal of the Academy of Marketing Science, 25(4), 283-295.Katz, M. L., & Shapiro, C. (1985). Network externalities, competition, and compatibility. The American Economic Review, 75(3), 424-440.