Database Marketing is perhaps the most valuable aspect of your marketing system. A list of your past customers is the most valuable asset that you have.
The hardest and most expensive thing to do in any business is acquiring new customers and clients and there are a few reasons for this.
This is because you have to first gain their trust and then turn that trust into a relationship and relationships are developed over time.
People only do business with people they know, like, and trust.
Customers and clients that have already bought from you in the past have already proven that they trust you enough to buy your product or service. The most valuable list you can have is a list of proven buyers.
There are several things that you want to do to optimize your database for maximum results.
1). Get Your Customers to Buy More:
The first thing you need to do in order to begin pulling profits from your database is to create more value via a new product or service or add-ons for a product or service. Then go back and make an offer to previous customers of your product (A List of Proven Buyers).
Discounts and special bonuses for being a valued customer are preferable and work best in this situation
2). Get Your Customers to Buy More Products More Often:
The second thing you need to do is getting your customers to buy more from you more often. The best way for you to do this is to offer frequent buyers incentives or memberships programs.
The psychology behind this is that you want to create a sense of community among your customers to keep them coming back on a regular basis.
The RFM Formula:
A simple way to measure the value your current database is to use the RFM Formula. RFM stand for: Recency- When was the last time the purchased from you?
Frequency- How often do they buy from you?
Monetary- What is the monetary value of each customer
Strengthen Your Customer Relationships On Autopilot by Send Out Cards
The real secret to having a strong and profitable database is staying in contact with the customers on your list.
Where most small business owners and professionals fail is not having systems in place to stay in contact with their customers.
When trying to do this manually by going to networking meetings, calling them on the phone, maybe even writing a letter is where most break downs occur.
Therefore as a result the follow up is minimal or not existent at all.
As I stated earlier people will repeatedly buy from those that they have a relationship with and people equate relationships with frequency of communication and the value of what’s being communicated.
By Sending Out Cards you can stay in touch with your customers automatically in a meaningful way.
Instead of wasting precious time calling the on the phone as your only contact method send them meaningful cards to show them how much you appreciate them and they begin to call you.