How to steps to profitably use a database to increase sales

Introduction to Database Marketing

Reg Gupton, MBAgupton@growthseminars.com http://businesssuccessvideos.comhttp://www.growthseminars.com303.544.0340 office303.544.0358 fax

Your Goals for today

My job is to reduce your stress and increase your profits!

A quick self test

• Does your product require repeat purchases?

• Do you have multiple or related products for the same market?

• Do you upgrade periodically?• Do you sell high priced products?• Do you have average or high

margins?

Marketing Cost Reduction

• Fact: marketing to existing customers is less costly than marketing to prospects

• Fact: you make money marketing to customers and lose money marketing to prospects.

Your goal should be!

• Deliver the RIGHT message• To the RIGHT target market• At the RIGHT time• Via the MOST cost-efficient means.

Marketing Fundamentals

• Marketing is the culmination of all the components, techniques, tactics and strategies utilized to promote the use of a product, person or service.

Not just print media advertising

Marketing is not

A battle of products, people or services, it’s a battle of perceptions! For most people, perceptions are, or

becomereality!

This I know!

• 50% of my promotion and advertising is wasted. I just don’t know which half.

Marketing Elements

• Targeted• Continuous• Deliberate process• Repetitive• Measure responses• Marketing Mix

What concept comes to mind?

• Crest• Mercedes• Volvo• Starbucks• Nordstro

•Cavity prevention•Engineering•Safety•Coffee•Service

Why you need to have TOMA

• Today's buyer uses an information oriented decision process

• Gather information • Review alternatives • Choose one alternative • Evaluate the decision after the fact.

When they bought

• 15% - Bought within the first three months • 24% - Bought within four to six months• 34% - Bought within seven to twelve

months• 27% - Bought more than twelve months

• Source: Chilton research

What is a database?

• Automated rolodex• Puts contacts in group/categories• Maintains large amount of • information on each contact• Maintains history of contacts/notes• Will automatically run marketing

campaigns• Can send letters, cards, emails directly.

A definition: Database Marketing

• An accountable form of marketing• based on detailed knowledge • of the target market• stored in a marketing database• used to drive targeted communications • thru a range of media • directly to customers and prospects.

What are the benefits?

• Test ideas before full commitment• Target a niche market• Cost effective alternative to mass

media• Develop loyal customers and reward

How it flows

Customers Prospects

MarketingDatabase

Direct Marketing

Build Loyalty

Build Value

What are the steps

• Collect names, addresses and e mails

• Collect additional marketing and demographic information

• Use to build loyalty and sales.

How do I collect? Paper

• coupon responses• order forms• letters• inquiries• exhibition/trade show leads• sales/service records• questionnaires.

How do I collect? Computer

• accounting system• sales order processing system• sales management system• mailing lists

• Purchased• In-house

One contact won't get it

Even if you have identified a niche market and it is targeted, you must become of value and earn the right to a relationship.

Stanford Research

• 6-9 contacts to be aware of what you do

• 16 contacts to be familiar with you• 20-24 contacts to consider you.

Not a Courage IssueA time Issue

You have to increase your contact count by a factor of 9-20 before they even recognize what you do• Nordstrom 16 per/yr• Paper Direct 16 per/yr• L L Bean 20+ per/year

Take a Clue from these folks.

You don’t sell people Coke when they are thirsty

You sell it long before that

Your most important asset

Great, educated, discriminating, loyal customers

Your Most Fertile Field

• Current Clients/Customers• Past Clients/Customers• Friends/Acquaintances• New Customers.

Your ideal customer??

• Demographics• who?

• Psychographics1

• why?.

1 The characteristics of an target audience based on its values, beliefs and attitudes.

When need meets supply

Customer needYour product/service offering

A Sale

Continuing dialogue

Capitalize on their lifetime value as customers

Marketing to New Customers

• Direct Mail• Purchased Media

• T. V. & Radio• Magazines & Newspapers• Billboards & Bus Signs• Yellow Pages

• In Store Promotions• Word of Mouth.

Marketing to past customers

• Direct mail(postcards, catalogs, letters)

• E mail• Phone• Print Media Advertising• In Store Promotions• Face to face.

Be aware and afraid

Most low price leaders go out of business while trying to provide high levels of service.

Nine steps to Technology Salvation

1 - Acquire the Software• Contact Manager- ACT, Goldmine, Top

Producer• Communication Software

•Winfax•Eudora •Access/Outlook• Internet Explorer

How Do I Choose?

• Has the software been tested?• Are there any recommendations?• Is the documentation clear and complete?• Is there telephone support available?• Will it handle campaign marketing?• Is the developer a stable company?.

2 - Acquire or Upgrade Hardware• Pentium IV or faster

• 512 megabytes of RAM (memory) minimum

• At least 30 Gigabyte hard drive

• Backup system (CD/tape)

• CD-ROM

• Modem w/Fax 56k baud and/or DSL line

• Color monitor

• Laser Printer 600 dot per inch

• Inkjet/wax Printer

Nine steps to Technology Salvation (cont.)

3. Assemble and enter your name listPast clients/customersFriends/familySphere of influence

4. Hire Strategic Consultant

5. Develop and order/print spaced-repetition contact pieces

6. Program quarterly phone calls to your name list

7. Write out your monthly mailing system8. Develop profitable Web Site9. Log all new customers/prospects.

Is it a good investment?

• Hardware• $500-2,000

• Software• $500-2,000

• Training• $300-600

• Return on investment

3-5 times your money.

Your touchstones for the future

• Supplier/Vendor of Choice• Focus on Actual Source of

Business• Use of the web

•e commerce•on line brochure

Your touchstones for the future

• Automate your business with databases

• Target Marketing• Become Computer literate-Web/e mail• Understand your customers• Value-added vs. price• Use Relationship Marketing/Selling• Form strategic alliances.

Your take aways for today

Help is at hand

When you are ready to move forward and implement proven strategies that can help you utilize the techniques discussed, call before it is too late.

Reg’s Business Success Videos

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Email me @ gupton@growthseminars.com

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How to steps to profitably use a database to increase sales

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