Collect, Segment & Succeed
You’ve probably heard the term “the money is in the list”.
The list being a database of all the people that buy from you or visit your store or website.
And the saying is true because it’s far easier and cheaper to sell to your current customers than it is to rely on continually getting new customers. And the best and easiest way to sell to your current customers is to collect their information in a database for use in future marketing.
If you’re not currently actively building your customer database, don’t panic. It’s always best to plan out your strategy before trying to implement any or all of the pieces involved.
If you do have a customer database, then you’re a step ahead of the curve and have an extremely valuable asset that you’re probably not fully utilizing.
7 Reasons You Need A Customer Database
Here are seven of the most compelling reasons you need your own customer database:
- Define Your Lifetime Customer Value – Without a customer database, it’s difficult to come up with enough data to accurately define your lifetime customer value. Plan ahead so that your database keeps track of all the purchases each customer makes and over which periods of time.
- Define Your Perfect Customer – If your database contains demographic information, you can easily analyze it with customer purchase information to develop a profile for your perfect customer. That profile can then be used to acquire more customers that match that profile and even help you reduce your advertising costs.
- Get More Personal – It’s up to you how much information you include in your database, but the more the better. Collecting additional information about your customers like names, birthdays and anniversaries can give you the personal advantage that makes you stand out.
- Generate More Return Customers – The best customers are those you already have. Your customer database helps you get to know your customers better and gives you the ability to easily contact them again with new promotions.
- Share And Control Your Data – Depending on how large your team is, it may be important to share customer data across different segments of your own team. And many businesses have suffered the consequences of losing the employee with the most customer insight.
- Segment Into Smaller Lists – Take your database to the next level by segmenting customers into smaller lists that make your selling more efficient. Why send breakfast offers to dinner diners? Segment your list by gender, age, income or any other factor that makes one customer different from another.
- Follow Up With Customers – Without a database, it’s virtually impossible for you to follow up with prospects and customers until they come into your business again. A large portion of your potential customers aren’t quite ready to buy and those that do will usually appreciate a follow up call.
Hopefully you can see the possibilities that having a customer database creates for your business.
Whether you have an existing database or are now convinced to develop one, think about the most important information you can collect from your customers and at a very minimum, be sure to segment your list into different buyer phases like this —
— so that you can turn as many contacts into customers as possible.
One of the easiest ways to start building your customer database is with an email autoresponder. Services like Aweber can automate much of your list building process and even segment your list depending on actions you define.