How to steps to profitably use a database to increase sales
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The document provides an introduction to database marketing, emphasizing the importance of targeting existing customers to reduce costs and increase profits. It discusses the components of marketing, the significance of perceptions, and the steps to build a marketing database to drive targeted communications. Additionally, it outlines the technology and strategies needed to implement effective database marketing for long-term customer relationships.
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How to steps to profitably use a database to increase sales
- 1. Introduction to Database Marketing Reg Gupton, MBA gupton@growthseminars.com http://businesssuccessvideos.com http://www.growthseminars.com 303.544.0340 office 303.544.0358 fax
- 2. Your Goals for today
- 3. My job is to reduce your stress and increase your profits!
- 4. 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?
- 5. 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.
- 6. Your goal should be! Deliver the RIGHT message To the RIGHT target market At the RIGHT time Via the MOST cost-efficient means.
- 7. 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
- 8. Marketing is not A battle of products, people or services, it’s a battle of perceptions ! For most people, perceptions are, or become reality!
- 9. This I know! 50% of my promotion and advertising is wasted. I just don’t know which half.
- 10. Marketing Elements Targeted Continuous Deliberate process Repetitive Measure responses Marketing Mix
- 11. What concept comes to mind? Crest Mercedes Volvo Starbucks Nordstrom Cavity prevention Engineering Safety Coffee Service
- 12. 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.
- 13. 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 later Source: Chilton research
- 14. 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.
- 15. 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.
- 16. What are the benefits? Test ideas before full commitment Target a niche market Cost effective alternative to mass media Develop loyal customers and reward them.
- 17. How it flows Customers Prospects Marketing Database Direct Marketing Build Loyalty Build Value
- 18. What are the steps Collect names, addresses and e mails Collect additional marketing and demographic information Use to build loyalty and sales.
- 19. How do I collect? Paper coupon responses order forms letters inquiries exhibition/trade show leads sales/service records questionnaires.
- 20. How do I collect? Computer accounting system sales order processing system sales management system mailing lists Purchased In-house
- 21. 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.
- 22. 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.
- 23. Not a Courage Issue A 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.
- 24. You don’t sell people Coke when they are thirsty You sell it long before that
- 25. Your most important asset Great, educated, discriminating, loyal customers
- 26. Your Most Fertile Field Current Clients/Customers Past Clients/Customers Friends/Acquaintances New Customers.
- 27. Your ideal customer?? Demographics who? Psychographics 1 why?. 1 The characteristics of an target audience based on its values, beliefs and attitudes.
- 28. When need meets supply Customer need Your product/service offering A Sale
- 29. Continuing dialogue Capitalize on their lifetime value as customers
- 30. Marketing to New Customers Direct Mail Purchased Media T. V. & Radio Magazines & Newspapers Billboards & Bus Signs Yellow Pages In Store Promotions Word of Mouth.
- 31. Marketing to past customers Direct mail(postcards, catalogs, letters) E mail Phone Print Media Advertising In Store Promotions Face to face.
- 32. Be aware and afraid Most low price leaders go out of business while trying to provide high levels of service.
- 33. Nine steps to Technology Salvation 1 - Acquire the Software Contact Manager- ACT, Goldmine, Top Producer Communication Software Winfax Eudora Access/Outlook Internet Explorer
- 34. 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?.
- 35. 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.)
- 36. 3. Assemble and enter your name list Past clients/customers Friends/family Sphere 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 system 8. Develop profitable Web Site 9. Log all new customers/prospects. Nine steps to Technology Salvation (cont.)
- 37. Is it a good investment? Hardware $500-2,000 Software $500-2,000 Training $300-600 Return on investment 3-5 times your money.
- 38. Your touchstones for the future Supplier/Vendor of Choice Focus on Actual Source of Business Use of the web e commerce on line brochure
- 39. 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.
- 40. Your take aways for today
- 41. 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.
- 42. Reg’s Business Success Videos If you liked what you saw, subscribe to my channel @ www.youtube.com/user/reggupton Watch other videos at www.businesssuccessvideos.com Email me @ [email_address] Follow me @ www.twitter.com/reggupton Find me @ www.facebook.com/reggupton Add me to your Linked in network www.linkedin.com/in/reggupton