Successful marketers establish who their best customers are and focus their
database marketing efforts on companies which fit a similar profile, for optimal
results.
A popular cause of grief among businesses which count on direct response
marketing is paying top dollar for printing and mailing of bundles of color
print catalogs and mail pieces, to reap just a one percent rate of reply. They
may begin to wonder if there's a better way to contact the desired market. My
customers have discovered that an excellent area to start changing their direct
marketing practices is by determining what makes a good customer and going after
others who fit this profile. In order to do something similar, the first action
should be to evaluate and rank existing customers in several criteria:
1) How much total income do they generate for your company? 2) How profitable
is each of these individual businesses for your company? 3) How good is the fit
between what your company offers and what this business purchases?
The customers which stand out at the tops of all three of these lists are
your best customers. Next, you'll want to find out the characteristics of these
primary customers, and look for identifiable similarities between them. What
size are these businesses? In what geographic location are they situated? Who
are the top decision makers at these organizations, and what titles do they
hold? Using this info, you can evaluate your database to discover similar
organizations - and begin to add them to your direct marketing wish list.
The existing marketing resources can also be annexed by paying for additional
lists of companies which fit the profile of your preferred target. It's
especially important not to overlook the businesses which made purchases in
previous years, but not lately. At times only a little rekindling of contact can
bring these latent customers back. You can take the opportunity to express
gratitude for previous business, even noting that you've noticed they haven't
purchased in recent months. You can inquire if they experienced some type of
problem or if there's any action you can take to bring them back on board. By
extending a 'return customer discount,' you can offer a discount for future
sales to get them back spending with you again.
Another area to direct your marketing efforts is toward those potential
customers who have asked about your company and its offerings in the past, but
haven't closed a deal with you yet. About 75% of those who inquire have to
satisfy a long-term need. By maintaining contact with these people as they go
through the process of buying, you can develop a positive and profitable
relationship with them. Direct mail doesn't have to be costly. I know of one
computer software business which just sends out two color post cards monthly to
all who inquire, just to keep in contact with these potential customers. The
cards gather a reply from a great percentage of those who inquire, especially
when they are finally prepared for the next purchasing step.
By focusing your marketing efforts with these strategies, you will improve
the quality of your direct marketing campaigns.
About the Author
M. H. "Mac" McIntosh is described by many as one of America's leading
business-to-business sales and marketing consultants and an expert on the
subject of sales leads. Visit:
http://www.sales-lead-experts.com
for more info.