How to steps to profitably use a database to increase sales

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Successfully add the creation and use of an electronic database to your marketing mix. The 9 steps necessary to building and getting business from your current, past customers and prospects is covered in detail.

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How to steps to profitably use a database to increase sales

  1. 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. 2. Your Goals for today <ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>
  3. 3. My job is to reduce your stress and increase your profits!
  4. 4. A quick self test <ul><li>Does your product require repeat purchases? </li></ul><ul><li>Do you have multiple or related products for the same market? </li></ul><ul><li>Do you upgrade periodically? </li></ul><ul><li>Do you sell high priced products? </li></ul><ul><li>Do you have average or high margins? </li></ul>
  5. 5. Marketing Cost Reduction <ul><li>Fact: marketing to existing customers is less costly than marketing to prospects </li></ul><ul><li>Fact: you make money marketing to customers and lose money marketing to prospects. </li></ul>
  6. 6. Your goal should be! <ul><li>Deliver the RIGHT message </li></ul><ul><li>To the RIGHT target market </li></ul><ul><li>At the RIGHT time </li></ul><ul><li>Via the MOST cost-efficient means. </li></ul>
  7. 7. Marketing Fundamentals <ul><li>Marketing is the culmination of all the components, techniques, tactics and strategies utilized to promote the use of a product, person or service. </li></ul>Not just print media advertising
  8. 8. Marketing is not <ul><ul><li>A battle of products, people or services, </li></ul></ul><ul><ul><li>it’s a battle of perceptions ! </li></ul></ul><ul><ul><li>For most people, perceptions are, or become </li></ul></ul><ul><ul><li>reality! </li></ul></ul>
  9. 9. This I know! <ul><li>50% of my promotion and advertising is wasted. I just don’t know which half. </li></ul>
  10. 10. Marketing Elements <ul><li>Targeted </li></ul><ul><li>Continuous </li></ul><ul><li>Deliberate process </li></ul><ul><li>Repetitive </li></ul><ul><li>Measure responses </li></ul><ul><li>Marketing Mix </li></ul>
  11. 11. What concept comes to mind? <ul><li>Crest </li></ul><ul><li>Mercedes </li></ul><ul><li>Volvo </li></ul><ul><li>Starbucks </li></ul><ul><li>Nordstrom </li></ul><ul><li>Cavity prevention </li></ul><ul><li>Engineering </li></ul><ul><li>Safety </li></ul><ul><li>Coffee </li></ul><ul><li>Service </li></ul>
  12. 12. Why you need to have TOMA <ul><li>Today's buyer uses an information oriented decision process </li></ul><ul><li>Gather information </li></ul><ul><li>Review alternatives </li></ul><ul><li>Choose one alternative </li></ul><ul><li>Evaluate the decision after the fact. </li></ul>
  13. 13. When they bought <ul><li>15% - Bought within the first three months </li></ul><ul><li>24% - Bought within four to six months </li></ul><ul><li>34% - Bought within seven to twelve months </li></ul><ul><li>27% - Bought more than twelve months later </li></ul><ul><li>Source: Chilton research </li></ul>
  14. 14. What is a database? <ul><li>Automated rolodex </li></ul><ul><li>Puts contacts in group/categories </li></ul><ul><li>Maintains large amount of </li></ul><ul><li>information on each contact </li></ul><ul><li>Maintains history of contacts/notes </li></ul><ul><li>Will automatically run marketing campaigns </li></ul><ul><li>Can send letters, cards, emails directly. </li></ul>
  15. 15. A definition: Database Marketing <ul><li>An accountable form of marketing </li></ul><ul><li>based on detailed knowledge </li></ul><ul><li>of the target market </li></ul><ul><li>stored in a marketing database </li></ul><ul><li>used to drive targeted communications </li></ul><ul><li>thru a range of media </li></ul><ul><li>directly to customers and prospects. </li></ul>
  16. 16. What are the benefits? <ul><li>Test ideas before full commitment </li></ul><ul><li>Target a niche market </li></ul><ul><li>Cost effective alternative to mass media </li></ul><ul><li>Develop loyal customers and reward them. </li></ul>
  17. 17. How it flows Customers Prospects Marketing Database Direct Marketing Build Loyalty Build Value
  18. 18. What are the steps <ul><li>Collect names, addresses and e mails </li></ul><ul><li>Collect additional marketing and demographic information </li></ul><ul><li>Use to build loyalty and sales. </li></ul>
  19. 19. How do I collect? Paper <ul><li>coupon responses </li></ul><ul><li>order forms </li></ul><ul><li>letters </li></ul><ul><li>inquiries </li></ul><ul><li>exhibition/trade show leads </li></ul><ul><li>sales/service records </li></ul><ul><li>questionnaires. </li></ul>
  20. 20. How do I collect? Computer <ul><li>accounting system </li></ul><ul><li>sales order processing system </li></ul><ul><li>sales management system </li></ul><ul><li>mailing lists </li></ul><ul><ul><li>Purchased </li></ul></ul><ul><ul><li>In-house </li></ul></ul>
  21. 21. One contact won't get it <ul><li>Even if you have identified a niche market and it is targeted, you must become of value and earn the right to a relationship. </li></ul>
  22. 22. Stanford Research <ul><li>6-9 contacts to be aware of what you do </li></ul><ul><li>16 contacts to be familiar with you </li></ul><ul><li>20-24 contacts to consider you. </li></ul>
  23. 23. Not a Courage Issue A time Issue <ul><li>You have to increase your contact count by a factor of 9-20 before they even recognize what you do </li></ul><ul><li>Nordstrom 16 per/yr </li></ul><ul><li>Paper Direct 16 per/yr </li></ul><ul><li>L L Bean 20+ per/year </li></ul>Take a Clue from these folks.
  24. 24. <ul><li>You don’t sell people Coke when they are thirsty </li></ul><ul><li>You sell it long before that </li></ul>
  25. 25. Your most important asset <ul><li>Great, educated, discriminating, loyal customers </li></ul>
  26. 26. Your Most Fertile Field <ul><li>Current Clients/Customers </li></ul><ul><li>Past Clients/Customers </li></ul><ul><li>Friends/Acquaintances </li></ul><ul><li>New Customers. </li></ul>
  27. 27. Your ideal customer?? <ul><li>Demographics </li></ul><ul><ul><li>who? </li></ul></ul><ul><li>Psychographics 1 </li></ul><ul><ul><li>why?. </li></ul></ul><ul><ul><li>1 The characteristics of an target audience based on its values, beliefs and attitudes. </li></ul></ul>
  28. 28. When need meets supply Customer need Your product/service offering A Sale
  29. 29. Continuing dialogue <ul><li>Capitalize on their lifetime value as customers </li></ul>
  30. 30. Marketing to New Customers <ul><li>Direct Mail </li></ul><ul><li>Purchased Media </li></ul><ul><ul><li>T. V. & Radio </li></ul></ul><ul><ul><li>Magazines & Newspapers </li></ul></ul><ul><ul><li>Billboards & Bus Signs </li></ul></ul><ul><ul><li>Yellow Pages </li></ul></ul><ul><li>In Store Promotions </li></ul><ul><li>Word of Mouth. </li></ul>
  31. 31. Marketing to past customers <ul><li>Direct mail(postcards, catalogs, letters) </li></ul><ul><li>E mail </li></ul><ul><li>Phone </li></ul><ul><li>Print Media Advertising </li></ul><ul><li>In Store Promotions </li></ul><ul><li>Face to face. </li></ul>
  32. 32. Be aware and afraid <ul><li>Most low price leaders go out of business while trying to provide high levels of service. </li></ul>
  33. 33. Nine steps to Technology Salvation <ul><li>1 - Acquire the Software </li></ul><ul><ul><li>Contact Manager- ACT, Goldmine, Top Producer </li></ul></ul><ul><ul><li>Communication Software </li></ul></ul><ul><ul><ul><li>Winfax </li></ul></ul></ul><ul><ul><ul><li>Eudora </li></ul></ul></ul><ul><ul><ul><li>Access/Outlook </li></ul></ul></ul><ul><ul><ul><li>Internet Explorer </li></ul></ul></ul>
  34. 34. How Do I Choose? <ul><li>Has the software been tested? </li></ul><ul><li>Are there any recommendations? </li></ul><ul><li>Is the documentation clear and complete? </li></ul><ul><li>Is there telephone support available? </li></ul><ul><li>Will it handle campaign marketing? </li></ul><ul><li>Is the developer a stable company?. </li></ul>
  35. 35. 2 - Acquire or Upgrade Hardware <ul><li>Pentium IV or faster </li></ul><ul><ul><li>512 megabytes of RAM (memory) minimum </li></ul></ul><ul><ul><li>At least 30 Gigabyte hard drive </li></ul></ul><ul><ul><li>Backup system (CD/tape) </li></ul></ul><ul><ul><li>CD-ROM </li></ul></ul><ul><ul><li>Modem w/Fax 56k baud and/or DSL line </li></ul></ul><ul><ul><li>Color monitor </li></ul></ul><ul><ul><li>Laser Printer 600 dot per inch </li></ul></ul><ul><ul><li>Inkjet/wax Printer </li></ul></ul>Nine steps to Technology Salvation (cont.)
  36. 36. <ul><li>3. Assemble and enter your name list Past clients/customers Friends/family Sphere of influence </li></ul><ul><li>4. Hire Strategic Consultant </li></ul><ul><li>5. Develop and order/print spaced-repetition contact pieces </li></ul><ul><li>6. Program quarterly phone calls to your name list </li></ul><ul><li>7. Write out your monthly mailing system </li></ul><ul><li>8. Develop profitable Web Site </li></ul><ul><li>9. Log all new customers/prospects. </li></ul>Nine steps to Technology Salvation (cont.)
  37. 37. Is it a good investment? <ul><li>Hardware </li></ul><ul><ul><li>$500-2,000 </li></ul></ul><ul><li>Software </li></ul><ul><ul><li>$500-2,000 </li></ul></ul><ul><li>Training </li></ul><ul><ul><li>$300-600 </li></ul></ul><ul><li>Return on investment </li></ul><ul><li>3-5 times your money. </li></ul>
  38. 38. Your touchstones for the future <ul><li>Supplier/Vendor of Choice </li></ul><ul><li>Focus on Actual Source of Business </li></ul><ul><li>Use of the web </li></ul><ul><ul><li>e commerce </li></ul></ul><ul><ul><li>on line brochure </li></ul></ul>
  39. 39. Your touchstones for the future <ul><li>Automate your business with databases </li></ul><ul><li>Target Marketing </li></ul><ul><li>Become Computer literate-Web/e mail </li></ul><ul><li>Understand your customers </li></ul><ul><li>Value-added vs. price </li></ul><ul><li>Use Relationship Marketing/Selling </li></ul><ul><li>Form strategic alliances. </li></ul>
  40. 40. Your take aways for today <ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>
  41. 41. Help is at hand <ul><li>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. </li></ul>
  42. 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

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