A list of customers and specific information about them is one of the best marketing tools you could possibly have. Used well, a database can help you zero in on your best customers, build a valuable relationship with them and grow your business. Once you understand who your current customers are you can go out and find more who “look like” them.
Getting to know your customers: what to consider when building a database
- Look for variables related to behaviour, demographics and lifestyle.
- Use your internal resources, such as purchase records, amount spent, enquiries, warranty registration, transaction dates, customer service interaction, survey results and more.
- Collect only the information you need to know; unnecessary information is expensive to acquire.
Using your database to uncover trends and information
- Discover propensities for product demand, purchase or defection.
- Determine which customers hold the greatest and least value to your company.
- Try to understand what motivates your core group of loyal customers.
- Watch for patterns among similar groups and take advantage of that knowledge.
Your offer—building one that works
A great offer can translate to success. However, there is much that goes into making an offer compelling enough to elicit the desired response. You need to get the target involved, market your offer properly and, most importantly, ensure that what you offer is exactly what you deliver.
Components to consider for any offer
- The price. Is it sufficient? Too high? Competitive? Is it perceived to be right for the value received?
- Unit of sale. Should you offer one? Two? A set?
- Incentives. Discounts or free gifts are commonly used to help entice customers. You need to determine if people would have bought without the incentive.
- Time limits and guarantees. These add urgency and validity to any offer. Simply ensure you honour them.
Finding the right offer for your audience
- Testing is the only way you can determine what works best for you and what does not. Over time, you can test:
- Which offer best matches your target and your objectives.
- What product or service can produce the sales you want.
- What quantity and price resonate with your customers.