Why paying for someone else's database is just plain lazy - as well as a waste of time and money!
Other people’s databases are filled with people who have no reason to buy from you and are very unlikely to do so. The only reason to buy someone else’s database is that it’s much easier than having to build your own. Who cares if it’s not going to work! Here are three steps to build your own effective database for direct mail letters and emails:
1. Build a database of all your existing customers first – they’re the most likely people to buy from you.
Where do you think the biggest response is likely to come from? 100 letter sent to existing customers – or the same letter sent to 100 people you’ve never dealt with? It may surprise you to discover that your existing customers are the people most likely to buy from you. So before you get all excited about paying for a database of people who’ve never bought from you, send your marketing to existing customers.
- Phone them and ask them for their address so you can send them ‘customer-only’ offers.
- If you don’t know their phone number go on white pages online and search for them.
- If you send a letter to 100 customers and then you send it to 100 people who’ve never bought from you before the response from customers will normally be far higher than from the second group. Which obviously means you should be focusing your direct mail letters, emails and brochure.
2. Collect the names and addresses of your customer’s friends.
When you’ve sent between four and six letters or emails to your customers – make sure it’s information that really is of benefit to them – you can tell them in your next letter or email that you have a special offer for any friends they think might benefit. Invite them to give you the names of friends who they think would benefit from receiving the same sorts of information/offers.
Also tell them that, should their friend ever buy any service or product from you that they’ll receive such and such a benefit, just because they’re their friend.
3. It’s easy to find your ‘perfect customer’. Just find more people who are like your existing customers.
Your existing customers are your ‘perfect customers'. They are the sorts of people who most appreciate your products or services. We know that because most of them found you in spite of your marketing, not because of it. They sought you out, not the other way around. Which means that others just like them are going to be the most likely to respond to any marketing you do.
So jot down a profile of your ‘perfect customer’ by making some generalisations about your existing customers. Where do they live? About how much do they earn? Are they male or female? What sort of age group are they?
For instance if your target is primarily male, 45 years or older and in the higher income bracket – then one group that fits that profile is local business owners and managers.
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