| Database marketing sounds like something Wal-Mart | | | | devise some questions that help us answer each of 1, |
| or is fantastic at. And they are. But so are many small | | | | 2 and 3 above. |
| businesses down the street. My local coffee shop has | | | | Payment. Can you capture their individual financial |
| one of the best database marketing systems in the | | | | contribution? Does everybody pay with cash or credit |
| world. Their order processing machines remember my | | | | card, and then scoot out the door? Or do you invoice |
| favorite cup of joe and serve it up to me hot, on sight, | | | | your customers? |
| without my even asking. | | | | Communication. Do you know their name and |
| Of course, their order processing machines are bipedal, | | | | address? Can you acquire their name and address? |
| with organic computers known as brains and eyes in | | | | How about email address? Can you acquire it? |
| lieu of optical scanners. Database marketing essentially | | | | Acquisition Method. Do you know how they heard |
| seeks to emulate what the baristas at the Coffee | | | | about your company in the first place? Can you track |
| House do naturally. | | | | and quantify how much it cost your to acquire that |
| So, how can you know if your company is a good | | | | customer? |
| candidate for database marketing? There are three | | | | Decision Maker. Does the person who actually buys |
| essential questions to ask: | | | | from you control the purchasing decision? If you sell to |
| 1. Do you have best customers? Do you possess a | | | | consumers, the answer is probably yes; but if you sell |
| group of customers that clearly drive more profits--not | | | | to businesses it can get a bit more complex. In some |
| gross sales, remember, but profits--to your bottom | | | | industries even finding let alone reaching the true |
| line? | | | | decision maker can be tough but--that's the person |
| 2. Can you identify those customers? | | | | you need to market to for you to be effective. |
| 3. Can you reach those customers? Can you | | | | OK, the above are entry-level questions to ask when |
| communicate with them, individually, and treat them | | | | evaluating if your small business is a candidate for a |
| special? | | | | database marketing program. Again, the key |
| It is extremely valuable to you, then, to answer the | | | | advantage the application of a database marketing |
| above three questions...after you answer this one: | | | | program affords as part of a small business marketing |
| Are you already a successful database marketer? | | | | program is the ability to target best customers. You |
| Many sole proprietors already are. So are thousands | | | | find those customers that send the most to your |
| of sales reps. They are familiar with their customers, | | | | bottom line, and spend more of your advertising dollar |
| they understand their preferences. If they have under | | | | on them. |
| a hundred customers, maybe even fewer than 500, | | | | If you can't identify and communicate with a best |
| they know their names and their likes and dislikes and | | | | customer segment, then it is probably best to look at a |
| know which ones contribute the most to their | | | | mass marketing program, where you essentially spend |
| pocketbook. | | | | the same marketing promotional dollars on each |
| But once a business achieves a certain size it | | | | prospect. |
| becomes impossible for any one person to know all | | | | If you can identify these best customers, then you are |
| the customers. This is where the aid of the computer | | | | ready to learn more about specific database |
| comes in. But, we don't want to discuss tactics in this | | | | marketing techniques. |
| article. Rather, let's simply focus on whether or not | | | | Remember: Brand (who you are) + Package (your |
| your company is a candidate for a database | | | | Face to the Customer) + People (customers and |
| marketing program. And that means we need to | | | | employees) = Marketing Success. |