Do you want to double your sales in the next year? Then you must work your database to build relationships!
As you learned in the previous move, a database is an asset to any organization. To use it effectively, segment it into types of contacts (suspects, prospects, and customers). Then you can develop an effective strategy for each, depending on where they are in the sales cycle.
|
Segment your database |
Type of contact |
Stage in the sales cycle |
Suspects |
Have some interest in your product. |
Prospects |
Have interest and money. They want to know why to choose you over anyone else; they need to be educated. |
Customers |
Have paid and are happy with the performance and result |
Recommended strategy |
|
Suspects |
Send information to help suspects qualify as prospects. |
Prospects |
Qualify prospects as customers by educating them on the value to be gained from your product or service. |
Customers |
Focus on obtaining referrals and testimonials and converting them into clients that buy often and refer you to others. |
Management of a database is not a trivial task. It takes careful segmentation, and each segment has its own strategy.
For example, if you have existing customers, how many have been with you for one year/five years/ten years? Do they not deserve recognition, much like you would give to an employee of similar tenure? Send them a gift voucher based on their length of tenure with your organization. If you reward them, they will reward you with business for years to come.
Customers can further be segmented into the three Ps of Marketing:
Past customers
Present customers
Potential customers
The communication approach to each group is different. Call, write, and communicate to reactivate past customers. They have purchased from you in the past, and you want them back.
You want present customers to come more often, buy more, and refer more. Make it easy for potential customers to start a buying relationship with you as quickly as possible.
Most organizations don’t have a database, and many who do have no idea how to work them effectively. They have never segmented or divided the database into the different types or defined a communication strategy for each.
Advanced black belt marketers do yet another level of segmentation of their customers.
Platinum |
People who keep you in business |
Gold |
People who do good business with you |
Silver |
People who buy |
Bronze |
People who buy on/off |
Lead |
High-maintenance people who hold you back |
Segmenting your database into the above five categories will quickly affect your revenue. Drop the lead customers and focus efforts on the platinum and gold ones. Just by doing this, you can easily double your sales.
Out of touch means out of control. Budget the cost of regular mailings into a marketing budget. Well-recognized companies are the ones people see and hear most frequently. If you don’t think of your prospects and customers, they won’t think of you! Your database is a list of your followers: be a leader. Continually educate customers and help them make informed and intelligent decisions. They will buy more, more often, and refer more to you!
The entire concept of managing a database is one of the higher-level moves of black belt marketing. Your database is central to your success. Back it up and keep all contacts in a safe place. A good contact in the business world means the potential to make money. Use it effectively, and it will make you money.