You capture a lot of data – but do you put that data to use, leveraging it to increase sales? If you happen to be searching for ways to leverage current resources and drive sales, here are a few basic ways to put data to use for your business.
1. Identify the most profitable customers
We all talk about best customers – but that typically focuses on revenue and when it comes to major accounts – and major account discounts, special service requirements and slow pay – you might want to focus on PROFITABLE customers.
2. Retain loyal customers
Loyalty programs reward loyal consumers for making multiple purchases – the key is to offer a reward that has high perceived value and low cost. Avoid discounting this group because you have their business and all discounting does it leave money on the table. Think “Employee of the Month” parking spots for loyal customers. Think first crack at new products – if you were a loyal Apple or AT&T customer, would you have appreciated being given first crack at the new iPhone?
3. Cross-sell other products or services
Match product profiles and Consumer profiles, then cross-sell customers your other products that match their demographics, lifestyle and behavioral characteristics. Too many businesses forget to ask “Is there anything else you need?”
4. Design targeted marketing communications
Tailor a message by combining transaction data, purchase data, personal information and demographic information. In these days of social media and networking and engaging – use what you know to offer information that strengthens your relationship. For example, you purchased a gas grill, a cookbook and spices from the local store – why wouldn’t that retailer send you information on cooking classes at the store? Or share new recipes that you might find interesting – as a matter of fact, ask all customers to submit their own recipes, then have everyone vote for their favorite?
5. Reinforce consumer purchase decisions
A database offers marketers an opportunity to reach out to customers to reinforce the purchase decision – and with buyer’s remorse, this can be a critical communication. If you know that about a month after purchasing Product A start losing interest and not using the product as much, you can send them tips on ways to use the product, let them know about new awards the product has been awarded by industry experts…make sure they continue to remember why they bought the product, how it makes their lives better, and that you made it happen!
6. Induce product trial by new customers
Match the profile of best customers to find new customers that look like the best. All leads are not created equal so use the data you have for your best/profitable customers, lay it over your prospect file and focus in on those prospects most like your best/profitable customers. Make them an offer they can’t refuse, get them into your family and chances are strong you will have a long time customer.
7. Maintain control over brand equity
Database marketing allows marketers to control the message that is communicated to customers- so test messages and offers and see how you can improve performance. Which segment of your target audience is motivated by saving money? Or status? Dive within your target audience and identify segments and create buyer personas that help your marketing and sales pinpoint messages and offers.
