You are searching about A Formula In The Spreadsheet Should Always Start With, today we will share with you article about A Formula In The Spreadsheet Should Always Start With was compiled and edited by our team from many sources on the internet. Hope this article on the topic A Formula In The Spreadsheet Should Always Start With is useful to you.
Direct Marketing Essentials – Know and Keep Your Customers by Using Your Database
So why on earth do you need to keep a database anyway? Well, here are a few reasons:
- It provides a comprehensive picture of customers and prospects
- Increase the value of your customers by offering up-selling and cross-selling opportunities
- It allows you to match products and services to the needs and wants of customers
- It is the perfect tool to help you build relationships with customers
- It helps to retain existing customers and get new customers
- Providing a standard database definition, it’s just a way for you to record relevant data about your customers and prospects. It will only include information to help you maintain relationships with your existing customers by recording communication history over time.
- Databases should be planned and developed as a separate entity from your overall strategic plan. If you are a small business, then recording information in an excellent spreadsheet should be easy (Just make sure you back this up on one computer, or on an external hard drive).
- Large enterprises often choose an off-the-shelf or purpose-built database system that can be tailored to specific business requirements or easily integrated with other database systems in use e.g. Marketing, finance and performance.
- The main points to keep in mind when planning your database are:
- How to collect data
- What kind of analysis will be done
- How do you report on data?
Be really careful when collecting customer information. If your selling consumer-based products like beer, asking for a consumer job title isn’t the right information. However, if you are marketing a conference for a specific business, then this type of information is what you need.
I’ve also learned that the more fields a customer has to complete, the less likely they are to complete a transaction, whether it’s an email inquiry or purchasing a product online. So make sure you only collect as much information as you need.
In some cases, you may be able to ask an additional question that can help you better understand the customer. For example, asking for a customer’s birthday can help you offer a special birthday gift.
Collecting Customer Data on the Internet
Many businesses these days allow customers to update and manage their personal information using a secure page on their website. The benefits are significant, where the customer becomes the user of the data. No manual input is required by the business and minimal administrative costs are incurred as a result. The internet just feeds directly into the database in real time.
Fairfax Media sets a good example, where you can choose the online content you wish to receive and it is up to you to keep your address and contact information relevant. BPay is another good example of customers being able to update their financial data in real time. If your credit card has expired, your transaction will not be processed until the new information is updated and accepted by the transaction system.
Learning from Your Data – Analysis and Segmentation
Your business database has many facets that provide a wealth of information about your customers. You need to be able to analyze it and break it down easily, while building and keeping customers.
The data collected may include geographic information such as address details, demographic information such as age, marital status or number of children. While mental awareness includes extra-mental qualities such as interests and opinions.
A typical example of database segmentation might involve analyzing the geographic trends of your customers, derived from a collection of address information. If you find that certain urban areas buy from you, then it may be useful to drop the mail in these towns, or to provide a more personalized offer for your opportunities, you can engage a company that sells a list that specializes in collecting customer information. are suitable for your customer profiles.
To rent a single-use list they typically charge a setup fee of $250, so databases can cost anywhere between $300 and $500 per thousand depending on how accurate the data is, whose and how much customer information you’re asking for (eg email and postal ).
Please remember that a leased list is a single data list and is often used to test against your own database, usually in acquisition marketing campaigns.
Financial Data – A Simple Guide to Analyzing RFM Transactions
When evaluating your customers’ past buying habits there are three principles to be aware of, which will provide key insights into your customer’s past buying habits. These are:
- The latest
- Of money
The acronym is clearly: RFM
The latest it is the most predictive tool, which allows you to write the latest price or communication activity.
One general consideration may be that recent customers are more likely to buy from you again. In this example, you can select customers by their most recent purchase date, then contact each person as they near the end of the purchase cycle.
Repetition shows the number of items purchased in a specified period or period.
If a customer likes your products they may buy form you again. In this case you can communicate regularly with your client, perhaps signing them up for email distribution. This is a great way to send customized product information, new sales or new product information, and provides an additional upsell/marketing opportunity.
Of money it is the total expenditure incurred by the customer in one period.
Customers who spend a lot of money may do it again, either later, or just once. In this case, a special promotion can be a good way to attract this customer again.
In fact, the most valuable customers are those who value the most using all three criteria (RFM). By providing a measure of past purchasing behavior, it allows you to predict future purchasing behavior, with accuracy being an important ingredient of data forecasting. That’s why the old clich ‘it’s cheaper to keep an existing customer than to get a new one’, is really true. Besides, it makes good business sense to know your old customers.
To demonstrate the power of retaining old customers, I would like to show an example of winning customers in the retail sector. This can be used for any retailer such as clothing, cars or sporting goods.
Basically all types of marketing have a repeat sales ratio. In the clothing industry there is usually a three to six month lead time, as consumers tend to buy seasonally. With cars, you may need to upgrade every 3 years, or when the next model becomes available. Based on the repeat ratio, each vendor has a built-in ‘reverse horizon’, where the customer will be lost to the competition if not renewed within a specified time frame. (Claude A Johnson, Clients Succeeding Through Data Capture).
Therefore, using the valuable RFM information provided by your database, you can select customers who have not purchased from the store within a specified time period. From there, you can further target customers who have spent the most money with you and have been the most valuable asset to the company. (It’s always a good idea to focus on the top 20% of your customers as they will always provide the greatest return on investment).
An offer may include sending a personalized letter directly from the business owner that says, “Long time no see. I would like to invite you to visit our store to see our new selection of brand name products”. Included in this letter may be a personalized voucher offering a 20% discount on any purchase. You may wonder what a marketing campaign for an inactive customer would look like. The answer is very successful.
Campaign History Report
One of the most powerful benefits of marketing data is the ability to measure the results of each marketing campaign or event. Unlike other marketing methods, there is no guess work.
But many businesses fail to record their campaign history. Response and conversion rates provide evidence of marketing success and failure and allow you to evaluate campaign-by-campaign results. But I will discuss this in detail in my next blog about simple ways to test, measure and record your sales activities.
Video about A Formula In The Spreadsheet Should Always Start With
You can see more content about A Formula In The Spreadsheet Should Always Start With on our youtube channel: Click Here
Question about A Formula In The Spreadsheet Should Always Start With
If you have any questions about A Formula In The Spreadsheet Should Always Start With, please let us know, all your questions or suggestions will help us improve in the following articles!
The article A Formula In The Spreadsheet Should Always Start With was compiled by me and my team from many sources. If you find the article A Formula In The Spreadsheet Should Always Start With helpful to you, please support the team Like or Share!
Rate Articles A Formula In The Spreadsheet Should Always Start With
Rate: 4-5 stars
Search keywords A Formula In The Spreadsheet Should Always Start With
A Formula In The Spreadsheet Should Always Start With
way A Formula In The Spreadsheet Should Always Start With
tutorial A Formula In The Spreadsheet Should Always Start With
A Formula In The Spreadsheet Should Always Start With free
#Direct #Marketing #Essentials #Customers #Database