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Dear
Friends,
Here is another extract from
our 1st book, The Pillars of
Business Success.
Learn from a successful
business about the
importance of building a
database, so that you can
communicate with your
customers on a regular
basis.
Tony Gattari
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Arriving
2 April 2007
The Pillars
OF BUSINESS SUCCESS
Foreword by Peter Irvine
Co-Founder of Gloria Jean's Coffees
Sign them up and Keep
them for Life
There is a sporting goods retailer that
has been in operation for almost 30 years. It started from humble
beginnings in a small shop on a main road, in a suburb that had a large
amount of families, who were keen on their sport. As time went on the
store started to attract a loyal following, and the owner had to expand
the store, by taking more space next door, as well as using the space
above the shops, and across the road. As word got out about this
retailer, people started to travel far and wide to shop there, and
because during this time a lot of the famous sportspeople were not given
sponsorships, they came to purchase their sporting goods from this
suburban retailer.
Every time a person came to the register
to purchase their goods, they were asked if they would like to be on the
mailing list to receive a catalogue. This retailer would normally send
out 2 catalogues each year, and people young and old would wait
anxiously for it, as it would show the latest range of sporting goods
for the start of each season. Once it arrived at the person’s house, the
customer would remove the protective plastic covering, and start to
circle all of the products they wished to buy. Then they would make the
pilgrimage to the store, to not only purchase the new sporting
equipment, but also to marvel in the extensive range of products.
During the recession, whilst most
businesses closed down, this retailer went to the bank for a loan, and
moved to larger premises. Now this retailer could really make a
statement to the consumer, by showing off their amazing range of
product. This retailer who started from humble beginnings, was now an
institution, whose following could not be wavered. The mail order
department would ship goods to the USA, Pacific region, South-East Asia,
Africa, UK, and Europe. The mailing list which started by signing up
locals from the area, become a subscription of 80,000 people. This
retailer spent most of its advertising on this catalogue, opened 5 more
stores, and become the largest in its category in the world. All because
the owner built a database, and taught his register operators to ask
people would they like to be on the mailing list.
Whilst searching for new customers is
important, when they are in the door, and have purchased from you, why
not work on keeping them for life. In a highly competitive market place,
being consistent and treating people like family may need extra support,
through developing a mechanism, whereby you can continuously inform and
keep in touch with your customers on a regular basis. Collecting your
customer names, and measuring their transactions on a database is a
great tool to start the process of communicating with your customer, and
testing and measuring the effectiveness of this communication, by
measuring;
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The amount of times the customer
purchases from you,
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The average spend of your loyal
customers, versus your other transactions,
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What your loyal customers buy from
you, so that you can focus your energies on these areas of the
business, that produces the most fruit.
Also by keeping a database, and
effectively communicating to your loyal customers, can reduce your cost
of customer acquisition over time, as you can move your more costly
spending on blanketed marketing efforts, to a more refined campaign that
is targeted at people who you know will buy from you.
Pre-Order
Your Copy Now!
Only $24.95
+p&h
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Ivan
Ang from Western Pacific
Financial Group explains.
