What exactly is Database Marketing?
Small businesses don’t always have a Marketing Plan. And when someone suggests Database Marketing, they often ask:”What the heck is Database Marketing?” or, if they know what it is, “Isn’t Database Marketing only for the big boys?”
The answer is No. You do not need an expensive system to set up a Database. You can use a simple spreadsheet to record the essential information about your customers.
These are the details your system should record:
Recency: date of last purchase
Frequency: how many purchases made
Money: total spend with you so far
Average order: Money divided by Frequency
Trend: are the Frequency and Average rising or falling?
Your marketing should focus on Recency, Frequency and Money – the RFM factors, as they are called in Direct Marketing.
Those who bought from you recently, and often, are the ones most likely to buy from you again, because they have accepted you as a preferred supplier, and do not need much reminding of the benefits of doing business with you.
And those who buy frequently could quite readily be persuaded to shorten the gap between purchases or to order something new between their regular purchases.
The total money spent with you will also determine how important they are to your business, and how profitable.
Obviously, Recency, Frequency and Money will have different values in different businesses.
For example, the gaps for buying computers will usually be much greater than for consumables like stationery. You should monitor all gaps and learn what is normal for each type of product, not only among your own customers, but in the industry.
It adds important information to your Database – information that can guide your Marketing decisions.
The other factor to consider is creativity – copywriting and design. Start with an email to email@example.com“>firstname.lastname@example.org or call 0845 165 9240 . The initial consultation is free.