Why monetising your customer database is SO important to today’s business!
Business marketers are still convinced that spending buckets of cash on Facebook and Google Advertising are the best ways to grow sales?
The fact is, there is a far GREATER opportunity to monetise your existing customer database, AND it’s a fraction of the cost you would spend with online marketing!
It will surprise you to know that even today, a large portion of companies still DO NOT have a customer or prospect database. Even worse, database marketing is a foreign term for them?
Database Marketing is the practice of classifying, collecting, and then scrutinising your customer data to deliver tailored, relevant, and effective marketing and sales messages.
Usually, the database is made up of details that stem from customers order details, sales enquiries, newsletter subscriptions, website enquiries, social media interactions, events, or potentially a purchased database list.
Why marketing to your customer database is so beneficial;
1. Your customers already know and trust your brand. You don’t have to spend money educating them on who you are.
2. They’ve done business with you before, making purchase decisions easier and the transaction much faster.
3. They are already familiar with and interested in your products and services.
4. Achieve more personalised and targeted marketing because you already know what they are interested in.
5. HIGHER sales profits due to MUCH lower marketing costs!
How to monetise your internal customer database
Here are seven ESSENTIAL steps to plan and implement a database marketing program. We’ve also included some great tips that help you to LEVERAGE your customer database to create organically driven paying customers.
1. BEGIN by building and segmenting your database
The first step in database marketing is aggregating any contact data into a database list and breaking this into marketing segments. This makes it easier to target more personalised and relevant offers.
2. Build your campaign offers
Thinking about your database segments, create a series of offers that will match. These could be focused on ‘today’s offers’ such as cross-sell and up-sell options, as well as longer-term campaigns (e.g. brand trust and loyalty).
3. Get your infrastructure right!
Once you have your database together and cleansed, it needs a place to live.
Typically a CRM (Customer Relationship Manager) system is best suited. You also need to think about your campaigns and how you will publish these to customers?
• Email marketing systems
• Social Media Groups
• Customer Loyalty Programs
Don’t forget to think about the ongoing management of the database. Who will be looking after it, and how other systems will integrate to keep the data current and in sync.
4. Build a solid content marketing program
It’s easy to push out an email to customers, BUT the real value is creating something informative, educational, engaging, and helps them to solve a relevant issue. Think about the following;
• Review and update your brand identity and message
• Update your website message, positioning and overall design
• Newsletter topics, timing, and also its format
• Create a Blog series on your website and share across social media
• Build email blasts (promotional offers)
• Create quality images and videos.
More than 60% of customers have made a purchase because of the recommendations made on a blog or industry-related article.
5. Customer retention and communications
Bringing in new customers is hard, but losing them is easy and costly. This is why customer retention is so critical. Increasing customer retention by 5% increases profits 25-95%.
• Keep your database or CRM updated
• Focus on becoming your customers’ trusted advisor and subject matter expert
• Send frequent but personalised communications (newsletters)
• Boost your interaction on social media and through your website
• Turn complaints into opportunities
• Run loyalty programs and engagement activities.
Customer retention will give you visibility, trustworthiness, and competitive edge to stand out in your industry and hold onto your hard-earned gains.
6. Analyse and optimise your results
Having a set of goals in place allows you to measure results and build the performance indicators you’ll use to gauge the progress towards those goals.
Having the right systems will help you to use statistics to measure results and optimise the ongoing performance.
Simple tricks like re-sending the email to those who didn’t open it can increase the effectiveness of the campaign by around 54%.
Choosing the right words, images, actions, and the overall message will have a significant impact on the outcome of campaigns.
7. Utilise the experience of a brand agency
Don’t try and work all of this out yourself!
It’s almost impossible for businesses to stay across the changing trends in marketing let alone keep abreast of the constant changes to digital platforms like Facebook, Instagram, Google, LinkedIn etc.
Engage an experienced Brand Marketer or a Marketing Mentor to help educate and guide you through the creation of your strategy and plan. These experts will be in the best position to get your brand identity and message right BEFORE before you start investing money in database marketing.
Need some help?
rev™ Branding is a specialist Brand Agency helping companies to easily describe, communicate, and market their business. Our 20+ years’ experience providing high-performance brand optimisation allows us to create brand stories which are strategic, creative, and connect with your audience to inspire actions.
rev™ Brand Optimisation, using digital experiences and journeys builds customer loyalty and trust. This is the foundation that will ultimately drive your business and open opportunities for growth and investment.
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