Having an effective database of your customers sounds like tedious execrcise but used effectively it could take your business to a new level, says marketing expert Paul Clapham...

One hundred and fifty quid doesn’t buy you much marketing: a couple of days of a salesman’s time, one not very big advertisement or a couple of bits of point-of-sale material perhaps. Alternatively, it could buy you a database program for your computer that would work 365 days a year and earn its purchase price back once a week - if you use it fully.

A database will look after you if you look after it. So how do you take advantage of database marketing, what’s the right approach and, apart from the £150, what other costs are there?

Even if you have retail location to die for, finding and selling to new customers is costly. Existing customers, on the other hand, know you, your location, your standards of service and range (some of it, anyway). What’s more, they’re happy with you and they’ve proved it with their wallets. Take advantage of that; in the nicest possible way, exploit your existing customers.

A database is the tool that enables you to sell to customers regularly. Selling is really only about communicating attractive ideas at the right time, to the right people: your database will help you do that. First you have to set it up.
If you keep your customer records in card index form, or worse, in no structured form other than a filing system, you need to get busy.

Specifically, you need to get it computerised.

Most computers come loaded with a database program already. If you like it, fine. If not, go to a PC dealer and see different examples in use. Personally, I like ACT. Trainers tend to recommend it, too, which confirms that it’s an easy program to learn and use. It’s under £150 in the big stores. A key reason for my ACT enthusiasm is that it has a built-in call-back date feature. You can build this in to other popular programs such as Microsoft Access, which is highly recommended, but you have to structure that yourself.

Next you may benefit from some training. While some people can learn by plug and play, most can use guidance. One concentrated day from a specialist will probably benefit you more than a weekly session at the local college although it’s more expensive. Prices vary widely, but a budget of £200 to join a small group is generous.

Then you’ve got to do some hard graft. Feed in every single customer record you’ve got from card index, address book, diaries, repair records, guarantees - everything. Let’s be honest, this is not a load of fun - it’s the boredom factor that stops many businesses starting a database. A computer literate teenager could do the inputting (a member of your family perhaps), but it’s better if you and your staff do, because you’ll be reminded of some business opportunities along the way.

From day one, get into the habit of feeding your database. In the case of actual customers your database entry should be seriously detailed. It should include, in addition to the obvious name, address, telephone and e-mail, a huge amount of detail. You will have been to the customer’s home, so details of that should be recorded. The same applies to their family. Get in the habit, too, of feeding this detail into your computer immediately after a visit. It’s so easy to forget.

The purpose of this detail is to create additional sales opportunities.

Consider some prompts that may come from it. Teenagers can hog the bathroom; perhaps there’s space for a separate shower room. If you have noted when little Janet is going to turn into a cleanliness-obsessed 14-year-old, that’s an opportunity. Equally, your home visit will have told you whether this family has the latest of everything. They may look to update kitchen or bathroom far sooner than average. Is this customer very environmentally conscious? As manufacturers introduce fuel efficient new technologies, that could lead to a sale.

You will note that a letter referring to Janet being a teenager or the customer’s green credentials a year or two after you last visited represents top quality customer service.

Every visitor to the showroom with whom you engage should become an entry on that database. Why should they agree? Because only that way can you e-mail them relevant examples of work completed. Only that way can you keep them updated with any special offers - and we all know that the typical buying cycle is nearer to months than days.

What about “just looking” visitors to the showroom? In a sense you want their details most of all - you can sell to them. Engaging with Mr and Mrs Just-Looking is tricky - you don’t want them to feel pressurised. Equally, they are in the market. If you’ve got product demonstrations planned that’s an ideal reason to ask for contact details. The same applies to the introduction of new products.

Then there are “dead” enquiries - the people who you quoted, recommended, measured for but who didn’t buy. Clearly, if you know they bought elsewhere, then they are dead for the time being. But a healthy percentage will have done nothing for all sorts of good reasons. Again your database can prompt a re-contact in six months, a year, two years.
Present your database communications as a personal customer service. You’re going to introduce new products and designs, give them first news of special offers, remind them to have their valuable appliances serviced. It is not junk mail (if it is, you’re doing it wrong). The more they tell you about themselves, their tastes, preferences and upcoming wants, the more useful and personal you can make your mailing.

Your database programme will enable you to categorise customers in some detail: by sex, postcode, product bought, purpose of purchase, age etc. As time progresses you’ll be able to build up the information you hold to cover family details, birthdays and anniversaries. Database marketing is a lifetime job.

Equally, if a new customer wanders in saying they’ve seen their friend’s kitchen or bathroom which you did for them, you can call up that friend’s details in an instant and see exactly what you did. This means you’re well on the way to knowing exactly what this prospect might be looking for.

There is a further value to this dull graft. Eventually, you may want to sell the business. If you can show a properly managed, regularly used database, you’ve added equity to the business.

So what do you mail out? Good news! You can just send a letter, especially if you can write in a witty, personal style. This doesn’t, of course, enable you to show pictures, and database marketers with an established track record consider that money spent on quality print for a mailer shows a good return.

This is low spend marketing, but your suppliers might help you do it for free. They could supply printed material which you send to your customers. They also ought to pay for the mailing costs - a percentage at least - for the privilege of reaching your regular customers. Ask.

The best practical advice for those new to database marketing is to use your facility regularly (without wearing out your welcome), mail out the best quality you can afford and, above all, record the results. Do that and one place the results will show is in your bank-statement.