Five Steps To Energize Your Marketing Database (2,420 words)
Five Steps To Energize Your Marketing Database
Part 1 of 5-Conduct Intensive Customer Analysis
A marketing database doesn't have to be reserved only for marketing use anymore. It can be used to define your company's core business strategy.
Whether you are a consumer or business-to-business marketer, or whether you have a web strategy or not, the steps that will be described in this 5 article series are timeless in their ability to impact your business.
Here is the first of five steps you can undertake:
Have you ever queried your database for the names of your best customers? Often, simply knowing the identity of your best customers offers a strong clue about the types of consumers or businesses who are the bread and butter of your business.
If you're like most businesses, there is inevitably a month or season when sales are slow. When you need to generate revenue quickly and reliably, you should look no farther than your very best customers. It makes business sense to leverage your best customers during off-peak seasons with offers that will generate fast sales, and with predictable and reliable cash flow results when you need it most.
So what should you analyze? Here are three points:
1. Generate a comprehensive list of your customers. It should include customer name, location, sales or product volume, and perhaps another key data point unique to your business.
2. Determine your priorities. What is most important for you to know about your customers? Is it sales dollars or product volume? Location? Or another variable? Once your priority is determined, sort the data. For example, if your priority is by sales dollars, sort your customers from highest to lowest.
3. Group your customers. Depending upon the size of your database, you should divide your customers into groups of quintiles, deciles, or demi-deciles (or twentiles). Quintiles are five equal groups of customers, 20% of the customers per group. For example, if you have 1,000 customers, your five groups would each have 200 customers. Deciles are groups of 10% each. Using the 1,000 customer size example, there would be ten groups of 100 customers each. And demi-deciles would have twenty groups of 50 customers each.