Copyright 2005 David FreyNot long ago I made a trip over to
local Radio Shack to purchase an electronic plug for my cassette recorder.
As I paid for my item
retail clerk asked me for my name, address, telephone number, birth date, and even my email address (something every retailer should be asking for today!).
Although I felt a twinge of discomfort giving out my personal information, I went ahead and gave it to him and went on my way.
Driving home I reflected on Radio Shack’s checkout process and was reminded of
power of information gathering at
point of sale.
I had just given Radio Shack three ways to contact me, not to mention, information on what I had purchased. In
hands of a skilled marketer, this information is powerful.
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Database Marketing _____________________
The recent economic slowdown has brought increased competition to small businesses. And with that, retailers across North America have described their sales as "flat." Small businesses should be looking for low cost, high impact marketing activities to drive prospects to their business.
One of
most effective and cost-efficient ways to add profits to
bottom line is
use of database marketing, which uses information collected at
point-of-sale.
Using personal data, purchasing data, and contact information from a customer database, a spa and pool retailer can make offers to customers for complimentary products and services and engage in loyalty marketing activities.
Database marketing has four key elements, (1) gathering customer data, (2) building a customer database, (3) creating targeted offers for specific customer groups, and (4) tracking results to improve responses.
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Step 1: Gather customer data. ________________________________
The easiest way to begin this process is to develop a simple form for customers and salespeople to fill out every time a customer purchases a product or service. Include personal information such as names of spouses, children, profession, and birthdays, as well as, product information such as manufacturer, make, and model.
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Step 2: Build a database to store your customer information. __________________________________________________
Start simple using off-the-shelf software such as Microsoft Access. Later on you can begin to modify
database to either include different types of information or to print special reports.
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Step 3: Start sending offers and personal messages to your customers. _______________________________________________________
Don’t wait until you have a large mailing list. Begin sending notes to customers right away thanking them for their purchase, to celebrate birthdays, share holiday messages, and inviting them to come in and take advantage of special offers.
There is an old saying that goes, "Business goes where business is invited, and stays where it is appreciated." A personalized invitation to drop by
store to take advantage of a specific incentive is sometimes all that is needed to keep your customers coming back into
store.