So, you’ve taken advantage of the great deals on computers, set up your new system and installed a database management program. You’re ready to get moving on that direct-marketing project except for one thing: your database is empty.
According to marketing consultant Jay Abraham, there are six primary ways to collect names.
First, seek out customers similar to the ones you currently do business with. Look at those who now buy from you and ask yourself who they are, where they live and work, and what other similarities they share. If you find that most everyone who buys your product is a salesperson, buy a mailing list that targets this group of people.
Second, strike a deal with another business whereby you rent booth space or a kiosk in their facilities. This gives you proximity to their customers, making it easier to get their personal information for your database. An example of such an arrangements is Allstate Insurance, which sets up shop at Sears stores.
Third, work out an exchange with a business that sells complementary services. This approach tends to be underutilized, but is one of the simplest ways to increase the size of your database. A real estate agent, for example, can share her customer list with a mortgage broker, and vice versa. Or an architect can share his names with a building contractor. Ideally, by sharing names you create a win-win relationship for both parties.
The fourth way to collect names is to use free publicity. An example of this is to create a free report and send it to trade publications, newsletters or magazines. Include a press release explaining that the report is available to those who send you a self-addressed stamped envelope. When the requests come in, enter each name into your database. A Boston stockbroker uses this method, but in reverse. He regularly scans the newspaper for items about CEOs and presidents of corporations. When a member of his target market makes the news, he clips the article and sends it along with a congratulatory note and an offer to send them free, his quarterly investment newsletter. On one recent monthly mailing he sent out 50 such notes and got back 11 business cards requesting his newsletter, a far better return than most direct mail pieces. Best of all he finds that he’s already begun a relationship with his prospects.
The fifth way to fill your database is to advertise a free or low-cost product in a classified ad. Buy an ad in a publication that reaches your target market. As people send in for the product, collect their names.
Finally, cultivate referrals. This one is so simple and obvious, it’s easy to overlook. We must confess that we ourselves neglected to do this despite regularly recommending to small-business owners that they ask their customers for referrals. When we finally realized that we should include this requested on our seminar evaluation forms, we were delighted by the response. Forty percent of the audience offered at least one name, with several offering three or more. Now that we’ve collected the names, we’re mailing a letter about our program to each referral. And by mentioning that we were recommended by someone we know, our chances of getting through are much greater.
A well-oiled and up-to-date database program can be an effective small-business marketing tool that can allow you to grow your business and continue to focus on your target market.
