Building relationships with a customer database

Rather than constantly looking for new sales from new customers, like the majority of companies, focus on your past customer list from your chosen niche. Concentrate your marketing activities on building relationships with the people in your target market and make sure they don't go anywhere else.

It's important to remember that if they enjoyed a positive buying experience, existing and past customers are likely to buy from you again. These people have already trusted you to deliver a product or service. You don't have to sell them again on the merits of doing business with you rather than your competitor. Repeat business is the key to profits lie in your business. If your product or service is not something which your customers need on a regular basis, you may need to look elsewhere to be able to offer them further opportunities to buy.

So how do you get started with database marketing?

Naturally enough, the first step is to make sure that you have all your customers' details stored somewhere. Ideally in a computer database, but a good old fashioned card index file will do the job just as well if you have a small customer base.

If you don't already have a customer database, the place to start is to have as much information on your invoices as possible. When a customer makes a purchase, as well as keeping a record of the purchase and how much it was for, etc., and also any other recommendations or needs the customer might have.

Try to make sure that as you capture customer information, you also have some way of recording the details of customers that didn't make a purchase. These prospects can be converted to customers over time with effective and on-going marketing efforts.

One very effective way of capturing the relevant information is to use a competition or free drawing. Publicize the competition at your premises, send information on how to enter to existing and past customers, and offer as many ways as possible for people to enter that also provide you with the information you want (such as having an entry form on your website).

Once you have your customer mailing list, with as many details as possible, you can use it to:

- Communicate with past customers to ‘reactivate' them and offer further products and services (your own or other people's)

- Categorise your customer database into a, b and c clients...and treat them accordingly

- Develop a list of your best customers and pay them special attention

- Email marketing to past clients and prospects with newsletters and special offers, etc.