The simplest way to define the importance of building a database is that it’s free; it’s valuable and can build a customer base! If you have an ongoing commitment to build and monitor your database, it becomes such a valuable marketing tool, when using the delivery methods that are available (such as Mailchimp).
Here is why we say it’s vital to focus on your database.
1) It’s simple to set-up
The easiest method is to set-up via Excel, it is not a sophisticated tool, but can produce results when used correctly. For instance, transferring Excel to an online format is a simple process.
2) You can grow your business
Whether it’s promoting your brand, showcasing a product, using for sales promotions and loyalty programmes, the whole objective is to grow your business. The information you collate (by asking other businesses you meet that it’s ok to ‘add you to our database’), helps capture potential customers.
3) Turn prospects into customers
If you can build a dialogue and be visible in what you do and keep people informed, this is so much more effective than sitting quietly and no one knowing how you can help. For instance, introduce a competition that offers something of value to capture detail.
4) Help formulate campaigns
According to Jay Levinson (author of Guerilla Marketing), the science of using databases for direct mail follows a 60–30-10 rule. Jay states,
“60% is based on having the right list of people; 30% depends on you making the right offer; 10% depends on the creative package.”
5) Optimise your networking methods
Nothing is better than complementing your social media activity and networking event connections by utilising your database as a follow on and keep a dialogue continuous.
6) A good source to measure your campaigns
Using your database and targeting via campaigns, lets you monitor and determine the level of success. For instance, we used to send out webmails that highlighted what we did each month with a minimum response. When we decided to give something back in terms of our guides, this resulted in a sharp increase of emails opened.
If you’re not already doing it, or you have a pile of business cards in the corner, just sitting there, take action. It’s all about building a community and having a voice that is continually heard and recognised.