This video and post below are courtesy of Mark Watkins from MWM Business Solutions. The Gettysburg Gazette thanks Mark for taking the time to share his knowledge with us all on creating a customer list. Make sure to check out our write-up of Mark.
Have you ever heard that the money is in the list?
Kind of vague advice, right?
So, let’s flesh this out a bit.
Most new businesses are interested in acquiring NEW customers, so they advertise and use specials and events to bring them in the door. They post on social media, distribute flyers, give out free samples, get featured in local media, whatever it takes to get people to enter their store or dine at their restaurant or buy from them.
All these activities have a cost and if broken down and analyzed marketers would look at this number and say it cost X dollars to acquire a new customer.
OK, for example, you just opened your business and there is some buzz because you are new to the area and 10 customers come in and love your new business and become new customers.
It cost you $10 each to attract the 10 customers so you spent $100. The average transaction value in your business is $25 so you did 10 transactions with those customers and you made $250 minus the $100 acquisition cost you end up with $150.00.
Related Business Profile: Mark Watkins from MWM Business Solutions
Acquire NEW Customers
Increase the frequency of transactions from your EXISTING Customers!
You already won over those 10 EXISTING customers and you spent the $100 to gain them and now if you can increase the frequency of their visits to your establishment will increase your bottom line.
Now a good list should have the customer’s name, email and cell phone number at the minimum as I will explain later. It is also helpful to pay attention to the gender, age, location, days they visit, etc. This will help you better understand who is attracted to your business and will make your advertising more effective and lower your acquisition cost for attracting new customers.
Most Lists in the past were gathered for direct mail campaigns or to send the customer emails.
Now you can also contact them via FB Messenger, SMS Text and other means which are more mobile friendly.
Remember if you only use 3rd party services to market your business, they own the list. Your customer acquisition cost is higher, and your profit is lower, and you have no means of contacting that customer again. I am not saying that these services are bad because they do have the advantage of being known and trusted but it is extremely important to find a way of capturing that lead or one time customers information so that you can market directly to them in the future.
I leave you with the challenge today to start building your customer list. Go through your mind and make a list of your regular repeat customers. Maybe look at current and past invoices.
Picture the customer in your mind. Think about who those customers are. How old are they? Do you have more male or female customers? What days of the week or what time of the month or what time of the year do they frequent your business? Do these customers have an interest outside your business in common? What promotions or specials brought them into your business? What other businesses have you seen your customer frequent? What groups or organizations do they belong to? Where have you seen them on social media? What could you communicate to them of value that would increase their buying frequency? Have you thanked them for their patronage?
In my next article, I will discuss various methods of easily building your list dependent on the type pf business you own and answer any questions you might have.
Please comment and let me know how I can help you grow your business.
This presentation contains images that were used under a Creative Commons License. Click here to see the full list of images and attributions: https://link.attribute.to/cc/551647