Your customer database is one of the most valuable assets you have.
Permission-based marketing, that is engaging your customers, building their trust, and getting their permission to market to them directly, should be at the core of every advertising and marketing decision you make.
Why is permission-based direct marketing to your customer database so profitable?
1.) Your permission-based direct marketing is talking to a proven demographic….that is people who have already bought from you or expressed an interest.
2.) By virtue of them giving you permission to be added to your database pre-qualifies them as future customers or repeat buyers.
3.) Technology has made direct marketing virtually free! Remember when direct marketing involved paying a printer to print your direct marketing materials, you had to buy envelopes and pay for stamps or delivery? Today, direct marketing is done via e-mail…no production costs and no delivery costs.
And of course, your old snail-mail database lost track of your customers when they changed mailing addresses, while their email address follows them where ever they may go.
4.) Some studies have revealed that it can cost up to twenty times as much to find a new customer through advertising as it does to keep old customers coming back with direct marketing.
So why advertise at all?
1.) Every customer or prospect list turns over at the rate of 20% per year. Marriages, divorces, income changes, physical moves, deaths, births and a number of other unstoppable lifestyle changes will render 20% of your previous customers as non-customers every year. Advertising for new customers is vital to replace that attrition.
2.) Aggressive competitors will inevitably “steal” some of your customers, necessitating the need to be continually replacing them with new customers.
3.) Advertising can encourage more people to give you permission to add them to your emailing list.
4.) You want your customer list, and your business, to grow.