Why You Need to Build Your Customer Database
It has a zero acquisition cost associated with it and it’s the easiest way to market your business, yet few retailers actively build their databases.
The reasons why are plentiful but two big ones come to mind:
Out of sight, out of mind. “I use my database every month to email customers but yet I don’t think about actively asking them for their contact information.
I’m afraid to ask. “I don’t want to seem pushy, that’s not the type of store I am and not how I want to be perceived.”
Yet customers are used to being asked for their information every step along the way with most retailers. So why are you letting them beat you and get a bigger slice of the customer’s discretionary spending?
Here are a few ways to actively solicit a customer’s information while managing your reputation and your brand at the same time:
You don’t ask. You won’t get. The only way you’ll get the information is to ask for it. You can suggestively do it by having a sign and a signup sheet at the cash wrap. But you will be much more successful if you ask the question out loud.
Diffuse the pressure. People are so used to getting bombarded with emails that they’re loathe to give theirs out for fear of more inbox inundation. You can diffuse they perceptions though by stating any of these things:
- We promise never to sell or trade your information
- We promise to only send you one email per month (or per week) or however often you plan and communicating with your customer base.
- We’ll use your information to inform you about upcoming sales, events, new products and more
- If you find that the emails aren’t to your liking, you can simply unsubscribe with a couple simple clicks (it’s a legal thing these days so make sure you’re offering the option).
Deliver on your promise. Since you told them when and how you are going to use their information, then it’s up to you to fulfill your promise. Don’t spam them. Don’t send them emails full of information that doesn’t deliver news. And certainly don’t give up their information to someone else.
Building that database is of critical importance because you’ll have a list of your best customers - you know, the ones who spend more and shop more often. So this marketing channel when paired with social media becomes a potent one-two punch and an incredibly inexpensive and quick way to market your store. And in some cases, it negates the need for many more expensive types of marketing like advertising, yellow pages and the like.
How are you building your database?
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