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Ask most companies if they have a database
of customers and the answer is 'yes'.
Ask how they use it and the answer becomes a little more vague. Reference will perhaps be made to someone
else who looks after it?, or there might be a suggestion that they are mailed
a couple of times a year?.
The notion of analysing customers and
potential customers to find out exactly who is most likely to buy from you is
rarely found. The idea of splitting
databases into two sections (those who have bought in the last year and those
who haven't, for example) and then sending them completely different promotions
is even more unusual.
Yet techniques such as these are not
complex to implement, and once in place will have a huge impact on your
marketing costs. Promotions will shrink
in size (thus cutting print and postage bills) while turnover remains the same,
and profit rises. Customers stay with
you longer the number drifting away to rival firms declines dramatically.
And all due to the way the databases are
'The Filtered Database Technique: Cutting
your marketing costs in half' is written by Tony Attwood, of Hamilton House