Developing a database
Marketing instead
of advertising
While speaking at an industry
trade show this past week, the discussion I was leading came around
to advertising. Or more specifically, what were the better ways
of advertising a business. One of the participants asked about
the television ads they had recently seen.
In this ad, the nationally
known business has an unusual twist to their ad. The voice states
the retailer will no longer ask for your name and address when
you come into their store. The oddity to that commercial is that
they are giving that remark as a reason to come into their stores
and do business.
The audience was asked as to
why they thought that commercial existed. One participant said, "Because
they have annoyed everyone for so many years with their asking for
that information to build their mailing list."
Several
other participants agreed and told of their personal experiences.
They had gone into that business looking for something and had
the experience that many people have while shopping in businesses.
No one said hello to them as they walked in the business, and
no one came up to offer assistance to them as they attempted to
find what they were looking for. People working in the business
would help when asked, but not until they were asked.
For those
shoppers that managed to find what they were looking for, their
first interaction with someone from the business was when they
took the merchandise to the checkout counter to pay for it. And
at that point, as the sales clerk began the cash register procedure,
the customer heard, "Can I have your name and address, please?"
Skipping
past any questions with regard to the obviously poor customer service,
the audience was asked, "Why do you think they want your name
and address?"
"To add me to that
annoying mailing list!", was the quick and strong answer
given by the audience.
"And, why don't you want to be on
their mailing list?", I asked.
"Because, it is just
another piece of junk mail."
Asking further questions, I
stated, "Would there be a good reason why they would ask
for that information? Or, is there a possibility that there is
a reason YOU would want them to have your name and address?"
And,
the same question is asked of the readers of this column today.
However, let's have the situation unfold differently. What if you
went into that business and picked up a couple of packs of batteries
(a product that this example business does sell)? As you approach
the checkout counter the sales person asks you this question. "Did
you notice that the batteries are on sale today? You are going to
save about $2.00 per package. Is one enough or would two be better?"
Oddly
enough, by asking that one question the business will see a double
digit increase in sales as that small suggestion for two packs instead
of one traditionally produces increased sales.
It is the next part
of what the sales person says that will get our attention. "You
know, we have an advertisement in the newspaper telling customers
when the sale begins on these batteries. And every time we have
a battery sale we are sure to sell a lot and be out of stock on
one or two sizes for a couple of days. However, our preferred
customers always get first choice. We actually send them a sale
flyer about five days before the sale begins to let them have
the first opportunity of getting the batteries on sale before
the general public gets them. Would you like for me to add you
to our 'preferred' customer mailing list?"
Hearing that
explanation, wouldn't you be more likely to let the customer add
you to their mailing list? And of course, they are going to be
sending you other material during the coming year. That is one
of the advantages of having a name and address list of customers
that have done business with them.
This comes into play in our
industry, but with a slightly different twist. To begin with,
hopefully you have never had to tell your customers that you are
not going to annoy them any more. And, you probably do not have
customers walking up to your checkout counter with several pieces
of power equipment in tow, asking you to ring up their sale for
them. As for the, "Is one enough or would two be better?" question,
it does work on many of the accessories you sell. But what about
the name and address?
In our shop, we tracked the
name and address of every piece of equipment sold. Our tracking
began on 3 x 5 index cards and dated back to the 1960's. Customers
gladly gave their name and address as we gave a simple explanation
of why we wanted it.
As we took their name and address,
we also listed the make, model, serial number, and purchase price
of each piece of equipment they purchased. These 'preferred' customers
received several benefits.
We did not need any information
when the machine was brought into our shop for warranty work; we
already had all of the information. If their equipment was stolen,
they could easily call us to get the information to share with the
police department. And if the equipment was not found, we could
assist them with the insurance claim as most insurance companies
wanted a proof of purchase.
Of course, many customers did
not hold onto this material. But by their coming into our shop we
could create for them a duplicate invoice to send to the insurance
company. And better yet, with either of these last two scenarios,
we were the first to know of their misfortune - and their need for
a new piece of equipment.
Customers are glad to share
this personal information with you, and not see it as an annoyance
just as long as there is a benefit to them. Do you have a reason
why I should share my personal information with you?
