One of the most frequent questions that I’m asked as a consultant is “how can I increase sales?” While there are many possible responses, this article will focus on a simple yet under-tapped solution — the customer database.
Whether you’re a retailer or a manufacturer, it is important in today’s competitive market to stay connected to your customers, keep them loyal to your store or products and excited to buy more! Creating, maintaining and utilizing a database is one of the easiest ways to solidify this connection and “engage” these customers. For retailers, this is a list of the mailing and email addresses of people who walk through your door; for manufacturers, it’s a list of the consumers/end-users that have shown interest in or purchased your products.
As a retailer, anyone who walks into the store is YOUR customer—how long you keep them depends on your interaction with them. It’s now your job to make them feel special and appreciated. A retailer must constantly strengthen and reinforce its reputation as “THE” destination for the newest products, provide the highest level of knowledge and give amazing service to keep customers excited, loyal and spending their hard-earned money. With the costs of marketing these days, it is certainly more economical to keep and nurture customers already familiar with your store than trying to attract new ones. A recent small business article noted that “it costs TEN TIMES MORE to acquire a new customer than to up-sell a current one!” Loyal locals help keep the registers ringing during the slow months, while repeat tourist/resort families can provide added sales summer after summer.
Getting the names and addresses for the database takes some creativity. Information can be gathered from SUP rental and lesson contracts, personal checks, special or custom orders and more. Raffling a free paddle, wetsuit or other giveaway every month can increase names quickly. Offering a free t-shirt or instant in-store discount will also work to rapidly and effectively build the database. The store website, Facebook, LinkedIn and other social media pages are also avenues to gain names. Getting the employees involved by offering a prize for the most customers added each month can yield amazing results, thus making it a daily priority for everyone working in the store. Most importantly, make it easy for consumers to provide their information, and allow them to review it for accuracy and legibility. Keeping this database accurate and updated is an ongoing yet important task.
There are a number of ways to stay connected with your newly-signed consumers–monthly or quarterly newsletters, email alerts, YouTube videos, product blogs, direct mail and more. Obviously, each format has to be used carefully so that the consumer doesn’t mark your mailings as spam, thus losing the opportunity to connect.
Consider sharing the following information with your customers:
- Insight and updates on newly-arrived products or brands
- Invitations to special sales, promotions, team rider events, etc.
- “Insider” product pricing, monthly discount coupon, gift-with-purchase certificate
- Discounts on rentals, lessons, t-shirts and more
From the manufacturer/brand perspective, many of the issues addressed above also apply. Remember, the goal is to gather the personal information from anyone who’s familiar with your brand and products—make them a part of the brand so that they continue to buy more and share their loyalty with their friends.
The information for the database can come via product warranty forms, e-commerce sales, raffles or giveaways at consumer events, feedback via the website, customer service calls, newsletter sign-ups and more. As noted above, make sure that it’s easy for consumers to give you their information AND that it’s legible and accurate.
This database can be utilized to:
- Announce exclusive or new products
- Gather consumer feedback on product designs, marketing ideas, etc.
- Promote special events or team rider visits
- Send special discounts redeemable at a local dealer or via company website
- Introduce a new dealer in an area
Keeping your customers loyal to your store or brand, keeping them excited & informed AND making them feel special will go a long way in terms of boosting your sales season after season!
About the author:
Dave Seehafer is an industry analyst for Global Wave Ventures, a San Clemente, CA- and Jacksonville Beach, FL-based action sports brand management and consulting firm. With over 25 years of experience and relationships, Seehafer provides guidance and solutions in areas such as sales & distribution planning, profitability & margin analysis, grassroots brand marketing, inventory management, private label resourcing and more. For more information on how to boost your sales and profitability, call 949-466-4110 or click here.