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Marketing Strategies | by Bill Neal Going direct Means building a database that is both accurate and versatile. The most well thought-out direct marketing campaign often fails in spite of a great offer, compelling copy, and a striking, attention-getting design. The reason? A poor mailing list! For a campaign to succeed, the direct mail piece must first reach the audience most likely to purchase the product or service. And to do that, you need a sound and versatile marketing database. Building through buying We have all seen e-mail advertising from companies that offer database-marketing lists purporting to provide great numbers of prospects and returns. However, they are often expensive and contain dated and undeliverable information. While purchased lists may be a good starting point for building a direct marketing database, you will have to “scrub” the list by updating the information for each record and verifying all information provided. This can be very time-consuming and expensive. There are three types of databases, and each comes from a different source (see “Database types,” right). Ideally, a fully integrated marketing database includes the information from all three types and requires a fairly sophisticated CRM (Customer Relationship Management) software package. Because of the expense and time required to develop this type of database, it probably isn’t an option for most laboratories. Building through self-development
So, how do you develop a good marketing database? First, decide how you are going to use it and where you are going to market. Are you staying in your local market, or will you be soliciting out of state? An excellent way to get started is to meet with those who will gather the information and work up a plan for list development and maintenance. Be sure that you develop some rules for database maintenance; i.e., how customer and prospect records are formatted and how that information is entered into your database management software. Here are points you should consider before entering the data: • What customer and prospect information do you need? • Will you use all capital letters (not recommended) or word caps? • Will the database be mail-merge friendly? • Will you keep customers separate from prospects? • Will you mail to all types of dental practices, or a group within a specialty? One excellent source of information about your target market exists within your company’s financial software package. Remember Pareto’s 80/20 Rule? If you apply this, you will find that approximately 20% of your customers contribute roughly 80% to your total gross sales. These 20% are your best customers and should be used as a profile for the type of new customer you want to attract to your business. If you begin by purchasing a list from a company that specializes in dentistry, such as a dental magazine publisher, use the profile you have developed with the 80/20 rule. Find out what their SIC (Standard Industrial Code) codes are and select those that apply to the type of practice you want to solicit. Lists from a publisher still have to be scrubbed, cleaned up, and appended to ensure the information is current and accurate. Remember, a successful direct mail campaign starts with a strong contact list. If you use an older list or one that you have not scrubbed, you most likely will be direct mailing pieces to addresses that are incorrect or to people who are no longer at those addresses. Basically, you are throwing money away. To get a good list, you will have to put some effort into it. However, the results will be rewarding, through improved response and greater sales. 7 considerations As you create your database mailing list, be sure to develop protocols for defining the capture of data and list maintenance. 1. Software access: Who can input, modify, or delete records? 2. How will you avoid duplicate records? 3. Develop a system for the format of data entry to include upper- and lower-case letters. 4. How often will the database be updated? 5. How will you contact current customers to update their information? 6. Make sure your CRM software will allow you to create rules for new profiles and user-definable fields. 7. Define who is responsible for backing up your software, and make sure you have off-site storage of all back-ups.
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