When Bed Bath and Beyond finally gave up the ghost and Big Lots entered into an agreement to buy certain assets, the acquiring company emphasized that the company’s purchasing and email lists were the most important assets.
That statement for any small business leader reaffirmed why customers and sales lists are so important to long-term company success. Where a consumer-facing or B-to-B entity, customer lists can become an ongoing asset. But, like any asset, lists must be carefully nourished, pruned, and protected.
Let’s start with the need for any corporate entity, big or small, to capture all the mail addresses and as much information as possible from every contact made to the website, switchboard, or call center. The mantra for every employee must focus on them that potential sales prospects are any individual who contacts the firm for information. The company recipient should be asked for their email address, phone number, and name at the beginning of the conversation. No matter the call’s outcome, the company has a potential new client.
Smart corporations capture these recorded calls and their data in a central Customer Retention Management (CRM) database. Such a program needs to be instituted almost from the first day a company begins.
Many executives point to studies about the reluctance of individuals to share their personal information. At a recent call center training seminar, one industry leader offered one solution for gaining the new contact’s information.
Have the call center or any employee ask for a callback number if the conversation is unexpectedly cut-off.
The speaker said such requests are complied with more than 80 percent of the time. In most cases, the company will gain direct access to a new potential client since the person making the call had some interest in the firm’s offerings.
Once such contact data is available, establishing stronger communication links with the prospect is the second most important task. Because of the anti-spamming laws, it is important to obtain opt-in permission before proceeding.
Yes, any data record must be the gateway to potential sales. SMB leaders must consider databases as swirling oceans with prospects ready today to buy, others looking to purchase in coming months, and other years away from acting. These records combine into an asset that is hard to value but harder to ignore.
Certainly, Big Lots didn’t.
But like any asset, data records must be constantly updated with fresh additions. Beyond adding records, it is important to encourage conversation between company and contact. Periodically, every record in the list must receive information of value to them rather than the company. Semi-annually or more frequently, each record is contacted with factoid snippets to make their job easier. Having a call to action on a contest open only to them is equally as important.
Whatever message is delivered, each record is personalized, has a method for opting out, and encourages responses by offering a benefit to the recipient. The cost of these efforts can be offset by the sales they generate.
Saying goodbye is always hard. Pruning your lists is even harder. Deciding to drop someone off any list should be on three bases.
- A person demands removal.
- Failure to respond for some length of time.
- Change in status or is deceased.
Aside from these reasons, given the relatively minor costs of sending online information, maintaining a large and growing list makes sense. Repetition and reminders result in sales. Make sure you stay in the forefront of any potential customer’s mind.
One more thing, snail mail is still an effective sales tool, and your database would be more valuable with street addresses and corporate addresses. Start with your current sales list and link as many physical locations as possible with their email. Together, they make a powerful, income-producing tool to drive business growth.
JoAnn Laing's Blog 