List Building For Profit

December 6, 2012 by · Leave a Comment
Filed under: Direct Marketing Lists 

Profile your ideal customer

What segment or niche would respond to your offer? A great way to start is by analyzing your current customer base by who recently purchased an item, do they shop frequently what is the dollar volume. New customers will likely be similar to the people who currently do business with you.

Identify your best customers first…..by recent purchase, dollar amount, frequencey
customer databases or invoices, delivery information. These tell you who your customers are, what they buy, how often they shop, and how much they spend. Look for the
people who bought from you most recently, most often, and who spent the most money.

Understand your model customer the 80/20 Rule
Approximately 80% of your sales comes from the 20% percent of your database. Find them and ay attention to characteristics such as age, gender, income, and where they
live.

Understanding Marketing Lists

One easy way to do this is to through Eye/Comm’s data analysis tools. Utilizing survey research to identify consumers’ values, attitudes, and product preferences.

Testing these segments to find the most profitable list

Testing and segmenting the unique characteristics of your best and most profitable customers.

Open new channels to reach your customers and prospects using the methods they prefer. If they respond better to email use email if they answer their phone and delete you emails than use the phone.

Boost response through more specific, personalized offers (as opposed to generic, one-size-fits-all promotions).
Build loyalty programs that increase lifetime value.

Find more model customers

After segmenting your customers by demographic or standard industrial information, so you can tailor your message to match their needs and interests, and increase the chances that they’ll act on your offer.

Identify and target new prospects most like your best customers and drop the deadbeats.

Boost your direct response rate.

Increase your market penetration.

Dramatically improve your advertising ROI.
Track and analyze
Direct mail advertising is awesome because it provides measurable results. By testing and tracking you can determine the most effective lists, offers and creative.

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