List Of Customers vs List Of Prospects
Database management is an essential part of marketing. It requires the collection of information and the development of statistics about customers and prospects that, when analyzed, permits marketing to carefully target each with the most effective messages possible.
There Is A Difference Between A Customer And A Prospect
A customer is someone who has already reacted to your product or service offering by purchasing from you. A prospect is someone who has demonstrated some degree of interest by seeking information, but has not yet become a paying customer. Herein lies the difference between the two that must be addressed with the proper messages.
Database Marketing Addresses These Differences
When marketing to people who are already customers, larger and more sophisticated marketing people often build elaborate databases about their customers. These are usually made up of a variety of data starting with the customers name, address, demographics, review of prior contacts and, of course, a history of the customer’s shopping habits and purchases. Marketing to people who are still just prospects depends on having third-party information assembled from various sources. Ordinarily, this information is limited to name, address, telephone number, e-mail address and available demographics. Some of this data can be extracted by using contests, sweepstakes programs, online registration data and other sources used for developing leads.
Business-To-Business Marketing Is Somewhat Different
Databases for business-to-business marketing are a bit more difficult to assemble and the databases are generally far smaller than those used in business-to-consumer marketing programs. This is due to the fact that business-to-business marketers have numerous contacts within a single company and it’s often difficult to accurately determine who is the right person to reach by direct marketing. However the databases for B-2-B marketing frequently include data that can be used to segment markets by using special, dedicated software programs for each segment identified. Customers in B-2-B often have specific loyalties due to their need for after-the-sale service for the products they purchased as well as new information such as available updates and refinements for those products.
Prospects Must Be Motivated To Become Customers
All marketers really know about a prospect is that he exhibited interest by asking for additional information or simply by visiting their website. Now the challenge is to convert prospects into customers and that usually requires highly targeted mailings designed to increase interest and promote further action on the prospects part. Marketers use a wide variety of techniques to do this including free offers, bonuses and others.
Keeping Customers As Customers
Part of a good marketing mix also includes making an effort to spur existing customers into purchasing anew. There are several ways this is achieved. The contention used is that existing customers will always be prospects too. In fact, many marketers have methods designed to increase what a customer is buying during the initial purchase. This is referred to as ‘upselling’ and is a well-established marketing practice. Offering on-the-spot upgrades, or adding another item that is discounted if the customer buys right now accomplishes it. Many customers are quite receptive to this type of offer since the company’s credibility has already been established with the first sale. Even websites have upselling offers that get results. Marketers also employ ‘backend selling’ or selling other related products or services to customers who have purchased before. Statistics show that customers who have already purchased from you are significantly more likely to purchase again.
Referral Selling Is Another Marketing Technique
If a marketer has an effective system to develop referrals from satisfied customers, he has another good source of business. These prospects are a step-up from un-referred people since they have at least some credibility for the company when someone they know who has had satisfactory personal experience refers them. Marketers utilize customer surveys as one method for developing referrals.
Database Management Is Essential
When a company is on a growth cycle and their lists are growing as well, database management becomes essential. Doing his is much easier today thanks to computer technology and the ready availability of virtually every type of list management software. Highly detailed statistics about customers and prospects permits the savvy marketer to precisely target people with dedicated marketing messages that are customized based upon the statistical analysis of detailed database information.
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