Why Nurture Your Marketing Database?
In a previous article we looked at how we setup our marketing database, and how to segment the database into your various target categories. Now you might be wondering, “why do we need to nurture our database anyway? Why not just spend more money on advertising and sales people?” Well the simple answer to that is simply ‘cost’. It costs 5 to 25 times more to attract a new client than to keep an existing one, additionally it costs way more to go after a new client than to convert a prospect that you had already contacted in the past. Most marketing is simply continuously and consistently touching your prospects over and over again until they are ready. To truly understand why we nurture our database we need to understand the mind-space that different people are in. The main advantages to nurturing our database are:
1. Those not ready now
Most people that you approach will often not be ready at that very moment. In fact in an entire market only 3% are buying your particular good or service at any particular time. So what happens to all those other people that you reached out to who aren’t interested at that moment? Most people ignore these people until the next time they remember if at all to contact them. The advantage of staying in touch here is obvious in that you now get the opportunity to be in-front of them when they are finally ready. Remember not now doesn’t mean – not ever.
2. Cost of sales and advertising is higher
Whether you choose to advertise on print, web, billboards or a sales-force, there’s a cost involved thats often higher than the cost of re-marketing to your existing database of contacts using a mass direct marketing option. Simply put if you are spending x amount per month to generate y revenues then database marketing should help you generate 25 – 50% more sales without spending more money on your core lead source.
3. Stay Top of Mind
It’s said that it takes 12 touches before someone becomes a client, if we take this as our premise, we find that that most of us will only contact most people 2 or 3 times before we give up and move on. However imagine where you would be if you simply persisted in staying in front of them. If we look at all huge companies and brands we notice that they are always marketing and always staying in top of mind even when you’ve become numb to their messages.
4. One trick pony
If you are using mainly print ads to drum up your core sales / enrollment numbers then adding other channels and database marketing allows you to have more ways to stay in touch without quickly fatiguing the audience. Note that if you are doing your job right fatigue always sets in, some leave your database, more join and more buy or enroll. Whatever happens consistency and diversity in media is key.
5. Educate, Gain trust, Establish expert positioning
Probably the best thing that good database marketing does is build your positioning in the market as an expert in your craft. Since good database marketing uses mainly content and articles that serve to educate and showcase your actual works, it comes off as less marketing and more educational. This helps you gain the trust of the cold prospect you just talked to and who just said “not now”, they start to see that you a professional in your line of work and soon they start to warm-up and trust you as they see the results you are producing for other people over time. If your messaging is on point and in sync with what they are looking for, then when an opening comes up they will definitely consider you.