Better Marketing Results

The three of the most common and difficult small business and medium enterprises marketing challenges are:

• Finding new clients and customers
• Using engaging marketing messages that generate results
• Implementing business oriented marketing systems

I have published an article on the Marketing Challenges of Small Business & Medium Enterprises (SME) that provides useful information and tips on how these challenges can be handled.

Many of you that have been in business a number of years will have encountered these challenges and have survived the experience to grow their businesses.  For those of you that have kindly share with us your successes in managing these small business and medium enterprises marketing challenges.

At a recent small networking business group (SBNG) breakfast meeting, we discussed the challenges in marketing and what were their successful experiences in reach out to their target markets.  Here is the list complied from the meeting:

• Face to Face meetings (Personal Networking & Selling)
• Understanding exactly who is your target market/customer (targeting potential customers)
• Using a system to generate a prospecting funnel and manage the conversion process
• Testing marketing first before bulk roll-out of the campaign
• Having the right attitude toward communications with your prospective customers - helping instead of selling
• Target your own customer database using RFM segmentation (define)
• Market & sell your benefits not features (how) or use an Objectives-Benefits-Features (define) chart
• Use marketing mediums that your customers use not what you are comfortable with.

What did you think? What is your own experiences with successful marketing?

Many businesses neglect this very valuable asset - your own in-house database. Why? Most think it is too time-consuming to keep updated or simple fail to realize the potential goldmine from using and maintaining their database.

You may have heard of the marketing phrase “Content is King”, however, you may not have heard that the “Database is Queen”!

Your database must be viewed as a valuable resource asset. It is a potent source for marketing intelligence and a powerful tool for building relevance while nurturing relationships.

To make the most from your database you must be able to answer these five questions:

1. What is your database objective?
2. What information is available?
3. How can the information be captured?
4. How can you use the information?
5. What is the best way to segment your database?

What do you think? Have any of you taken the time to segment your database to achieve better marketing results?

View my presentation titled "Why your database should be your best friend" at the recent Email Marketing Summit Australia EMSA 2010 held at the Art Gallery of NSW in Sydney.

Many businesses focus all their marketing efforts in generating new customer leads while at the same time neglecting the potential gold mine that exist with their current customers! Your promotional marketing plan should always include targeting your most desirable customers with relevant and timely offers.

To identify your most desirable customers I recommend you utilise the Recency-Frequency-Monetary (RFM) segmentation method.

The RFM segmentation analysis method will identify your most desirable customers from your current customers using three different lists, namely;

1. Recency – to determine the time frame of orders from the date of your analysis. Your generated list must sort by the most recent orders first as your priority target.
2. Frequency – to determine the number of orders that customers placed with your business. Your generated list must sort by the most number of individual order transactions in descending order.
3. Monetary – to determine the total monetary value of orders placed on your business by your customers. Your generated list must sort from the highest total value to the lowest total order value.

Next, from these three lists select the top 20% in each of these lists.  These will represent your most desirable customers who are potentially most inclined to act on a relevant and compelling offer from your business.

Let us know what results you have achieved!