If you run a small business you can increase your profits through database driven mailings. It's a lot cheaper than conventional advertising, and the returns can be far greater. So where do you start?

First gather those precious names and addresses. In fact, you might already have quite a few names on file from the following sources:

- Copies of invoices sent out.
- Guarantee forms filled in.
- Past enquiries or complaints.

Use these names to start your database file. As well as their name and contact details you should include as much relevant information as possible. To store the information you don't need a complicated database program - a simple spreadsheet application will do. Just check that it will combine with your word processing application if you intend to send out mailings. If you're going to contact your customers through email, you can keep their details on an email application such as Microsoft Entourage.

Now you need to make sure you gather names at every possible opportunity and add them to the list. Trade shows and exhibitions can be a goldmine. You should also make sure all members of your staff who come into contact with potential customers are well versed in asking for name and address details.

Of course, not everyone is willing to give out their details so easily. However, you can incentivise a request in several ways.

- Advance notice of special offers.
- A prize draw to win some of your merchandise.
- Free membership to a customer discount club.
- Your free newsletter.

The next step is to draw up a communication plan. You only want to speak to your prospects when you have something of value to say. But of course, in business, there's always plenty to talk about. Here are a few examples.

- New products or services.
- End of season sale.
- Stocktaking sale.
- Buy 2 get 1 free.
- Quantity discount.
- Free trial.
- Free for kids.
- Interest free.

Write to your prospects in a friendly tone of voice, as if you were chatting to them over a cup of coffee. Briefly remind them of your dedication to offering first class service. If you have a website, don't forget to include the address. And always ask for the order.

It's good practice to track response to your mailings. By doing so you'll find out what offers work best. To do this include a code for Internet redemption or a coupon if they have to come to your premises.

Send your communications out every 6-8 weeks; more frequent than this and you risk becoming a nuisance. And make sure you give them the opportunity to opt out of receiving any more communications.

These are humble beginnings for your database. Over time it can become more sophisticated and your mailings more targeted to the particular needs of prospects and customers.

You may find it profitable to run small enquiry ads simply to add more names to your database and then market these people over time.

Today all corporations realise the value of a database, although not all of them know how to use it well. For your company it can be a huge source of extra profit. Make the most of it.

Copyright 2006 by Tony Brecher

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