Know-How Exchange : Advertising/PR

Dear Dani

Classically, RFM (Recency, Frequency and Monetary values of recent purchases) marketing techniques should lend themselves to marketing to existing clients, but they do depend on a purchasing mindset which lends itself to these methods and, critically, having a large enough database to make the exercise statistically valid.

I would refer you to the direct marketing associations’ page for RFM marketing to see whether it could work for you. The need for a database of at least 40,000 is one of these criteria but I would question this if you have accumulated hard data on your existing customers. You could succeed with 4000 if you understand them.

You will see that RFM (https://www.dbmarketing.com/articles/Art123.htm) has a long and well analysed history, going back to the days of direct mail marketing, but the principals remain the same. You must divide your client base into quartiles.

That rather leaves it up to you as to how you contact your existing customers, There is merit in the fact that for mass mailings the RFM formula works, but if for example, you do not have such a database or your think that your customers will respond in an atypical manner, then you must modify your approach accordingly.

I feel that the ideas presented above have merit but if you are going to approach your existing customers, then you need to look at their existing purchasing records and if those records indicate that you should go down the RFM route then you should do so, but be intelligent about it. RFM assumes that the most recent and frequent purchasers who spent the largest amount of money with you will be the most likely to buy again on the basis of a further marketing approach,

If you believe this tome wrong then don’t do it and go for one or more of the other ideas,

Sorry not to be definitive about this, but RFM works, where it is intended to work and if I try to ram it down your throat as a solution and you feel that it is wrong, then it will fail.

Such is the nature of taking major decisions in marketing management. The decision is back over to your!

Oh, by the way if you want to do this, you will need a decent CRM system, Sorry to bang on about out this, but it is my speciality!


Regards

Steve Alker
Unimax Solutions

An inexpensive way we market to our customers is with a client e newsletter. The newsletter should be focused on topic that would interest your customers. Then you can add a section about new products and promotions to encourage them to buy more.
Follow up with your customer a month or so after they purchase and interview them on their satisfaction level. It shows great customer service and may identify a need for more purchases. Keeping contact with them is key.

Good luck!

Dear Dani OBrien,

As already you have existing customers you would be saving on a lot of marketing activities that would be required otherwise.

As already a relationship is established, it becomes easier for you to deal with these customers. If otjherwise the products you offer are of the quality that they need and of the price that is competitive (or not much above the what they presently pay) this would be easiest to sell.

I suggest :

1) Send direct but personalised mails mentioning how much you value the relationship you have with them and thanking for the patronage they had been providing for your business so far. And suggest to them the list of other products that you could offer to them. Express to them how they would benefit buying these products also from you; how it would save on time and efforts mutually. You may attach to this letter the standard brochure or leaflet that you might be having to describe the product.

2) Follow up this with the personal visits of your field sales force (if you have) or through direct phones to the concerned.

3) If it is feasible / viable you must provide them free samples of the product for their evaluation. Or if the product demonstration could be arranged (if the product is of such nature) do it.

These all are basics. You would be having better knowledge of the products that you are talking about; you would know better of the competitors of these products and you know well of the customers. So, work out your tactics based on these information and our relevant suggestions. Further, it is must these tactics must lead to your strategy that you plan for the long term.

Best Wishes,

kannan

Different customer types require different approaches. The B2B sales environment is very different from the consumer/retail environment. These differences affect both the marketing and selling processes.

An important philosophy to bear in mind is that the purpose of marketing is to create sales opportunities and ultimately revenue.

In the situation described, the purpose of your marketing effort is to broaden your sales exposure throughout a known company/customer. In most b2b situations, the sales exposure is across a small percentage of the decision makers and oppty's at a customer. My experience is that it is between 15 and 20% at an existing customer. Further, b2b selling efforts need to be across customer functional areas (executive, project, technical/design, marketing.....) and at multiple levels within areas (day to day execution, mid management, sr mgmt).

Advertising alone will not increase your incremental sales to established customers. You need to tie a marketing campaign to a sales campaign. Marketing's job is two fold:
General branding of your company to ensure familiarity when sales calls
Specific product/service marketing when sales has established the next opportunity.

General branding can be accomplished via direct mail, email, newsletters, press releases, call centers, attendance at trade shows the customer goes to, and sometimes advertising (print and/or online).

Specific marketing ties product attributes to customer project or needs. This includes market trend info, end user feedback, benchmarks, product comparisons, solution descriptions, certifications, partner relationship programs.

By using general marketing to broadening customer penetration and specific marketing to winning the oppty, revenue will increase. But it takes more than advertising, it takes the full marketing spectrum.

I would consider doing some marketing research with your existing clients -- have them fill out a small 5 question survey and drop in a box at your front counter with a prompt to "win a free lunch". That way you can learn what their priorities are and they can try to win a free lunch (discaimer: make sure you announce the winner).

Now it is time to correlate the information -- read what your clients are wanting and what their expectations are.

Once you are aware of their wants and expectations -- then start tailoring a customised campaign at each of these customers where you are finding clear associations between what your augmented services are and what they are wanting. If there are no relationships -- you need to start creating products that match these gaps in your product offerings. Its that simple my friend.