In Tuesday’s post, I covered the importance of being able to target your best prospects by developing strategies to gather pertinent information about your best customers.
Now I am going to tell you about one of the best examples of the importance of demographics to a small business that I know of.
A woman owned a very exclusive fashion store in a pricey shopping center in a wealthy suburb. She kept no customer mailing list and actually knew very little about her customers. She said it wasn’t necessary.
Most of her customers lived in the high priced condominium community right near her store and she regularly advertised in the small newspaper that serviced that community.
She was finally convinced to start building a mailing list. Guess what? Two-thirds of her customers lived twenty-five to as far as forty miles away in middle rather than upper income communities. They came to her store based on their perception that it was where the super fashionable people shopped. She was shocked.
By using that information she was able to conduct direct mail campaigns into those areas where her customers really lived. As a result she tripled her business in just six months.
Ask yourself how much do you really know about your customers or clients? Is it possible that some assumptions you’ve made about your customers are incorrect?
Are there commonalities that are shared by many of your customers that you are unaware of?
Is there information that you already know about your customers that you aren’t using?
Doctor Napoleon Hill, famous Think and Grow Rich author emphasized accurate thinking as one of the key characteristics shared by the hundreds of successful business leaders he studied over a twenty year period. It is not possible to employ accurate thinking in your business without accurate information about your customers.
You should use accurate information about your customers to select new prospect mailing lists, make new product or service introduction decisions and create direct mail on advertising pin pointed at your customer’s interest.
For anyone of these reasons it would be worth the effort of collecting and compiling information about your customers but when you consider all three uses for the information it is obvious that collecting such information might be one of the most profitable things you ever do.