|
Author: Lori Feldman Article source: http://www.smartmoneymarketing.com/. Used with author's permission.
Several years ago I worked with a CPA who wanted 20 new clients. We came up with a great direct marketing campaign that brought in 10 leads per 1,000 letters. His closing rate was 10%, so after his first few clients came on board, we calculated that acquiring new clients was costing him between $500 and $600. He liked the numbers (one client was worth about $8,000/year), but progress was slow. We advised him to open the spigot and mail 5,000 at a time, instead of the 1,000 he was sending. It worked, and he acquired the new clients he was looking for sooner rather than later.
I do quite a bit of public speaking on direct marketing. One question I like to ask my audience is "How large is your database?" I get answers anywhere from 100 to 250,000. I worry about companies who don't have at least 2,500 names in their databases. Unless they're selling high six-figure products or services or have a closing rate near 100%, they don't have enough prospects to meet their numbers.
Database marketing is all about up-selling and cross-selling your existing customers and targeting prospects to find qualified buyers who are ready to buy now. It's a numbers game. The more you put into the funnel, the more orders that come out at the other end. Here's the formula for calculating how many leads you'll need this year:
Annual projected sales / average order size / sales close percentage rate.
Let's say your annual sales quota is $750,000. An average order is $1,000. You're a pretty good sales person so let's say your closing rate is 40%. Using the formula above ($750,000 / $500 / 40%), you'll need 3,750 new leads, or 313 new leads per month. If you're relying on traditional prospecting like shoe leather (networking, clipping "prospects" from the paper, telemarketing), you're not going to get "there" in time! The fastest way to build a client base is to build a database of qualified prospects. Consider these shortcuts:
1. Buy a targeted prospect mailing list. Review your top 20 customers and figure out the demographics that make them ideal customers for your business. Then buy lists of these prospects. There are 40,000 different prospect lists on the market; you'll need to find the best 3 to 4 that fit your "profile." You may find it faster and cheaper to have a mailing list broker help you find these needles in the haystack.
2. Capture targeted leads off the Internet. Rather than cut and paste, you can use data capture software to compile your own chamber lists, membership lists, yellow pages listings, and email signatures in an Excel-spreadsheet-like format, which can then be downloaded into ACT! or any database.
3. HP, the printer company, did a study that showed 80% of a buyer's sales decision is made by the time he calls you. Consequently, your goal is to make prospects call you. With enough prospects, you can start a drip-marketing campaign to educate and qualify them. Use direct mail letters and postcards to drive prospects to your website, where you can then capture their opt-in email addresses to start email marketing campaigns.
Do the math! Start building and marketing to your prospect database now, and you'll meet your numbers by year-end. Lori Feldman is president of Aviva, a mailing list and database marketing and Internet consulting firm and an ACT! Software Certified Consultant. She is this year's Direct Marketer of the Year, awarded by the Direct Marketing Assn. of St. Louis. Reach her at http://www.aviva-aviva.com/FreeContactMagnet.html
Embroidery Machine Use by New Owners for Good Results
Many new owners of embroidery machines have lots of things to learn in order to get good results. I will try to suggest some of the best ways to learn what new...
Three Classic Hikes Abroad
Paul Scott Mower once said, "There is nothing like walking to get the feel of a country…" If you've ever contemplated going abroad to find your next trail, here...
Your Existing Clients - How a Few Clicks & Good Response Time Will Save You!
As you develop your company you will start to pick up clients online. This is when you will start seeing the rewards of your efforts but also when you will star...
The Benefits of Swedish Massage
Swedish Massage is the most common form of relaxation massage. In addition to relaxation Swedish Massage offers a host of health benefits to your body. Find out...
Your Health is Important Get Fit For Life
Choosing fitness equipment for your personal use can be a rather daunting task. You can't turn on the TV without seeing ads that promise or imply that if you bu...
Powerful Anti-Aging Secrets!
Many people have searched the world over looking for the fountain of youth. We all long for eternal beauty, free of wrinkles or the sagging of age. To answer ...
Green Tea And Weight Loss
Green tea is being touted as the latest weight loss miracle - but does it really work or is it all just hype? This article gives you the real facts about drink...
Trading Inspectors!
As sure as the spring flows at the Fountain of Youth, a home inspection provides a stream of knowledge to wash away the fears of homebuyers. But fear may be re...
Honeymooning on the Waves
Cruising down the river was always deemed by couples the ultimate romantic date. You can't be much more together alone than when you're separated from the rest ...
Blogs As A Marketing Tool
Blogs are more than personal journals. Learn how blogs can be used to market your site for less than $10 a month!
Residential Income Property Financing: Part 2 of 3
The second part of a three part guide to income property investing.
How To Create A House Buying Wish List For Your Dream Home
Looking to buy your first home? Here is the first of a series of tips to help you avoid the costly mistakes most first time home buyers experience: creating a ...
How to Bake Quick Bread: Apricot-Orange Nut
We love moist, fruity quick breads--and this is one of our favorites. It's nutty, flavorful, and full of wholesome ingredients. We would like to share this re...
The Importance of A Website Copywriter
Good writing is an essential part of the success of any website.
Borrow on a Budget: Getting the Cheapest Home Improvement Loans
Getting the cheapest home improvement loans isn't always easy.
Niche with Passion and Reap Your Financial Rewards
Finding a niche for your products and services that is small enough to eliminate competition, but big enough to offer enough business is the key to a successful...
Chaos, Children, and Chores
Ages of Your Children
Household chores are not just for older children. Children as young as two can learn to be organized. Toddlers can learn to put away their...
Kids Ceiling Fans
There are ceiling fans designed especially for children, which have designs made to appeal to the imaginations and interests of young ones. There is a wide sele...
Pergo Flooring Is Perfect For The Home or Office
Pergo flooring was invented more than 75 years ago, and has since become the leader in the laminate flooring industry. Pergo has been the leader in both design ...
Unfolding a Story from a First Sentence
A review of the opening pages of Meshugah, by Isaac Bashevis Singer, that explores how the story unfolds from its opening sentences.
Your Billboard is Showing
If you bought 50 billboards in your town and used
the Miss America approach, people would surely
know your name, too.
Cystic Acne Treatment
Cystic acne treatment is a treatment for a severe form of acne, known as cystic acne, which is characterized by painful acne cyst or nodules. The cysts are form...
Canine Good Citizen Dog Training
Do you have a dog that excels at all forms of dog training? Are you interested in taking your dog's dog training to the next step? Do you want something to sh...
The Competition Fallacy
If where you are today is the last place you would like to be, then this moment is your starting point...
|
Print this page