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| Contents: |
| Competitive
Intellegence: Resources on the Web, Sharon Locken, President, Locken Information. More Sales and Profits from Existing
Customers.
Cay Villars, President, Market Value Concepts.
Importance of Brand: Research
Products. Bill Kelly, President, BioInformatics.
Consolidation:
New Marketing Strategies in Research Products. An interview with Bruce Lehman,
President, Lehman Millet, Inc.
BioTactics Parners program -
how it benefits your business.
New Job Postings |
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What's your Current Customer
IQ™? Maximizing sales and profits using your current customer base. |
| by Cay Villars, Market Value Concepts |
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 his is the first in
a series of excerpts from MVC's Marketing and Profit Strategies Training Seminars.
These articles will briefly review ways of monitoring customer activity and maximizing
sales and profits within an existing customer base. The current article outlines the key
reasons to focus more of your attention on your existing customer database and introduces
some basic strategies for evaluating the value of your current customers.. Future articles
will discuss developing and using customer databases most effectively.
here are
only three ways to increase your bottom line: win new customers, sell more to existing
customers, and sell more profitably to existing customers. Two out of three options
involves existing customers, and yet many companies with an established customer base
invest the greatest portion of their marketing activity winning new customers. This is
even more surprising given that most marketers know that it costs more to win a new
customer than it does to sell to an existing customer.
What are some of the key reasons to develop a highly sophisticated customer
database and re-allocate more of your marketing effort to your marketing to that customer
base?
 mart marketing is getting and
keeping the most profitable customers. A well developed and maintained customer
database is critical to this effort because current customers are:
- More willing to buy new products because they already know
you. There are studies in many markets that that support this position. In
this issue of BioTactics in Action see the article
on the value of brand equity.
- The fastest and most reliable source of sales on a new product. (It is surprising how
many companies will overlook targeted mailings to their existing customer base, or do not
keep sufficient customer records and must buy mail lists for each new product.) The return
to cost ratio on direct mailing to existing customers in a well defined database can be
outstanding when compared to broad based advertising or purchased mail list.
- Willing to work with you on structuring their buying patterns so that they buy more
economically/cost effectively from you (they set up standing orders, blanket orders, or
just share their approximate buying volume so your company can do better production
planning. Improved production planning will reduce your cost of sales and increase your
profit.)
- Provide a ready source of competitive information and information on
potential new products.
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