Professional Documents
Culture Documents
and
Sam Walton of Wal-Mart
.
A marketing plan does not have to be lengthy and complicated. Instead, it should
focus on the key elements for growing any business.
THE 5-MINUTE MARKETING PLAN
How to sell more
to your existing
customers.
How to find new
customers.
Our good friend and customer, Mr. Bob Hayes, is founder and Chairman of Radio Engineering, an
electronic component distributor. Bob has been using Infogroups database for more than 15 years.
Bob uses a "5-minute Marketing Plan" - a simple, effective approach to growing a business. Bob
focuses his efforts on four basic groups: large customers, active customers, inactive customers,
and new customers.
6
Too often, after we spend a lot of time and effort on acquiring customers, we lose them because of
neglect. It is critical to stay in touch with your existing customers if you want to keep their loyalty.
Bob Hayes segments his existing customers into two groups: large customers and active customers.
Then, he uses a separate contact strategy for each group.
Large customers get special treatment. The sales
staff contacts them every few weeks, and Bob
calls them personally. Plus, Bob visits them
at least once a year, to "wine and dine"
and discuss their needs.
For active customers, Bob makes sure
the sales staff is always in touch. They
call and email at least once a month, and
even visit most customers in person. Plus,
a group of telemarketing representatives
call them regularly to announce special
offers, closeouts, and new products. Bob uses
email to keep in touch with customers, and has had
great success too. And of course, Bob sends a catalog to
active customers at least six times a year.
The point is to keep your name in front of your existing customers all
the time. That way, they won't forget about you and go somewhere else!
WINNING THE LOYALTY
OF EXISTING CUSTOMERS
When a customer has not placed an order for over a year, they are considered "inactive." This
raises a red flag with Bob Hayes. After investing a lot of money to acquire new customers, he
doesn't want to lose them.
So, a special group of customer service representatives calls and emails the inactive customers
to find out why they stopped buying. If the customers are upset, they try to smooth things over.
And, sometimes even Bob calls the inactive customers to get their feedback.
The whole idea is to find out why these customers stopped buying, and do whatever is
necessary to get them back. It's a strategy that pays dividends!
INACTIVE CUSTOMERS: "WE MISS YOU!"
7
8
No matter how well you service your existing customers, you are bound to lose some of them
sooner or later. They might have moved, gone out of business, or simply stopped handling your
type of products. And in these cases, there's nothing you can do to keep them.
The solution is obvious: Find more new customers to replace the ones lost due to attrition. This is
where Infogroup helps Bob Hayes of Radio Engineering in his growth strategy.
NEW CUSTOMERS: THE KEY TO GROWTH
9
HOW TOFINDNEWCUSTOMERS:
Target New Homeowners & New Movers
60,000 New Homeowners &
300,000 New Movers Per Week
Bobs brother, who is in the furniture business, understands that new homeowners are an
absolute gold mine. Research proves that new homeowners spend a lot of money in the first 90
days. Whether its a newly married couple excited about their first house or a professional who is
moving up in the world, they are ready to create new relationships. New movers need products
and services like appliances, drapes, a grocery store, a dry cleaner, a doctor, daycare you name
it. And because they just moved, they havent established their spending habits or patterns yet.
The door is wide open. If you can reach them first, you can successfully win their business and
skyrocket your sales.
Services 99%
(new doctor, new beauty salon,
new dentist, new dry cleaner)
Furniture 60%
Window Coverings 57%
Bed/Mattress 33%
Electronics 52%
Kitchen Appliance 40%
(refrigerator, dishwasher)
Other Appliances 40%
(vacuum, dryer, washer, etc)
Source: Recent survey of new movers throughout the U.S.
New residents need:
10
HOWTOFINDNEWCUSTOMERS:
Target New Businesses
Theyre Making the Most
Buying Decisions Right Now!
Its like hitting the jackpot. New businesses are ready to spend money fast, and they aren't locked in
a relationship yet. If you can reach them before your competition does, bingo! Besides, with
millions of new businesses starting up each year, you'll never run out of prospects.
Computers
Insurance
Office equipment/furniture
Accounting and payroll services
Graphic design
Banking services
Bottled water and coffee services
Burglar and fire alarms
Cleaning services
Attorneys
New businesses are hot for:
Printing
Commercial real estate
Signs
Telephone systems and services
Credit card processors
Temporary help
Travel agents
Marketing and Public Relations
Charitable organizations
Investment advisors
Ask for monthly, weekly or even daily updates!
There are hundreds of opportunities for winning their business. Our researchers are collecting so
frequently, that the information is only a few weeks old. Now that's a hot lead!
4
5
,0
0
0
N
e
w
B
u
s
in
e
s
s
e
s
P
e
r W
e
e
k
!
11
HOW TO FIND
NEW CUSTOMERS
First, Bob uses Customer
Cloner (discussed in the last
section) to identify prospective
customers who match his
existing customer base.
Then, he orders prospects via
email. Bob also receives his
prospects via sales lead cards,
prospecting lists, mailing
labels, and DVD.
Mailing labels are used to
send a catalog to prospects
six times a year. With each
mailing, there is a special
offer on a particular
product. For example, when
Bob ran a special on surge
protectors, he sold them by
the truckload!
DVD, EMAIL
The information is easily
loaded into Excel, ACT,
salesforce and many other
software programs. It can
then be used for invoicing,
personalized mailings and
follow-up.
MAILING LABELS
12
On top of this, Bob's sales
staff uses the prospecting
lists to call potential
customers about the monthly
special. This works very well
as a follow-up to the mailing.
The bottom line is this: Bob
Hayes and Radio
Engineering are successful
because they try to find new
customers every way they
can. And with help from
Infogroup, they succeed.
Every month, Bob gets an
update of any changes to
his database, additions of
new businesses and
notification of any
prospects that have gone
out of business.
MONTHLY UPDATES PROSPECT LISTS
The sales lead cards are
divided by sales territory and
given to the sales staff for
prospecting. It's a great way to
sign up new customers. And our
Business Credit Reports allow
the sales staff to determine the
credit-worthiness of potential
customers.
UNLIMITED BUSINESS CREDIT REPORTS ONLINE
13
When Bob and his salespeople need to verify a business and check for stability, they use Credit.net
.
Credit.net offers complete business credit reports on 15.5 million U.S. & Canadian businesses, both
large and small. Use them to verify business existence, determine which prospects you should call on
first, locate other managers at the business, confirm their sales volume and employee size. The uses are
endless. Bob's credit managers, salespeople and purchasing agents all use Credit.net.
The Credit.net Difference
Credit.net reports provide unparalleled accuracy, comprehensive and complete information, simple
pricing with no hidden costs, unlimited access to the largest business database in the world, a built-in
E-Credit Manager to organize selected credit reports, and additional valuable business information,
such as similar local businesses and nearby businesses all online, available 24/7!
Go to Credit.net or Call (888) 274-5325
In-depth reports include:
Contact information
Corporate information
Key executives and titles
Primary & secondary lines of business
Legal and UCC filings
Pictures of the business
Credit rating score
Maps & directions
And more!
Maintaining a sales force today is very expensive. A good salesperson's time is worth over $200 an
hour so they can't waste that precious time scrambling to find prospects. They must spend every
hour in front of customers, selling.
It all boils down to knowing more about your potential customers. The more information you have,
the easier it is to find your target. Better yet, you can plan your sales presentation in advance. That's
where Infogroup can help. Our database can provide the information your sales force needs to be
efficient, productive hunters.
SALES STRATEGIES:
Using Information to Sell Smarter
One quick phone call to Infogroup is all it takes to order thousands of new leads for your sales
force. Or get your sales leads online 24/7 at www.infousa.com. Download or print instantly.
Most customers prefer to receive their prospects via email. Our sales lead cards and prospecting
lists are also convenient ways to distribute the leads among your sales people. Or, you can order
DVDs to load into your sales management software.
Once your salespeople have the leads, you may need to make sure they work them initially. Not
every lead will turn into a customer, of course. But as they close more and more, they'll turn into a
sales force of "tigers."
Keep feeding your tigers often with the hottest leads of new businesses, or new movers and new
homeowners. These new prospects dont have relationships yet and your tigers will get there
first.
HOW TO TURN YOUR SALES FORCE INTO TIGERS
14
SUPPORT YOUR DISTRIBUTION CHANNEL
Help Your Distributors and Manufacturers' Reps
Many business-to-business marketers use distributors and manufacturers reps, who play an
important role in the channel of distribution for goods and services.
While these sales "partners" are an essential part of the marketing process, too often the
manufacturers ignore them. They think that once they sign up a distributor, manufacturers' rep or
dealer network, they dont need to do any more. But those distributors, reps or dealers may be
selling products for 20 other companies. How do you make sure they are selling as much of your
products as possible? Help them meet their sales goals.
15
1. Profile their customers.
Call or go online to use
Quick Customer Cloner for
free. You will look like a
hero. The more ways you
can help your distributor, the
more loyalty they will have
for you.
16
2. Provide Them with
Sales Leads.
Once you have the profile, you can
provide lists of potential customers
to each distributor, rep or dealer.
Their sales force will then be more
productive in selling your products.
Infogroup can help you set up
Dealer Programs. We keep track of
the sales territories for each of your
resellers, and provide leads to them
on a regular basis. Every month you
can hand them new names of
potential customers. Well keep you
posted on all new developments,
monthly, weekly or daily you
choose! Dealer Programs are a very
effective way to keep the loyalty of
your distribution channel partners.
HOW TO HELP YOUR DISTRIBUTORS
3. Research any new
customer, supplier
or prospect
Using our Business Credit Reports,
you can help them quickly identify
their hot prospects, check the
legitimacy of a new vendor or supplier,
verify the existence of a business, and
even gain intelligence on their
competitors.
Your distributors, reps or
dealers will be able to make
informed business decisions
fast. Just call, fax us or go to
Credit.net
is an incredibly
efficient way to deliver a printed message. It's a model for the entire world. And those 330,000
mail carriers can act as your sales force, in those times when it's not possible to send a
salesperson to call on a potential customer.
THE POWER OF DIRECT MAIL
19
Just think about the costs. The average cost for an in-person sales call has soared to over $500. But
the mail carrier will deliver your sales message to many more people for less than a dollar, in most
cases.
Direct mail advertising is a huge industry. In this section, we will talk about how you can use direct
mail effectively, and put those 330,000 "salespeople" to work for you.
20
21
In the last chapter, we talked about using the traditional methods of distribution - a sales force,
distributors, reps, and dealers - to sell products and services. Direct mail can be a very effective
way to help this process, by generating leads for the salespeople. In fact, direct mail is one of the
most economical way of all to generate qualified leads.
How do you do it? The first step is knowing who to mail to. A profile of your potential
customers, as we have discussed, can be very helpful here. Or, you can call us and we'll discuss
the various lists available.
Next, what do you mail? Lead generation mailings are usually very simple, since they are
designed to get people interested, but not to "make the sale." There are three types of "packages"
that are commonly used:
An envelope mailing: Typically this includes a sales
letter, a brochure or flyer describing the product or service,
a unique phone number or website or a card to be filled out
and sent back for more information. This is the "lead" that
goes to the salesperson.
DIRECT MAIL FOR LEAD GENERATION
A self-mailer: Often a simple brochure that requires no
envelope and costs less to produce. It is usually printed on
heavier paper, and has a perforated reply card to be sent back.
A postcard: Even with postage rate increases, postcards
remain a highly affordable and effective way to reach your
prospects and customers. A postcard campaign is economical,
easy to measure and can be launched in a very short time.
The best benefit of a postcard is, unlike a letter, theres
nothing to open.
In all three cases, the purpose of a lead generation mailing is to get people interested enough to
call, email, visit your website or send back the reply card. The message should include some kind
of offer, so they will call or write quickly.
Once a lead comes back in, it is very important to follow up on it right away, before the prospect
has a chance to "cool off." Many programs fail because the leads don't get followed up on. Make
sure you have a system to get leads to the salespeople quickly, and make sure they follow up while
the leads are fresh.
22
Selling products and services with direct mail is a multi-billion-dollar industry, involving
thousands of companies that use catalogs. It's different than lead generation mailings,
because it's a "one-step" approach that does not require a sales visit to close the order.
Direct mail selling is used for small-ticket items, or products that are familiar to the
customers and will be ordered without sales people having to "pitch" them. They simply call
a toll-free number or go online and place their order.
In order to sell products through the mail, the catalog or mailer must contain more product
information than a lead generation mailing. You should give the customer all the facts
needed to make a buying decision, so that they can simply call or easily order online. Also, a
satisfaction guarantee will help generate more orders by giving the customer more
confidence.
HOW TO SELL WITH DIRECT MAIL
23
k
i
l
m n
ik ii
ih
s
r
o
p
il
im
in
io
ip
ir is
kh
ki
kk
kl
km kn
24
More and more businesses and consumers prefer to shop by catalog or online for their
business and personal needs. It takes less time to order by phone or online than to deal with
a salesperson, and often they can get a better price. Direct mail selling could represent a
great opportunity for you, as well.
Once you start looking into direct mail, reading the literature and talking to people... you will hear
some "myths" that can be misleading. Here are a few you should be careful about:
MYTH 1: "You should get at least a 1% response, or the mailing
was bad."
The fact is, response rate alone does
not tell you whether a mailing was
successful. What matters is, did you
make money? You need to look at the
return on your investment in the
mailing. Here's a simple example:
As this example shows, just looking at the
percent response is not enough. The "1%
Response Myth" came from consumer
mailings, where the average order size was
$20-30. In business-to-business mailings, the
larger average order means that a lower
response rate can still be very profitable.
WAS YOUR DIRECT MAIL CAMPAIGN
A SUCCESS OR FAILURE?
Now lets look at the numbers
and get a true picture of this
mailing:
25
MYTH 2: "I got back over 100 'undeliverables' on my 2,000-piece mailing.
That list was terrible!"
Lets face it: Lists are not perfect. In this case, the undeliverable
rate was about 5%, which is really
quite good. Businesses change
every few minutes. Plus, at
any given time, nearly 14% of
the population is moving.
Chances are, you will receive
a small percentage of
undeliverable addresses,
out-of-date contact names
and disconnected phone
numbers, especially in
industries with high levels
of turnover.
Once, a customer who
complained about the
undeliverables was asked,
"But did you get any orders?"
He paused, then replied: "Well,
yes, I got a lot of orders. I spent
about $1,000 on the mailing, and
we have almost $20,000 in orders
so far."
Then, when asked if he still thought
the list was terrible, he laughed...and
placed another order!
The point is simple: Judge a list by
the results. Did you get orders?
Did you generate enough leads?
Undeliverables are a fact of direct
mail don't let them take your
attention away from the real issue.
If the list got the desired results,
it was a good list... despite the
undeliverables.
26
MYTH 3: "I sent out 1,500 mailers and only got 20 calls.
That list didn't work."
In this case, we need to focus on the purpose of the mailing. Was it designed to generate inquiries
or orders? What is the average order size? What is the typical close rate on inquiries?
In this example: Let's assume the sales force will close 20% of those 20 calls within 3 months.
That's only 4 new customers. BUT what if an average customer spends over $10,000 per year,
and you have a 30% profit margin? Those 4 new customers are worth $12,000 in profit all from
a 1,500-piece mailing.
Again, it's easy to be misled if you don't work the numbers. A simple cost/benefit analysis can tell
you whether that mailing was a success or a failure.
27
28
Keep your message simple. You only have a few seconds to get
your prospects' attentions do it with a simple, powerful message
that clearly tells what you're selling and the benefits. Avoid too
many details, especially on the cover of a brochure.
Include a clear call to actions. Lay out exactly what you want the recipients to do
do you want them to call you, visit your website, fill out an enclosed response form, or send
you an email? Design the call to action so its clear and easy to follow.
DO:
DONT:
Direct Marketing Association
1120 Avenue of the Americas
New York, NY10036-6700
Phone: 212-768-7277
www.the-dma.org
Infogroup mails out millions pieces of mail each year we really "practice what we preach" in our
own marketing efforts. And over the years, we have learned a few things about direct mail
advertising that we'd like to pass along. Here are some basic "dos and don'ts":
DIRECT MAIL DOS AND DONTS
information including:
National Change of Address (NCOA
Link
), ZIP+4
, carrier route,
& delivery point validation (DPV
)
Bankruptcy records & legal filings
New business registrations & incorporations at the county & state level
What Does Our Database Include?
Business name
Full address
Type of business
(Yellow Page title/ SIC Code)
ZIP Code
, including ZIP+4